Hindalco Company Profile

Hindalco Industries Limited
Company Profile
Publication Date: 18 Aug 2010
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Hindalco Industries Limited Page 2
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TABLE OF CONTENTS
Company Overview..............................................................................................4
Key Facts...............................................................................................................4
Business Description...........................................................................................5
History...................................................................................................................7
Key Employees.....................................................................................................9
Major Products and Services............................................................................10
Revenue Analysis...............................................................................................11
SWOT Analysis...................................................................................................12
Top Competitors.................................................................................................17
Company View.....................................................................................................18
Locations and Subsidiaries...............................................................................21
© Datamonitor
TABLE OF CONTENTS
COMPANY OVERVIEW
Hindalco Industries, the metals flagship company of Aditya Birla Group, is engaged in the production
of aluminum and copper. The company has operations in 12 countries and serves customers in
more than 50 countries. It is headquartered in Mumbai, India and employs about 19,900 people.
The company recorded revenues of INR656,251.5 million (approximately $14,319.4 million) in the
financial year ended March 2009 (FY2009), an increase of 9.4% over FY2008. The operating profit
of the company was INR6,356.6 million (approximately $138.7 million) in FY2009, a decrease of
86.8% compared with FY2008. The net profit was INR3,488.3 million (approximately $76.1 million)
in FY2009, a decrease of 84.9% compared with FY2008.
KEY FACTS
Head Office Hindalco Industries Limited
Aditya Birla Centre
S. K. Ahire Marg
Worli
Mumbai 400 030
Maharashtra
IND
Phone 91 22 6652 5000
Fax 91 22 6652 5841
Web Address http://www.hindalco.com
Revenue / turnover 656,251.5
(INR Mn)
Financial Year End March
Employees 19,867
Bombay Stock 500440
Exchange Ticker
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Company Overview
BUSINESS DESCRIPTION
Hindalco Industries (Hindalco) is engaged in the manufacturing of aluminum and copper products.
The company is a part of the Aditya Birla Group. Through its subsidiary Novelis, Hindalco operates
32 plants In 11 countries. The company has presence in 12 countries.
The company operates through three business segments: aluminum; copper; and others.
The aluminum segment covers a series of operations from bauxite mining, alumina refining, and
aluminum smelting to downstream rolling, extrusions, and recycling. The product range consists of
rolled products, extrusions, foils, primary aluminum ingots, billets, wire rods, and aluminum slabs.
Additionally, the segment offers products such as Freshwrapp aluminum foil, Everlast aluminum
roofing sheets, Permashield aluminum waterproofing membrane sheeting, and Al Planet aluminum
products for the construction industry.
Hindalco operates an integrated complex at Renukoot, in Uttar Pradesh, India.The complex comprises
an alumina refinery with a capacity of 700,000 tons per annum (tpa), an aluminum smelter with a
capacity of 345,000 tpa, and facilities for the production of semi-fabricated products.The unit receives
power from the captive power plant located at Renusagar, Uttar Pradesh, with 10 power generating
units. The power plant has a current generation capacity of 742 megawatt (MW). The integrated
complex also operates a co-generation plant with a capacity of 37.5 MW. A new co-generation plant
with a capacity of 41 MW has just been commissioned to meet the requirements of the enhanced
post-expansion capacities.
The company also operates another aluminum smelter at Hirakud in Orissa, India with a captive
power plant and coal mines. The smelter has a capacity of 143,000 tpa, and captive power plant of
367 MW.
The company’s subsidiary Novelis has presence in North America, South America, Europe, and
Asia. It produces premium aluminum rolled products and flat rolled aluminum products. In addition
to its aluminum rolling activities, Novelis operates bauxite mining, alumina refining, primary aluminum
smelting, and power generation facilities in Brazil that are integrated with its rolling plants.
The copper segment produces copper cathodes, continuous cast copper rods, precious metals,
sulphuric acid, phosphoric acid, di-ammonium phosphate (DAP) and other phosphoric fertilizers,
and phospho-gypsum. Hindalco manufactures continuous cast copper rods for wire, cable, and
transformer industry, and copper tubes for air conditioning and refrigeration and various other
applications in the form of alloys and sheets.The copper alloys such as brass, bronze, and cupronickel
are used in industries including defense, mint, construction, and the electrical industry.
