Final Summer Training Report On Supply Chain Mangement For The Mba Student

RAJIV ACADEMY FOR TECHNOLOGY & MANAGEMENT
SUMMER TRANING PROJECT REPORT On A FRAMEWORK OF SUPPLY CHAIN MANAGEMENT

Submitted for the Partial fulfillment towards the award of the degree in MASTER OF BUSINESS ADMINISTRATION
Of U P Technical University, Lucknow
Submitted By
Akanksha Tripathi Roll Number: 0817370002 Session 2009-10
Under the Guidance of

Dr. Vikas Jain Department of Management
PREFACE
In its broadest sense summer training project report is necessary to make the students of business school familiar with the industrial environment prevailing in the world. To be competitive and work aggressive, students need to know the policies, procedures and the trends going on in the present industrial world. The purpose and objective of this project report is to find out the
The report is hard intends to reflect some of the basic covered under the SUPPLY CHAIN MANAGEMENT of HINDALCO, EXTRUSIONS a first truly MNC of India. The total aspects have been formulated and presented on the basis of ideas and information gathered by this investigator during a shorter span of project training i.e. an important portion of the MBA curriculum leading to an opportunity for the participant to have a practical exposure of the contents under the topic beyond what has already been studies during the class-room interaction. This report has been written in response to a comprehensive study, conducted on the SUPPLY CHAIN MANAGEMENT of HINDALCO INDUSTRIES LIMITED. The report mentions and evaluates the various aspects, pertaining to the distribution channel of the company. After a thorough analysis of the various facts stand figures, a set of recommendations has been given at the end of the report. Accuracy and precision has been given the prime consideration, while compiling the report, are authoritative and authentic. We are confident that anyone who goes through the report will learn how much we have learnt & benefited during this period.
HINDALCO INDUSTRIES LTD.
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ACKNOWLEDGEMENT
At the onset I must bow down in reverence to the almighty that blessed us with the understanding & prevalence that is needed in this kind of project report.
With great pleasure I express my heartiest thanks to Dr. Mahesh P Kumar (Officiating Director RATM), Mr. Vikas Jain (PC M.B.A. Deptt.). I would like to extend my sincere thanks to Mr. Vikas Jain [Lecturer Deptt. of Management Studies], without whose unrelated support and guidance, this project would just not have been possible. I am very thankful for his invaluable guidance, support, and affable & friendly nature. He/She guided me at each and every stage of project. I am equally indebted to my friends who always inspired and motivated me to do something better through out this project. At last I would like to extend my sincere thanks to all the respondents to whom I visited for giving their support and valuable information, which helps me in completing my project work.
AKANKSHA TRIPATHI
M.B.A.III Sem
Roll No. 0817370002
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STUDENTS DECLARATION
I, Akanksha Tripathi, hereby declare that this work entitled A Framework of supply chsin managment is the result of summer training under taken. The findings and conclusions expressed in this report are genuine, authentic and are for academic purpose. Any resemblance to earlier research work is purely coincidental.
AKANK SHA TRIPATHI

M.B.A. VI Sem
Roll No. 0817370002
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TO WHOMSOEVER IT MAY CONCERN

Thi is to certify that Mr./MsAkanksha Tripathi S/o, D/oVed Prakash Tripathi. Roll No0817370002....... student of MBA III Semester (Batch 2009-10) of this institution has done summer training project report titled A Framework of supply chain management ... The project has been prepared and submitted by the above named in partial fulfilment of the Master of Business Administration degree Programme (MBA) as per the requirement of U. P. Technical University, Lucknow. Date : Place : Mathura (Dr. Mahesh P. Kumar) Officiating Director
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TABLE OF CONTENTS
Preface... Acknowledgement Students Declaration... Certificate .
1.0 Introduction to the Topic... 2.0 Introduction to the Organization/Industry 00
00
3.0 Objectives of the Study. 4.0 Scope of the Study 5.0 Literature Review......
6.0 Research Methodology 00 6.1 Universe of the study. 00 6.2 Sample Size............ 00 6.3 Sampling Method... 00 6.4 Tools for Data Collection... 00 7.0 Data Analysis & Interpretation. 8.0 Findings.. 9.0 Recommendations & Suggestions. 10.0 Conclusion... 00 00 00 00
00 00 00
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10.1 Limitations of the Study.. 10.2 Scope for further research.
00 00
Bibliography......
Appendix [Questionnaire]...
i
ii
LIST OF TABLE
S. No. TABLE No. PAGE No. REFRENCE DETAILS
LIST OF CHARTS
S. No. TABLE No. PAGE No. REFRENCE DETAILS
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The Winning organizations will be those who regularly outperform competition. They have a stable consistent strategy. A stable strategy does not mean a static strategy, rather it means following a brand philosophy and continuous improvement in how strategy is manifested, incorporating the expected market requirements and the customer needs. HINDALCO INDUSTRIES LTD. Page 4
(.KUMAR MANGALAM)
ABOUT ADITYA BIRLA GROUP

