Hindalco has stopped producing extruded aluminium and declared force majeure to customers due to a gas supply shortage.
The extrusion segment accounts for less than 0.1% of Hindalco’s total operations, with other aluminium activities continuing normally.
The crisis comes amid LNG supply disruptions linked to the West Asia conflict, with Qatar being a major supplier to India
Hindalco Industries has halted the production of extruded aluminium due to a gas shortage following the escalation of the West Asia crisis, Reuters reported citing sources and a company notice. The Aditya Birla Group-owned company declared force majeure to all its extruded aluminium customers on March 11.
In the notice, Hindalco said the decision followed a force majeure declaration by certain gas suppliers and described it as a “routine business intimation regarding a potential supply disruption in a segment of the extrusions business.” The company clarified that aluminium extrusions account for only a small portion of its overall production capacity, and the potential impact is expected to be limited to less than 0.1% of its total operations.
2 March 2026
Get the latest issue of Outlook Business
“All other downstream and upstream operations, including primary aluminium, continue to operate normally, supported by captive power and alternate energy arrangements,” Hindalco said.
Extruded aluminium is widely used in sectors such as construction, electric vehicles, electronics, and solar panels. Any disruption in supply could therefore affect downstream manufacturing segments that rely on aluminium components.
The gas shortage comes amid rising geopolitical tensions in West Asia. Following drone and missile attacks on its facilities, Qatar has halted production of liquefied natural gas (LNG) at state-owned QatarEnergy. India imports roughly 40–47% of its LNG requirements from Qatar, making the disruption particularly significant for energy-intensive industries.
“Hindalco has taken and continues to take all reasonable steps to mitigate the impact of the force majeure event,” the company said in the notice. However, its aluminium smelters continue to operate normally, the Reuters report added.
India is currently grappling with one of its most severe gas supply disruptions in decades after the closure of the Strait of Hormuz following military strikes on Iran by the US and Israel. The shipping route is a critical energy corridor for global oil and gas trade.
Amid tightening supplies, the Indian government has cut gas allocations for commercial and industrial use while prioritising household consumption to prevent shortages of cooking gas. The curbs are expected to put pressure on several industries that depend heavily on natural gas for their operations, including metals, fertilisers, and petrochemicals.