Hindalco operates an integrated copper unit at Dahej which comprises copper smelters, backed by
a captive power plant, oxygen plants, by-products plants, utilities, and a captive jetty.
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Business Description
The others segment includes other businesses such as caustic, cellular services, and others.
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Business Description
HISTORY
Hindalco Industries (Hindalco) was incorporated in 1958.The company began production of aluminum
metal and alumina at its facility at Renukoot, India in 1962. In 1967, Hindalco opened Renusagar
Power Plant.
Hindalco commenced the production of aluminum alloy wheels at Silvassa in 1999. In the following
year, the company acquired a controlling stake in Indian Aluminium Company (Indal) with 74.6%
equity holding.
Indo Gulf Corporation, a copper business, and Birla Copper were amalgamated with Hindalco in
2002. Hindalco acquired Nifty Copper Mine through Aditya Birla Minerals (earlier known as Birla
Minerals Resources) in 2003. In the same year, Hindalco became majority stakeholder in Utkal
Alumina, a joint venture with Alcan. Further in 2003, the company increased its equity in Indal to
96.5%.
In 2005, all businesses of Indal, except for the Kollur Foil Plant in Andhra Pradesh, merged with
Hindalco.
In 2006, the company entered into a joint venture with Almex USA for manufacture of aluminum
alloys for applications in aerospace, sporting goods, and surface transport industries. Subsequently,
Hindalco signed a memorandum of understanding (MoU) with the government of Madhya Pradesh
for a greenfield aluminum smelter.
Further in 2006, the company entered into a joint venture with Essar Power (MP) to develop and
operate coal mines at Mahan, Madhya Pradesh, India. In the same year, Hindalco acquired an
aluminum rolling mill and wire rods facility situated at Mouda (Nagpur), from Asset Reconstruction
Company (India).
The company acquired Novelis in 2007. In the same year, the company became the 100% owner
of the Utkal project by acquiring Alcan's 45% equity stake.
In 2008, Hindalco along with Hydromine, a US based mining firm, and Dubai Aluminium Company,
formed a new mineral firm Cameroon Alumina, in which the Cameroon government also owned
stakes.
In July 2009, Hindalco announced its decision to close its wheel plant with capacity of 300,000
wheels per annum, located at Silvassa in India.
In December 2009, Hindalco subsidiary Aditya Birla Minerals agreed to buy out the 50% stake held
by its two joint venture partners in Maroochydore copper mining project located in Western Australia.
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History
In June 2010, the government of the Indian state of Orissa approved Hindalco’s proposal to enhance
its aluminum capacity in the state from 0.14 million tpa to 0.36 million tpa and expand the generation
capacity of the Hirakud captive power plant to 967 MW.
© Datamonitor
History
KEY EMPLOYEES
Name Job Title Board Compensation
Debu Bhattacharya Managing Director Executive Board 110939510 INR
Kumar Mangalam Birla Chairman of the Board of Directors Non Executive Board 67927000 INR
Rajashree Birla Director Non Executive Board 2788000 INR
C. M. Maniar Director Non Executive Board 1115000 INR
E. B. Desai Director Non Executive Board 1115000 INR
S. S. Kothari Director Non Executive Board 45000 INR
M. M. Bhagat Director Non Executive Board 952000 INR
K. N. Bhandari Director Non Executive Board 352000 INR
A. K. Agarwala Director Non Executive Board 495000 INR
N. J. Jhaveri Director Non Executive Board 796000 INR
Group Executive President and Senior Management
Chief Financial Officer
S. Talukdar
Dilip Gaur Group Executive President, Copper Senior Management
Shashi K. Maudgal Chief Marketing Officer, Aluminium Senior Management
Satish M. Bhatia President, Foil and Wheel Senior Management
R. S. Dhulkhed Senior President, Operations Senior Management
Joint President, Chemicals and Senior Management
International Trade
Vinod Sood
Chief Officer Operations, Renukoot Senior Management
Unit
D. K. Kohly
Vineet Kaul Chief People Officer Senior Management
Anil Malik Company Secretary Senior Management
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Key Employees
MAJOR PRODUCTS AND SERVICES
Hindalco Industries, the metals flagship company of Aditya Birla Group, is engaged in the production
of aluminum and copper. The company's key products and services include the following:
Aluminum:
Rolled products
Extrusions
Ingots
Billets
Wire rods
Slabs
Foil
Roofing sheets
Waterproofing membrane sheeting
Copper:
Continuous cast copper rods
Copper cathodes
Di-ammonium phosphate (DAP)
Phospho-gypsum
Phosphoric acid
Precious metals
Sulphuric acid
Brands:
Freshwrapp
Everlast
Permashield
Al Planet
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Major Products and Services
REVENUE ANALYSIS
Overview
Hindalco Industries (Hindalco) recorded revenues of INR656,251.5 million (approximately $14,319.4
million) in FY2009, an increase of 9.4% over FY2008. For FY2009, India, the company's largest
geographic market, accounted for 20.7% of the total revenues.
