Corporate Review Session

Hindalco Industries Limited

Submitted To:Prof. Anil Kumar – Professor

Submitted By:ASHISH DWIVEDI (M4-13) ASHISH BHASKAR (M4-14) DEBAL KUMAR CHAKRABORTY(M4-16) BRAHMRAJ PANDEY(M4-15)

Renukoot

Renusagar
(CPP)

Silavasa
(Foils & Wheels)

Bauxite Mines
(Jharkhand & Chattisgarh)

“THE WINNING ORGNIZATION WILL BE THOSE WHO REGURALY OUTPERFORM COMPETTIION. THEY HAVE A STABLE CONSISTENT STRATEGY. A STABLE STRATEGY DOES NOT MEAN STATIC STRATIGY, RHATHER IT MEANS FOLLOWING A BROAD PHILOSPHY AND CONTINOUS IMOROVEMENT IN HOW STATEGY IS MANIFESTED. INCORPORATING THE EXPECTED MARKET REQUIREMENTS AND THE CUSTOMER NEEDS”

―KUMAR MANGALAM BIRLA‖

Company Profile

Hindalco Industries Ltd.

Established

1985

Major industry

Metal Producer & Products

Sub Industry

Aluminium Producer

Country

India

Employees

20366

Hindalco Industry Limited , the metals flagship company Aditya Birla Group, is an industry leader in aluminium and Copper, A metal powerhouse with a consolidate turn over in excess of US$14 billion, Hindalco is the world‘s largest aluminium rolling company and one of the biggest producer of primary aluminium in Asia. Its copper smelter is the world‘s largest custom smelter at a single location. The group‘s operating unit is located at Renukoot, Renusagar and Silvassa. Hindalco commissioned its aluminium facility at Renukoot in Eastern U.P. in 1962. Later acquisition and mergers, with Indal, Birla Copper and Nifty and Mt. Gordon Copper Mines in Australia. Strengthened the company‘s Position in Value –added alumina, aluminium and Copper Products, with vertical Integration through access to captive copper concentrates.

The company initially had an aluminium smelting capacity of 20,000 tons per year (TPY) and aluminium refining capacity of 40,000 TPY. The facilities are located in Renukoot, In the State of Utter Pradesh in India. Continual expansions have seen smelting capacity grown 12 fold to 242,000 TPY, whereas aluminium refining capacity has been increased to 450,000TPY. With an outstanding record of capacity utilization, the company has grown into India‘s largest aluminium producer with a 40% share production. More significantly. Hindalco is firmly entrenched amongst the lowest cost producers of aluminium in the world.

The company has ISO 2002 Certification since 1994 and ISO 14001 Certification since 1998.

unleashing employee potential. Values Integrity On the foundation of integrity. hierarchy levels. Speed Responding To stakeholders with a sense of urgency . global in size and reach. while being a responsible corporate citizen. Seamlessness Thinking and working together across fictional. by exceeding customer expectation profitably. doing whatever it takes to deliver. Passion Missionary zeal arises out of an emotional engagement with work. excelling in everything we do. as promised. business and geographies. and creating value for its stakeholders Mission To relentlessly pursue the creation of superior shareholder value. adhering to our values.Vision To be a premium metals major.

The Group Operates in Following Segment Aluminium Hindalco's major products include standard and specialty grade aluminas and hydrates. redraw rods. we have launched various brands in recent years — Everlast roofing sheets. flat rolled products and extrusions. The integrated facility at Renukoot houses an alumina refinery and an aluminium smelter. aluminium ingots. As a step towards expanding the market for value-added products and services. A strong presence across the value chain and synergies between operations has given us a dominant share in the value-added products market. The plant is backed by a co-generation power unit and a captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations. wire rods. along with facilities for the production of semi-fabricated products. billets. extrusions and foil. flat rolled products. Freshwrapp kitchen foil and Freshpakk semi-rigid containers. . namely.

It has acquired certifications such as ISO-9001:2000 (Quality Management Systems). ISO-14001:2004 (Environmental Management System) and OHSAS-18001:2007 (Occupational Health and Safety Management Systems). Birla Copper upholds its longstanding reputation for quality copper cathodes and continuous cast copper rods by assuring its management processes meet the highest standards. Hindalco‘s copper unit. The smelter uses state-of-the-art technology and has a capacity of 500. is located at Dahej in Gujarat. . The unit has the unique distinction of being one of the largest single-location copper smelters in the world. The unit has captive power plants for continuous power generation and a captive jetty to facilitate logistics and transportation.000 tpa.Copper Birla Copper. Birla Copper also produces precious metals. fertilisers and sulphuric and phosphoric acid. India.

Gordon.886 tonnes of copper in cathode/concentrate. Mt. Gordon have a long-term life of mine off-take agreement with Hindalco for supply of copper concentrate to the copper smelter at Dahej. a copper concentrator was commissioned to provide concentrate for use at Hindalco's operations in Dahej. Until recently. The Mt. the operation produced copper cathode through the ferric leach process. Gordon copper operation consists of an underground mine and a copper concentrate plant. which produces copper cathode. During FY2008. Gordon produced 23. . In 2004. Nifty and Mt.Mines Hindalco acquired two Australian copper mines. heap leach pads and a solvent extraction and electrowinning (SXEW) processing plant. The Birla Nift y copper mine consists of an open-pit mine. in 2003. Both Nifty and Mt.

