However, the company faced challenges during its early years, experiencing under-utilization of capacity, raw material shortages, and labor strikes, particularly in 1985-86. Although there was some improvement in the following years, difficulties resurfaced in 1988-89 due to increased raw material costs, reduced selling prices, and higher excise duties, leading to continuous losses. Additionally, intermittent and inadequate supply of aluminium ingots exacerbated the situation.
Despite these setbacks, Sudal Industries' products found widespread applications across diverse sectors such as agriculture, transportation, electronics, defense, and more. The company boasted a clientele including prominent names like BHEL, TELCO, L & T, Philips, Siemens, and others. Moreover, Sudal Industries entered into a technical collaboration with Reynolds (Europe), a leading global producer of aluminium and its derivatives, aiming to enhance efficiency and reduce costs.
In 1990-91, the company diversified its operations by venturing into downstream products, including irrigation and sprinkler systems, drip irrigation systems, and value-added products like heat exchanger tubing and truck body kits. Sudal Industries also developed extruded sections for sophisticated end-users like BARC and HAL, while engaging in downstream activities such as manufacturing fabricated components to enhance the value proposition of its extruded products.
Furthermore, in 2005, the company expanded its manufacturing capacity by installing a second extrusion press with a capacity of 900 tons, sourced domestically.