Hindalco generates revenues through three business segments: aluminum (82.7% of the total
revenues in FY2009), copper (16.4%), and others (0.9%).
Revenue by segment
In FY2009, the aluminum segment recorded revenues of INR542,852.4 million (approximately
$11,845 million), an increase of 15.4% over FY2008.
The copper segment recorded revenues of INR107,548.6 million (approximately $2,346.7 million)
in FY2009, a decrease of 12.8% compared with FY2008.
The others segment recorded revenues of INR5,850.5 million (approximately $127.7 million) in
FY2009, a decrease of 9.2% compared with FY2008.
Revenue by geography*
India, Hindalco's largest geographical market, accounted for 20.7% of the total revenues in FY2009.
Revenues from India reached INR136,111.3 million (approximately $2,969.9 million) in FY2009, an
increase of 0.8% over FY2008.
Rest of the world accounted for 79.3% of the total revenues in FY2009. Revenues from rest of the
world reached INR521,741 million (approximately $11,384.4 million) in FY2009, an increase of 11.9%
over FY2008.
*As reported by the company
© Datamonitor
Revenue Analysis
SWOT ANALYSIS
Hindalco Industries (Hindalco), the metals flagship company of Aditya Birla Group, is engaged in
the production of aluminum and copper. The company has operations in 12 countries and serves
customers in more than 50 countries. Hindalco is India‘s largest producer of flat rolled products, and
one of the leading global players in aluminum rolling with 19% market share. Novelis, the company’s
subsidiary, is the largest producer of flat rolled aluminum products in Europe, South America, and
Asia and is the second largest in North America. The company's strong market position gives it
advantage of scale and increases its bargaining power. However, stringent government regulations
could affect the company's operating margins.
Strengths Weaknesses
Strong market position Substantial long-term debt
Integrated aluminum operations
Extensive product portfolio
Opportunities Threats
Expansion of aluminum operations Environmental regulations
Positive outlook for the global aluminum Mining and production risks
industry Intense competition
Increasing demand for precious metals
Strengths
Strong market position
Hindalco is one of the leading companies in the aluminum industry in India. The company is India‘s
largest producer of flat rolled products. Hindalco is one of the leading global players in aluminum
rolling with 19% market share. The company has primary aluminum smelting capacity of 488,000
tons per annum (tpa), alumina refining capacity of 1.5 million tpa, and rolling capacity of 205,000
tpa.
Novelis, the company’s subsidiary, operates 32 plants in 11 countries. It is the only company which
produces premium aluminum rolled products in North America, South America, Europe, and Asia.
Novelis is the largest producer of flat rolled aluminum products in Europe, South America, and Asia;
and is the second largest in North America. Novelis caters to the top-end technologically advanced
market sectors, producing premium sheet and foil products for high-value applications in automotive,
transportation, packaging, construction, industrial products, and printing.
© Datamonitor
SWOT Analysis
The company's strong market position gives it advantage of scale and increases its bargaining
power.