With over 25 years of experience. respectively. standard hydrate and specialty aluminas and hydrates. the Research and Development team of expert scientists carries out research in the fields of bauxite process ability studies of the Bayer process. These refineries produce standard alumina.Alumina Chemicals Hindalco's captive bauxite mines in Jharkhand.000 tap. 180. provide the raw material to our alumina refineries located at Belgaum in Karnataka. our customized. have installed capacities of 350. The Belgaum R&D Centre is recognized by the Department of Scientific & Industrial Research (DSIR). Today. India.000 tap and 700. product development. fire retardant plastics. offering a wide spectrum of grades to suit diverse applications. . The alumina refineries at Belgaum in southern India. Muri in Jharkhand and Renukoot in Uttar Pradesh. tailor-made products serve 37 countries across the world. Muri in eastern India and Renukoot in central India.000 tap. Our chemicals serve a wide range of customers around the world with our standard and specialty aluminas and hydrates. zeolite and many more. quality control and application research for enhanced understanding of the end-usage of specialty chemicals. Chhattisgarh. Our specialized aluminas and hydrates emanate from the technological innovations of our R&D team. ceramics. Government of India. alum. like high grade refractories. Maharashtra and Orissa.

Coarse alumina grades are white crystalline powders that are predominantly alpha alumina of high chemical purity and consistent physical properties. . These are used as feed material for fused alumina. and corrosion. high mechanical strength and resistance to wear abrasion. These products have excellent grind ability. Their specific properties include extreme hardness. etc. refractoriness. chemical attack. refractory aggregates.ALUMINA CHEMICAL Normal soda course aluminas Calcined aluminas are widely used in refractories and in the ceramic industry.

grinding media. . wear-resistant ceramic parts. ceramic liners. as well as in industrial ceramics and electrical insulators. etc. HVDC / HVAC insulators. These low soda grades provide excellent hot strength to the refractory body.. when used for high-temperature applications. They are widely used in special refractory bricks and shapes.Medium and low soda course aluminas Medium and low soda course alpha aluminas consist of friable aggregates of crystallites having easy grind ability and are used in the manufacture of wear-resistant ceramic liners. with controlled particle-size distribution. refractory gunning mixes. Medium and low soda fine aluminas Medium and low soda fine aluminas are predominantly in the alpha phase.

high-tension insulators. wear resistant ceramic components and liners. grinding media. They yield a low water demand with very good flow properties when used in low-cement constables. Reactive fine aluminas These grades are predominantly alpha aluminas having wider particle-size distribution. Comcast shapes. ceramic liners.Normal soda fine aluminas These are predominantly fine. ULCC and self-flow refractory mixes. They are also recommended for usage in grinding media. alpha aluminas of about 5µm with controlled particle-size distribution. etc. They are widely used in high-alumina refractories. . owing to their superior packing characteristics.

Reactive aluminas — ultrafine These reactive alumina grades are white crystalline alpha alumina powders developed for specialized ceramic and refractory applications. resistor cores. . These are recommended for use in solid bars. new generation ceramics and wear-resistant ceramic parts. slide gates and refractory bricks. emulsions and pastes for metal and stone polishing applications. shape and size distribution. low water absorption and controlled particle-size distribution. Polishing aluminas These grades are developed through controlled calcinations and processing in order to obtain consistent particle hardness. Typical applications include low cement and ultra-low cement constables. They provide a choice of oil absorption values within the product range. These aluminas are characterized by high reactivity.

PAC (Poly Aluminium Chloride). Coarse alumina hydrates are recommended in the manufacture of aluminium sulphate (alum). etc. . plastics. rubbers. which is also termed as aluminium hydroxide and alumina trihydrate. aluminium fluoride. glass. is a crystalline white powder with the chemical formula Al2O3·3H2O or Al (OH) 3. They are used as fillers in paper and in SMC / DMCs.Coarse alumina hydrates Alumina hydrate. These hydrates are available in both moist and dry forms. they also function as flame retardants in latex. with average particle size ranging from 5 to 15µm. Fine alumina hydrates These are fine white powders. zeolite. etc.

Laterite can be supplied in particle sizes ranging from 50 to 150 mm. such as refractories. It is used as a raw material by cement Mindustries as an additive / flux to increase the alumina percentage in the cement composition.43 per cent. there are pockets of good quality bauxite that can be used for various purposes in various industries. . steel. polishing and for manufacturing water-treatment chemicals. In the mines located in the eastern region. The ore is graded as per segment requirement Laterite Laterite is an ore with a lower percentage of alumina content that occurs just above the bauxite layers at the mines in the western region of India.MINIRALS Bauxite Bauxite is an ore used in the production of alumina. The alumina content in the product is around 36 .

On May 15. .415.536 common shares of Novelis. making the combined entity the worlds largest rolled. AV Metals Inc. Hindalco. Immediately after closing. 2007.Novelis Takeover On February 11. representing 100 percent of the issued and outstanding common shares. transferred the common shares of Novelis to its wholly-owned subsidiary AV Aluminium Inc.93 per outstanding share of common stock. the company entered into an agreement to acquire the Canadian company Novelis for US$ 6 billion.owned subsidiary AV metals Inc. through it‘s wholly. the acquisition was completed with Novelis shareholders receiving $44.aluminium producer. 2007. acquired 75.

