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

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.


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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.


Roll No. 0817370002


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0817370002 HINDALCO INDUSTRIES LTD. Akanksha Tripathi. Any resemblance to earlier research work is purely coincidental.A. VI Sem Roll No. The findings and conclusions expressed in this report are genuine. AKANK SHA TRIPATHI M. authentic and are for academic purpose.STUDENT’S DECLARATION I.B. hereby declare that this work entitled A Framework of “supply chsin managment” is the result of summer training under taken. Page 4 .

. Technical University.….. Mahesh P.TO WHOMSOEVER IT MAY CONCERN Thi is to certify that Mr../Ms…Akanksha Tripathi……………………………………… S/o.. Kumar) Officiating Director HINDALCO INDUSTRIES LTD. Page 4 . Lucknow. 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.. Roll No……0817370002…. Date : Place : Mathura (Dr..……… student of MBA III Semester (Batch 2009-10) of this institution has done summer training project report titled A Framework of “supply chain management”………………… …………………. D/o………Ved Prakash Tripathi……………….

…………………………………………………...1 Universe of the study……………………………...……………………………………………..0 Recommendations & Suggestions……………………………………….TABLE OF CONTENTS Preface…………………………………………………………………………. Acknowledgement……………………………………………………………… Student’s Declaration…………….…………………………………………………………… 00 00 00 00 00 00 00 HINDALCO INDUSTRIES LTD.………..2 Sample Size……………………………………………..……….0 Introduction to the Organization/Industry………………………………… 00 00 3...0 Objectives of the Study……………………………………………………..3 Sampling Method……………………………………………. 4..4 Tools for Data Collection……………………………………. 9. Page 4 . 00 6..0 Conclusion…. 10. 6. Certificate ……………………... 8.…………………… 00 6.0 Literature Review………………………………………………………..0 Data Analysis & Interpretation……………………………………………..0 Research Methodology…………………………………………………… 00 6... 2.……….. 00 7.. 00 6.0 Findings…………………………………………………………………….0 Introduction to the Topic.....0 Scope of the Study………………………………………………………… 5.………………………………………………… 1.

No. TABLE No.. PAGE No. No.10.. Appendix [Questionnaire]…………………………………………………….2 Scope for further research………………………………………………. PAGE No.... REFRENCE DETAILS HINDALCO INDUSTRIES LTD. REFRENCE DETAILS LIST OF CHARTS S.1 Limitations of the Study……………………………………………. Page 4 . i ii LIST OF TABLE S.…… 10... 00 00 Bibliography…………………………………………………………………. TABLE No..

A stable strategy does not mean a static strategy. incorporating the expected market requirements and the customer needs.” HINDALCO INDUSTRIES LTD. Page 4 . rather it means following a brand philosophy and continuous improvement in how strategy is manifested. They have a stable consistent strategy.The Winning organizations will be those who regularly outperform competition.

where people grow. profits grow.” Group mission “To deliver value for our customer.KUMAR MANGALAM) ABOUT ADITYA BIRLA GROUP CHAIRMAN: Shri Kumar Mangalam Birla “People build company’s success. employees and society at large.” Group Philosophy Reset on four pillar ::Customize :: People-size ::Strategize ::Institutionalize HINDALCO INDUSTRIES LTD. Page 4 .” Group vision “To become a premium conglomerate with clear business focus at each corporate level. shareholders.(…….

Group values ::Integrity ::Speed ::Seamlessness ::Passion INTRODUCTION TO GROUP I. Page 4 .1 ADITYA BIRLA GROUP HINDALCO INDUSTRIES LTD.

It is one of the three biggest producers of primary Aluminium in Asia. Malaysia and Korea.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 HINDALCO INDUSTRIES LTD. among the world's most cost-efficient Aluminium and Copper producers. China. Globally the Aditya Birla Group is: :: A metals powerhouse. Page 4 .5 billion and in the league of Fortune 500. Canada. Italy. In India. Over 50 per cent of its revenues flow from its overseas operations. The Group operates in 20 countries: India. is a Fortune 500 company. Hungary. Switzerland. Indonesia. belonging to 25 different nationalities. with the largest single location copper smelter. Thailand.A US $28 billion corporation with a market cap of US $31. Luxembourg. Laos. Germany.000 employees. Brazil. UK. :: :: :: :: :: :: No. France. the Aditya Birla Group is anchored by an extraordinary force of 100. 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. USA. Philippines. Hindalco-Novelis from its fold. Australia. It is the largest Aluminium rolling company. Egypt.

700 villages :: Reaching out to seven million people annually through the Adyta Birla Centre :: Focusing on: health care. 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. to keep experimenting.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. 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 HINDALCO INDUSTRIES LTD. education. Page 4 . Beyond business — the Adyta Birla Group is: :: Working in 3. sustainable livelihood.

000 tpa Aluminium Wheels Silvassa (Dadra & Nagar Haveli) 300.700 tpa 200.000 pcs Page 4 HINDALCO INDUSTRIES LTD. Capacities Country Alumina Chemicals Renukoot (Uttar Pradesh).000 tpa India Primary Aluminium Renukoot. Mauda(Maharashtra) 27.000 tpa Wire rods Aluminium foil Renukoot. Alupuram(Kerala) Silvassa (Dadra & Nagar Haveli). Hirakud (Orissa).ADITYA BIRLA GROUP key products and brands Locations Hindalco Industries Ltd.000 tpa Extrusions Rolled products Renukoot.160.400 tpa 11. Taloja(Maharashtra). . Alupuram Belur(West Bengal). Muri (Jharkhand). Belgaum (Karnataka) 1. Renukoot. *Taloja 489. Kalwa(Maharashtra) 64.

*For Taloja recycling plant Indal (subsidiary of Hindalco) Foil Rolling Kollur (Andhra Pradesh) 4,000 tpa

key products and brands




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



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

key products and brands



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



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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synthetic yarns Fabrics HINDALCO INDUSTRIES LTD. poly cotton blended yarn. Ltd.700 mtpa Philippines 89. polyester viscose. non-bulk acrylic dyed yarn Indo Phil Textiles Mills Inc poly viscose blended yarn.548 spindles PT Indo Liberty Textiles rayon yarn.000 mtpa Indo Thai Synthetics Co. rayon silk yarn. polyester. polyester yarn Indo Phil Cotton Mills Inc cotton yarn 10. reverse twist yarn.340 spindles 25. spun polyester. rayonpolyester blended spun yarn PT Sunrise Bumi Textiles viscose rayon. anti pill yarn. polyester combed cotton. lycra core spun yarn Indo Phil Acrylic Manufacturing Corporation high bulk acrylic dyed yarn. high twist yarn. rayon cotton blended yarn. flame retardant yarn. (Jaya Shree Textiles) flax yarns worsted yarns 15. slub yarn.Aditya Birla Nuvo Ltd.500 mtpa Philippines 3. sewing thread.376 spindles Indonesia 168. polyester. micro denier polyester rayon yarn. Page 4 98.088 spindles Indonesia 45. blended yarn PT Elegant Textile Industry rayon.568 spindles Thailand Philippines 13.120 ring spindles Indonesia India .

(Madura Garments) Ready-to-Wear Garments Louis Philippe. Ice Touch.polyester. viscose. Page 4 . Peter England India Key Products and Brands Capacities Indo Gulf Fertilisers Ltd. fabric . silk and wool blends Uncrushables.Grasim Industries Ltd.600 mt India HINDALCO INDUSTRIES LTD. Pure Linen and Linen Blends Flame Retardent Fabrics Pyroguard Branded apparel Linen Club 107 looms India Aditya Birla Nuvo Ltd. Allen Solly Van Heusen. and CleanFab 146 looms 18 million meters India Aditya Birla Nuvo Ltd. Purista. Country Urea Birla Shaktiman 864.