Integrated aluminum operations
The aluminum business of Hindalco is integrated with its own mining and captive power generation
capacities. The company is the largest vertically integrated aluminum company in India. It engages
in all aspects of the value chain from bauxite mining, alumina refining, and aluminum smelting to
downstream rolling, extrusions, and recycling. Hindalco operates an integrated complex at Renukoot,
in Uttar Pradesh, India. The complex comprises an alumina refinery, an aluminum smelter, and
facilities for the production of semi-fabricated products. The unit receives power from the captive
power plant located at Renusagar, Uttar Pradesh, with 10 power generating units. The power plant
has a current generation capacity of 854 MW. The integrated complex also operates a co-generation
plant with a capacity of 37.5 MW. A new co-generation plant with a capacity of 41 MW has just been
commissioned to meet the requirements of the enhanced post-expansion capacities.
The integrated aluminum operations made the company one of the cost-effective aluminum
manufacturers in the country and worldwide.The Indian operations being one of the most competitive
assets in the company’s business portfolio offer a competitive advantage with a leading market
position in the country.
Extensive product portfolio
Hindalco offers an extensive product portfolio through its two segments, aluminum and copper. The
aluminum segment engages in the production of rolled products, extrusions, ingots, billets, wire rods,
slabs, foil, roofing sheets, and waterproofing membrane sheeting. The copper segment produces
continuous cast copper rods, copper cathodes, di-ammonium phosphate (dap), phospho-gypsum,
phosphoric acid, precious metals, and sulphuric acid.
In FY2009, copper cathodes accounted for 24% of net sales, concast copper rods accounted for
23%, aluminum ingots and billets 13%, SAP, DAP and complexes, precious metals and others 12%,
rolled products 12%, conductor and redraw rods 5%, hydrate and alumina 4%, aluminum foils, wheels
and others 4%, and extrusions 3%.
The company’s products find wide application in various segments, such as automotive, building
and construction, printing, packaging, transportation, electrical, industrial products, defense, and
general engineering applications. An extensive product portfolio provides for a diversified and
extensive customer base avoiding dependence on any single customer industry for revenues. This
in turn creates financial stability for the company.
Weaknesses
Substantial long-term debt
© Datamonitor
SWOT Analysis
Debt forms a significant part of the company’s capital structure. As of March 2009, the company had
long-term debt of INR283,097.6 million (approximately $6,177.2 million), a decrease of 12.5%
compared with FY2008. The company’s total shareholder equity as of March 2009 totaled
INR158,536.2 million (approximately $3,459.3 million).This represents a high long term debt-to-equity
position. In FY2009, the company recorded long term debt to equity ratio of 178.6%. Though the
company’s long term debt to equity ratio has declined from 187.1% in FY2008 to 178.6% in FY2009,
it is still significant. The interest payments needed to service the high indebtedness could have a
material adverse effect on the company’s financial results.
High level of debt could limit the company’s ability to finance future acquisitions, develop, and
construct additional projects. It could also impair its credit quality resulting in a downgrade in debt
ratings by credit rating agencies.
Opportunities
Expansion of aluminum operations
Hindalco is undertaking several projects to expand its aluminum operations. Majority of the company’s
expansion plans would be commissioned by the first quarter of FY2014.
The company is currently expanding its smelting capacity at its Hirakud plant in phases.The expansion
of Hirakud Smelter and Power from 155,000 tpa to 161,000 tpa is expected to be commissioned in
FY2011, while the expansion from 161,000 tpa to 213,000 tpa would be commissioned in FY2012.
The production of flat-rolled products from Hirakud would start in FY2012. The company plans to
further expand the smelting capacity at Hirakud from the proposed 213,000 tpa to 360,000 tpa with
a corresponding increase in back-up captive power from the proposed 467.5 MW to 967.5 MW.
The company's Utkal Alumina Refinery, a 1.5 mtpa project in Orissa aimed at producing alumina
from bauxite, is expected to be ready by FY2012. The Mahan Aluminium Project is expected to be
ready by FY2012. Mahan Aluminium is a smelter-power plant complex with a 359,000 tpa aluminum
smelter and a 900 MW captive thermal power plant in Madhya Pradesh. The project has a total
capital expenditure plan of INR92,000 million (approximately $2,007.4 million).