Result of Novelis Acquisition The acquisition of Novelis effective 15 May 2007. associated with fair value adjustments recorded at the date of acquisition.acquisition period were favorably impacted by certain income and expanse item . The reported result for the post. The benefits can be seen in increased revenues and stronger cash flows. price increases working capital improvement and reduction in corporate cost. Novelis has reported net profit of US$ 28 million (under US GAAP ) for the period 16 May 2007. . Novelis countered inflation and challenging market condition in certain geographies with portfolio of optimization. Total shipment increased from 3113kt to 3150kt. Aggregating to a net USD 21million on a pre-Tax basis . The improved result came on the back of strong operational focused and increase in capacities in fast growing markets of Asia and South America. Hindalco is now a global player with a strong presence in five continents and with a product portfolio which is a natural hedge against the volatility of aluminium prices. The company‘s exposure to contracts with metal price ceiling reduced during the year. to 31 March 2008 vis-à-vis a loss of UD$ 265 million (under US GAAP ) in FY2007.

Milestones 1958 Incorporetion of Hindalco Industries Limited .000 tpa . modernisation and diversification programme takenoff 1998 Mr.000 mtpa of alumina . 1965 Downstream capacities commissioned ( rolling and extrusion mills at Rnukoot ) 1967 Gommissionning of Renusagar power plant – a strategic and farsighted more . Kumar Mangalam Birla takes over as chairman of Indal Board . India ) with an intial capacity of 20. 1962 Commencement of production of renukoot (Uttar Pradesh . 1991 Beginning of major expansion programme. 1999 Aluminium alloy wheels production commenced at Silvassa Brownfield expansion of metal capacity of Renukoot to 242. 1994 A huge expansion . .000 mtpa of aluminium metal and 40.

a joint venture with alcon.Formerly . Major corporate restructuring to create a non –ferrous metals powerhouse . 2003 Hindalco acquires nifty copper mine through Aditya Birla Minerals Ltd .000 tpa .5 pre cent through an open offer . April 2002 . Buyback of equity shares to generate shareholder value and utilise surplus cash. Divestment of 8. . Goadon Copper mines in november 2003.) ABML acquires the Mt. 2001 Hindalco enters ‗the Asia Top 25‘ list of the CEO Asia Annual Report Survey the only Indian company in 2001. Equity stake in Indal increased to 96. Open offer of aquire additional equity to make Indal a Wholly – owned subsidiary . Brownfield expansion of aluminium smelter at renukoot to 345. The amalgametion og Indo Gulf‘s copper business with Hindalco become effective from 12 february 2003. Birla minerals Resources Pty Ltd . Amalgametion of Indo Gulf Corporetion Ltd‘s copper business Birla copper . Hindalco becomes majority stakeholder in Utakal Alumina .(ABML . with Hindalco with effect from .6 per cent holding in Indo Gulf fertilisers Ltd.6 percent equilty holding .000 crore-ninth potline commissioned . 2002 Brownfield expansion at an outlay of Rs 1.2000 Acquisition of controlling stake in Indian aluminium company limited (Indal) with 74.

In may 2006 the company‘s copper mining subsidiary . In may 2006.smelting and power plants commissioned copper 3 rd expention taking total capacity to 500.11.) Ltd to overlop and operate coal mines to mohan . Aditya Birla Group to set up a world-class aluminium perfect in orissa at a project cost of about Rs. 22.000 tpa. Madhya preadesh .000 crore. In Speptember 2005 the company split its shares in a ratio of 10:1 to enhance liquidity and encourage participation from retail investers . MoUS signed with state governments of Orissa and Jharkhand for setting up greenfield alumina refining .P.Aditya Birla Minirals Limited ( Formerly Birla Miniral Resources Pty Ltd . Signed on MOU with the government of Madhya Pradesh for green field aluminium amelter in siddhi. Hindalco announce 10:1 stock split . Hindalco completes the largest right issues in the history of indian capital market with a total size of Rs.Each shares with face value of Rs 10 split into 10 shares of Rs 1 each. The JV will supply coal to the proposed aluminium smelter and complex in Madhya preadesh.266 million. 2005 All business of Indal expect for the kollur foil palnt in Andhra Pradesh merged with Hindalco Industries Limited .000 tpa.) come out with an equity offering and subsequent listing on the Australian stock exchange (ASX). enters into a joint venture with essar power (M.2004 Schem of arrangement announced to merge Indal With Hindalco Copper smelter expantion to 250. . 2006 Joint venture with Almix USA for manufacture of hight strength aluminium allays.

makes Hindalco the 100 % project ownwr . belonging to Rennor Aluminium company Ltd. The transaction make hindalco the words largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia.In March 2006 . Novelis become a Hindalco subsidiary with the completion of the acquisition process . . 2007 In May 2007 . Acquisition of Alcon‘s 45 percent equity stake in the Utkal Alumina project . 2008 Alumina expansion of Muri. acquired an aluminium rolling mill and wire rods facility situated at Mouda (Nagpur) from Asset Reconstruction company (India )Ltd (ARCIL).

K. M. Bhandari Mr. M. S. S. N. Desai Mr.Management Team Hindalco‘s management team consists of experienced individuals with strong credentials Board of Directors Mr. E. M. Rajashree Birla Mr. Jhaveri Mr. N. A. Debu Bhattacharya. B. Kumar Mangalam Birla. Talukdar Company Secretary Mr. Agarwala Mr. S. C. Kothari Mr. Anil Malik . Bhagat Mr. Maniar Mr. Chairman Mrs. K. Managing Director Group Executive President and Chief Financial Officer Mr. J.