400 nm3 India HINDALCO INDUSTRIES LTD.040 mt 1.785 mt 29. Caustic Soda Lye Liquid Chlorine Hydrochloric Acid Sodium Hypochlorite Compressed Hydrogen 92.125 tpa 50.000 tpa India Key Products and Brands Capacities Grasim Industries Ltd.800 mt 17. Country Caustic Soda 258.Birla Copper (Hindalco Industries Ltd. Page 4 . India Caustic Soda Liquid Chlorine Hydrochloric Acid 82.340 tpa 5.000 tpa Aditya Birla Nuvo Ltd.475 tpa Tanfac Industries Ltd.) DAP/NPK complexes Birla Balwan 400.000 tpa India Bihar Caustic and Chemicals Ltd.750 mt 65.000 tpa 17. India Aluminium Fluoride Hydrofluoric Acid 17.42.

Monosodium Phosphate. Tetrasodium Pyrophosphate. Aquax.000 mtpa Thailand . Disodium Phosphate. Trisodium Phosphate. Birlox 5. Ecare. Diluents. Sodium Triployphosphates.Aluminium chloride Captive Power Plant 12000 tpa 30 mw Aditya Birla Chemicals (Thailand) Ltd. Peracetic Acid. Speciality Phosphates Epoxy Resins (bis-a and bis-f). Sodium Acid Pyrophosphate. Calcium Peroxide Encare. Sodium Bisulphite Epichlorohydrin Caustic Soda Chlorine Polyphos® Epotec Birlasulf-SS. Page 4 15. Hydrogen Peroxide. Ltd. Curing Agents and Allied Products Sodium Sulphite. Birlox 12. Ocare HINDALCO INDUSTRIES LTD. Birlasulf-SM. Birlasol 35 Thailand Thai Peroxide Co. Sodium Hexametaphosphate. Sodium Metabisulphite.

000 tpa Indonesia Key Products and Brands Capacities Country Essel Mining & Industries Ltd Iron and Manganese Ore 15 million tons India Key Products and Brands Capacities Country Pan Century Surfactants Inc. Indo Raya Kimia Carbon Disulfide 50.PT. Fatty Acids Fatty Alcohol Glycerin 55000 mtpa 30000 mtpa 6500 mtpa Philippines Key Products and Brands Capacities HINDALCO INDUSTRIES LTD. Country Page 4 .

(subsidiary of Aditya Birla Nuvo Ltd. Insurance Solutions Birla Sun Life Asset Management Company Ltd. HINDALCO INDUSTRIES LTD. Financial Services Birla Sun Life Insurance Company Ltd.800 tpa India Key Products and Brands Capacities Country PSI Data Systems Ltd.089 seats India Key Products and Brands Capacities Country Birla Global Finance Company Ltd.) IT solutions (banking.) BPO / ITES 9. Mutual Funds Birla Sun Life Distribution Company Ltd.Aditya Birla Insulators Insulators 38. finance and insurance) India Key Products and Brands Capacities Country Aditya Birla Minacs Worldwide Limited (subsidiary of Aditya Birla Nuvo Ltd. Page 4 India India India .

Non-Life Insurance Advisory Services India India Key Products and Brands Idea Cellular Cellular Services Idea Capacities Country 21 million subscriber base India Key Products and Brands Capacities Country Aditya Birla Retail Limited Multi-Format stores 170 retail outlets India HINDALCO INDUSTRIES LTD. Page 4 .Investment Planning Services Birla Insurance Advisory Services Ltd.



including gold. Its combined turnover of US$ 14 billion. Birla Copper and the Nifty and Mt. combining ISO 9001. the metals flagship company of the Aditya Birla Group. the acquisition of Novelis Inc. Page 4 . Gordon copper mines in Australia. The Company's Aluminium units across the country encompass the entire gamut of operations from bauxite mining.Aluminium and copper products. places it in the Fortune 500 league. silver and DAP fertilizers. extrusions. with vertical integration through access to captive copper concentration. aluminium smelting to downstream rolling. A metals powerhouse with a consolidated turnover in excess of US$ 14 billion. in 1962. a world leader in Aluminium rolling and can recycling marked a significant milestone in the history of the Aluminium industry in India. foils and alloy wheels. along with captive power plants and coal mines. ISO 14001 and OHSAS 18001 into one Business Excellence Model. with Indal. Its Copper smelter is the world’s largest custom smelter at a single location.P. Hindalco is the world's largest Aluminium rolling company and one of the biggest producers of primary Aluminium in Asia. Established in 1958. Hindalco commissioned its Aluminium facility at Renukoot in Eastern U. In 2007. continuous cast copper rods along with other by-products. alumina refining.HINDALCO OVERVIEW INTRODUCTION Hindalco Industries Limited. ISO 14001:2004 and OHSAS 18001 certified. The Renukoot and Taloja units have gone a step further with an Integrated Management System (IMS). strengthened the company's position in value-added Alumina. 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. HINDALCO INDUSTRIES LTD. Later acquisitions and mergers. Hindalco in India enjoys a leadership position in Aluminium and Copper. All of Hindalco's units are ISO 9001:2000. With Novelis under its fold Hindalco ranks among the global top five Aluminium majors. The Birla Copper unit produces copper cathodes. is an industry leader in Aluminium and copper.

A strong presence across the value chain and synergies in operations has given Hindalco a major share of the domestic value-added products market. Wire Rods.Apart from being a major player in the domestic market. Billets. namely. Flat Rolled Products and Extrusions. Flat Rolled Products. As a step towards expanding the market for value-added products and services. HINDALCO INDUSTRIES LTD. Everlast Roofing Sheets and Freshwrapp and Freshpakk household foil for packaging. Extrusions. In India. Foil and Alloy Wheels. The integrated facility at Renukoot. while its copper quality standards are also internationally recognized and registered on the LME with Grade “A” accreditation. Hindalco's Aluminium Galleries in Mumbai and Gurgaon showcase the versatility of aluminium through a wide range of applications. Grade “A” accreditation. These include the Aura Aluminium Alloy Wheels for cars. Aluminium Hindalco’s major products include Standard and Speciality Grade Aluminas & Hydrates. 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. (Uttar Pradesh) houses an Alumina Refinery and an Aluminium Smelter along with facilities for production of semi-fabricated products.The company has been accorded the Star Trading House status in India. Redraw Rods. Hindalco has launched several brands in recent years. the company enjoys a leadership position in Speciality Aluminas and Hydrates as well as in Primary Aluminium and downstream semifabricated products. 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. Its aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the LME (London Metal Exchange). Aluminium Ingots. Exports account for more than 20 per cent of total sales of aluminium products. The aluminium alloy wheels plant is located at Silvassa (Dadra and Nagar Haveli). Hindalco's products are well accepted in international markets. Page 4 .

which include Aura for alloy wheels. The Aluminium Gallery. As a step towards expanding the market for value-added products and services. glass. among others. Our exclusive showroom. The exhibits include products like windows. extrusions. It enjoys a domestic market share of 42 per cent in primary aluminium. The company exports about 17 percent of its total sales volume of aluminium. Freshwrapp for kitchen foil and Everlast for roofing sheets. ceramics. Page 4 . 44 per cent in foils and 31 per cent in wheels. The company's metal is accepted for delivery under the high grade aluminium contract on the London Metal Exchange (LME). ladder. seeks to promote Hindalco products to its customers. wire rods. roofing sheets and ceiling and cladding panels. The company's alumina chemical business is a leader in manufacturing and marketing of speciality alumina and alumina hydrate products in the country. doors. cryolite.Hindalco is a leading domestic player in two metals business segments — aluminium and copper. The company also exports these alumina chemicals to over 30 countries covering North America. rolled products. The aluminium division's product range includes alumina chemicals. It has a major market share in the country. These speciality products find wide usage in diversified industries including water treatment chemicals. foils and alloy wheels. conveyor belts and cables. billets. Western Europe and the Asian region. The company has a significant market share in all the segments in which it operates. furniture. Hindalco's products are well received not only in the domestic market. It is a platform for the company to showcase quality products to a quality audience in an appropriate ambience. refractories. Hindalco has launched several brands in recent years. fillers and plastics. HINDALCO INDUSTRIES LTD. 20 per cent in extrusions. but also in the international market. 63 per cent in rolled products. primary aluminium ingots.