CHAIRMAN: Shri Kumar Mangalam Birla
People build companys success; where people grow, profits grow.
Group vision
To become a premium conglomerate with clear business focus at each corporate level.
Group mission
To deliver value for our customer, shareholders, employees and society at large.
Group Philosophy
Reset on four pillar
::Customize
:: People-size ::Strategize ::Institutionalize
HINDALCO INDUSTRIES LTD. Page 4
Group values
::Integrity ::Speed ::Seamlessness ::Passion
INTRODUCTION TO GROUP
I.1 ADITYA BIRLA GROUP
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A US $28 billion corporation with a market cap of US $31.5 billion and in the league of Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations. The Group operates in 20 countries: India, Thailand, Laos, Indonesia, Philippines, Egypt, China, Canada, Australia, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea. Globally the Aditya Birla Group is: :: A metals powerhouse, among the world's most cost-efficient Aluminium and Copper producers. Hindalco-Novelis from its fold, is a Fortune 500 company. It is the largest Aluminium rolling company. It is one of the three biggest producers of primary Aluminium in Asia, with the largest single location copper smelter. :: :: :: :: :: :: No.1 in viscose staple fibre The fourth largest producer of insulators The fourth largest producer of carbon black The 11th largest cement producer globally Among the world's top 15 BPO companies and among India's top three Among the best energy efficient fertilizer plants In India: :: :: :: :: :: :: A premier branded garments player The second largest player in viscose filament yarn The second largest in the chlor-alkali sector Among the top five mobile telephony companies A leading player in life insurance and asset management Among the top three supermarket chains in the retail business
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Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting. Beyond business the Adyta Birla Group is: :: Working in 3,700 villages :: Reaching out to seven million people annually through the Adyta Birla Centre :: Focusing on: health care, education, sustainable livelihood, infrastructure and espousing social causes :: Running 41 schools and 18 hospitals
Fact file The world's largest aluminum rolling company World leader in viscose staple fiber One of the biggest producers of primary aluminum in Asia Fastest-growing copper company in Asia The Adyta Birla Group is the 11th largest cement producer in the world. Fourth largest producer of carbon black in the world One of the lowest-cost producers of aluminum in the world ISO 9001:2000 and 14001 certified
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ADITYA BIRLA GROUP
key products and brands
Locations Hindalco Industries Ltd.
Capacities
Country
Alumina Chemicals
Renukoot (Uttar Pradesh), Muri (Jharkhand), Belgaum (Karnataka)
1,160,000 tpa
India
Primary Aluminium
Renukoot, Hirakud (Orissa), *Taloja
489,000 tpa
Extrusions Rolled products
Renukoot, Alupuram Belur(West Bengal), Taloja(Maharashtra), Renukoot, Mauda(Maharashtra)
27,700 tpa 200,000 tpa
Wire rods Aluminium foil
Renukoot, Alupuram(Kerala) Silvassa (Dadra & Nagar Haveli), Kalwa(Maharashtra)
64,400 tpa 11,000 tpa
Aluminium Wheels
Silvassa (Dadra & Nagar Haveli)
300,000 pcs Page 4
*For Taloja recycling plant Indal (subsidiary of Hindalco) Foil Rolling Kollur (Andhra Pradesh) 4,000 tpa
Locations
Capacities
Country
Birla Copper (Hindalco Industries Ltd.) copper cathodes continuous cast copper rods Sulphuric acid phosphoric acid gold (Birla Gold) silver (Birla Silver) DAP and complexes (Birla Balwan) Dahej (Gujarat) 500,000 tpa 97,200 tpa 1,670,000 tpa 180,000 tpa 15 mt 150 mt 400,000 tpa India
Hindalco Industries Ltd. (Aditya Birla Minerals Resources Pty. Ltd.) copper cathodes copper in concentrate Power Nifty mines Mt. Gordon mines Mt. Gordon mines 25,000 tpa 40,000 tpa 28mw Australia Australia Australia
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Key products and brands
Capacities
Country
Grasim Industries Ltd. white cement grey cement Birla White UltraTech Cement (formerly Birla Plus), Birla Super UltraTech Cement Ltd. ordinary Portland cement, Portland blast furnace slag cement, Portland pozzolana cement and grey Portland cement 17 mtpa 475,000 tpa 13.12 mtpa India
Capacities
Country
Aditya Birla Nuvo Ltd (Hi-Tech Carbon) carbon black Birla Carbon 230,000 mtpa India
Thai Carbon Black Co. Ltd. carbon black Birla Carbon 220,000 mtpa Thailand
Alexandria Carbon Co. S.A.E carbon black Birla Carbon 285,000 mtpa Egypt
Liaoning Birla Carbon Co. Ltd. carbon black Birla Carbon 55,000 mtpa China
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key products and brands Pulp
Capacities
Country
Grasim Industries Ltd. rayon grade pulp AV Cell Inc. softwood / hardwood pulp 122,500 tpa AV Nackawic Inc. dissolving pulp Fibre Grasim Industries Ltd. viscose staple fibre (VSF) Birla Viscose 270,100 tpa India 189,000 tpa Canada Canada 70,000 tpa India
Thai Rayon Public Company Ltd. VSF Birla Viscose 110,000 tpa Thailand
PT Indo Bharat Rayon VSF Birla Viscose 155,000 tpa Indonesia
Thai Acrylic Fibre acrylic fibre Texlan 100,000 tpa Thailand
Alexandria Fiber Company, S.A.E acrylic fibre Yarn Aditya Birla Nuvo Ltd. viscose filament yarn Ray One 16,400 tpa India 18,000 tpa Egypt
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Aditya Birla Nuvo Ltd. (Jaya Shree Textiles) flax yarns worsted yarns 15,340 spindles 25,548 spindles PT Indo Liberty Textiles rayon yarn, polyester, blended yarn PT Elegant Textile Industry rayon, polyester, rayonpolyester blended spun yarn PT Sunrise Bumi Textiles viscose rayon, polyester viscose, spun polyester, polyester combed cotton, anti pill yarn, sewing thread, high twist yarn, reverse twist yarn, flame retardant yarn, rayon cotton blended yarn, micro denier polyester rayon yarn, rayon silk yarn, slub yarn, lycra core spun yarn Indo Phil Acrylic Manufacturing Corporation high bulk acrylic dyed yarn, non-bulk acrylic dyed yarn Indo Phil Textiles Mills Inc poly viscose blended yarn, poly cotton blended yarn, polyester yarn Indo Phil Cotton Mills Inc cotton yarn 10,000 mtpa Indo Thai Synthetics Co. Ltd. synthetic yarns Fabrics HINDALCO INDUSTRIES LTD. Page 4 98,568 spindles Thailand Philippines 13,500 mtpa Philippines 3,700 mtpa Philippines 89,376 spindles Indonesia 168,088 spindles Indonesia 45,120 ring spindles Indonesia India
Grasim Industries Ltd. fabric - polyester, viscose, silk and wool blends Uncrushables, Ice Touch, Purista, and CleanFab 146 looms 18 million meters India
Aditya Birla Nuvo Ltd. Pure Linen and Linen Blends Flame Retardent Fabrics Pyroguard Branded apparel Linen Club 107 looms India
Aditya Birla Nuvo Ltd. (Madura Garments) Ready-to-Wear Garments Louis Philippe, Allen Solly Van Heusen, Peter England India
Key Products and Brands
Capacities Indo Gulf Fertilisers Ltd.
Country
Urea
Birla Shaktiman
864,600 mt
India
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Birla Copper (Hindalco Industries Ltd.) DAP/NPK complexes Birla Balwan 400,000 tpa India
Capacities Grasim Industries Ltd.
Country
Caustic Soda
258,000 tpa Aditya Birla Nuvo Ltd.
India
Caustic Soda Liquid Chlorine Hydrochloric Acid
82,125 tpa 50,340 tpa 5,475 tpa Tanfac Industries Ltd.
India
Aluminium Fluoride Hydrofluoric Acid
17,000 tpa 17,000 tpa
India
Bihar Caustic and Chemicals Ltd. Caustic Soda Lye Liquid Chlorine Hydrochloric Acid Sodium Hypochlorite Compressed Hydrogen 92,750 mt 65,785 mt 29,040 mt 1,800 mt 17,42,400 nm3 India
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Aluminium chloride Captive Power Plant
12000 tpa 30 mw
Aditya Birla Chemicals (Thailand) Ltd. Sodium Triployphosphates, Tetrasodium Pyrophosphate, Sodium Hexametaphosphate, Sodium Acid Pyrophosphate, Monosodium Phosphate, Disodium Phosphate, Trisodium Phosphate, Speciality Phosphates Epoxy Resins (bis-a and bis-f), Diluents, Curing Agents and Allied Products Sodium Sulphite, Sodium Metabisulphite, Sodium Bisulphite Epichlorohydrin Caustic Soda Chlorine Polyphos Epotec Birlasulf-SS, Birlasulf-SM, Birlasol 35 Thailand
Thai Peroxide Co. Ltd. Hydrogen Peroxide, Peracetic Acid, Calcium Peroxide Encare, Ecare, Aquax, Birlox 5, Birlox 12, Ocare HINDALCO INDUSTRIES LTD. Page 4 15,000 mtpa Thailand
PT. Indo Raya Kimia Carbon Disulfide 50,000 tpa Indonesia
Capacities
Country
Essel Mining & Industries Ltd Iron and Manganese Ore 15 million tons India
Capacities
Country
Pan Century Surfactants Inc. Fatty Acids Fatty Alcohol Glycerin 55000 mtpa 30000 mtpa 6500 mtpa Philippines
Capacities HINDALCO INDUSTRIES LTD.
Country Page 4
Aditya Birla Insulators Insulators 38,800 tpa India
Capacities
Country
PSI Data Systems Ltd. (subsidiary of Aditya Birla Nuvo Ltd.) IT solutions (banking, finance and insurance) India
Capacities
Country
Aditya Birla Minacs Worldwide Limited (subsidiary of Aditya Birla Nuvo Ltd.) BPO / ITES 9,089 seats India
Capacities
Country
Birla Global Finance Company Ltd. Financial Services Birla Sun Life Insurance Company Ltd. Insurance Solutions Birla Sun Life Asset Management Company Ltd. Mutual Funds Birla Sun Life Distribution Company Ltd. HINDALCO INDUSTRIES LTD. Page 4 India India India
Investment Planning Services Birla Insurance Advisory Services Ltd. Non-Life Insurance Advisory Services
India
India
Key Products and Brands Idea Cellular Cellular Services Idea
Capacities
Country
21 million subscriber base
India
Capacities
Country
Aditya Birla Retail Limited Multi-Format stores 170 retail outlets India
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HINDALCO OVERVIEW INTRODUCTION Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group, is an industry leader in Aluminium and copper. A metals powerhouse with a consolidated turnover in excess of US$ 14 billion, Hindalco is the world's largest Aluminium rolling company and one of the biggest producers of primary Aluminium in Asia. Its Copper smelter is the worlds largest custom smelter at a single location.
Established in 1958, Hindalco commissioned its Aluminium facility at Renukoot in Eastern U.P. in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened the company's position in value-added Alumina,Aluminium and copper products, with vertical integration through access to captive copper concentration.
In 2007, the acquisition of Novelis Inc. a world leader in Aluminium rolling and can recycling marked a significant milestone in the history of the Aluminium industry in India. With Novelis under its fold Hindalco ranks among the global top five Aluminium majors, as an integrated producer with low-cost alumina and Aluminium facilities combined with high-end rolling capabilities and a global footprint in 12 countries outside India. Its combined turnover of US$ 14 billion, places it in the Fortune 500 league.
Hindalco in India enjoys a leadership position in Aluminium and Copper. The Company's Aluminium units across the country encompass the entire gamut of operations from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions, foils and alloy wheels, along with captive power plants and coal mines. The Birla Copper unit produces copper cathodes, continuous cast copper rods along with other by-products, including gold, silver and DAP fertilizers. All of Hindalco's units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. The Renukoot and Taloja units have gone a step further with an Integrated Management System (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one Business Excellence Model.
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The company has been accorded the Star Trading House status in India. Its aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the LME (London Metal Exchange), while its copper quality standards are also internationally recognized and registered on the LME with Grade A accreditation. Grade A accreditation. Aluminium Hindalcos major products include Standard and Speciality Grade Aluminas & Hydrates, Aluminium Ingots, Billets, Wire Rods, Flat Rolled Products, Extrusions, Foil and Alloy Wheels. The integrated facility at Renukoot, (Uttar Pradesh) houses an Alumina Refinery and an Aluminium Smelter along with facilities for production of semi-fabricated products, namely, Redraw Rods, Flat Rolled Products and Extrusions. The plant is backed by a co-generation plant and a 742mw captive power plant at Renusagar to ensure continuous and consistent supply of power for smelter and other operations. The aluminium alloy wheels plant is located at Silvassa (Dadra and Nagar Haveli). Hindalco was among the first few alloy wheels companies to have obtained the ISO/TS 16949 certification to meet the stringent standard of the automobile industry. A strong presence across the value chain and synergies in operations has given Hindalco a major share of the domestic value-added products market. In India, the company enjoys a leadership position in Speciality Aluminas and Hydrates as well as in Primary Aluminium and downstream semifabricated products. As a step towards expanding the market for value-added products and services, Hindalco has launched several brands in recent years. These include the Aura Aluminium Alloy Wheels for cars, Everlast Roofing Sheets and Freshwrapp and Freshpakk household foil for packaging. Hindalco's Aluminium Galleries in Mumbai and Gurgaon showcase the versatility of aluminium through a wide range of applications.Apart from being a major player in the domestic market, Hindalco's products are well accepted in international markets. Exports account for more than 20 per cent of total sales of aluminium products.
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Hindalco is a leading domestic player in two metals business segments aluminium and copper. The aluminium division's product range includes alumina chemicals, primary aluminium ingots, billets, wire rods, rolled products, extrusions, foils and alloy wheels. The company has a significant market share in all the segments in which it operates. It enjoys a domestic market share of 42 per cent in primary aluminium, 63 per cent in rolled products, 20 per cent in extrusions, 44 per cent in foils and 31 per cent in wheels. As a step towards expanding the market for value-added products and services, Hindalco has launched several brands in recent years, which include Aura for alloy wheels, Freshwrapp for kitchen foil and Everlast for roofing sheets. Our exclusive showroom, The Aluminium Gallery, seeks to promote Hindalco products to its customers. It is a platform for the company to showcase quality products to a quality audience in an appropriate ambience. The exhibits include products like windows, doors, furniture, ladder, roofing sheets and ceiling and cladding panels. Hindalco's products are well received not only in the domestic market, but also in the international market. The company's metal is accepted for delivery under the high grade aluminium contract on the London Metal Exchange (LME). The company exports about 17 percent of its total sales volume of aluminium.
The company's alumina chemical business is a leader in manufacturing and marketing of speciality alumina and alumina hydrate products in the country. It has a major market share in the country. These speciality products find wide usage in diversified industries including water treatment chemicals, refractories, ceramics, cryolite, glass, fillers and plastics, conveyor belts and cables, among others. The company also exports these alumina chemicals to over 30 countries covering North America, Western Europe and the Asian region.
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Birla Copper, Hindalco's copper division at Dahej in Gujarat, enjoys a leadership position in India, having built over 40 per cent of the domestic market share within three years of its commissioning. It has also made successful forays into the export markets of the Middle East, Southeast Asia, China, Korea and Taiwan. The copper plant produces world-class copper cathodes, continuous cast copper rods and precious metals. Sulphuric acid, phosphoric acid, di-ammonium phosphate, other phosphatic fertilizers and phospho-gypsum are also produced at this plant.
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Some recent milestones
::
In May 2007, Novelis became a Hindalco subsidiary with the completion of the acquisition process. The transaction makes Hindalco the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia, as well as being India's leading copper producer.
::
In May 2006, the company signed a MoU with the Government of Madhya Pradesh for setting up a Greenfield aluminium smelter and a captive power plant. The company also entered into a joint venture with Essar Power (M.P.) Ltd. to develop and operate coal mines at Mahan, Madhya Pradesh. The joint venture will supply coal to the proposed aluminium smelter and power complex in Madhya Pradesh
:: In May 2006, the company's copper mining subsidiary Aditya Birla Minerals Limited (formerly Birla Mineral Resources Pty Ltd.) came out with an equity offering and subsequent listing on the Australian Stock Exchange (ASX) :: In March 2006, the company acquired an aluminium rolling mill and wire rods facility, from Asset Reconstruction Company (India) Limited (ARCIL), belonging to Pennar Aluminium Company Limited :: In January 2006, the company concluded 4:1 rights issue of its shares on partly paid basis. It was the largest ever rights issue in the history of corporate India and first one to issue partly paid instruments :: In September 2005, the company split its shares in ratio of 10:1 in order to enhance liquidity and to encourage participation from retail investors :: In April 2005, the company signed an MoUs to establish a world class integrated aluminium
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project in the state of Orissa :: In April 2005, the company entered into MoUs with the Orissa and Jharkhand governments for setting up a Greenfield alumina facility and aluminium facility respectively, in the states
HINDALCO VISION To strengthen our position as a premium aluminium company sustaining domestic leadership and global competitiveness through Innovation Quality and Value added growth HINDALCO MISSION
To pursue the creation of value for our customers, shareholders, employees and society at large
QUALITY POLICY
We, at Hindalco, shall aim to achieve and sustain excellence in all our activities. We are committed to total customer satisfaction by providing products and services, which meet or exceed the customers expectations. Modernization of the manufacturing facilities, stress on technological innovation and training of employees at all levels shall be a continuous process in Hindalco. A motivated workforce with a sense of pride in the Organization shall lead us towards total Quality.
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HINDALCO PRODUCT RANGE 1. 2. 3.
Primary Aluminium 4.
Alloy ingots 5. 6.
Billets
Aluminium sheet 7.
Wire rods sheet 8.
Slab
Circle
Alloy wheel
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FLAT ROLLED PRODUCTS (FRPs)
Hindalco is the world's largest Aluminium rolling company with the acquisition of Novelis, the global leader in value-added high-end aluminium flat rolled products and aluminium can recycling. The combined volume of sales of flat rolled products in the world market is about 3 million tones and the market share is more than 20 per cent. Hindalco is the largest manufacturer of the entire range of flat rolled products in India. It enjoys nearly 60 per cent of market share and its rolled products are widely used in various segments such as packaging, transportation, building and construction, electrical, defense and general engineering applications. The company's commitment to quality and service along with its extensive infrastructure has made Hindalco a prime source for best-selling brands. Continuous improvements in manufacturing, processes, practices and systems ensure that customers' needs and expectations are fully met. Efficiency and product quality are ensured by using state-of-the-art equipment and a strong research and development set-up, supported by dedicated and motivated employees and the Oracle ERP system. Wag staff Air Slip slab casting technology is used to ensure consistent quality and surface finish of stock feed which in turn ensures quality finished products. The company's capacity in flat rolled products at present is 2,00,000 tones per annum and new plans are being implemented to increase the manufacturing capacity. Of the total production of Hindalco's flat rolled products, around 40 per cent is exported and customers in more than 50 countries are using the products. Everlast, a Hindalco brand for aluminium roofing sheets, offers ideal and economical solutions for all roofing and cladding needs. Colour-coated and tiled roofing profiles are also offered by Hindalco. HINDALCO INDUSTRIES LTD. Hindalco is now world No.1 in aluminium flat rolled products
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II.1 Basically, there are three kinds of Flat Rolled Products (FRPs) which is being exported by Hindalco i.e.,
1. Cold rolled Coils 2. Cold rolled Sheets 3. Circle
Hindalco's cold rolled coils are precision-finished to match international standards. They have good shape, high tolerance, versatility and blemish-free surfaces. They are used in commercial and general engineering applications such as bus bodies, cladding and fan blades. The company meets the demands of its ever-growing clientele with continuous upgrades and process improvement.
Hindalco's cold rolled sheets are precision-finished to match international standards for tight thickness, tolerance, flatness and dimensional accuracy. Sound metallurgical properties for further fabrication, anodizing characteristics and a blemish-free surface make it useful in both commercial and general engineering applications.
ROLLED PRODUCT APPLICATIONS
Circles :: :: :: Pressure cookers, non-stick cookware and hard anodized cookware Milk cans Medical cylinders
Closure stock :: :: :: Pilfer-proof caps Vial seals Cream containers and caps
Cold rolled coils :: :: :: Bus cabins and bodies Insulation Cladding in buildings, aluminium composite panels, false ceilings and paneling (plain or colour-coated coils) :: Electrical busbar ducting, flexible, transformer strips, etc Cold rolled sheets :: :: :: :: :: :: Defense Industrial engineering Transport road, rail, air, marine Building and construction Fan blades Electrical engineering HINDALCO INDUSTRIES LTD. Page 4
Fin stock :: :: :: Air conditioners Car radiators Automobile heat exchangers
Flooring sheets / tread plates :: :: Flooring for buses, trucks and rail coaches Floors for loading bays, kick plates, stair treads and catwalks Foil stock :: :: :: Parma / confectioneries / cigarette foils Foils Tetra packs
Lamp cap stock :: GLS lamps and tube lights
Litho stock :: Offset printing plates
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Pattern sheets :: Decorative applications like interior paneling for trucks, cabins, etc
Printed Circuit Boards (PCB) entry sheets :: Electronic circuit boards
Plates :: :: :: :: :: Electrical bus bars and ducting Tanks Ships, boats (corrosion-resistant and wieldable plates) Defense and industrial uses (strong alloy plates) Aircrafts Spiral Fin stock :: Industrial heat exchangers
FOIL PACKAGING
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Hindalco's foil business and packaging division delivers versatile solutions to meet the multi-pronged needs of customers round-the-clock. Hindalco's packaging solutions and impressive range of end products are well-accepted all over the world, thus ensuring sustainable growth in today's intensely competitive and cost-sensitive market.
Applications Pharmaceuticals 25/30/40-micron thick, soft foil either laminated to low density polyethylene or coated with heat seal lacquer (HSL) for sealing as per customer need.
20/25/30-micron thick, hard foil coated with heat seal lacquer of varied gram mages. Compatible with PVC.
45-micron foil, laminated on one side to 25 micron OPA and 60 micron PVC film on the other side to meet the fast emerging Alu packaging needs. Hindalco offers a maximum depth of 9mm.
7/9/12-micron thick, soft foil laminated with paper, films like polyester (PET), biaxially oriented polypropylene (BOPP), polyethylene (poly) and their combinations. Chiefly used for pouches and sachets. Offered in both surface and reverse printing.
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Rolled to very fine tolerances for more closures per ton of stock. Closure caps have high formability, strength, low earing and printable surfaces. Widely used for pilfer-proof bottle caps and vial seals. Offered in both coated and bare form.
Dairy 9-micron thick, soft foil laminated to greaseproof paper, used for butter chiplets.
30/38/40-micron thick, soft foil coated with heat seal laquers (HSL), compatible with PS and PP containers. Used for cheese spreads, yoghurts and mineral water.
7/9-micron thick, soft foil laminated to polyester and poly with reverse printing on polyester.
House foil and semi rigid containers
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Household foil is available in a range from 10 micron upwards. Widths can vary as per market requirements. Semi rigid containers are available in a range of sizes and shapes.
Processed food and beverages 9/12-micron thick, soft foil with printing on one side and heat seal lacquer (HSL) coating or polythene lamination on the other. Also offered as a laminate of 9-micron foil with paper and wax.
9-micron thick, soft foil with printing on foil surface, laminated to paper and further coated with wax. Also 7-micron foil printing on foil surface, laminated to paper and further coated with wax.
Polyester, foil and polythene laminates for packing coffee.
7-micron foil with printing on foil surface and poly laminated to paper.
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Cigarette foil Cigarette foil for inner packing of cigarettes is offered in 7-micron thick soft foil laminated to paper. Foil can be silver or gold lacquered in matte of bright finish as per customer requirements.
Personal products Flexible laminated tubes that utilize 12/20micron thick soft aluminium foil laminate. Extensively used in toothpastes, cosmetics, ointments, cream and foodstuffs.
7/9-micron thick, soft foil laminated to board with adhesive or polythene as per customer demand.
9-micron thick, soft foil or BOPP and heat seal lacquer (HSL) coated or co-polymer laminated as per customer demand.
Surgical The laminates have two components, top paper, 40 micron foil, co-polymer structure and bottom coated, 50 micron foil, co-polymer structure
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Heating ventilation and air conditioning (HVAC) 80-160-micron thick foil, soft or partially annealed temper, offered bare as well as with hydrophilic and hydrophobic coatings in blue or gold colour. The coated foil enhances the life of the air conditioner and improves cooling.
80-160-micron thick foil, soft or in partially annealed temper, offered bare as well as with hydrophilic and hydrophobic coatings in blue or gold colour. The coated foil enhances the life of the radiator and improves cooling.
OBJECTIVE OF STUDY
This project was undertaken to have an insight into the supply chain management of Hindalco. The study aims to investigate the minute details of the supply chain management An analysis of the various facts and figures has been done to arrive at logical recommendations. In short, at it can be said that this study has two-fold objective of knowing, what is the present supply chain management? And what should be the future supply chain management?
SIGNIFICANT AND SCOPE OF STUDY
The development in the field of transportation, communication and information on account of globalization has found charging the expectations of the customers. It is against this backdrop the HINDALCO INDUSTRIES LTD.
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marketing professionals need to assign due priority to the application of modern marketing principles in particular. An efficient supply chain management plays a vital role in the success of any organization. A chain system has to be designed carefully, as it normally takes years to build and is not easily changed. This study provides a birds eye view of distribution channel of Hindalco. This report would do well to the entire person interested in learning about distribution channel of Hindalco. A general idea about Hindalcos presence in aluminium market is also well given by this report. After a thorough analysis of various facts and figures, a set of recommendations, with regard to the distribution channel, has been given in the concluding part of the report. The company would find it useful to look into the viability of the implementation of the recommendations, once implemented, and are expected to fetch immense benefits to the company. It is thus clear that this report would serve a variety of purposes and its scope is very wide and open. RESEARCH METHODOLOGY RESEARCH DESIGN: Exploratory research design SAMPLE DESIGN: Sample size 71 50 employees 10 suppliers 4 distributors 7 visiting parties
Sample technique:
Interview and questionnaire
SOURCE OF DATA: PRIMARY SOURCE: HINDALCO INDUSTRIES LTD. Page 4
Personal interview Employees Mr. Rahul paliwal (asst. sales manager) Mr.M.C.Mahapatra (sales manager) Distributors Mr. Baccha Singh Questionnaire Employees of hindalco SECONDARY DATA:
Annual report of HINDALCO Fy2006-07, 2007-08 and individual contra sheets of aluminum and copper for the year 2006-07 and 2007-08. Internet. Induction guide.
Supply chain management: Introduction: Supply chain management is a process responsible for the development and Management of a firms total supply system both the internal and external components. At an operational level, it includes and expands the activities of purchasing function and the procurement process. Its major focus however is strategic. HINDALCO INDUSTRIES LTD. Page 4
Supply Chain is process from the initial raw materials to the ultimate consumption of the finished product linking across supplier-user companies. Value Chain is the functions within and outside a company that enables the value chain to male products and provides services to the customer.
Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). Supply Chain Management spans all movement and storage of raw materials, workin-process inventory, and finished goods from point-of-origin to point-of-consumption (supply chain).
Supply chain management (SCM) is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). As a solution for successful supply chain management, sophisticated software systems with Web interfaces are competing with Webbased application service providers (ASP) who promise to provide part or all of the SCM service for companies who rent their service. Supply chain management flows can be divided into three main flos:

The product flow The information flow The finances flow
The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements. There are two main types of SCM software: planning applications and execution applications. Planning applications use advanced algorithms to determine the best way to fill an order. Execution HINDALCO INDUSTRIES LTD. Page 4
applications track the physical status of goods, the management of materials, and financial information involving all parties. Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the extended enterprise, and includes key suppliers, manufacturers, and end customers of a specific company). This shared data may reside in diverse database systems, or data warehouses, at several different sites and companies. By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a company's clients), SCM applications have the potential to improve the time-to-market of products, reduce costs, and allow all parties in the supply chain to better manage current resources and plan for future needs. Increasing numbers of companies are turning to Web sites and Web-based applications as part of the SCM solution. A number of major Web sites offer e-procurement marketplaces where manufacturers can trade and even make auction bids with suppliers
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CHANNEL OBJECTIVES:
Making smooth availability of product to the target market.
Achievement of the best possible coverage of the target market.
Ensuring that the consumer incurs the minimum extenuation in procuring the product. Safe in quality & accuracy in quantity. Quick services.
Ensuring that the firm is able to carry on with its manufacturing activities, confident that the channel will take care of the distribution job. Ensuring that the distribution is cost effective.
The primary objective of channel of the distribution is to bridge the gap by resolving spatial
(geographical distance) and temporal (relating to time) discrepancies as to supply and demand.
ROLE OF CHANNEL MEMBERS:
Channel members are not play only the role of sales the products to the customers but also play the role as they promote the products, gathering the customer interest, complaints, suggestion, and information to the organizations they are work as the co-ordination between the targeted customers & manufactures. Members of the marketing channel perform many key functions as follows:
Gathering & distributing marketing research and intelligence information about actors & forces in the marketing environment. Helpful in making marketing strategy.
Developing & spreading the promotional offer of company and promote the sales activity. Easily make a sales contact with the customers.
Intermediaries are taking the title to goods, so they invest the fund.
Through the intermediaries, manufactures are made physical distribution of goods. HINDALCO INDUSTRIES LTD. Page 4
Intermediaries are taking various type of risks, in the term of storing, dispatching etc.
CONTRIBUTION OF CHANNEL: Make available on time. Reduce the cost of distribution Save the distribution time. Helpful in product design & developments. Flow of feedback from consumer. Flow of money consumers to manufacture.
VARIOUS TYPES OF CHANNEL LEVELS: While a marketers wants to sell or marketing about the products or services, requirement of design a distribution channel to make product & services available to customers in different ways. In the process of distribution of products, each layer of marketing intermediaries are performs some work in bringing the product and its ownership closer to the final buyer is a channel level. Generally two methods of distribution are in the practices. 1. DIRECT MARKETING CHANNEL 2. INDIRECT MARKETING CHANNEL
DIRECT MARKETING CHANNEL: DMC is a marketing channel that has no intermediary levels. Manufacture or sellers are advertise their product through the various method of advertising & make awareness about the products, then contact to the needful customers through their salesmen, internet, e-mail, telephone or by post.
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MANUFACTURING
CONSUMER
INDIRECT MARKETING CHANNEL: IMC is a channel containing one or more intermediary levels. Manufactures or sellers are appointed various type of marketing intermediaries in the context of nature of the products & segmentation of markets.
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TYPES OF CHANNEL MEMBERS C & F AGENTS: It means clearing & forwarding agents. They are responsible for storage & transportation of the companys products and its distribution to the distributor and some time retailers.
DISTRIBUTORS:
A distributor is usually appointed by the company and does not sell its competitors products. He can also be a distributor of many products of the same company. A distributor is responsible for ensuring that his companys product is available at the retail stores. The distributor is very much an extension of the company as he ensures that the market is properly served. A company has direct control over the distributors. Some of the following type of wholesalers:
MERCHANT WHOLESALERS:
Purchase and resell merchandise He has title to merchandise. He provides wide range of services.
FULL SERVICE WHOLESALERS:
Perform full range of distribution services. Provide trade credit; offer promotion assistance, personal sale force, and communication
of information. Provide installation and services. HINDALCO INDUSTRIES LTD. Page 4
RACK JOBBER:
Deals with highly promoted items. Furnishes rack and shelves, price the goods, keep them fresh, set up point of purchase displays. Sell on consignment. Provide services as delivery, shelving, and inventories caring.
LIMITED FUNCTIONS WHOLESALE Not provide credit, marketing research information and merchandising assistance.
MERCANDISING AGENTS & BROKERS: They usually perform fewer services than merchant wholesalers do. Merchandising agents and brokers do not take title to product but negotiate sales for manufacture, they represent.
MANUFACTURERS AGENTS They are free to work for several manufactures. They carry non-competitive, complementary products in exclusive territories. They do not provide credit facility but at times store and deliver products. Also provide research aid and promotion support. BROKERS: To bring buyer and seller together To assist in negotiation. They have not title to goods. But they provide the facility of financing. HINDALCO INDUSTRIES LTD. Page 4
COMMISSION MERCHANTS Received goods on consignment. They have not title to goods. To accumulate them from local markets & arrange for their sales.
Offer credit & storage goods facility. To provide sales force & research aid. They do not normally promote the goods. MANUFACTURERS SALES FACILITIES Established by manufacture. It is separate from manufacturing operations. Its performing the wholesaling function himself. Generally used in industrial customers. Types of manufacturers sales facilities: MANUFACTURERS SALES BRANCHES Carry inventory Promote the sales activities Sell to retail outlet.
MANUFACTURERS OFFICE (Regional Sales Office)
It does not carry inventory Perform market research, demand forecasting, etc. Collect orders from customers. Make delivery to customers from manufacturing point Collection of payments. Dispose all the disputes or claims.Create better relationship.
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MANUFACTURER
DEPOTS OR WARE HOUSES
CLEARING & FORWARDING AGENTS
MERCHANT WHOLESALERS
MERCANDISING AGENTS OR BROKERS
DISTRIBUTERS OR WHOLE
Brokers
Manufacturers Agents
Commission Merchants
SALERS
MANUFACTURERS SALES FACILITIES
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Full Service Wholesalers
Limited Function Manufacturers Sales Branch Wholesaler
Regional Sales office
Rack Jobbers
STEP-1 Identify Target Consumers
Determining Consumer Buying HINDALCO INDUSTRIES Habits For The Types Of Goods
LTD.
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STEP-2
Locate Potential Customers

