Confidential

ET Young Leaders B-School Edition 2015

Hindalco Primary Aluminium

Background
As the Marketing Director, Rajiv, came out of the review meeting with mixed emotions. His division had
achieved one of the most profitable and high growth years in FY 14-15, but recently the LME (London
Metal Exchange) prices for aluminium were at their lowest levels in recent history (LME is a key
benchmark in deciding the costing for Aluminium). High production and low demand in China was also
leading to further challenges, as also the recent coal block allocations leading to increased cost of
production. Hindalco was step jumping its capacity as well as its quality and capability in manufacturing,
market reach and market servicing.
He questioned whether the past scenario when the product was often in shortage and a one-size-fitsall approach would still be applicable?
Rajiv realized that the team will need to change its one-size-fits-all approach to a more targeted one,
that is, move beyond the mindset of primary aluminium being just a commodity.
This would involve identifying the different needs of customers (both in domestic and export markets)
and applying a more focused approach to serving them. Targeted solutions to different customer groups
would result in a more fulfilling sales experience at the customer end and deliver higher business volume
and price premia to Hindalco.
About Hindalco
An industry leader in aluminium and copper, Hindalco Industries Limited, the metals Flagship Company
of the Aditya Birla Group is the world's largest aluminium rolling company and one of the biggest
producers of primary aluminium in Asia. Established in 1958, we commissioned our aluminium facility at
Renukoot in eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal, Birla
Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our position in value-added
alumina, aluminium and copper products. Today, we are a metals powerhouse present in two of the fastest
growing metal segments; aluminium and copper.
The largest integrated primary producer of aluminium in Asia, Hindalco also ranks as one of the most
cost-efficient producers globally. With a pan-India presence that encompasses the entire gamut of
operations, from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions
and recycling, Hindalco enjoys a leadership position in aluminium and downstream value-added products
in India.

Our finished products include alumina, primary aluminium in the form of ingots, billets and wire rods,
value-added products such as rolled products, extrusions, foils and alloy wheels and speciality alumina
products. Aluminium is used in a range of industries including water-treatment chemicals, refractories,
ceramics, cryolite, glass, fillers and plastics, conveyor belts and cables, among others.

Confidential

ET Young Leaders B-School Edition 2015

About Primary Aluminium

Hindalco is a major player in the primary aluminium market in India, Hindalcos product range includes
high-quality aluminium products for various industrial applications. Hindalcos aluminium metal is
accepted under the high-grade aluminium contract on the London Metal Exchange (LME) as a registered
brand.
Primary aluminium is sold in the form of: Ingots; Wire rods & Billets
Ingots: Hindalco produces high-purity ingots through smelting. We also produce alloy ingots of various
grades, which are used for the production of castings in the auto industry and in electrical applications.
These are re-melted and further processed into a large number of products for various downstream
applications.
Wire Rods: Hindalco manufactures wire rods in a continuous casting and rolling process. Electrical
conductor (EC) wire rods are used for the production of cables and ACSR and AAC conductors. Alloy
wire rods are used to produce AAAC conductors.
Billets: Hindalco's aluminium billets are produced by a state-of-the-art Wagstaff casting process using
AirSlip technology. These are top-quality billets with a smooth finish. They are used mainly to produce
extrusions and forgings.
Project Deliverables
Identify a new Target Group for Hindalco
- Identify Need based Customer groups, journey maps and Moment of Truths
- To design a holistic offering for the chosen customer groups. The offering could aim to improve
profitability through higher realization or reduced cost of serving (with former being the preferred
choice)
Instructions
Candidates should not restrict themselves to secondary research to arrive at solutions/recommendations.
Visits/conversations with Primary Aluminium customers are highly encouraged