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Company Overview
PRODUCTION
Going ahead, VL would diversify its product portfolio and strive to maintain a
dynamic product mix. Following the overall demand pattern for different
composites of aluminium, the production line has been diversified and includes
ingots, billets and wire rods. Ingot, being the chief offering, would form 75 percent
of the portfolio followed by billets (13 percent) and wire rods (12 percent).
VL’s products have witnessed an increasing demand from secondary
manufacturers, who deliver their products to key industries including power,
construction, defence and metal powder units. Within the power sector, cable and
conductor manufacturers are the chief consumers of VL’s products. While solid
conductors require aluminium and aluminium alloys, stranded conductors need
aluminum-clad steel.
A number of metal powder units supplying their products to sectors like paints and
fireworks are dependent on VL’s superior product offerings. VL’s products find
their way to the transport and logistics sector in form of primary materials used for
bus-body building. In addition to this, VL’s products are used by secondary rolled
manufacturers, who in turn supply boiler manufacturers and packaging units
among others.
M ARKETING A ND D ISTRIBUTION
VL’s robust marketing and distribution network is integral to its sales strategy. A
centralized marketing unit results in better market accessibility. Offices are spread
across the major metropolitan cities of Mumbai, Delhi, Kolkata, Bangalore and
Hyderabad. Sales depots at Ahmedabad, Silvassa, Bangalore, Chennai and
Hyderabad aid in reaching out to a diverse clientele. The domestic market was
penetrated predominantly by direct sales and this marketing strategy was focused
on large players. Depots are presently being opened at different regions to serve
small customer. VL has targeted 40 percent of domestic sale through depots.
GROWTH PROSPECTS
The rapidly growing Indian economy and the concomitant increase in aluminium
demand across a wide spectrum of industries bode well for VL’s growth prospects.
The policy focus on power and automobile sectors, which are key consumers of
aluminium products, is expected to drive expansion. There is a sizeable demand of
aluminium cables and conductor manufacturing units, which supply their end
products for power transmission and distribution. With the emergence of upcoming
power projects in India, demand is anticipated to grow at least by 10 to 12%.
G LOBAL E XPANSION
VL’s products have been well-received in overseas markets. 60% of the total
production was exported with major global clientele based in South Asian
countries, Middle East and Singapore. On the other
hand, distribution and consumption in the domestic
market stood at 40 percent. Envisaging a capacity
expansion in the manufacturing capacity and
broader global reach, export has been pegged at 80
percent while sale in domestic market has been
limited to 20 percent; 80 percent of domestic sale is
executed by entering into long term contracts with customers. The registration with
London Metal Exchange (LME) is expected to boost footprint in the international
market further. This would also provide VL with the global exposure which is
central to its expansion plans.