STEP-3
Pinpoint ChannelSTEP-4 Alternative
Evaluate Channel Alternative

STEP-5
Select Channel Members
CHANNEL SELECTION PROCESS
EVALUTION OF THE DISTRIBUTION ENVIRONMENT:
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Selection of channel model has to be necessarily taking into account the distribution environment obtaining in the country/ region and in the specific business in which the firm is engaged. A firm has to evaluate the vital features of the distribution environment and ensures that the channel model to be adopted is compatible with them. Distribution environment in the border sense includes the legal environment as well in so far as its implications and distribution are concerned.
EVALUTION OF COMPETITORS CHANNEL PARTERNS
The firm should also study the competitors channel patterns before deciding its channel. While the firm may not necessarily follow the competitors it will be worthwhile for the firm to analyze in depth the plus and minus of the channel patterns adopted by each of the major competitors.
EVALUTION OF COMPANY RESOURCES AND MATCHING THE CHANNEL TO THE RESOURCES:
On the other hand firm with larger resources and large size marketing operation will be in a position to go in for highly intensive distribution committing a good deal of resources to the distribution task.
IDENTIFICATION OF ALTERNATIVES CHANNEL & SELECTION OF THE ONE THAT SUITS THE FIRM BEST:
Two important considerations are cost and efficiency. Often though not necessarily they are directly proportional. The channel HINDALCO INDUSTRIES LTD. Page 4
that its efficient but relatively less expensive has to be chosen. Two types of evaluations an economic evaluation and a conceptual evaluation may be necessary. The firm should also examine whether the channel member s in the desire alternatives would be willing to work enthusiastically for the firm and the product.
ANALYSING THE PRODUCT CHARACTERSTICS AND LINKING CHANNEL TO THE PRODUCT:
The firm should analyze the characteristics of the product and choose the channel designee that is most suited to the product. Within each of these broad categories of product channel choice can vary in relation to specific products/product types. The products futures, after all changes in a graded manner as on move through the spectrum from the simplest consumer soft to the most complex among industrial equipment.
NOTES: Consumer products Vs Industrial products. The case of industrial products. The product must have a sizable customer base. It must be standardized to a reasonable extent. It must be stock able items. The unite value should not be too high. It should not be complex.
Need for specialized distributor must be appreciated; after considering all such factors, if a given industrial product lends itself for marketing through distributors, it must still remembered that; As a general rule industrial products require specialized distributor and entrusting them with the general-purpose (consumer product) distributors does not produce the best result. Different industrial products need different types of distributors. Establish relationship and use problem-solving techniques for prevention of crisis and preventing customer dissatisfaction. HINDALCO INDUSTRIES LTD.
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Gather quality intelligence on customer dissatisfaction and provide this information to management.
ON TIME DELIVERY Consumer will be happy, if the material is delivered on time. OTD has come into sharper focus, for it has become a competitive weapon in all most all industries. For example Nissan offers a guaranteed ten-day delivery to its dealers, Caterpillar deliver replacements parts within 72 hours.99.7% of time
OTD customer satisfaction gap has three components Calibration Gap Operations Gap Organization Gap
CALIBRATION GAP: The customer may measure OTD in different manner as copier to the supplier. It may so happen that the supplier may measure OTD by product category but the buyer may measure it in terms of complete order. The customer may measure OTD in terms of the initial order date whereas then supplier may measure it from a negotiated date.
OPERATION GAP: Businesses that face variability from one manufacturing phase to another or from operations to ware house normally have an operations gap. Operations gap can also result from too many stages in production process, too many supplier or too many people involved in order filling.
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ORGANISATION GAP: If people do not have incentives to improve OTD it will probably result into organization gap. In other words organization gap result from the priority accorded to OTD.
Marketing Head office (Renukoot)
EAST
WEST
NORTH
SOUTH
Vice-President
Vice-President
Vice-President
Vice-president
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Extrusions
Rolled
Primary
Sales Manager (Territory Manager)
ADVANTAGES
Cost effective
Geographical area oriented.
Focus on all products simultaneously.
DIS ADVANTAGES HINDALCO INDUSTRIES LTD. HINDALCO INDUSTRIES LTD.
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Product promotion scheme is not applicable. Lack of information about a particular product. Over work load.
No more time & scope for a particular product. Consumer satisfaction is not appropriate.
The above old structure was not taking much advantage of the new global market. Analysis of the advantage and disadvantage of the regional based marketing strategy, it is not suitable in modern marketing specification era. So that, in 2003 company decided to go for opting the new marketing strategy based on product specification. For this the company transferred its marketing head office from Renukoot to Mumbai.
The new marketing strategy structure is as follows:-
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MARKE
PRODUCT HEAD PRIMARY ADVANTAGES METAL