HINDALCO INDUSTRIES LTD. It has also made successful forays into the export markets of the Middle East. phosphoric acid. Korea and Taiwan. di-ammonium phosphate. having built over 40 per cent of the domestic market share within three years of its commissioning.Birla Copper. enjoys a leadership position in India. Page 4 . other phosphatic fertilizers and phospho-gypsum are also produced at this plant. China. continuous cast copper rods and precious metals. Southeast Asia. Sulphuric acid. The copper plant produces world-class copper cathodes. Hindalco's copper division at Dahej in Gujarat.

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”


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 customer’s 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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Primary Aluminium 4.

Alloy ingots 5. 6.


Aluminium sheet 7.

Wire rods sheet 8.



Alloy wheel


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Efficiency and product quality are ensured by using state-of-the-art equipment and a strong research and development set-up. processes. Colour-coated and tiled roofing profiles are also offered by Hindalco. 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. building and construction. Of the total production of Hindalco's flat rolled products. 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. HINDALCO INDUSTRIES LTD. electrical. supported by dedicated and motivated employees and the Oracle ERP system. Everlast. transportation. The company's capacity in flat rolled products at present is 2.FLAT ROLLED PRODUCTS (FRPs) Hindalco is the world's largest Aluminium rolling company with the acquisition of Novelis. around 40 per cent is exported and customers in more than 50 countries are using the products. It enjoys nearly 60 per cent of market share and its rolled products are widely used in various segments such as packaging. offers ideal and economical solutions for all roofing and cladding needs.1 in aluminium flat rolled products Page 4 . Hindalco is now world No. defense and general engineering applications. the global leader in value-added high-end aluminium flat rolled products and aluminium can recycling.000 tones per annum and new plans are being implemented to increase the manufacturing capacity. practices and systems ensure that customers' needs and expectations are fully met. 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. a Hindalco brand for aluminium roofing sheets.00.

They are used in commercial and general engineering applications such as bus bodies. flatness and dimensional accuracy. there are three kinds of Flat Rolled Products (FRPs) which is being exported by Hindalco i.II. versatility and blemish-free surfaces.. anodizing characteristics and a blemish-free surface make it useful in both commercial and general engineering applications. Cold rolled Coils 2.1 Basically.e. They have good shape. high tolerance. 1. ROLLED PRODUCT APPLICATIONS . 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. Sound metallurgical properties for further fabrication. Circle Hindalco's cold rolled coils are precision-finished to match international standards. cladding and fan blades. Cold rolled Sheets 3. tolerance.

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. rail. transformer strips. air. false ceilings and paneling (plain or colour-coated coils) :: Electrical busbar ducting. marine Building and construction Fan blades Electrical engineering HINDALCO INDUSTRIES LTD. flexible. Page 4 . etc Cold rolled sheets :: :: :: :: :: :: Defense Industrial engineering Transport — road.Circles :: :: :: Pressure cookers. aluminium composite panels.

Page 4 . trucks and rail coaches Floors for loading bays. kick plates.Fin stock :: :: :: Air conditioners Car radiators Automobile heat exchangers Flooring sheets / tread plates :: :: Flooring for buses. 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 HINDALCO INDUSTRIES LTD.

boats (corrosion-resistant and wieldable plates) Defense and industrial uses (strong alloy plates) Aircrafts Spiral Fin stock :: Industrial heat exchangers FOIL PACKAGING HINDALCO INDUSTRIES LTD.Pattern sheets :: Decorative applications like interior paneling for trucks. Page 4 . cabins. etc Printed Circuit Boards (PCB) entry sheets :: Electronic circuit boards Plates :: :: :: :: :: Electrical bus bars and ducting Tanks Ships.

Applications Pharmaceuticals 25/30/40-micron thick. thus ensuring sustainable growth in today's intensely competitive and cost-sensitive market. Compatible with PVC. 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. soft foil either laminated to low density polyethylene or coated with heat seal lacquer (HSL) for sealing as per customer need. soft foil laminated with paper. Offered in both surface and reverse printing. Page 4 . polyethylene (poly) and their combinations. HINDALCO INDUSTRIES LTD. films like polyester (PET).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. hard foil coated with heat seal lacquer of varied gram mages. Chiefly used for pouches and sachets. 45-micron foil. biaxially oriented polypropylene (BOPP). Hindalco offers a maximum depth of 9mm. 20/25/30-micron thick. 7/9/12-micron thick.

strength. 7/9-micron thick. soft foil laminated to polyester and poly with reverse printing on polyester. used for butter chiplets. low earing and printable surfaces. soft foil laminated to greaseproof paper. House foil and semi rigid containers HINDALCO INDUSTRIES LTD. 30/38/40-micron thick. Used for cheese spreads.Rolled to very fine tolerances for more closures per ton of stock. compatible with PS and PP containers. Dairy 9-micron thick. Widely used for pilfer-proof bottle caps and vial seals. yoghurts and mineral water. Closure caps have high formability. soft foil coated with heat seal laquers (HSL). Offered in both coated and bare form. Page 4 .

Also 7-micron foil printing on foil surface. foil and polythene laminates for packing coffee. 7-micron foil with printing on foil surface and poly laminated to paper. soft foil with printing on one side and heat seal lacquer (HSL) coating or polythene lamination on the other. 9-micron thick. HINDALCO INDUSTRIES LTD. Polyester. Page 4 . Also offered as a laminate of 9-micron foil with paper and wax. Widths can vary as per market requirements. laminated to paper and further coated with wax. laminated to paper and further coated with wax. soft foil with printing on foil surface. Processed food and beverages 9/12-micron thick. Semi rigid containers are available in a range of sizes and shapes.Household foil is available in a range from 10 micron upwards.

Foil can be silver or gold lacquered in matte of bright finish as per customer requirements. co-polymer structure HINDALCO INDUSTRIES LTD. top — paper. Personal products Flexible laminated tubes that utilize 12/20micron thick soft aluminium foil laminate. co-polymer structure and bottom — coated. 40 micron foil. Page 4 . 50 micron foil. 9-micron thick. Extensively used in toothpastes. soft foil laminated to board with adhesive or polythene as per customer demand. Surgical The laminates have two components. ointments.Cigarette foil Cigarette foil for inner packing of cigarettes is offered in 7-micron thick soft foil laminated to paper. cream and foodstuffs. 7/9-micron thick. soft foil or BOPP and heat seal lacquer (HSL) coated or co-polymer laminated as per customer demand. cosmetics.

OBJECTIVE OF STUDY This project was undertaken to have an insight into the supply chain management of Hindalco. 80-160-micron thick foil. The coated foil enhances the life of the radiator and improves cooling. offered bare as well as with hydrophilic and hydrophobic coatings in blue or gold colour. In short. soft or in partially annealed temper. “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. Page 4 . soft or partially annealed temper. The coated foil enhances the life of the air conditioner and improves cooling. 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. It is against this backdrop the HINDALCO INDUSTRIES LTD. at it can be said that this study has two-fold objective of knowing. communication and information on account of globalization has found charging the expectations of the customers. offered bare as well as with hydrophilic and hydrophobic coatings in blue or gold colour.Heating ventilation and air conditioning (HVAC) 80-160-micron thick foil.

An efficient “supply chain management” plays a vital role in the success of any organization. Page 4 . as it normally takes years to build and is not easily changed. with regard to the distribution channel. a set of recommendations. After a thorough analysis of various facts and figures. has been given in the concluding part of the report. A chain system has to be designed carefully. The company would find it useful to look into the viability of the implementation of the recommendations. and are expected to fetch immense benefits to the company.marketing professionals need to assign due priority to the application of modern marketing principles in particular. This study provides a bird’s eye view of distribution channel of Hindalco. This report would do well to the entire person interested in learning about distribution channel of Hindalco. 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. A general idea about Hindalco’s presence in aluminium market is also well given by this report. It is thus clear that this report would serve a variety of purposes and its scope is very wide and open. once implemented.

