Company Brief:

Hindalco Industries Limited an Indian aluminium and copper producing organization, is an auxiliary
of the Aditya Birla Group. Its central command are at Mumbai, Maharashtra, India.
The organization has yearly deals of US$15 billion and utilizes around 20,000 people. It is recorded in
the Forbes Global 2000 at 895th rank. Its market capitalisation before the finish of May 2013 was
US$3.4 billion. Hindalco is one of the world's biggest aluminium moving organizations and probably
the greatest maker of essential aluminium in Asia.
The Hindustan Aluminium Corporation Limited was laid out in 1958 by the Aditya Birla Group. In
1962 the organization started creation in Renukoot in Uttar Pradesh making 20 thousand metric tons
each extended time of aluminium metal and 40 thousand metric tons each time of alumina. In 1989
the organization was rebuilt and renamed Hindalco.

Market Stat:

Core Products Market Share

4%
5%
34
23%

66 68%

Aluminium & Subs. HINDALCO BALCO

Copper & Subs. NALCO Others

Strategies they have chosen so far:

On 11 February 2007, the organization went into a consent to procure the Canadian organization
Novelis for US$6 billion, making the joined element the world’s biggest rolled-aluminium producer.
[10] At 2007 Novelis was the world's biggest maker of moved aluminium and a significant recycler of
aluminium cans. On 15 May 2007, the securing was finished with Novelis investors getting $44.93
per exceptional portion of normal stock.
Hindalco, through its entirely claimed auxiliary AV Metals Inc., gained 75,415,536 normal portions
of Novelis, addressing 100% of normal offers. Following shutting, AV Metals Inc. moved the normal
portions of Novelis to its completely claimed auxiliary AV Aluminium Inc. At the point when
Hindalco made this bid in 2007 this turned into the biggest Indian interest in North America and the
second-biggest abroad venture by an Indian organization (behind Tata Steel Europe's acquisition of
Corus fourteen days sooner) to this time.
The day after Hindalco declared the securing its stock fell by 13% bringing about a US$600 million
drop in market capitalisation. Investors reprimanded the arrangement yet K.M. Birla answered that he
had offered a fair cost for the organization and expressed, "When you are gaining a world chief you
should pay a premium."
SWOT Analysis:

Strength Weakness
Global brand image Present production capacity is not
Cost effective producer adequate to meet the rising high
Sound financial position demand
A high degree quality consciousness is Technology is not upgraded to mark as
the core competence of the company compare to global giants in aluminium
Company has a well-established industry
distribution network, covering a
geographically wide and scattered
market

Opportunity 
R & D collaboration with universities
Threats
and another research organization Strong domestic and global
More emphasis on downstream
production of value added products competitors, such as TATA,
Recycling should be adopted as routine POSCO, MITTLE, ESSAR
production Innovative revolution in
Raising more finance from marketing
for more acquisition and merger for plastic and steel industry
consolidating position in the global Fall in prices of Al. in
market
neighboring countries

PESTLE Analysis:

P o liti c a l A s p e c t
U S - C h in a t r a d e w a r c a n im p a c t a lu m in u m S e c t o r .
S t r o n g p o liti c a l w ill t o f r a m e p o lic y f o r a lu m m in iu m s e c t o r
 E c o n o m ic a l A s p e c t
R e c e n t e c o n o m ic r e f o r m s w ill b o o s t g r o w t h p o t e n ti a l y e a r s t o c o m e
L e s s im p o r t s a n d e c o n o m ic s lo w d o w n h a s im p a c t e d o p e r a ti o n s

S o c ia l A s p e c t
A lu m in u m is a n in t e g r a l p a r t o f m o d e r n d a y m o b ilit y a n d p a c k in g

Legal A sp ect
A c c q u is iti o n o f A le r is is s ti ll p e n d in g f o r r e g u la t o r y p u r p o s e s .
E n v ir o n m e n t a l r e g u la ti o n s h a v e b e e n v io la t e d in f e w o p e r a ti o n a l s it e s le a d in g t o
te m p o ra ry sh u td o w n s.

E n v ir o n m e n t a l A s p e c t
R e c y c lin g in iti a ti v e s h a v e b e e n u n d e r t a k e n t o m a k e w o r ld g r e e n e r .
C o m b a ti n g c lim a t e c h a n g e w it h p r o p e r m e a s u r e s o n p o llu ti o n .

4P’s of Hindalco:
PRODUCTS: Calcined alumina, alumina metal, special products, rolled products
 PRICING: It depends upon on the London Metal exchange and so it changes with respect to LME. It
also varies according to the demand of All India Market. Pricing strategy is generally updated
periodically and it changes according to situation. 
PROMOTION: Hindalco use to do promotional activities; which can be seen in the form of CSR like
providing health facilities, promoting education, organising events
PLACE: For Hindalco its stockyard is amongst all around the country which makes its logistics more
efficient.

BCG Matrix of Hindalco:

Market Share

Star Question Mark

T Ingots Billets
Market growth

BCGMatrix
Cash Cow Dog
Aluminum Sows Rolled Product
 Calcined Alumina

Porter 5 Forces

Sine Hindaclo is in aluminum and copper indsutry. The porter five force anaylsis should be done for the
same industry
Company Organization Structure: -
Mission of the company: -

To relentlessly pursue the creation of superior shareholder value, by exceeding customer

expectation profitably, unleashing employee potential, while being a responsible corporate
citizen, adhering to our values.

Vision of the company: -

To be a premium metals major, global in size and reach, excelling in everything we do, and
creating value for its stakeholders.

Value of the company: -

Integrity

Commitment

Passion

Seamlessness

Speed
Cooperate Strategies: -

Cooperation: - Hindalco is in a joint venture with Almex USA. They did this to produce high
quality aluminium alloy. Hindalco has 70% of the equity and production level is around
46,000 tons.

Acquisition: - ( 1)Hindalco have acquired Indal.

(2)Birla Copper acquired the Nifty Copper Mines in the Australia. Hindalco
Industries has made their second acquisition in Australia by entering into a sale-
purchase agreement (SPA) for the purchase of mining assets of Mount Gordon copper
mines in Australia.

Stock Price History Of Last 5 years

Future Strategy: -

 To provide insulation from LME price movements and create stability in the overall
earnings stream
 Increasing aluminisation in industries, such as building and construction,
transportation and packaging, offers significant market opportunity for our large and
integrated operations
 To focus on building and construction segment of the India.
 Increase the production of lightweight alloys and flat rolling allow for EV and
vehicles future demand and capture the market.
 2.5x Targeted Net Debt to EBIDTA ratio
 $1.2 BILLION Targeted consolidated cashflow
 Planning for the future