Dhulkhed. Philip Martens. D. Chief Marketing Officer.Chief People Officer Mr. Foil and Wheel Mr. Joint President. Vinod Sood. Kohly. Mr. K. Shashi K. Chief Officer Operations. Trade Mr. Bontha. Satish M Bhatia. Copper Mr. D. CEO Novelis Inc. Peter Torre. Dilip Gaur. Aluminium Mr. Operations Mr. S. CEO Utkal Alumina International Ltd Mr. Chairman Mr. Vineet Kaul Business / Unit Head Mr. CEO and MD Mr. Maudgal. Company Secretary . Senior President. R. Bhattacharya. N. Suryakant Mishra. S. President and Chief Operating Officer Aditya Birla Minerals Limited Mr. Sunil Kulwal. Renukoot Unit Aditya Aluminium Mr. Chemicals & Intl. President. Group Executive President.

(Karnataka) Primary Aluminium Renukoot.000 tpa Renukoot. Alumina Chemicals Locations Capacities Country Renukoot Muri (Uttar Pradesh).key products and brands Hindalco Industries Ltd. Alupuram(Kerala) 64. Mauda(Maharashtra) Wire rods Aluminium foil Renukoot.000 pcs Kollur (Andhra Pradesh) 4. Hirakud (Orissa).400 tpa 27. 200. Alupuram Belur(West Taloja(Maharashtra). *Taloja Extrusions Rolled products Renukoot. 1.000 tpa India Belgaum (Jharkhand).000 tpa Silvassa (Dadra & Nagar Haveli).160. 11.700 tpa Bengal). 489.000 tpa Kalwa(Maharashtra) Aluminium Wheels *For Taloja recycling plant Indal (subsidiary of Hindalco) Foil Rolling Silvassa (Dadra & Nagar Haveli) 300.000 tpa .

key products and brands Locations Capacities Country Birla Copper (Hindalco Industries Ltd.000 tpa India Hindalco Industries Ltd.000 tpa 15 mt 150 mt 400. Ltd. Gordon mines 25.000 tpa 180. Gordon mines Mt. (Aditya Birla Minerals Resources Pty.) copper cathodes continuous cast copper rods Sulphuric acid phosphoric acid gold (Birla Gold) silver (Birla Silver) DAP and complexes (Birla Balwan) Dahej (Gujarat) 500.670.) copper cathodes copper in concentrate Power Nifty mines Mt.000 tpa 40.000 tpa 97.000 tpa 28mw Australia Australia Australia .200 tpa 1.

These are top-quality billets with a smooth finish. Hindalco metal is accepted under the high-grade aluminium contract on the London Metal Exchange (LME) as a registered brand. . Billets Hindalco's aluminium billets are produced by a state-of-the-art Wagstaff casting process using Airship technology. Alloy ingots of various grades are also produced and mainly used for the production of castings in the auto industry and in electrical applications. Alloy wire rods are used to produce AAAC conductors.HINDALCO PRODUCT RANGE PRIMARY ALUMINIUM Ingots Hindalco produces high-purity ingots through smelting. Electrical conductor (EC) wire rods are used for the production of cables and ACSR and AAC conductors. Both these products are re-melted and further processed into a large number of products for various downstream applications. They are used mainly to produce extrusions and forgings. Wire rods Hindalco manufactures wire rods in a continuous casting and rolling process.

Kerala. electrical.000 tap. Our extrusions capacity stands at 46. Hindalco offers a wide range of alloys. Our extrusions are manufactured from high-quality billets made out of virgin in-house metal and offer the widest range of shapes and alloys. Both plants have well-established manufacturing processes and QA systems honed over five decades of experience.EXTRUSIONS PRODUCT A leading player in the extrusions industry in India. the Netherlands. Quality accreditations ISO 9001:2000 Quality Management System ISO 14001 Environment Management System OHSAS 18001:1999 Occupational Health and Safety Assessment Series . France. including hard alloys and some special alloys for the defense and space sectors. We have two extrusion plants in India. South Africa. UAE. Sri Lanka and Bangladesh. Hindalco Extrusions is a leading brand for a wide spectrum of industries. Canada. one in Renukoot. Uttar Pradesh. We export extrusions primarily to the US. and the other in Alupuram. the UK. Malaysia. Germany. and defense and consumer durables industries. Singapore. including architectural. transport. industrial.

1060.35mm to 289mm diameter Flats -from 8. 4047 plus customized alloys for special applications Length range 94 mm to 13. 6066.00mm to 330mm width . 2017.500 mm Rods -from 6. 6063. 6060. 7039. 5083. 6061. 5086. 7075 3003.EXTRUSIONS PRODUCT RANGE Section weight range Standards Other profiles 0. 2014. 6351 1050.08 kg/m to 100 kg/m Alloys 6005. 4043. 2014 5052. 6101. 6082. 7018.058 kg/m to 117 kg/m 0. 1070.

00mm to 260mm width .00mm to 153mm Channels -from 6.Squares -from 6.35mm to 206mm Equal leg angles -from 12.

50mm to 225mm O. D.70mm to 127mm Various applications of extrusions Rail coach windows .Round tubes -from 9. Rectangular tubes -from 20mm to 165mm width Square tubes -from 12.

Solenoid valves and actuator Expanded grills Matt ground surface Suitcases .

Motor bodies .