Its product based.. Emphasis on more customer satisfactions. Helpful to increasing the sales performance of various products of product line. Helpful to production processes to deliver the products. Accumulation of small customers. Provide quick service to customers. Enhance the sales promotion.
DISADVANTAGES
Cost ineffective. More men power required.
MARKET SEGMENTATION OF HINDALCO
The market for Aluminium products in India is very widespread Geographically By diversified of end user
Further, there are a large number of small and medium consumers and a select a few large consumers. The smallest consumer would be consuming as little as 1MT/Month. However, the largest numbers of Hindalcos customers are in the consumption range of 5-50 Mts./Month.
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Aluminium is being used in around 3000 products in developed countries like USA, Japan, Canada, etc. Whereas India, only around 350 products find use in aluminium. Moreover, the per capita consumption of aluminium in the country is very low (1.1 kg/year). Hence there is large potential for introducing the new uses and the increasing the consumption. As a strategy therefore, Hindalco decided to cater to as many consumers as possible. Their distribution system therefore, is designed to the object. Hindalco manufacture the products with very specification as desired by the various customers. Hindalcos market may be segmented in the following manner.
(A) MARKET SEGMENTATION BASED ON THE PRODUCT GROUP On the basis of product groups, Hindalco market may be segmented in the following manner
PRIMARY PRODUCTS Ingots Wire rods Billets
Sheets Chequered sheets Roofing sheets Coils Hot Rolling plates Circles
ROLLED PRODUCTS
General solid sections
EXTRUDED PRODUCTS
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Tubings Structurals Architecturals Mouldings
FOIL Cable wrap stock Light gauge Foil Bare & Coated Fin stock Collapsible Insulation Ducts.
ALLOY WHEELS (AURA) 12 to 18 diameters.
MARKET SEGMENTATION ON THE BASIS OF PRODUCT WISE KEE CONSUMERS.
PRIMARY PRODUCTS: Consumers: Value added aluminium sheet producer industries. Foil Producer Industries. Extrusion Producer Industries. Electricals Equipment Automobile Industries Furrow allows Smelter pot lining.
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Consumers:
ROLLED PRODUCTS
Foil & Packing Industries: box, cop, and container. Electrical Industries: bulbs, tube lights, fan blade etc Transportation industries Building & construction sectors roofing flooring etc. Defense & Marine sectors. Transportation sectors. Consumer durable: flooring & roofing General engineering: Piper-proof bottle cops Pressure cookers, non-stick cookware. EXTRUDED PRODUCT Consumers: Automobile Industries Building & construction Sector Mines & defense Sector Transportation sectors Electrical sectors Architectural sectors Furniture sectors Households consumer durable
FOIL Consumers: Packing sectors (printed & multi-laminated) Pharmaceuticals HINDALCO INDUSTRIES LTD. Page 4
Dairy products Processed food Con-fectionery Personal care products Cigarettes Box rapping Air conditioner Auto mobile radiator Collapsible Insulation Ducts.
ALLOY WHEELS Consumers: Automobile sectors Maruti Suzuki TATA Motors FIAT India Hindustan Motors Telco Ford India Hyundai India GM India etc
(B) MARKET SEGMENTATION BASED ON THE DEMAND PATTERN.
Based on size & frequency of order, Hindalco market may be segmented as follows:
BULK CUSTOMERS Bulk customers are those customers, whose demand is very high and consistence. Some of the bulk customers are Howkin, TTK, Foil Division Silwassa, Jugraj Tejraj, Bajaj Auto, etc. HINDALCO INDUSTRIES LTD.
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SMALL & MIDIUM
Small & medium customers may be bracketed as those customers, whose demand is comparatively low and not so consistence, some of the small customers of Hindalco included ITI Allahabad, Defense Organization, and Dockyards etc.
(C)
MARKET SEGMENTATION BASED ON THE PRIORTY:
On the basis of priority given to various orders Hindalco market may be segmented in the following manner:
ROUTINE CUSTOMERS Routine customers are those customers, who are regularly sourcing the company. Their orders are processed in the normal course of working.
SPECIAL CUSTOMERS Special customers are those customers, whose orders are for products under developments. Since their demand is usually urgent in nature they are given priority under routine customers. Examples: Export Customers, Government organization like Defense, Establishment etc. continue this category.
(D) MARKET SEGMENTATION BASED ON CONSUMPTION SECTOR.
Uses of aluminium metal are everywhere. It is not easy to categorize in some particular heads. However, we categorize in the following major sectors.
Transportation Building & constructions
Electrical
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Industrial Machinery Packing Consumer Durable Other
(E) MARKET SEGMENTATION BASED ON GEOGRAPHICAL AREAS: Aluminium consumers are spread all over the country. Different area has different type of industries, whose are used aluminium in different quantity. Here, segment the market in geographical areas based on consumption or demand pattern.
TRANSPORTATION FACILITY Smooth transportation facility is available all over the country all the time. Some area is affected by flood. Some areas are block in the case of heavy rain etc.
DISTRIBUTION PROCESS AT HINDALCO
There are different tasks involved in distribution process These are as follows: Order processing Packing & Insurance, Banking, Bills, Ware housing Transportation Godown sales procedure..
ORDER BOOKING:
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Every purchaser has to book his order giving details which aluminium rolled products they want such as Plain sheet, Cold rolled coils, milk can sheet, circles, etc. Purchaser should be fully disclose about the product such as, product name, quality, quantity, technical data, mode of transportation, desire delivery time, payment mode etc. Technical wing of Hindalco examines their application and if necessary also make inspection of the facing and decided quality to be offered. Thereafter, terms of payment finalized and his order is finally booked. This order is passed to the relevant personnels officials with relevant details.
PRIORITY: A priority list of all categories of consumers has been fixed in consultation with all concerned. Consumer gets delivery in order to their priority, which is also followed by transporting agents.
ORDER PROCESSING: Hindalco procure order either directly from the customers or through the agents/stockiest. The order contains the name of product, quality, size, clearance etc. After the receipt of orders from the customers or agent Company scrutinizes the order. A production planning programmed is prepared for rolled production monthly basis. This monthly report is sent to the respective production department i.e. rolling mills by the end of the preceding month. The produced material is sent to the inspection and packing department.
WARE HOUSING: Every has to store to goods while they wait to be sold. A strong function is necessary because production and consumption cycles rarely match. Ware housing is the responsibility of warehouse in charge in Hindalco. The work start when warehouse officials receive finished goods from production. Hindalco warehousing in charge dispatches the material to respective customers on advice of CSMO and follows the guidelines given to them. The guidelines are:
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At warehouse: While taking delivery from inspection & packing to ensure packages are intact & dry. If packages are damaged or loose condition, get it repacked. If packages are wet, do not accept it.
During loading at warehouse : Trucks floor should be clear and flat. There should not be any hole or damage in the floor of the Trucks Floor should be covered with Tarpaulin. Packages being loaded should be intact and dry Proper stocking of packages should be done while loading. Heavy packages to be kept at bottom and lighter packages over heavy.
Packages: No vertical stoking of packages. After loading truck should be covered with tarpaulin.
During Storage: Outdoors storage should be avoided. Do not store packages directly on the floor, use wooden pallets. Cheek condition of metal every few hours to ensure no water condensation.
DELIVERY OF MATERIAL: HINDALCO INDUSTRIES LTD. Page 4
They deliver the material as per the delivery order. Then they note down the delivered material in the godown register. Then they send delivery report daily to zonal office.
BANKING INSURANCE BILLS & OTHER DOCUMENTS: Hindalco enjoys the facilities of three public sector banks & private sector bank in its town Renukoot. United Commercial Bank (UCO Bank). State Bank of India (SBI). Allahabad Bank. Industrial Development Bank of India (IDBI).
Banking services at Renukoot is punctual. Banks help the company in carrying the documents to the party. It helps in quicker payments realization.
INSURANCE Every material is dispatched duly insured. There are two types of insurance. Carrier Risk. Owner Risk.
Hindalco arranges insurance facilities for its customers. If there are any damages in transportation they will issue a damage certificate & the customer can claim its insurance company on the basis of damage certificate.
GODOWN SALES PROCEDURE Godown sales procedure describes the sales procedure of Hindalcos products through its godown. The respective zonal head exercise control over all activities related to godowns sales. This sales procedure is followed by all the godown of company situated at Delhi, Faridabad, Chandigarh, Jaipur, Haryana, Bangalore, Hydrabad, Calcutta Gohati, Mumbai, Silvasa, Taloja There is a clearing agent in the godown, which is appointed by Hindalco for the operation & maintenance of the godown.
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VARIOUS MODES OF DISTRIBUTION IN HINDALCO Hindalco emphasizes on , Taking the product to the market Distribution of products in Hindalco is carried out through a network of zonal offices, Area offices, Agents, Stockiest and company operated Depots, located through the country. A brief description is given below
1. ZONAL AND AREA OFFICES: Hindalco has established five zonal offices, in various part of country. There is a network of area offices, functioning under various zonal offices. Zonal offices carried out various Marketing Sales functions of company. They provide following functions: Signed a contract between the zonal offices and customers, regarding to details of products such as quality, packing, transportation, destination, etc. Clearly mentions about the mode of payments. Eliminating intermediaries. Make a direct contact with the customers . Help the company to cater to the need of customers. Helpful the company to earn additional profits
2. AGENTS Agents are those persons/institutions, who provide orders to Hindalco, on behalf of the customers. The company has appointed a number of agents, all around the country to sell the products. They are paid commission on the generated sales. Agent being a local person/ institution can use his contacts and influence, to generate sales in a local market. Agents function as an important mode of distribution, as they enable the company to minimize distribution costs.
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3. STOCKIESTS Hindalco appointed a number of stockiest in various geographical areas across the country. Certain products of the company are sold through the network. Stockiest are made conform sale for the company. Stockiest is free to make sell to any customer Free to charge any price from customers Helps the company to cover the wide geographical market. Helpful in minimizes extra distribution setup costs.
4. DEPOTS HINDALCO operate 15 depots in various part of the country. Depots send the various requirements at the work office and thud, maintain suitable inventory to cater to the demand of the market. This is providing the following advantages to the company & also the customers: TAX-SHIELD: In many states, state sales tax is less than the central sales tax. In these states sales of products through depots, lead to tax saving. AT RANDOM DELEVERY: Emergency needs of customers full filled immediately by the depots, at a premium price small off takes of the scattered customers can also be provided easily by the depots. HELPFUL IN PRODUCTION: Depots provide a foundation to the production department, by
keeping inventory of the various products. For example, in the event of surplus stock, products can be transferred to the various depots. Similarly, Production Schedules can be planned with greater accuracy, with the help of estimated requirements, sent by depots.
HOW THE DEMAND IS BEEN GENRATED
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Customer to competitor HINDALCO INDUSTRIES LTD.
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HINDALCO
PRIMARY PRODUCT
CUSTOMER
SELF EXTRUSION
EXTRUSION
ROLLED
ROLLED
customer
FLOW OF LOGISTICS PROCESS
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Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involve the integration of information, transportation, and inventory, warehousing, material-handling, and packaging.
Logistics management Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements. A professional working in the field of logistics management is called a logistician.
Logistics Management Software Software is used for logistics automation which helps the supply chain industry in automating the work flow as well as management of the system. There is very few generalized software available in the new market in the said topology. This is because there is no rule to generalize the system as well as work flow even though the practice is more or less the same. Most of the commercial companies do use one or the other custom solution. But there is various software that is being used within the departments of logistics. Few department in Logistics are namely, Conventional Department, Container department, Warehouse, Marine Engineering, Heavy haulage, Etc. The software that is used in these departments is: Conventional department: CVT software / CTMS software Container Trucking: CTMS software Warehouse: WMS In Hindalco, all the departments are interconnected with computer network system and the software on which these department works is on the Oracle 11i platform. This software is connected with Internet and the working in any department in any region of Hindalco will make effect in all over India.
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Business logistics Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price and is the science of process and incorporates all industry sectors. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies. In business, logistics may have either internal focus (inbound logistics), or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point of consumption (see supply chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions so that there is a coordination of resources in an organization. There are two fundamentally different forms of logistics. One optimizes a steady flow of material through a network of transport links and storage nodes. The other coordinates a sequence of resources to carry out some project.
Production logistics The term is used for describing logistic processes within an industry. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time. The issue is not the transportation itself, but to streamline and control the flow through the value adding processes and eliminates non-value adding ones. Production logistics can be applied in existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency. Production logistics is getting more and more important with the decreasing batch sizes. In many industries (e.g. mobile phone) batch size one is the short term aim. This way even a single customer demand can be fulfilled in an efficient way. Track and tracing, which is an essential part of production logistics - due to product safety and product reliability issues - is also gaining importance especially in the automotive and the medical industry.
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Logistics Structure
Order procurement and allocation
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ORGANIZATION CHART OF LOGISTICS DEVELOPMENT AT HINDALCO:

