Aluminium composite panels (ACPs) have become a key element in modern architecture due to their versatility, durability, and aesthetic flexibility, and Indian ACP manufacturers are playing a crucial role in pushing the construction material out into the global market.
Euro Panel and Products, one of the leading manufacturers of ACP in India, recently made an INR 30 crore investment to integrate an advanced coating line with a capacity of 750 tonnes monthly, which will help it decouple from Chinese supply chain dependencies, where coated coils were imported from China.
In an interview with Invezz, Rajesh Shah, chairman and MD at Euro Panel, anticipates 2025 to contain strong tailwinds for ACP demand in India, with the government of India’s ambitious infra push, the Smart Cities Mission, and revival in commercial real estate sector.
However, there are also headwinds in the form of volatility in alumina and aluminium prices, as well as the imposition of tariffs by the US on steel and aluminium imports.
Shah says the company’s recent backward integration initiatives give it greater control over raw material sourcing, cushioning it from volatility in commodity prices.
As far as impact of tariffs go, Shah says, “While we anticipate short-term pricing pressures due to tariffs, our diversified supply chain and strong global partnerships provide us with a strategic advantage.”
Edited excerpts:
Infrastructure push, commercial real estate to drive demand for ACP in 2025
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Invezz: What is your forecast for the ACP market in 2025? Which sectors are expected to drive demand for ACP?
The ACP market in 2025 is poised for remarkable growth, fuelled by India’s rapid urbanization and the government’s ambitious infrastructure push.
With large-scale metro rail expansions, airport modernisations, and railway station overhauls gaining momentum, the demand for high-quality ACP solutions is expected to surge.
Additionally, the commercial real estate sector is witnessing a strong revival, with corporate offices, IT parks, and retail spaces investing heavily in premium façade solutions to enhance aesthetic appeal and sustainability.
At Eurobond, we anticipate a significant industry shift towards advanced, fire-retardant, and eco-friendly ACP products, in line with the tightening of safety and environmental regulations.
The government’s Smart Cities Mission, coupled with increasing adoption of ACP in luxury residential projects and retail branding, will further accelerate demand.
With these strong tailwinds, 2025 promises to be an exciting and transformative year for the ACP industry.
Invezz: Do you have any plans to expand manufacturing capacity or set up new plants in India or abroad for both ACP and ZCP?
Eurobond has always taken a forward-thinking approach to capacity expansion.
Our recent strategic backward integration and significant capacity enhancements have strengthened our manufacturing capabilities, ensuring we stay ahead of market demand.
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Our current infrastructure is designed to scale efficiently, allowing us to meet growing industry needs without any immediate requirement for additional plants.
However, as a dynamic and growth-driven company, we continuously assess global and domestic market trends.
With increasing international interest in high-quality ACP and ZCP solutions, we are actively exploring strategic investments that can enhance our global footprint.
Our focus remains on strengthening our supply chain, optimizing production efficiencies, and maintaining a competitive edge through cutting-edge innovation.
If market conditions present viable opportunities, we are prepared to expand further in key international markets to reinforce our leadership position.
Invezz: Are you looking at international growth markets, or is domestic demand the primary focus?
Both domestic and international markets are integral to our growth strategy.
India is currently undergoing an infrastructure revolution, with rapid urban expansion, commercial developments, and government-backed projects fuelling an unprecedented demand for ACP solutions.
As a leading player in the industry, we are deeply committed to supporting this domestic boom by delivering innovative and high-performance products.
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At the same time, global demand for premium ACP and ZCP solutions is on the rise, and Eurobond is actively expanding its international footprint.
We have already established strong relationships in multiple global markets and are leveraging India’s increasing competitiveness in the export sector.
With China’s recent removal of its VAT rebate on metal exports, Indian ACP manufacturers now have a strategic pricing advantage, making our products more competitive worldwide.
This shift opens new doors for us to capture a larger share of the global market while reinforcing our domestic stronghold.
Invezz: Alumina prices hit record highs in 2024. How did it impact your business? Aluminium is expected to be in deficit in 2025 as well. How do you plan to tackle the cost fluctuations and ensure profitability?
The volatility in alumina and aluminium prices has undoubtedly posed a challenge for the entire industry.
However, Eurobond has always operated with a proactive risk-mitigation strategy.
Our recent backward integration gives us greater control over raw material sourcing, reducing our reliance on fluctuating global supply chains.
Additionally, we have diversified our supplier base and implemented stringent cost optimization measures across our production processes.
Operational efficiency remains at the core of our strategy.
By leveraging advanced manufacturing technologies, lean production methods, and alternative material innovations, we have successfully minimized cost escalations while maintaining our commitment to quality.
Looking ahead, we continue to invest in process improvements and explore alternative material solutions that will help insulate our business from commodity price swings, ensuring long-term stability and profitability.
Impact of Trump Tariffs on steel and aluminium imports
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Invezz: How do you see Trump’s tariffs on steel and aluminium imports impacting your supply chain and business in the US, India, and other countries?
Global trade policies, including tariffs, have always played a significant role in shaping supply chains, and the recent developments under the Trump administration will certainly influence global market dynamics.
However, Eurobond has built a highly resilient and flexible sourcing strategy that allows us to swiftly adapt to changing economic and geopolitical conditions.
While we anticipate short-term pricing pressures due to tariffs, our diversified supply chain and strong global partnerships provide us with a strategic advantage.
For our US clients, we are continuously optimizing supply routes and exploring alternative trade agreements to ensure seamless operations.
Meanwhile, in India and other key markets, we are strengthening our domestic ecosystem to reduce dependencies and enhance supply chain stability.
By proactively adapting to global trade shifts, we remain confident in our ability to navigate these challenges while maintaining steady growth.
On competition with China
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Invezz: Chinese ACPs are often cheaper—how is Eurobond tackling the competition?
Chinese ACP manufacturers have historically enjoyed a pricing advantage due to government subsidies and tax incentives.
However, the recent removal of China’s VAT rebate on metal exports has led to an estimated 13% cost increase for Chinese manufacturers, significantly altering the competitive landscape.
This change has made Indian exports far more competitive, and Eurobond is well-positioned to capitalize on this shift.
Beyond pricing, our core differentiators lie in product quality, durability, and adherence to stringent fire safety standards—areas where we consistently outperform low-cost imports.
We also prioritize innovation, customer-centric solutions, and superior after-sales service, ensuring our clients recognize the long-term value of choosing Eurobond.
Our strong brand reputation, combined with our commitment to sustainable and high-performance ACP solutions, enables us to maintain a competitive edge and drive continued growth in both domestic and international markets.
(USD 1=INR 87.10)