Continuous improvements in manufacturing processes. gauge and tolerances. We enjoy nearly 60 per cent of the market share. the global leader in value-added high-end aluminium flat rolled products and aluminium can recycling. which in turn ensures quality finished products. .ROLLED PRODUCT Hindalco has become the world's largest aluminium rolling company with its acquisition of Novelis. Superior quality. transportation. The combined volume of sales of flat rolled products in the world market is about 3 million tones. rolled down to customized thickness. and the market share is more than 20 per cent. defense and general engineering applications. Our aluminium sheet is produced from our own cast slabs or continuous cast coils. electrical. has made us a prime source for best-selling brands. and our rolled products are widely used in various segments such as packaging. building and construction. along with extensive infrastructure. practices and systems ensure that customers' needs and expectations are fully met. We are India's largest manufacturer of the entire range of flat rolled products. We ensure efficiency and product quality by using state-of-the-art equipment and a strong research and development setup. supported by dedicated and motivated employees and the Oracle ERP system. Our commitment to quality and service. Wagstaff Air Slip™ slab casting technology is used to guarantee consistent quality and surface finish of stock feed. delivery and customized service capabilities have helped us in growing market share globally.

Hindalco's brand. faster and economical constructions. Everlast Aluminium Roofing Sheets offers an ideal solution for all roofing and cladding needs that translate into durable. Rolled products applications Al-clad sheets / coils Automobile radiators Inter-coolers Air conditioners Cablewrap stock Telecom cables . We also offer color-coated and tiled roofing profiles.

trucks and rail coaches Floors for loading bays. marine Building and construction Fan blades Electrical engineering Flooring sheets / treads plates Flooring for buses. rail. stair treads and catwalks . air.Closure stock Pilfer-proof caps Vial seals Cream containers and caps Cold rolled sheets Defense Industrial engineering Transport — road. kick plates.

Lamp cap stock GLS lamps and tube lights Pattern sheets Decorative applications like interior panelling for trucks. Aircrafts . boats (corrosion-resistant and weldable plates) Defence and industrial uses (strong alloy plates). etc Plates Electrical busbars and ducting . Tanks Ships. cabins.

Poultry farms. Circles Pressure cookers. Wall panels for high-rise buildings. Roof-on-roof roofing. Industrial buildings.Building sheets Cladding for roofs and walls. Exhibition pavilions.Indoor and outdoor stadiums. warehouses. False ceilings. non-stick cookware and hard anodised cookwar Milk cans Medical cylinders . Residential roofing. Insulation and protection of fuel storage tanks and industrial boilers. aircraft hangers .

flexibles. Car radiators. Foils. Electrical busbar ducting. false ceilings and panelling (plain or color-coated coils). Tetrapacks . aluminium composite panels.Cold rolled coils Bus cabins and bodies. z etc. Fin stock Air conditioners. Automobile heat exchangers Foil stock Pharma / confectioneries / cigarette foils. Insulation. Cladding in buildings. transformer strips.

Litho stock Offset printing plates Printed Circuit Boards (PCB) entry sheets Electronic circuit boards Spiral fin stock Industrial heat exchangers .

competently operated by a young and energetic workforce and a strong technical team. The plants also employ high-end technology and professional expertise to develop visually appealing and functionally useful packaging. An impressive range of foil rolling and converting equipment is backed by strong QC systems. Silvassa in Dadra and Nagar Haveli and Kollur in Andhra Pradesh. well-equipped plants located at Kalwa in Maharashtra.FOIL AND PACKAGING Delivering 'never-before-tried' solutions to customers in India and across the globe. Hindalco has the distinction of being India's premier supplier of foil and foil laminates — plain. ensuring full traceability from input to final product. With over four decades of experience and expertise. The Kalwa Foil Plant's advanced ERP-based bar code-operated material tracking system is the first of its kind in the packaging industry. Adherence to the company's standard operating practices ensures that the final product conforms to the committed specifications. Fostering this incredible growth is the combined effort of our plants. Our complete backward integration. lacquered and printed. we enjoy a domestic market share of more than 40 per cent in the foil and packaging business. These well-equipped foil rolling and converting facilities provide a veritable 'one-stop-shop' for packaging solutions. right down to the raw material stage from bauxite ore to primary metal. . India. guarantees full control over the quality of the final foil output. Our foil and packaging division operates out of three modern.

Nestle. Godfrey Philips. Freshwrapp and Freshpakk semi-rigid containers. healthcare. Some of our clients are — GlaxoSmithKline. confectionery. Hitachi and Voltas. Cadbury. personal products. Aventis. processed foods. ITC.We offer packaging solutions to well-known brands in the pharmaceuticals. Golden Tobacco. and tobacco industries and also serve the HVAC (heat. Amul. ventilation and air conditioning) segments with radiator and AC finstock. Johnson & Johnson. Merck. which are convenient and popular with consumers. . dairy. Hindustan Lever. LG. Britannia. Perfetti Van Melle. Our house foil brands include Superwrap. Pfizer.

laminated on one side to 25 micron OPA and 60 micron PVC film on the other side to meet the fast emerging Alu alum packaging needs. Alu Alu Blister 45-micron foil. Hindalco offers a maximum depth of 9mm. Compatible with PVC. Blister packing 20/25/30-micron thick. .Applications of aluminium foil and packaging Pharmaceuticals Strip packing 25/30/40-micron thick. soft foil either laminated to low density polyethylene or coated with heat seal laquer (HSL) for sealing as per customer need. hard foil coated with heat seal laquer of varied grammages.