Head Outbound Logistics
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In charge (finished good warehouse)
In charge
Bill Processing
Transport
Complaint
Administration
Field Office Area In charge Supporting WCM QEHS Product In charge
Rolled
Extrusion
Wire Rods
Ingots
Shift In charge
Clearance Section
Group Section
Contractor Bill Processing & office work
Process overview : Loading & dispatch
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CURREN
C handig a rh
FINANCIAL HEALTH OF THE COMPANY
F aridabad
The Chairmans letter to shareholders and the Managements Discussion & Analysis, which form a part of this Annual Report, provide the strategic direction and a more detailed analysis on the performance of individual businesses and their outlook. Rs. in Million Financial Results for the year ended Standalone Consolidated 31.03.07 31.03.08 31.03.07 31.03.08
Net Sales & Operating Revenue Profit Before Tax Provision for Current Tax Provision for Deferred Tax 192,010 30,256 6,063 876 183,130 600,128 35,046 9,841 (551) 29,855 9,713 (738) 193,161 36,616 9,942 (478)
Provision for Fringe Benefits Tax 114 113 123 121
Tax Adjustment for earlier years (Net) (5,407) (5,481) -
Profit before Minority Interest Minority Interest 28,609 25,643 26,238 2,206 27,031 161
Share in (Profit)/ Loss of Associates 159 12 Page 4
Net profit
28,609
25,643 23,873
26,858
Appropriations Debenture Redemption Reserve Special Reserve 50 187 9 50 13 187
Dividend on Preference Shares (Current Year Rs. 0.24 Mio, Previous Year Nil) Dividend Tax on Preference Shares (Current Year Rs. 0.04 Mio, Previous Year Nil) Interim Dividend on Equity Shares Tax on Interim Dividend 1,773 249 1,773 249
Proposed Dividend on Equity Shares 2,269 386 25,611 2,285 24,434 392 25,629 16 6 25,496
Tax on Proposed Dividend Transfer to General Reserve
COMPANY GROWTH VS INDUSTRY GROWTH Growth Company Sales (%) Profit (%)
16.35 24.54 HINDALCO INDUSTRIES LTD.
Page 4
Industry
15.18
15.65
PRODUCTION PROCESS
The aluminum production process can be categorized into upstream and downstream activities. The upstream process involves meaning and refining bauxite to alumina while the downstream process involves smelting and casting and fabricating. Hindalco refines bauxite primarily obtained from captive mines, to extract alumina, which is smelted into alumina ingots or billets. Hindalco smelts its entire production of alumina into aluminum and does not engage in alumina trade.
Production of aluminum can be categories in two stages, namely
From bauxite to alumina From alumina to aluminum
EXTRACTION OF ALUMINA FROM BAUXITE
Alumina is manufactured by conventional buyers process i.e. treating bauxite with caustic soda. Bauxite is brought to the site from mines by means of railways wagon tippler. Primary crushing is done in cone crusher where bauxite size is reduced form 8- 12 to 3 - 4 and then stockpiled. Secondary crushing is done by means of hammer mills where process liquor known as a spent liquor and 600 psig. Steam is mixed together. This solution of alumina from bauxite into caustic solution in the form of sodium aluminates is carried out of digesters at 240 degrees centigrade temperature and 36-kg/sq.cm pressures. The digested slurry is placed HINDALCO INDUSTRIES LTD. Page 4
flashed and brought to atmosphere pressure; flashed vapors are utilized for pre heating the spent liquor and condensed returned to boiler hose for generation of steam. Digested flashed slurry is pumped to clarification area for removal of solid Impurities (red mud). Red mud is separated out, in solid liquid hydrocyclon and stellar. Separated mud slurry is washed in counter current and washing Circuit without using water. Washed mud slurry is cauterized by treating with lime slurry to recover soda. Cauterized mud slurry is filtered on drum filters. Filtrate liquor is taken back into the system and red mud cake is disposed of by means of dumpers Settler overflow pregnant liquor is filtered in Kelly presses to remove fine mud particles. Clear pregnant liquor is pumped to precipitators through plate heat exchanges after exchanging heat with the spent liquor where it is seeded with alumina trihydrate. Alumina trihydrate is separated out in thickness and pan filter. Alumina trihydrate cake thus obtained is fed into the gas suspension claimer where furnace oil is burnt for claiming alumina. The reduction grade alumina thus produced is transported to smelter plant. Spent liquor generated and separated from precipitation circuit is fed to the evaporation unit for increasing caustic concentration to the desired level and recalculated to digesters through heaters for further processing of bauxite and thus the process goes on.
ALUMINA MANUFACTURING PROCESS FLOW CHART: HINDALCO INDUSTRIES LTD. Page 4
Bauxite from mines
Compress Air
CRUSHING
Seeding PRECIPITATIONN
SEED FILTRATION &WASHING
WET GRINDING
Liquor
EVAPORATION
Spent Liquor
HYDRATE CLASSIFICATION
Filtrate to Process
DESILICATION
Liquor
DESILICATED SWEETENING SLURRY
Hot Water for Washing Washing Fuel Oil
PAN FILTER
DIGESTION
CALCINATION
CLARIFICATION
Red Mud ALUMINA TO SMELTER
Flocculants, Filter Cloth, Lime, Hot Water, Starch HINDALCO INDUSTRIES LTD. Page 4
EXTRACTION OF ALUMINUM FROM ALUMINA
Alumina from alumina plant is conveyed to the reduction plant. The reduction plant has 11 prebaked pot lines which have 1278 pot cells. Each pot has 24/26 carbon anodes and it is lined with carbon cathode. Alumina is converted to metallic aluminum is these pot cells by the standard hall herald process. The pot cells work at an average 4.3-volt D. C. current of 5800/6300 amperes. Electrolysis of the alumina takes place in molten bath of coyote at a temperature of 955 to 960 degrees centigrade. The molten aluminum that collects at the cathodes is siphoned into crucibles periodically. The entire process is controlled by microprocessor system.
FULLY INTEGRATED OPERATIONS: A SIGNIFICANT STRATEGIC ADVANTAGE
Bauxite Mines
Co-Generation
Alumina Refinery
Caustic Soda from JV
Renusagar Powder Plant
Aluminium Smelter
Aluminium fluoride from
Semi Fabrication Plant
Redraw Rod Mills Rolling Mills Extrusion Process
Foils