 Internet. Its major focus however is strategic. HINDALCO INDUSTRIES LTD. Rahul paliwal (asst. At an operational level. it includes and expands the activities of purchasing function and the procurement process. Supply chain management: Introduction: Supply chain management is a process responsible for the development and Management of a firm’s total supply system both the internal and external components. sales manager) Mr.  Induction guide.M. Page 4 . 2007-08 and individual contra sheets of aluminum and copper for the year 2006-07 and 2007-08.C.Mahapatra (sales manager) Distributors Mr.Personal interview Employees Mr. Baccha Singh Questionnaire Employees of hindalco SECONDARY DATA:  Annual report of HINDALCO Fy2006-07.

and consignment and title ownership arrangements. As a solution for successful supply chain management. 1996). Supply chain management (SCM) is the oversight of materials.” “Value Chain is the functions within and outside a company that enables the value chain to male products and provides services to the customer. 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). There are two main types of SCM software: planning applications and execution applications. information. workin-process inventory. and finished goods from point-of-origin to point-of-consumption (supply chain). Page 4 . The financial flow consists of credit terms. 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 is process from the initial raw materials’ to the ultimate consumption of the finished product linking across supplier-user companies.” 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. payment schedules. and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. 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. The information flow involves transmitting orders and updating the status of delivery. Supply Chain Management spans all movement and storage of raw materials. Supply chain management involves coordinating and integrating these flows both within and among companies. Execution HINDALCO INDUSTRIES LTD. Planning applications use advanced algorithms to determine the best way to fill an order. as well as any customer returns or service needs.

and includes key suppliers. Increasing numbers of companies are turning to Web sites and Web-based applications as part of the SCM solution. manufacturers. reduce costs. SCM applications have the potential to improve the time-to-market of products. and allow all parties in the supply chain to better manage current resources and plan for future needs. the management of materials. 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 end customers of a specific company).applications track the physical status of goods. By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a company's clients). at several different sites and companies. or data warehouses. Page 4 . A number of major Web sites offer e-procurement marketplaces where manufacturers can trade and even make auction bids with suppliers HINDALCO INDUSTRIES LTD. This shared data may reside in diverse database systems. and financial information involving all parties.


• • • Easily make a sales contact with the customers. Ensuring that the consumer incurs the minimum extenuation in procuring the product. • Safe in quality & accuracy in quantity. complaints. • Ensuring that the firm is able to carry on with its manufacturing activities. suggestion. manufactures are made physical distribution of goods. Developing & spreading the promotional offer of company and promote the sales activity. Achievement of the best possible coverage of the target market. Through the intermediaries.CHANNEL OBJECTIVES: • • • Making smooth availability of product to the target market. confident that the channel will take care of the distribution job. Page 4 . • Quick services. and information to the organizations – they are work as the co-ordination between the targeted customers & manufactures. so they invest the fund. • 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. Intermediaries are taking the title to goods. • • Helpful in making marketing strategy. gathering the customer interest. • 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. HINDALCO INDUSTRIES LTD.

in the term of storing. Helpful in product design & developments. 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. requirement of design a distribution channel to make product & services available to customers in different ways.• Intermediaries are taking various type of risks. Flow of feedback from consumer. internet. Reduce the cost of distribution Save the distribution time. DIRECT MARKETING CHANNEL 2. e-mail. VARIOUS TYPES OF CHANNEL LEVELS: While a marketers wants to sell or marketing about the products or services. Generally two methods of distribution are in the practices. 1. INDIRECT MARKETING CHANNEL DIRECT MARKETING CHANNEL: DMC is a marketing channel that has no intermediary levels. In the process of distribution of products. Manufacture or sellers are advertise their product through the various method of advertising & make awareness about the products. CONTRIBUTION OF CHANNEL: • • • • • • Make available on time. HINDALCO INDUSTRIES LTD. telephone or by post. then contact to the needful customers through their salesmen. Flow of money consumers to manufacture. dispatching etc. Page 4 .

Page 4 . Manufactures or sellers are appointed various type of marketing intermediaries in the context of nature of the products & segmentation of markets.MANUFACTURING CONSUMER INDIRECT MARKETING CHANNEL: IMC is a channel containing one or more intermediary levels. HINDALCO INDUSTRIES LTD.

and communication of information. Page 4 . DISTRIBUTORS: A distributor is usually appointed by the company and does not sell its competitor’s products. The distributor is very much an extension of the company as he ensures that the market is properly served. HINDALCO INDUSTRIES LTD. They are responsible for storage & transportation of the company’s products and its distribution to the distributor and some time retailers.  FULL SERVICE WHOLESALERS: • • • Perform full range of distribution services. He can also be a distributor of many products of the same company. Provide trade credit. Provide installation and services. offer promotion assistance. A company has direct control over the distributors. A distributor is responsible for ensuring that his company’s product is available at the retail stores.TYPES OF CHANNEL MEMBERS C & F AGENTS: It means clearing & forwarding agents. personal sale force. Some of the following type of wholesalers:  MERCHANT WHOLESALERS: • • • Purchase and resell merchandise He has title to merchandise. He provides wide range of services.

Furnishes rack and shelves. They do not provide credit facility but at times store and deliver products.  LIMITED FUNCTIONS WHOLESALE Not provide credit.  MANUFACTURER’S AGENTS • • • • They are free to work for several manufactures. RACK JOBBER: • • • • Deals with highly promoted items. shelving. price the goods. marketing research information and merchandising assistance. Sell on consignment. Also provide research aid and promotion support. Provide services as delivery. Merchandising agents and brokers do not take title to product but negotiate sales for manufacture. set up point of purchase displays. But they provide the facility of financing. They carry non-competitive. They have not title to goods. and inventories caring.  BROKERS: • • • • To bring buyer and seller together To assist in negotiation. HINDALCO INDUSTRIES LTD. complementary products in exclusive territories. they represent. keep them fresh.  MERCANDISING AGENTS & BROKERS: They usually perform fewer services than merchant wholesalers do. Page 4 .

To provide sales force & research aid. They do not normally promote the goods.Create better relationship. They have not title to goods. COMMISSION MERCHANTS • • • • • • Received goods on consignment. It’s performing the wholesaling function himself. Page 4 . To accumulate them from local markets & arrange for their sales. etc. Collect orders from customers. It is separate from manufacturing operations. Offer credit & storage goods facility. Generally used in industrial customers. demand forecasting. Dispose all the disputes or claims. HINDALCO INDUSTRIES LTD.  MANUFACTURER’S OFFICE (Regional Sales Office) • • • • • • It does not carry inventory Perform market research.  MANUFACTURER’S SALES FACILITIES • • • Established by manufacture. Make delivery to customers from manufacturing point Collection of payments. Types of manufacturer’s sales facilities:  MANUFACTURER’S SALES BRANCHES • • • Carry inventory Promote the sales activities Sell to retail outlet.


Page 4 .Full Service Wholesalers Limited Function Manufacturer’s Sales Branch Wholesaler Regional Sales office Rack Jobbers STEP-1 Identify Target Consumers Determining Consumer Buying H ND Habits ForITheA L C O Of D U S T R I E S Types I N Goods LTD.

Page 4 .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: HINDALCO INDUSTRIES LTD.

Page 4 . EVALUTION OF COMPETITOR’S CHANNEL PARTERNS The firm should also study the competitors’ channel patterns before deciding its channel. IDENTIFICATION OF ALTERNATIVES CHANNEL & SELECTION OF THE ONE THAT SUITS THE FIRM BEST: Two important considerations are cost and efficiency. Distribution environment in the border sense includes the legal environment as well in so far as its implications and distribution are concerned. 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. Often though not necessarily they are directly proportional.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. The channel HINDALCO INDUSTRIES LTD. 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. 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.

Need for specialized distributor must be appreciated.  The product must have a sizable customer base.  Different industrial products need different types of distributors.  The case of industrial products.  The unite value should not be too high.that its efficient but relatively less expensive has to be chosen. The products futures.  It should not be complex.  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. 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.  Establish relationship and use problem-solving techniques for prevention of crisis and preventing customer dissatisfaction. after considering all such factors. NOTES:  Consumer products Vs Industrial products. 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.  It must be standardized to a reasonable extent. it must still remembered that.  It must be stock able items. HINDALCO INDUSTRIES LTD. Page 4 . Within each of these broad categories of product channel choice can vary in relation to specific products/product types. 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. Two types of evaluations an economic evaluation and a conceptual evaluation may be necessary. if a given industrial product lends itself for marketing through distributors.