Dairy Lidding foil 30/38/40-micron thick. Widely used for pilfer-proof bottle caps and vial seals. . Chiefly used for pouches and sachets. biaxially oriented polypropylene (BOPP). Closure caps Rolled to very fine tolerances for more closures per tone of stock. compatible with PS and PP containers. soft foil laminated with paper. low earring and printable surfaces.ORS Pouch 7/9/12-micron thick. strength. Closure caps have high formability. films like polyester (PET). Offered in both coated and bare form. polyethylene (poly) and their combinations. Offered in both surface and reverse printing. yoghurts and mineral water. Used for cheese spreads. soft foil coated with heat seal laquers (HSL).

Also 7-micron foil printing on foil surface. soft foil with printing on one side and heat seal laquer (HSL) coating or polythene lamination on the other.House foil and semi rigid containers House foil and semi rigid containers Household foil is available in a range from 10 micron upwards. laminated to paper and further coated with wax. soft foil with printing on foil surface. Also offered as a laminate of 9micron foil with paper and wax. laminated to paper and further coated with wax. Widths can vary as per market requirements. . Processed food and beverages Confectionery 9/12-micron thick. Semi rigid containers are available in a range of sizes and shapes. Biscuit and bubble gum wrap 9-micron thick.

.Ice-cream cone labels. Extensively used in toothpastes. ointments. cream and foodstuffs. cosmetics.7-micron foil with printing on foil surface and poly laminated to paper Cigarette foil .Flexible laminated tubes that utilise 12/20-micron thick soft aluminium foil laminate. Foil can be silver or gold lacquered in matte of bright finish as per customer requirements Personal products Lamitude webstock. Cigarette foil Cigarette foil for inner packing of cigarettes is offered in 7-micron thick soft foil laminated to paper.

50 micron foil. offered bare as well as with hydropholic and hydrophobic coatings in blue or gold color. co-polymer structure and bottom — coated.The laminates have two components. soft or partially annealed temper. The coated foil enhances the life of the air conditioner and improves cooling. Surgical Surgicals. soft foil or BOPP and heat seal laquer (HSL) coated or co-polymer laminated as per customer demand. . top — paper.Contraceptive Wrap -9-micron thick. 40 micron foil. co-polymer structure Heating ventilation and air conditioning (HVAC) Bare and coated finstock 80-160-micron thick foil.

offered bare as well as with hydropholic and hydrophobic coatings in blue or gold color. Ducts can be compressed and transported to installation sites where they can be expanded to the required length. Collapsible insulation ducts Available in reels of various widths and in alloy AA3003 or AA1100 in soft temper as stock for making collapsible insulation ducts. The coated foil enhances the life of the radiator and improves cooling. Used in buildings where air conditioning requires movement of cooled air from heat exchangers through ducts to vents. Mainly supplied to quality-sensitive markets.Auto radiator finstock 80-160-micron thick foil. soft or in partially annealed temper. .

8 280.1) 60.625 crore USD 14. Financial highlights Audited standalone Year ended (In Rs. 65.8) 19.6 705. 6.1) . the flagship company of the Aditya Birla Group. Hindalco‘s performance has been adversely affected by the global economic environment.7 3. crore) Net sales and operating revenues Other income PBIDTA Depreciation and impairment Interest and finance charges Profit before tax Provision for taxes Tax adjustment for earlier years (net) Audited consolidated Year ended 31 March 09 31 March 08 31 March 09 31 March 08 18.232.8 3.9) (804.3 1.690.8 656.3 610.291.Hindalco announces consolidated and standalone audited financial results for the year ended 31 March 2009 Consolidated turnover Rs.894.3 (540.5 645.2 687.672.6) (149.9 (548.1 587.953.046 crore 135 per cent Hindalco Industries Ltd.201. today announced its consolidated and standalone audited financial results for the year ended 31 March 2009.2 3.3 billion USD 1.625.849.0 7.3 (604.188.7) 65.665.488.012.3 billion Operating PBIDTA* Proposed dividend Rs.0 492.9 (150.219.6 3.1 2.025.9 2.8 1..3 336.7 636.7 1.037.1 2.9 3.

coupled with the shrinkage in the domestic demand for value added products which have better margins.313.14 crore from Rs. 10.5 crore lower by 12 per cent vis-à-vis Rs.84 crore vis-à-vis Rs. 2.624. This in turn reduced the gains from a weaker rupee. revenues stood at Rs.860.03 crore in FY 08.603. To reduce the strain on its profitability the company has initiated aggressive cost control measures and tighter working capital management besides re-aligning its capital expenditure across the businesses. the PBIT of copper business is lower than the previous year by Rs. EBIDTA is lower as compared to FY 09. even after factoring the benefit derived from higher metal production consequent to the Hirakud brownfield expansion. In the copper business.193.04 2. 19.8) 2. Consequently.3 17.3 2. mainly due to 37 per cent fall in TcRc and planned annual shut down.8 (171.9 22.Profit before minority interest Minority interest Share in profit / (loss) of associates (net) Net profit EPS (basic) (in Rs. The profit before interest and tax also fell by 25 per cent to Rs. though the rupee depreciation against the USD partially mitigated the impact.144.22 * Operating PBIDTA is before adjusting non cash unrealised derivative loss of Rs.230.860.3 3. 379. 503.23 485. Higher input costs and an unfavorable market mix (more sale of primary metal and increased exports) impaired profitability.94 crore in the corresponding period in the previous year on the back of the highest ever metal volumes. 7.) 2. For the previous year.8) 35. However the lower LME and spiraling input costs squeezed the margin.201.381 crore at Novelis Standalone results Net sales and revenues at Rs. The steep reduction in copper LME led to a fall in the overall sales revenue.4 (99.9 348. as a result of restatement of net foreign currency exposures as on 31 March 2009.4 per cent to Rs.3 2.3 14.115. 18.45 crore on this account. The steep depreciation of the Indian Rupee against the US Dollar affected the copper business by an estimated Rs.36 crore in the last year.065 crore in FY08 as a result of the 21 per cent lower LME.5 crore.219 crore in FY 09 are lower as compared to Rs. The turnover in the aluminium business grew by 6. 7.230. this amount was Rs.82 2.0 219. profit improvement measures and higher other income. . 12. 156. 41crore.

