Indian Appliance Makers Switch to Aluminum Amid Copper Price Surge
Indian appliance makers are shifting to aluminum and steel in response to soaring copper prices. The cost of producing air conditioners has increased from Rs 700 crore last year to approximately Rs 940 crore this year, according to PG Electroplast. To mitigate the impact of rising commodity costs, companies like LG Electronics India and Blue Star are redesigning products and sourcing materials locally.
The increasing use of copper-clad laminate and specialty chemicals in printed circuit boards has led to a severe shortage of raw materials. Suppliers have issued multiple price hikes since August 2025, with some inputs climbing by over 200 percent in six months. This crisis is affecting PCB manufacturers, who account for a significant portion of the electronics value chain.
The Indian government's efforts to promote local sourcing and domestic production are also having an impact on the industry. Companies are adapting to these changes by retooling factories and redesigning products to reduce material costs. However, this shift requires careful analysis as it involves factors like electrical conductivity, thermal performance, corrosion resistance, and manufacturing costs.
The electronics value chain is facing significant challenges due to supply-chain disruptions, price increases, and the need for companies to adapt to changing market conditions. Procurement teams are now considering aluminum substitution as a viable option to reduce material costs. However, this decision requires thorough analysis of various factors before it can deliver savings.