ON TIME DELIVERY Consumer will be happy. Operations gap can also result from too many stages in production process. It may so happen that the supplier may measure OTD by product category but the buyer may measure it in terms of complete order. HINDALCO INDUSTRIES LTD.99. Gather quality intelligence on customer dissatisfaction and provide this information to management. for it has become a competitive weapon in all most all industries. OPERATION GAP: Businesses that face variability from one manufacturing phase to another or from operations to ware house normally have an operations gap. if the material is delivered on time. The customer may measure OTD in terms of the initial order date whereas then supplier may measure it from a negotiated date. OTD has come into sharper focus. For example Nissan offers a guaranteed ten-day delivery to its dealers. too many supplier or too many people involved in order filling.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. Page 4 . Caterpillar deliver replacements parts within 72 hours.

In other words organization gap result from the priority accorded to OTD. Page 4 . Marketing Head office (Renukoot) EAST WEST NORTH SOUTH Vice-President Vice-President Vice-President Vice-president HINDALCO INDUSTRIES LTD.ORGANISATION GAP: If people do not have incentives to improve OTD it will probably result into organization gap.

HINDALCO INDUSTRIES LTD. Page 4 Page 4 . DIS ADVANTAGES HINDALCO INDUSTRIES LTD. Focus on all products simultaneously.Extrusions Rolled Primary Sales Manager (Territory Manager) ADVANTAGES • • • Cost effective Geographical area oriented.

• No more time & scope for a particular product. So that. Analysis of the advantage and disadvantage of the regional based marketing strategy. Lack of information about a particular product. For this the company transferred its marketing head office from Renukoot to Mumbai. Page 4 .• • Product promotion scheme is not applicable. in 2003 company decided to go for opting the new marketing strategy based on product specification. • Over work load. • Consumer satisfaction is not appropriate. it is not suitable in modern marketing specification era. The new marketing strategy structure is as follows:- HINDALCO INDUSTRIES LTD. The above old structure was not taking much advantage of the new global market.


Accumulation of small customers. The smallest consumer would be consuming as little as 1MT/Month. 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. Emphasis on more customer satisfactions. However. the largest numbers of Hindalco’s customers are in the consumption range of 5-50 Mts./Month.• • • • • • • It’s product based. DISADVANTAGES • • Cost ineffective. Page 4 . Helpful to production processes to deliver the products. Helpful to increasing the sales performance of various products of product line. Provide quick service to customers. there are a large number of small and medium consumers and a select a few large consumers.. Enhance the sales promotion. HINDALCO INDUSTRIES LTD.

(A) MARKET SEGMENTATION BASED ON THE PRODUCT GROUP On the basis of product groups. the per capita consumption of aluminium in the country is very low (1. Hindalco manufacture the products with very specification as desired by the various customers. Moreover. Hindalco decided to cater to as many consumers as possible. only around 350 products find use in aluminium. Whereas India.1 kg/year). is designed to the object. Their distribution system therefore. 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 HINDALCO INDUSTRIES LTD. As a strategy therefore. Page 4 . Hindalco’s market may be segmented in the following manner. etc. Japan. Hence there is large potential for introducing the new uses and the increasing the consumption.Aluminium is being used in around 3000 products in developed countries like USA. Canada.

Page 4 .• • • • Tubings Structurals Architecturals Mouldings • • • • • FOIL Cable wrap stock Light gauge Foil Bare & Coated Fin stock Collapsible Insulation Ducts. Foil Producer Industries. • MARKET SEGMENTATION ON THE BASIS OF PRODUCT WISE KEE CONSUMERS. • • • • • • • • PRIMARY PRODUCTS: Consumers: Value added aluminium sheet producer industries. Electricals Equipment Automobile Industries Furrow allows Smelter pot lining. • • ALLOY WHEELS (“AURA”) 12” to 18” diameters. Extrusion Producer Industries. HINDALCO INDUSTRIES LTD.

Transportation sectors. Defense & Marine sectors. Page 4 . tube lights. non-stick cookware. Electrical Industries: bulbs.• • • • • • • • • • • • • • • • • • • • • • Consumers: ROLLED PRODUCTS Foil & Packing Industries: box. Consumer durable: flooring & roofing General engineering: Piper-proof bottle cops Pressure cookers. 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. fan blade etc Transportation industries Building & construction sectors –roofing flooring etc. and container. cop.

whose demand is very high and consistence. Some of the bulk customers are Howkin. Jugraj Tejraj. Based on size & frequency of order. Foil Division Silwassa. TTK. etc.• • • • • • • Dairy products Processed food Con-fectionery Personal care products Cigarettes Box rapping Air conditioner Auto mobile radiator Collapsible Insulation Ducts. Page 4 . HINDALCO INDUSTRIES LTD. Hindalco market may be segmented as follows:  BULK CUSTOMERS Bulk customers are those customers. • • • • • • • • • • 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. Bajaj Auto.

Uses of aluminium metal are everywhere. (D) MARKET SEGMENTATION BASED ON CONSUMPTION SECTOR.  SPECIAL CUSTOMERS Special customers are those customers. Defense Organization. continue this category. It is not easy to categorize in some particular heads. Page 4 . Their orders are processed in the normal course of working.    Transportation Building & constructions Electrical HINDALCO INDUSTRIES LTD. some of the small customers of Hindalco included ITI Allahabad. However. Establishment etc. we categorize in the following major sectors. Government organization like Defense. whose demand is comparatively low and not so consistence. and Dockyards etc. whose orders are for products under developments. Since their demand is usually urgent in nature they are given priority under routine customers. (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. Examples: Export Customers. SMALL & MIDIUM Small & medium customers may be bracketed as those customers.

Different area has different type of industries. Some area is affected by flood. Bills.    Industrial Machinery Packing Consumer Durable Other (E) MARKET SEGMENTATION BASED ON GEOGRAPHICAL AREAS: Aluminium consumers are spread all over the country. TRANSPORTATION FACILITY Smooth transportation facility is available all over the country all the time. segment the market in geographical areas based on consumption or demand pattern. Banking. DISTRIBUTION PROCESS AT HINDALCO There are different tasks involved in distribution process These are as follows:  Order processing     Packing & Insurance. Page 4 . Ware housing Transportation Godown sales procedure. Here. Some areas are block in the case of heavy rain etc. whose are used aluminium in different quantity.. ORDER BOOKING: HINDALCO INDUSTRIES LTD.

The guidelines are: HINDALCO INDUSTRIES LTD. rolling mills by the end of the preceding month. Ware housing is the responsibility of warehouse in charge in Hindalco. mode of transportation. Consumer gets delivery in order to their priority. Page 4 . etc. quantity. The work start when warehouse officials receive finished goods from production. quality. desire delivery time. This monthly report is sent to the respective production department i.e. Cold rolled coils. technical data. A strong function is necessary because production and consumption cycles rarely match. quality. This order is passed to the relevant personnel’s officials with relevant details. terms of payment finalized and his order is finally booked.Every purchaser has to book his order giving details which aluminium rolled products they want such as Plain sheet. WARE HOUSING: Every has to store to goods while they wait to be sold. The produced material is sent to the inspection and packing department. Thereafter. payment mode etc. After the receipt of orders from the customers or agent Company scrutinizes the order. Purchaser should be fully disclose about the product such as. PRIORITY: A priority list of all categories of consumers has been fixed in consultation with all concerned. Hindalco warehousing in charge dispatches the material to respective customers on advice of CSMO and follows the guidelines given to them. which is also followed by transporting agents. The order contains the name of product. A production planning programmed is prepared for rolled production monthly basis. circles. clearance etc. ORDER PROCESSING: Hindalco procure order either directly from the customers or through the agents/stockiest. size. Technical wing of Hindalco examines their application and if necessary also make inspection of the facing and decided quality to be offered. milk can sheet. product name.