It has crossed the half million mark.237.37 lakh ton. Production Primary metal Alumina Wire rods Rolled products Extruded products Foils Units MT MT MT MT MT MT Year ended 31 March 2009 523. 10. Rs.198 43. reflects superior performance of the company as compared to industry performance in the backdrop of economic downturn. The adjustment for earlier year (net) under tax expenses reflects the write back of provision for tax resulting from a change in estimation of tax liability in progress in tax assessments.645 .4 per cent fall. alumina production has increased to 12.284 74. With the higher production at Muri from the Brownfield expansion.315 27.61 crore.798 215.895 22.32 crore in FY 2009 vs. The demand shrinkage in domestic and global markets resulted in lower production of downstream products.690. 3. 2.046 Year ended 31 March 2008 477.968 181.453 1.709 71.784 35. Operational review Aluminium Consequent to the Brownfield expansion at Hirakud.723 1.Profit before tax at Rs.192. metal production of the company was up by 10 per cent.025.

Production Copper cathodes CC rods Units MT MT Year ended 31 March 2009 297.000 tpa and a captive 900 MW power plant (6 x 150 MW). It will use advanced pot technology of 235 KA with pre-baked anodes and will need an additional 100 MW power plant. output declined.5 MW. BHEL has been given the . The project consists of a 1. Orissa.000 tpa to 143. On completion. it will reduce the cost of production substantially. The mechanical completion of the plant is expected by January 2011 and the first alumina is slated for production around July 2011.797 145.6 ktpa has also begun and will be commissioned in FY 12. The operations at copper smelter–II continue to be suspended. All the units have been commissioned. The construction of the refinery is currently in full swing. MP. The land acquisition for the project will be completed in Q2 FY 10.000 tpa was completed on time. Belgaum The specials alumina production from Belgaum will be ramped up to 316 ktpa from 138 ktpa. CC rod‘s production increased by 4 per cent over FY 08.5 MW to 367.884 139. Major orders have been placed for both the smelter and the power plant. this project will catapult Hindalco to one of the largest specials producer in the world.5 million tpa refinery. All the land required for the project has been acquired. will have a smelter capacity of 359. The Mahan Aluminium project coming up in Bargwan. The value added product. Greenfield projects Utkal Alumina is an alumina refinery coming up in Raygada. The smelter expansion from 155 ktpa to 206.682 Brownfield expansion projects Hirakud The Phase II of the expansion of smelting capacity from 100.The power generation capacity has been raised from 267.Copper With the bi-annual shutdown in smelter-III. Its expansion to 155 ktpa is at an advanced stage and will be completed by August 2009. Copper cathodes production is lower by 8 per cent. Around 70 per cent of the project cost has already been committed.542 Year ended 31 March 2008 323. All the major clearances have been obtained. with a 90 MW cogen plant and a 2 million tpa bauxite mining facility. A cogen power plant (steam and power production) and a railway siding facility etc are also being taken up as a part of the project. This is expected to be completed by end 2011.

. Jharkhand Aluminium is an aluminum smelter coming up in Sonahatu.625 crore and PBIT at Rs.31) crore. A large portion of the land required for the project has been acquired. 65. Aluminium business revenue is Rs. and 900 MW captive power plant. cathode blocks. The tubed coal mine has been allotted jointly with Tata Power. while the copper stood at Rs. 2.order for the boiler – turbine – generator packages for the power plant. primarily related to customer fixed-price contracts. a number of major orders have been placed for the smelter and power plant. results The result includes a non-cash unrealised derivative loss of around Rs. with a capacity of 359. Consolidated The consolidated revenue for the year is at Rs.000 tpa . Nearly 40 per cent of the total project cost has been committed so far.42 crore and PBIT at Rs. Jharkhand. other commodities and currency. As is in the case of Mahan. 627 crore. The first metal from the smelter would roll out by July 2011.306. The government of Jharkhand has given the water allocation clearance for 55 mcm of water from the Subernrekha basin. (425. The first metal from the smelter is slated for October 2011. The first metal from the smelter is expected by June 2013. 12 crore (USD 3 million) last year. Forest clearance for the rest of the land is under progress. Key clearances have been obtained. A 900 MW captive power plant will also be a part of the project. with a 1. is an integrated aluminium project coming up in Orissa. The plant will be located in Sonahatu which is 20 kilometers from Muri and 55 kilometers from Ranchi. Orders for cranes. The refinery should be mechanically completed by June 2013.5 million tpa alumina refinery. 374.10. 359. Aditya Aluminium.11 crore.381 crore (USD 519 million) which was only Rs. These derivatives are used to hedge exposures to aluminum.000 tpa aluminium smelter.26 crore with a PBIT of Rs. The land acquisition process has already started. 54. The magnitude of the mark-to-market loss on the company‘s derivative portfolio primarily reflects the dramatic downward movement in the LME price of aluminum. rectifiers and substation for the smelter have also been placed.760.