Al. Wheel Plant
Page 4
AVAILABILITY OF BAUXITE FROM MINES: Bauxite Mines
Own Mines
On Purchase (Lease)
Jharkhand
Chhattisgarh
Jharkhand
Madhya Pradesh
Shrengdag Gurdari Pakhar Jalin & Sanai
Samari Kudag Tarijhari
[20/25 suppliers (small)-2.5 to 3.0 lakh MT/Y] [3/4 suppliers (big level) - 2/3 rakes/month 1 rake=3953MT (58 wagons) 67MT Load/wagon
(5.5-6.0 lakh MT/Y) Orsapat Chirokukud Pakhar (M&M)
(Minerals & Minerals, Sister concern of Hindalco 100% own subsidy) Supply-7/8 lakh MT/ Y
MODES OF SALES IN HINDALCO: Hindalco has quite a good network for distribution of its products. Finished goods is sold and distributed to the costumers by following means. HINDALCO INDUSTRIES LTD. Page 4
DIRECT SALES FROM MANUFACTURING UNITS:
MANUFACTURER
CUSTOMERS
SALES THROUGH STOCKISTS:
MANUFACTURE
STOCKISTS
CUSTOMERS
SALES THROUGH AGENTS:
MANUFACTURE
CONSIGNMENT AGENT
CUSTOMERS
SALES THROUGH DEPOTS:
MANUFACTURE
DEPOTS
CUSTOMERS
Page 4
Page 4
Page 4
ACTIVITY FOLW CHART OF HINDALCO-MINES DIVISION, JHARKHAND & CHHATTISGARH
Page 4
PRODUCTION CAPACITY
ALUMINA CAPACITY 1.15 MTPA RENUKOOT BELGAUM MURI 685,000TPA 350,000TPA 110,000TPA
SMELTER (PRIMARY ALUMINIUM) o CAPACITY 424,000MTP RENUKOOT 345,000TPA HIRAKUND ALPURAM 65,000TPA 14,000TPA
ROLLED PRODUCTS o CAPACITY 2,00,000TPA
RENUKOOT BELUR TALOJA NAGPUR
80,000TPA 45,000TPA 45,000TPA 30,000TPA
FOIL Page 4
o CAPACITY 14,000TPA SILVASA 5,000TPA KALWA 6,000TPA
KOLLAR 3,000TPA
EXTRUSIONS
o CAPACITY 27,700TPA RENUKOOT 19700TPA ALPURAM 8000TPA
ALLOY WHEELS
o CAPACITY 3,00,000 Nos. PA SILVASA 3,00,000 nos.
MARKET STRUCTURE: Aluminum production is expensive and requires heavy capital investment. Most of the key producers are major corporations and the business is concentrated, not fragmented. As indicated above, a recent trend is for major firms to invest in smelting operations which are closer to power sources. As direct results, older aluminum operational facilities are closing down as the older sites are no longer cost effective. Norse Hydro, for example has terminated approximately a quarter million tons of capacity in Northern Europe in favor of cheaper Middle East based operations. Alco has made similar moves. Industry experts estimate that up to 4 million tons of annual aluminum capacity from older facilities could be shut down in the next 3 to 4 years. How aluminum is used. SEGMENT WISE USEGE OF ALUMINIUM
Page 4
CAPTIVE POWER
FULLY INTEGRATED OPERATION: SIGNIFICANCE STRATEGIC ADVANTAGE
Page 4
ACTIVITY FLOW CHART FOR ROLLED PRODUCT:

Unloading of lots from Trucks/Trolley in warehouse receiving area by EOT crane If any lot found in damage condition then it returns to inspection & packaging deptt. On nil duty
Party wise & Destination wise coding of allocated lots as per production list generated by product in charge Sorting & Segregation of coded lots in warehouse receiving area. Pack wise, Party wise storage of lots in respective storage area.
Domestic Lots: On placement of trucks Export Lots: Segregate lots as per Grouping slip to . Seal the lots & put shipping mark as per H I N D A Lgenerate C O I loading NDUS T& R send I E Sa copy LTD Page 4 loading point export order requirement After the get the loading register signed by loader &case verified by shift incrane charge After loading of truck/container lots get the lashing and damaging of sheets done and the selected Send the truck/container to Load weigh the bridge truck for with weighment the help of EOT Loadloading the container with Call the help container/Trucks of fork lift for loading on receipt ofcontainer loading slip Ensure proper Check covering the of lots lots as with per loading tarpaulin in of truck/trailer
AL. FLUORIDE FROM JV

Grouping of allocated lots for hiring of trucks.
CAUSTIC SODA FROM JV
Page 4
If the products have to be loaded on the same truck, send the truck to respective loading point
If variations in function gross weight of loading slip, send the truck back to loading point for correction
Send the truck/container to weigh bridge for If gross weigh tallies, generate factory gate pass & send it weighment to invoice section for clearance EXTRUSION PRODUCTION PROCESS:
AGING FURNACE
FINISHED EXTRUSION PRODUCT
ACTIVITY FLOW CHART FOR EXTRUSION PRODUCT

Unloading of racks containing lots from shifting Trucks/Trolley in warehouse receiving area by EOT crane
Page 4
If any lot found in damage condition then it returns to inspection & packaging deptt. On nil duty
Zone wise coding of allocated lots as per production list generated by product in charge Sorting & Segregation of coded lots in warehouse receiving area.
Zone wise & party wise storage of lots in fixed racks in respective storage area.
Placement of truck as per grouped list
Grouping of allocated lots for hiring of trucks.
Generate loading slip send one copy of loading copy to loading point Call the truck on receipt of loading slip Check the lots as per loading slip & load in truck with the help of EOT crane After loading the truck/container get the loading register signed by loader & verified by shift in charge Ensure proper covering of lots with tarpaulin in case of truck/trailer Send the truck/container to weigh bridge for weighment If the products have to be loaded on the same truck, send the truck to respective loading point If variations in function gross weight of loading slip, then send the truck back to loading point for correction
Send the truck/container to weigh bridge for weighment
If gross weigh tallies, generate factory gate pass & send it to invoice section for clearance
ACTIVITY FLOW CHART FOR PROPERZI-WIRE RODS

Physical checking of each coil by warehouse operator cut HINDA L C Osuch I Nas Dpoor U Scooling TRIE S marks LTD.
Page 4
If not OK return coil on nil duty Tally each coil no. with production sheet by warehouse operator. Total counting of coils received should match with production sheet.
In case of missing coils report to shift in charge informs to production
Packing of each coil as per requirement Check the entries of all the coils in the system and tally with production register by warehouse shift in charge Check the composition & UTS from PT lab analysis reports against each coil & ensure every coil is acceptable range
Take party wise dispatch schedule from sales, Co-operation by warehouse shift in charge
If not inform to remelt shop by warehouse shift in charge then return the same on nil duty to remelt shop.
Allocate each coil as per dispatch schedule on system by W/H Shift In charge Group the coils party wise for hiring of trucks Call the trucks for loading in receipt of loading slip Check the load coils in truck as per loading list with the help of EOT crane by W/H operator under supervision of W/H shift in charge.
Ensure proper covering by coils with tarpaulin Send the truck to weighbridge for weighment
If gross weight tallies, then generate factory gate pass & send it to invoice section for clearance
THE SWOT ANALYSIS OF HIL.
If variations are found in gross weight of loading slip & weighment slip then send the truck back to loading point for correction
Page 4
STRENGTH Global brand image. Cost effective producer. Sound financial position. A high degree quality consciousness is the core competence of the company, ISO 9001 and ISO 14001 have added more prestige to the company. Integrated production facility at Renusagar power plant. Company has a well-established distribution network, covering a geographically wide and scattered market. A number of Brownfield & Greenfield projects. Industrial peace as, there has been no major strike in last 22 year. A well focused human resources development. Serve maximum customer satisfaction.
WEAKNESS Present production capacity is not adequate to meet the rising high demand. Technology is not upgraded to mark as compare to global giants in aluminium industry.
OPPORTUNITY R & D collabratation with universities and another research organization. More emphasis on downstream production of value added products. Recycling should be adopted as routine production. Raising more finance from marketing for more acquisition and merger for consolidating position in the global market. Aluminium, continuous to be strong with a growth in transportation sector 16%, construction15%, passenger car 25%, two wheeler segments 14% respectively during FY07.
THREATS Strong domestic and global competitors, such as TATA, POSCO, MITTLE, ESSAR . HINDALCO INDUSTRIES LTD. Page 4
Innovative revolution in plastic and steel industry. Reduce in Exide duty. Fall in price of Al. In neighbor country.
OPPORTUNITY STRENGTH
DISTRIBUTIO N CHANNEL
SOLUTION
THREATS WEAKNESS
Page 4
SWOT ANALYSIS OF SUPPLY CHAIN STRENGTH Product based marketing channel. Strong dist. channel based on geographically wide & scattered market of India.. Flexible distribution process for customers via direct sales and indirect sales. Company made more than 50% direct sales. Convenient road transportation.
WEAKNESS Not tapped all the potential areas especially in eastern and southern zone. A 50-40% sale depends on indirect marketing. The present distribution system is not adequate to meet the demand of aluminium in the coming years. It is in this light, that the present dist. system needs to be updated. Certain recommendations, with regard to the same have been suggested ahead.
OPPORTUNITY The demand of the companys products is rapidly increasing. Thus, there is a necessity to expand the dist. network to avail the benefits of the fast growing market. Indirect sales should be converting in direct sales through TM sales force.
THREAT
Page 4
The major threat is from the competitors like BALCO, NALCO etc. because the company may lose its market leader position , if it does not take timely steps to modify its present distribution system in the wake of fast growing demand
SUGGESTIONS/RECOMMENDATIONS/CONCLUSIONS
Certain recommendations with regard to distribution channel of HIL are as under: (A) Northern zone offers the most lucrative sales in last financial year.. In the light of such high sales driven by the factors such as heavy investments in infrastructures and related industries machinery, transportation etc. In this zone our more than 65% sales depends on indirect sales. So that our focus should convert indirect sales to direct sales. Our effort should be here increase the depots in proportionate way, and also made appointment TMs and RMs.
(B) Southern zone is also the fast growing market for the company. The zone offers bright prospects to company in terms of future demand driven by rapid industrial expansion. In this zone our more than 60% sales depends on direct sales and also we face cutthroat competition. In maintain the sales need of continuous market research in regard to distribution channel & appoint stockiest instead of consignment agents.
(C) Western zone is the key market of the company. This zone is the most advanced zone in industrialization in the country. In this zone our 65%(Approx.) Sales are through direct sales. Analysis of sales data, present depots, stockiest & consignment agents, 35% of the sales in this zone is indirectly depending upon consignment agents & stockiest. The demand of this zone is very high. To optimize in this key zone, the company should established additional depots in that areas- Ahmadabad & Nagpur for enhancing direct sales.
(D) In eastern zone companys, indirect sales is approx. 70%. Such a heavy indirect sales reflects that the company is not indirect contact of its customers and their worries and feedback and these are most essential factors for improving level of sales.
Page 4
In direct sales is not helpful to create, grow & retain the customers. So making the sales customer oriented and to improve the sales, the company can take the following initiatives Assign sales representatives to contact all prospects in this area. Design a sale promotion complains focusing on brand awareness. Appoint a regular sales representative with each stockiest. Shift to retail format of business by owning aluminium galleries in malls.
LIMITATIONS OF STUDY
The duration of practical training was just of four weeks. It was not sufficient. Due to heavy engagement of the top management people and other personnel, many other information could not be collected within the limited span of time.
To maintain secrecy, the company people do not provide various types of information, such as actual sales to various customers, zone wise sales, depot setup cost, depot handling cost etc. Their recommendations are the outcome of an analysis made individually. recommendations after using same data.
Another analysis may arrive at certain other
So, that it is advisable for the company to examine the various recommendations, before going ahead with any of their implementations.
Page 4
BIBLIOGRAPHY MAGAZINES: Impex Times FIEO News
Aluminium International Today Aluminium Times Aluminium Now Incale 2 Incale 3
Annual report (07-08), Hil
Induction guide , (training centre )
Principles of marketing, kotler & Armstrong.
INTERNET:
http://www.algomtl.com
http://www.go4worldbusiness.com http://www.unzco.com/basicguide http://dgftcom.nic.in http://www.fieo.org
http://www.airportsindia.org.in
http://www.indiandata.com/trade_policy/export_procedures HINDALCO INDUSTRIES LTD. Page 4
http://www.wikipedia.com/logistics http://www.google.co.in/
http://www.hindalco.com/products/rolled_products http://www.hindalco.com http://www.novelis.com http://www.adityabirla.com
ANNEXURE
APPLICATION OF ALUMINIUM IN TRANSPORT SECTOR Country Europe Japan US Canada Australia India % of consumption 29% 30% 28% 28% 25% 16%
Global Aluminium Production Growth forecast (mln tpa)
Page 4
Year 1985 1995 2005 2010 2015
Actual 15.5 19.7 31.4
Forecast
41.3 50.2
PRIMARY ALUMINIUM PRODUCTION & CONSUMPTION BY MAJOR COUNTRIES IN 2005
Country
Production (KT)
CONSUMPTION(KT)
Norway Brazil Australia Canada USA Russia Chain
1376 1499 1903 2894 2480 3647 7806
246 759 380 803 6143 946 7119
PER CAPITA CONSUMPTION OF ALUMINIUM
COUNTRY
CONSUMPTION (kg/person)
JAPAN
32.0 HINDALCO INDUSTRIES LTD.
Page 4
USA GERMANY CANADA ITLY FRANCE AUSTRALIA UK CHAINA BRAZIL INDIA
31.9 31.6 31.2 29.5 21.4 21.2 15.0 6.5 4.1 1.1
consumption 35 30 25 20 15 10 5 0 32 31.9 31.6 31.2
29.5 21.4 21.2 15 6.5 4.1