If packages are damaged or loose condition. do not accept it. Cheek condition of metal every few hours to ensure no water condensation. Packages: No vertical stoking of packages.At warehouse:    While taking delivery from inspection & packing to ensure packages are intact & dry.  Heavy packages to be kept at bottom and lighter packages over heavy. During Storage:    Outdoors storage should be avoided. Do not store packages directly on the floor. If packages are wet. During loading at warehouse :  Truck’s floor should be clear and flat.  There should not be any hole or damage in the floor of the Truck’s  Floor should be covered with Tarpaulin.  Packages being loaded should be intact and dry  Proper stocking of packages should be done while loading. DELIVERY OF MATERIAL: HINDALCO INDUSTRIES LTD. get it repacked. use wooden pallets. After loading truck should be covered with tarpaulin. Page 4 .

Haryana.   Carrier Risk. The respective zonal head exercise control over all activities related to godowns sales.They deliver the material as per the delivery order. Hindalco arranges insurance facilities for its customers. State Bank of India (SBI). Calcutta Gohati. This sales procedure is followed by all the godown of company situated at Delhi. 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. Bangalore. Page 4 . Mumbai. which is appointed by Hindalco for the operation & maintenance of the godown. BANKING INSURANCE BILLS & OTHER DOCUMENTS: Hindalco enjoys the facilities of three public sector banks & private sector bank in its town Renukoot. Jaipur. Faridabad. HINDALCO INDUSTRIES LTD. There are two types of insurance. Then they note down the delivered material in the godown register.     United Commercial Bank (UCO Bank). Chandigarh. GODOWN SALES PROCEDURE Godown sales procedure describes the sales procedure of Hindalco’s products through its godown. Owner Risk. Banks help the company in carrying the documents to the party. Banking services at Renukoot is punctual. It helps in quicker payments realization. Hydrabad. Silvasa. Taloja … There is a clearing agent in the godown. INSURANCE Every material is dispatched duly insured. Then they send delivery report daily to zonal office. Industrial Development Bank of India (IDBI). Allahabad Bank.

functioning under various zonal offices. Zonal offices carried out various Marketing Sales functions of company. There is a network of area offices. “Taking the product to the market” Distribution of products in Hindalco is carried out through a network of zonal offices. as they enable the company to minimize distribution costs. Make a direct contact with the customers . on behalf of the customers. packing.  Clearly mentions about the mode of payments. in various part of country.  Help the company to cater to the need of customers. Page 4 . regarding to details of products such as quality. ZONAL AND AREA OFFICES: Hindalco has established five zonal offices. They are paid commission on the generated sales. AGENTS Agents are those persons/institutions. Stockiest and company operated Depots. located through the country. They provide following functions:  Signed a contract between the zonal offices and customers. destination.  Eliminating intermediaries. transportation.VARIOUS MODES OF DISTRIBUTION IN HINDALCO Hindalco emphasizes on . Area offices. who provide orders to Hindalco.  Helpful the company to earn additional profits 2. The company has appointed a number of agents. HINDALCO INDUSTRIES LTD. all around the country to sell the products. Agents. Agents function as an important mode of distribution. Agent being a local person/ institution can use his contacts and influence. etc. A brief description is given below 1. to generate sales in a local market.

This is providing the following advantages to the company & also the customers: • • TAX-SHIELD: In many states. by keeping inventory of the various products. in the event of surplus stock. products can be transferred to the various depots. HOW THE DEMAND IS BEEN GENRATED HINDALCO INDUSTRIES LTD. state sales tax is less than the central sales tax. Certain products of the company are sold through the network. Similarly. lead to tax saving. at a premium price small off takes of the scattered customers can also be provided easily by the depots.     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. Page 4 . For example. Production –Schedules can be planned with greater accuracy. AT RANDOM DELEVERY: Emergency needs of customers full filled immediately by the depots. DEPOTS HINDALCO operate 15 depots in various part of the country. Helpful in minimizes extra distribution setup costs. STOCKIESTS Hindalco appointed a number of stockiest in various geographical areas across the country.3. with the help of estimated requirements. sent by depots. In these states sales of products through depots. maintain suitable inventory to cater to the demand of the market. • HELPFUL IN PRODUCTION: Depots provide a foundation to the production department. Depots send the various requirements at the work office and thud. Stockiest are made conform sale for the company. 4.

Customer to competitor HINDALCO INDUSTRIES LTD. Page 4 .


between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently. military organizations). services and related information between the point of origin and the point of consumption in order to meet customers' requirements. material-handling. The software that is used in these departments is: Conventional department: CVT software / CTMS software Container Trucking: CTMS software Warehouse: WMS In Hindalco. 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. This software is connected with Internet and the working in any department in any region of Hindalco will make effect in all over India. transportation. But there is various software that is being used within the departments of logistics. Most of the commercial companies do use one or the other custom solution. Marine Engineering. information and other resources. and packaging. HINDALCO INDUSTRIES LTD. Conventional Department. Page 4 . effective forward and reverse flow and storage of goods. implements and controls the efficient. Heavy haulage. all the departments are interconnected with computer network system and the software on which these department works is on the Oracle 11i platform. including energy and people. Etc. Logistics involve the integration of information. and originally. warehousing. Few department in Logistics are namely. Warehouse. and inventory. 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. A professional working in the field of logistics management is called a logistician. There is very few generalized software available in the new market in the said topology.Logistics is the management of the flow of goods. Logistics management Logistics management is that part of the supply chain which plans. Container department.

or external focus (outbound logistics) covering the flow and storage of materials from point of origin to point of consumption (see supply chain management). Production logistics can be applied in existing as well as new plants. 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. but to streamline and control the flow through the value adding processes and eliminates non-value adding ones. HINDALCO INDUSTRIES LTD. Production logistics The term is used for describing logistic processes within an industry.due to product safety and product reliability issues . which gives the opportunity to improve the production logistics system accordingly. The goal of logistics work is to manage the fruition of project life cycles. 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.Business logistics Logistics as a business concept evolved only in the 1950s. In many industries (e. Production logistics is getting more and more important with the decreasing batch sizes. mobile phone) batch size one is the short term aim. 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. warehousing. consultation and the organizing and planning of these activities. Machines are exchanged and new ones added.g.is also gaining importance especially in the automotive and the medical industry. calling for experts in the field who are called Supply Chain Logisticians. which is an essential part of production logistics . logistics may have either internal focus (inbound logistics). Manufacturing in an existing plant is a constantly changing process. Page 4 . supply chains and resultant efficiencies. The other coordinates a sequence of resources to carry out some project. The issue is not the transportation itself. Track and tracing. Logisticians combine a professional knowledge of each of these functions so that there is a coordination of resources in an organization. transportation. In business. Production logistics provides the means to achieve customer response and capital efficiency. This way even a single customer demand can be fulfilled in an efficient way. One optimizes a steady flow of material through a network of transport links and storage nodes. The main functions of a qualified logistician include inventory management. There are two fundamentally different forms of logistics. purchasing.

Page 4 .Logistics Structure Order procurement and allocation HINDALCO INDUSTRIES LTD.


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 HINDALCO INDUSTRIES LTD. Page 4 .



.03.256 6.046 9.08 Net Sales & Operating Revenue Profit Before Tax Provision for Current Tax Provision for Deferred Tax 192. which form a part of this Annual Report.609 25.031 161 Share in (Profit)/ Loss of Associates 159 12 Page 4 HINDALCO INDUSTRIES LTD.010 30.841 (551) 29. provide the strategic direction and a more detailed analysis on the performance of individual businesses and their outlook.616 9.643 26. Rs. in Million Financial Results for the year ended Standalone Consolidated 31.128 35.063 876 183.07 31.238 2.942 (478) Provision for Fringe Benefits Tax 114 113 123 121 Tax Adjustment for earlier years (Net) (5.The Chairman’s letter to shareholders and the Management’s Discussion & Analysis.03.206 27.07 31.407) (5.855 9.161 36.03.481) - Profit before Minority Interest Minority Interest 28.08 31.130 600.03.713 (738) 193.