1.647 crore has been transferred to BRR and Rs. Dividend The directors have recommended a dividend of Rs.770 173 2. The company‘s actions taken to adjust metal intake. The comparative shipments for the twelve months ended 31 March 2009.640 147 2. Accordingly. Accordingly. The recent economic downturn particularly in the commodity space is also expected to result in impairment / diminution in value of certain assets/ investments. and for the combined twelve months ended 31 March 2008 are as indicated: Twelve months ended Twelve months ended 31 March 2009 Shipments (kt): Rolled products Ingot products Total shipments Successor 2.943 2008 Combined 2.787 1 April 2007 through 15 May 2007 Predecessor 348 15 363 The integration activities are proceeding smoothly.60 crore (Rs. Business Reconstruction Reserve The company has formulated a scheme of financial restructuring to deal with various costs associated with its organic and inorganic growth plan. This will be paid in line with the applicable regulations.Novelis The liquidity position of Novelis has remained stable despite challenging market conditions. 4616 crore in consolidated accounts have been adjusted against the same as per the Scheme during the year. 268.35 per share. as per a Scheme of Arrangement under sections 391 to 394 of the Companies Act 1956 ("the Scheme") between the company and its equity shareholders approved by the High Court of judicature of Bombay.988 162 3. 67 crore in standalone accounts and Rs. The acquisition is expected to significantly enhance shareholder value In the near future.150 16 May 2007 through 31 March 2008 Successor 2.5 crore) . The total outgo including the tax on dividend would be Rs. reduce production and decrease fixed costs will deliver an estimated $140 million annualised future savings. ( Rs. Rs. 8. 265. a separate reserve account titled as Business Reconstruction Reserve ("BRR") has been created by transferring balance standing to the credit of Securities Premium Account of the company for adjustment of certain expenses as prescribed therein. 1.85 per share).

driven by the expected increase in Chinese demand by 10 per cent.5 million tons cutbacks of high costs smelters in North America. This would put pressure on spot TCRC. The benchmark TCRC for CY 2009 witnessed an increase of 66 per cent over CY 2008. Europe.Industry outlook Aluminium Global primary consumption showed a 3 per cent increase in H1 FY 09 vis-à-vis H1 FY 08 but due to the recession and slowdown. China which has been a strong driver with double digit growth in the last decade also suffered a negative growth. the company intends to grow in current and new markets in terms of geography and product portfolio. creating a demand-supply gap which: Led to rise of LME inventory to 3. With the intense focus on operational efficiency and synergy between businesses. stretched operational efficiency. Further the demand growth in the Indian copper consumption would be robust particularly in the power cables. The short-term outlook seems negative. Copper With the global economy on the road to recovery. transformers and other related segments and also due to the thrust on energy efficiency and infrastructure development. However the long term market fundamentals remain strong. year FY 09 finally ended on a negative growth rate of 7 per cent as compared to FY 08. However. South America and China The demand seems to have hit the bottom and revival of the industry is expected by end of Q1 FY 10. the gain on TCRC was largely offset due to reduced by product credits. Aggressive cost control measures.5 million tons i. the copper prices would be between $3000-6000 per MT. Overall. more than 3 times the April 2008 levels Slide in LME prices from $3000 /t in June 2008 to $1254/t in February 2009 Announcement of more than 5. . enhanced asset productivity and containment of input cost along with effective working capital management to maximize free cash flow. The production was maintained at FY 08 levels. will continue to be the major growth drivers. the copper concentrate market is expected to remain in deficit during CY 10 due to an increase in smelting capacity in China and lack of addition of major mining projects. the lack of secondary material and delay in mining projects. Company outlook The business continues to be impacted by the overall slow down in the global economy and the unprecedented fall in commodity prices. mainly on account of sharp decline in sulfuric acid prices.e.

a fabrication facility and two captive power plants at Korba in central India. a captive power plant and refining. The primary products are aluminium ingots. NALCO has undertaken a capex programme of Rs. Market Share NALCO 29% HINDALCO 39% Sterlite Industries 32% . BALCO and MALCO.41 billion to increase aluminium production capacity to 460. The Government of India (GoI) holds 87. Orissa. BALCO is a partially integrated aluminium producer with two bauxite mines. rods and rolled products.000 tonnes from 345. The company has an alumina refinery at Damanjodi and a smelter at Angul in Orissa. MALCO is a fully integrated producer with two bauxite mines. refining and power generation operations. marginally higher than the rated capacity. smelting and fabrication facilities at Mettur in southern India. two smelters. one refinery. and also to enhance the capacity of its mining.15 per cent stake in the company.000 tonnes.Competitiors National Aluminium Company (NALCO) NALCO is one of the largest integrated aluminium producers in Asia. The project is in advance state and is expected to be operational by the year 2009. Currently.000 tonnes in FY 2007. Sterlite Industries Ltd (Vedanta) Sterlite Industries‘ Aluminium business comprises of two operating companies. The smelters at BALCO and MALCO produced 380. The parent company Vedanta is coming up with a 5 lakh ton smelter in Jharsuda.

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

In neighbor country.  Innovative revolution in plastic and steel industry. POSCO. . such as TATA.THREATS  Strong domestic and global competitors. MITTLE. ESSAR .  Fall in price of Al.  Reduce in Exide duty.

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