consumption
1.1
INDIA-User Segments Growth FY07 over FY06 HINDALCO INDUSTRIES LTD.
Page 4
User Segment
FY05
FY06
Change %
Electrical Transport Built. & Const. Consumer Durable Packing Indus. Machinery Others Total
398 234 135 46 47 37 37 934
490 308 165 53 51 41 41 1149
23 32 22 15 9 11 11 23
Major Aluminium Producer Industries in India.
Company
Owner ship
Location
Capacity
Hindalco
AB Group
Renukoot Alpuram Hirakud Belgaum
345,000 14,000 65,000 31,000 345,000
NALCO
Public
Angul
Page 4
Sect. BALCO MALCO Sterlight Sterlig ht Korba Mettur 350,000 40,000
EXTRUSIONS CAPACITY, PRODUCTION & DEMAND 1991-2020(MT)
Particulars Capacity Production Domestic Demand Export Excess Capacity
91-92 122000 61000 60000
99-00 190000 109000 105000
03-04 202000 132000 117000
2010 202000 188000 166000
2020 400000 370000 325000
Nil 62000
4000 81000
15000 70000
22000 14000
45000 30000
CONSIGNMENT AGENTS & STOCKIEST
ZONE
WAREHOUSES
No of CONSIGNMENT AGENTS
No of STOCKIEST
EASTERN NORTHERN SOUTHERN
2 5 3
6 12
8 32 20
Page 4
WESTERN
26
24
Primary metal customer of Hindalco:Primary metal customer are always competitor for Hindalco Industry Because after purchasing of Primary metal they manufacture Rolled product or Extrusion product. So these company are competitor for Hindalco in Extrusion product and Rolled product. Warehouse problems Major problem Dependence on other department Transpotation Space
Dependence on other department: it is the nature of the warehouse department and it cannot do any thing for this as any delay in related department can add to problem in warehouse.
Page 4
Transpotation: it arises due to following factors
Space constrane: due to above factors space arise as a big problem Minor problem Slowdown Defence delay Natural calamity
WAREHOUSE ACTIVITES
NO ADVANCE PLANNING
Page 4
After packing feed the product
Marketing dept.
DISTRIBUTION ACCORDING TO ORDER
Grouping
MAIN PROBLEMATIC AREA HIRING SLIP
Transportation section
LOADING SLIP
Loading at godown
Factory gate pass
PACKING
To contain The product
To protect the product
to preserve the product MAJOR PROBLEMS:
to present the product
to dispense the product
NO coordination with the store department. NO forecasting Supply chain of hindalco
Page 4
Mines
Production Hold Marketing coordination Release
Warehouse Dispatch Logistics Godown
FINDINGS & RECOMMENDATIONS Findings 1. Hindalco is the leading exporter of Aluminum Semi-Finished products in India. 2. FIEO (Federation of Indian Export Organization) has awarded Hindalco as a Five Star Trading Houses on their export achievements. 3. Hindalco is following all the norms as per Central Excise & Customs and other government rules & regulations in the export process. 4. Hindalco is following positive and proactive approach towards export. 5. Hindalco is exporting all over the world, from underdeveloped countries to advance countries. 6. There are approx. 10,000 employees in Hindalco from top to bottom level, then also companys main focus is about safety, security and value as well as proper rules and regulations 7. Having huge network. HINDALCO INDUSTRIES LTD. Page 4
8. Easy availability of raw materials. 9. The manufacturing cost is very high because of high utilization of energy. Energy (Oil, Coal, Electricity) used at Renukoot is 47% of total manufacturing cost, while only electricity is used as 77.67% of total energy consumption. Present distribution system and production capacity is not adequate to meet the present and demand. 10. Approximately 50% employees at operational level as well as middle are not satisfied by their job but they do not tell the reason. 11. Findings at Warehouse: Minor Problems- Nature Calamity Employees health problems Defense Delay (Inspection) Customer Denied Volumetric Problems Delay Packaging near future
Changes in Market Scenario
Dependency on other Departments
(Production, Packaging, Transportation)
Major Problems: 1. Space 2. Transportation
Recommendations/Suggestions: Hindalco is a reputed Aluminum industry in the world and its products are well accepted in the market but as we know that there is always a scope of improvement. Following are the recommendations in all areas: Sometimes order has been delayed due to rejection of partial quantity of the product due to quality problems and manufacturing defects. So, it is recommended that Hindalco should have to keep advance stock or backup products in their warehouse to overcome this problem and to execute the order on time. HINDALCO INDUSTRIES LTD.
Page 4
Some of the Caster product order is being delayed due to limited capacity of the Caster Plant. So, it is recommended that Hindalco should have to increase the capacity of their Caster Plant. Hindalco is using Oracle & IVL software system for making export documents. The working of this software is from Order management to Shipment. This process is time taking due to partly adoption of the software system. So, it is recommended that this software should have been start from Enquiry management to Shipment. It would ease in making documents in faster way manual interruption will be minimized. Sometimes there is unavailability of containers for any particular destination occurs. This problem have been overcome by helding a meeting and making a successful negotiation process from the shipping line companies for the arrangement of empty containers. Due to no advance planning there is a lot of problems in each department, mainly in warehouse. So, it is recommended that there should be a prior planning at the time of order booking in beginning.
Speed of the boss is the speed of the team as well as speed of the organization.
CONCLUSION: Business is undergoing a strategic transformation companies require clear vision and an attunement to balance the need sustainable in doing sum. It is a pointer to the direction in which corporate strategies would need to change in order to make organization function a truly responsible. In other words future belongs to only those organizations that undertake and imbibe well defined SCM. The globalization of SCM with goal of increasing competitive advantage, creating more value-added and reducing costs through global sourcing. In a highly competitive business environment a well established supply chain strategy absolutely essential for ensuring competitive edge in the market place. SCM is the most powerful tool for bringing innovations and maintaining price competitions which is a door step for transferring companies into a power house. HINDALCO INDUSTRIES LTD. Page 4
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Final Summer Training Report On Supply Chain Mangement For The Mba Student

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RAJIV ACADEMY FOR TECHNOLOGY & MANAGEMENT

SUMMER TRANING PROJECT REPORT On A FRAMEWORK OF SUPPLY CHAIN MANAGEMENT

Of U P Technical University, Lucknow

Under the Guidance of

HINDALCO INDUSTRIES LTD.

Roll No. 0817370002

HINDALCO INDUSTRIES LTD.

AKANK SHA TRIPATHI

Roll No. 0817370002

HINDALCO INDUSTRIES LTD.

TO WHOMSOEVER IT MAY CONCERN

HINDALCO INDUSTRIES LTD.

1.0 Introduction to the Topic... 2.0 Introduction to the Organization/Industry 00

HINDALCO INDUSTRIES LTD.

10.1 Limitations of the Study.. 10.2 Scope for further research.

HINDALCO INDUSTRIES LTD.

ABOUT ADITYA BIRLA GROUP

::Integrity ::Speed ::Seamlessness ::Passion

I.1 ADITYA BIRLA GROUP

HINDALCO INDUSTRIES LTD.

HINDALCO INDUSTRIES LTD.

HINDALCO INDUSTRIES LTD.

ADITYA BIRLA GROUP

key products and brands

Locations Hindalco Industries Ltd.

Renukoot (Uttar Pradesh), Muri (Jharkhand), Belgaum (Karnataka)

Renukoot, Hirakud (Orissa), *Taloja

Extrusions Rolled products

Renukoot, Alupuram Belur(West Bengal), Taloja(Maharashtra), Renukoot, Mauda(Maharashtra)

27,700 tpa 200,000 tpa

Wire rods Aluminium foil

Renukoot, Alupuram(Kerala) Silvassa (Dadra & Nagar Haveli), Kalwa(Maharashtra)

64,400 tpa 11,000 tpa

Silvassa (Dadra & Nagar Haveli)

300,000 pcs Page 4

HINDALCO INDUSTRIES LTD.

key products and brands

HINDALCO INDUSTRIES LTD.

Key products and brands

key products and brands

HINDALCO INDUSTRIES LTD.

key products and brands Pulp

PT Indo Bharat Rayon VSF Birla Viscose 155,000 tpa Indonesia

Thai Acrylic Fibre acrylic fibre Texlan 100,000 tpa Thailand

HINDALCO INDUSTRIES LTD.

Key Products and Brands

Capacities Indo Gulf Fertilisers Ltd.

HINDALCO INDUSTRIES LTD.

Key Products and Brands

Capacities Grasim Industries Ltd.

258,000 tpa Aditya Birla Nuvo Ltd.

Caustic Soda Liquid Chlorine Hydrochloric Acid

82,125 tpa 50,340 tpa 5,475 tpa Tanfac Industries Ltd.

Aluminium Fluoride Hydrofluoric Acid

17,000 tpa 17,000 tpa

HINDALCO INDUSTRIES LTD.

Aluminium chloride Captive Power Plant

PT. Indo Raya Kimia Carbon Disulfide 50,000 tpa Indonesia

Key Products and Brands

Key Products and Brands

Key Products and Brands

Capacities HINDALCO INDUSTRIES LTD.

Aditya Birla Insulators Insulators 38,800 tpa India