Net profit 28.773 249 Proposed Dividend on Equity Shares 2.285 24.629 16 6 25. Page 4 .609 25.643 23. 0.35 24.24 Mio.773 249 1.611 2. Previous Year Nil) Interim Dividend on Equity Shares Tax on Interim Dividend 1.858 Appropriations Debenture Redemption Reserve Special Reserve 50 187 9 50 13 187 Dividend on Preference Shares (Current Year Rs.873 26.54 HINDALCO INDUSTRIES LTD.496 Tax on Proposed Dividend Transfer to General Reserve COMPANY GROWTH VS INDUSTRY GROWTH Growth Company Sales (%) Profit (%) 16.269 386 25. Previous Year Nil) Dividend Tax on Preference Shares (Current Year Rs.04 Mio. 0.434 392 25.

4” and then stockpiled. Primary crushing is done in cone crusher where bauxite size is reduced form 8”.e. Bauxite is brought to the site from mines by means of railways wagon tippler.12” to 3” . Hindalco refines bauxite primarily obtained from captive mines. Secondary crushing is done by means of hammer mills where process liquor known as a spent liquor and 600 psig. treating bauxite with caustic soda. Production of aluminum can be categories in two stages. 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.18 15. to extract alumina. Hindalco smelts its entire production of alumina into aluminum and does not engage in alumina trade.Industry 15. namely • • From bauxite to alumina From alumina to aluminum EXTRACTION OF ALUMINA FROM BAUXITE Alumina is manufactured by conventional buyer’s process i.65 PRODUCTION PROCESS The aluminum production process can be categorized into upstream and downstream activities. Steam is mixed together.cm pressures. The digested slurry is placed HINDALCO INDUSTRIES LTD. which is smelted into alumina ingots or billets. The upstream process involves meaning and refining bauxite to alumina while the downstream process involves smelting and casting and fabricating. Page 4 .

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. Digested flashed slurry is pumped to clarification area for removal of solid Impurities (red mud). in solid liquid hydrocyclon and stellar. ALUMINA MANUFACTURING PROCESS FLOW CHART: HINDALCO INDUSTRIES LTD. Washed mud slurry is cauterized by treating with lime slurry to recover soda. flashed vapors are utilized for pre heating the spent liquor and condensed returned to boiler hose for generation of steam. Red mud is separated out. 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. The reduction grade alumina thus produced is transported to smelter plant. Page 4 . Separated mud slurry is washed in counter current and washing Circuit without using water. Alumina trihydrate cake thus obtained is fed into the gas suspension claimer where furnace oil is burnt for claiming alumina. 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.flashed and brought to atmosphere pressure. Cauterized mud slurry is filtered on drum filters.


The pot cells work at an average 4. The molten aluminum that collects at the cathodes is siphoned into crucibles periodically. EXTRACTION OF ALUMINUM FROM ALUMINA Alumina from alumina plant is conveyed to the reduction plant. current of 5800/6300 amperes. Alumina is converted to metallic aluminum is these pot cells by the standard “hall herald” process. C. 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 HINDALCO INDUSTRIES LTD. Wheel Plant Page 4 . Al. Electrolysis of the alumina takes place in molten bath of coyote at a temperature of 955 to 960 degrees centigrade. Each pot has 24/26 carbon anodes and it is lined with carbon cathode. The reduction plant has 11 prebaked pot – lines which have 1278 pot cells.3-volt D.

Finished goods is sold and distributed to the costumers by following means. Page 4 .0 lakh MT/Y) Orsapat Chirokukud Pakhar (M&M) (Minerals & Minerals. HINDALCO INDUSTRIES LTD.5-6.2/3 rakes/month 1 rake=3953MT (58 wagons) 67MT Load/wagon (5.5 to 3. 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.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)-2.0 lakh MT/Y] [3/4 suppliers (big level) .






000TPA • • • SILVASA 5. Alco has made similar moves. MARKET STRUCTURE: Aluminum production is expensive and requires heavy capital investment.000TPA KALWA 6.000 Nos. not fragmented.000 nos. As indicated above. older aluminum operational facilities are closing down as the older sites are no longer cost effective. How aluminum is used. for example has terminated approximately a quarter million tons of capacity in Northern Europe in favor of cheaper Middle East based operations.700TPA • • RENUKOOT 19700TPA ALPURAM • 8000TPA ALLOY WHEELS o CAPACITY 3. Most of the key producers are major corporations and the business is concentrated. PA • SILVASA 3.00. a recent trend is for major firms to invest in smelting operations which are closer to power sources.o CAPACITY 14.000TPA KOLLAR 3. Norse Hydro.00.000TPA • EXTRUSIONS o CAPACITY 27. 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. SEGMENT WISE USEGE OF ALUMINIUM HINDALCO INDUSTRIES LTD. As direct results. Page 4 .


CAUSTIC SODA FROM JV . 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. Domestic Lots: On placement of trucks Export Lots: Segregate lots as per Grouping Seal the lots & put shipping mark as per H I N D A Lgenerate loading S T & send a copy D . Pack wise. Party wise storage of lots in respective storage area. FLUORIDE FROM JV Grouping of allocated lots for hiring of trucks.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. C O I N D U slip R I E S L T to Page 4 loading point export order requirement After loading the truck/container get forkloadingof loading Loadand loaderforcase sliptruck/trailer crane After the container with the helpandthe truck/container aswith loading container of by shift in charge get the container/Trucks theof lotsdone tarpaulin in weighment Send damaging Load loading of lotsCall lashing of the lift for sheetstoon receipt of loading selected EOT Ensure proper Check register signed the the with the help of covering lots weigh bridge & verified per by truck AL.


generate factory gate pass & send it weighment to invoice section PROCESS: EXTRUSION PRODUCTIONfor clearance 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 HINDALCO INDUSTRIES LTD.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. Page 4 . send the truck back to loading point for correction Send the truck/container to weigh bridge for If gross weigh tallies.

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. 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. then send the truck back to loading point for correction Send the truck/container to weigh bridge for weighment If gross weigh tallies. Placement of truck as per grouped list Grouping of allocated lots for hiring of trucks. Zone wise & party wise storage of lots in fixed racks in respective storage area. 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 A L C Osuch as poor coolingE S marksD .If any lot found in damage condition then it returns to inspection & packaging deptt. H I N D operator I N D U S T R I cut L T Page 4 . send the truck to respective loading point If variations in function gross weight of loading slip.

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. with production sheet by warehouse operator.If not OK return coil on nil duty Tally each coil no. 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. Total counting of coils received should match with production sheet. If variations are found in gross weight of loading slip & weighment slip then send the truck back to loading point for correction HINDALCO INDUSTRIES LTD. Page 4 . 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. 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.

 A number of Brownfield & Greenfield projects.  More emphasis on downstream production of value added products. there has been no major strike in last 22 year. two wheeler segments 14% respectively during FY07.STRENGTH  Global brand image. such as TATA.  Aluminium.  A well focused human resources development. MITTLE. construction15%. POSCO.  Recycling should be adopted as routine production. THREATS  Strong domestic and global competitors.  A high degree quality consciousness is the core competence of the company. continuous to be strong with a growth in transportation sector 16%. WEAKNESS  Present production capacity is not adequate to meet the rising high demand.  Company has a well-established distribution network. ISO 9001 and ISO 14001 have added more prestige to the company.  Sound financial position.  Cost effective producer.  Integrated production facility at Renusagar power plant.  Technology is not upgraded to mark as compare to global giants in aluminium industry. OPPORTUNITY  R & D collabratation with universities and another research organization. HINDALCO INDUSTRIES LTD. passenger car 25%. covering a geographically wide and scattered market. ESSAR .  Serve maximum customer satisfaction.  Industrial peace as. Page 4 .  Raising more finance from marketing for more acquisition and merger for consolidating position in the global market.

 Fall in price of Al. Innovative revolution in plastic and steel industry. OPPORTUNITY STRENGTH DISTRIBUTIO N CHANNEL SOLUTION THREATS WEAKNESS HINDALCO INDUSTRIES LTD. Page 4 . In neighbor country.  Reduce in Exide duty.

 Indirect sales should be converting in direct sales through TM sales force.. Certain recommendations.  Company made more than 50% direct sales.  Flexible distribution process for customers via direct sales and indirect sales. It is in this light.  Convenient road transportation. network to avail the benefits of the fast growing market. Page 4 . OPPORTUNITY  The demand of the company’s products is rapidly increasing.  A 50-40% sale depends on indirect marketing.SWOT ANALYSIS OF SUPPLY CHAIN STRENGTH  Product based marketing channel. Thus. there is a necessity to expand the dist. channel based on geographically wide & scattered market of India. with regard to the same have been suggested ahead. that the present dist. system needs to be updated.  Strong dist. THREAT HINDALCO INDUSTRIES LTD.  The present distribution system is not adequate to meet the demand of aluminium in the coming years. WEAKNESS  Not tapped all the potential areas especially in eastern and southern zone.

NALCO etc. the company should established additional depots in that areas. The major threat is from the competitors like BALCO. In this zone our more than 65% sales depends on indirect sales. because the company may lose its market leader position . To optimize in this key zone. 70%. 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. Page 4 . The demand of this zone is very high. and also made appointment TM’s and RM’s. indirect sales is approx. In this zone our more than 60% sales depends on direct sales and also we face cutthroat competition. present depots.) Sales are through direct sales. (B) Southern zone is also the fast growing market for the company. 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. Analysis of sales data. In maintain the sales need of continuous market research in regard to distribution channel & appoint stockiest instead of consignment agents. In this zone our 65%(Approx. transportation etc. In the light of such high sales driven by the factors such as heavy investments in infrastructures and related industries – machinery. 35% of the sales in this zone is indirectly depending upon consignment agents & stockiest. Our effort should be here increase the depots in proportionate way. stockiest & consignment agents.. HINDALCO INDUSTRIES LTD. This zone is the most advanced zone in industrialization in the country. (D) In eastern zone company’s.Ahmadabad & Nagpur for enhancing direct sales. So that our focus should convert indirect sales to direct sales. The zone offers bright prospects to company in terms of future demand driven by rapid industrial expansion. (C) Western zone is the key market of the company.

recommendations after using same data. • LIMITATIONS OF STUDY • • • The duration of practical training was just of four weeks. depot setup cost. Page 4 .In direct sales is not helpful to create. depot handling cost etc. grow & retain the customers. zone wise sales. Due to heavy engagement of the top management people and other personnel. that it is advisable for the company to examine the various recommendations. To maintain secrecy.  Shift to retail format of business by owning aluminium galleries in malls. • • Their recommendations are the outcome of an analysis made individually. It was not sufficient. Another analysis may arrive at certain other  So. the company people do not provide various types of information. HINDALCO INDUSTRIES LTD. such as actual sales to various customers. So making the sales customer oriented and to improve the sales.  Design a sale promotion complains focusing on brand awareness.  Appoint a regular sales representative with each stockiest. the company can take the following initiatives Assign sales representatives to contact all prospects in this area. before going ahead with any of their implementations. many other information could not be collected within the limited span of time.

indiandata. Page 4 .go4worldbusiness. (training centre ) Principles of marketing.nic.com/basicguide • • • http://dgftcom.org.com/trade_policy/export_procedures HINDALCO INDUSTRIES LTD.BIBLIOGRAPHY MAGAZINES: • • • Impex Times FIEO News Aluminium International Today • • Aluminium Times Aluminium Now • • • Incale 2 Incale 3 Annual report (07-08). • • • • INTERNET: http://www. “kotler & Armstrong”.unzco.org http://www.com http://www.fieo.algomtl. Hil • • Induction guide .com http://www.in http://www.airportsindia.in • http://www.

com/products/rolled_products • • • http://www.google.adityabirla. Page 4 .hindalco.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) HINDALCO INDUSTRIES LTD.co.• http://www.in/ • http://www.com/logistics • http://www.wikipedia.novelis.hindalco.com http://www.com http://www.

5 19.0 HINDALCO INDUSTRIES LTD.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 32.3 50.4 Forecast 41.Year 1985 1995 2005 2010 2015 Actual 15.7 31. Page 4 .

4 21.5 21.9 31.6 31.5 4.9 31.5 21.2 15 6.6 31. Page 4 .5 4.1 1.2 29.USA GERMANY CANADA ITLY FRANCE AUSTRALIA UK CHAINA BRAZIL INDIA 31.1 consumption 1.4 21.2 15.0 6.1 consumption 35 30 25 20 15 10 5 0 32 31.1 INDIA-User Segment’s Growth FY07 over FY06 HINDALCO INDUSTRIES LTD.2 29.

Consumer Durable Packing Indus.User Segment FY05 FY06 Change % Electrical Transport Built. Company Owner ship Location Capacity Hindalco AB Group Renukoot Alpuram Hirakud Belgaum 345.000 14. & Const.000 65.000 345.000 31. Page 4 . 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.000 NALCO Public Angul HINDALCO INDUSTRIES LTD.

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 HINDALCO INDUSTRIES LTD. Page 4 .Sect. BALCO MALCO Sterlight Sterlig ht Korba Mettur 350.000 EXTRUSIONS CAPACITY.000 40.





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




Page 4

After packing feed the product

Marketing dept.




Transportation section


Loading at godown

Factory gate pass


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

Hindalco is the leading exporter of Aluminum Semi-Finished products in India. security and value as well as proper rules and regulations 7. then also company’s main focus is about safety. Hindalco is following all the norms as per Central Excise & Customs and other government rules & regulations in the export process. 10. Page 4 . 2.000 employees in Hindalco from top to bottom level. Hindalco is exporting all over the world. 4. Hindalco is following positive and proactive approach towards export. 6. from underdeveloped countries to advance countries. There are approx.Mines Production Hold Marketing coordination Release Warehouse Dispatch Logistics Godown FINDINGS & RECOMMENDATIONS Findings 1. 3. 5. FIEO (Federation of Indian Export Organization) has awarded Hindalco as a Five Star Trading Houses on their export achievements. HINDALCO INDUSTRIES LTD. Having huge network.

while only electricity is used as 77. The manufacturing cost is very high because of high utilization of energy. 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. 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. Energy (Oil. Space 2. 9. Electricity) used at Renukoot is 47% of total manufacturing cost. Findings at Warehouse:  Minor Problems. 11.Nature Calamity   Employee’s health problems Defense Delay (Inspection)       Customer Denied Volumetric Problems Delay Packaging near future Changes in Market Scenario Dependency on other Departments (Production. Page 4 . 10. So. Coal. Present distribution system and production capacity is not adequate to meet the present and demand. Approximately 50% employees at operational level as well as middle are not satisfied by their job but they do not tell the reason. 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.8. HINDALCO INDUSTRIES LTD. Easy availability of raw materials. Transportation) Major Problems: 1. Packaging.67% of total energy consumption.

This process is time taking due to partly adoption of the software system. it is recommended that there should be a prior planning at the time of order booking in beginning. Some of the Caster product order is being delayed due to limited capacity of the Caster Plant. In other words future belongs to only those organizations that undertake and imbibe well defined SCM. creating more value-added and reducing costs through global sourcing.  Hindalco is using Oracle & IVL software system for making export documents. It would ease in making documents in faster way manual interruption will be minimized. “Speed of the boss is the speed of the team as well as speed of the organization”. So.  Sometimes there is unavailability of containers for any particular destination occurs. mainly in warehouse. So. The working of this software is from Order management to Shipment. it is recommended that Hindalco should have to increase the capacity of their Caster Plant. 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. The globalization of SCM with goal of increasing competitive advantage. Page 4 . It is a pointer to the direction in which corporate strategies would need to change in order to make organization function a truly responsible.  Due to no advance planning there is a lot of problems in each department. it is recommended that this software should have been start from Enquiry management to Shipment. 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. HINDALCO INDUSTRIES LTD. In a highly competitive business environment a well established supply chain strategy absolutely essential for ensuring competitive edge in the market place. CONCLUSION: Business is undergoing a strategic transformation companies require clear vision and an attunement to balance the need sustainable in doing sum. So.



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