These investments will substantially expand Hindalco’s aluminum business. They will enable the
company to sustain its leading position in the industry in India.
Positive outlook for the global aluminum industry
After a period of fluctuating growth during 2004-08, the global aluminum industry fell into a severe
decline in 2009. The industry is expected to recover in 2010 and post healthy growth rates over the
years up to 2014.
© Datamonitor
SWOT Analysis
The global aluminum industry had total revenue of $50.2 billion in 2009, representing a compound
annual growth rate (CAGR) of 2.1% for the period 2005-09. In comparison, the European industry
declined with a compound annual rate of change (CARC) of -2.6%, and the Asia-Pacific industry
increased with a CAGR of 7.3%, over the same period, to reach respective values of $11.4 billion
and $25.6 billion in 2009. Industry production volumes increased at a CAGR of 4.7% during 2005-09
to reach 32.4 million tons in 2009. The industry's volume is expected to rise to 44.4 million tons by
the end of 2014, representing a CAGR of 6.6% for the 2009-14.
The performance of the industry is forecast to accelerate, with an anticipated CAGR of 19% for
2009-14, which is expected to drive the industry to a value of $119.8 billion by the end of 2014.
Comparatively, the European and Asia-Pacific industries will grow with CAGRs of 14.8% and 22.4%
respectively, over the same period, to reach respective values of $22.8 billion and $70.4 billion in
2014. Hindalco serves customers in more than 50 countries. It is better positioned to benefit from
the positive outlook for the global aluminum industry.
Increasing demand for precious metals
Following a period of strong growth, the global precious metals and minerals market plunged into
decline in 2009. The market is set to recover to post strong, fairly stable growth for the remainder
of the forecast period. The global precious metals and minerals market generated total revenues of
$32.3 billion in 2009, representing a CAGR of 4.4% for the period 2005-09. In comparison, the
European and Asia-Pacific markets grew with CAGRs of 4.4% and 1.9% respectively, over the same
period, to reach respective values of $6 billion and $4.6 billion in 2009.
The performance of the market is forecast to accelerate, with an anticipated CAGR of 13.7% for
2009-14, which is expected to drive the market to a value of $61.4 billion by the end of 2014.
Hindalco extracts precious metals from its refinery located at Dahej. It produces 99.9% pure gold,
silver, and selenium. The residue also contains traces of platinum and palladium, which are sold as
platinum group metal mix. The company could capture the growth trend and increase its revenues
and market share.
Threats
Environmental regulations
Hindalco’s operations worldwide are subject to numerous complex and increasingly stringent
environmental laws and regulations.The costs of complying with such laws and regulations, including
participation in assessments and cleanups of sites, as well as internal voluntary programs, are
significant and will continue to be so in the foreseeable future.
In addition, the Kyoto Protocol calls on industrialized countries to reduce their greenhouse gas
emissions by 5.2% annually during the 2008-12, relative to their emission levels in 1990. Another
© Datamonitor
SWOT Analysis
important development in 2005 was the passing of the 'clean air interstate rule' (CAIR), by the US
Environmental Protection Agency (EPA), according to which US states have to reduce their allowable
sulfur dioxide (SO2) and nitrogen oxide (NOX) emissions by 70% and 60%, respectively, by 2015,
compared to the 2003 levels. The Kyoto Protocol now covers more than 160 countries globally and
more than 60% of countries in terms of global greenhouse gas emissions.
These regulations may impose new liabilities on the company or hamper its existing operations,
which could result in a material decline in its profitability.
Mining and production risks
Hindalco is subject to operating risks in its mining and production activities. Due to these risks, the
company is liable to incur higher mining, transportation, or production costs, disrupt or halt operations
at its mines and production facilities permanently or for varying lengths of time, or interrupt the
transport of its products to the customers. The company’s aluminum smelters are particularly
vulnerable to disruptions in the supply of power which could cause the contents of the furnaces or
cells to solidify, which would necessitate a plant closure and a shutdown in operations for a significant
period, as well as involve expensive repairs. For example, power interruptions caused Hindalco’s
competitor Bharat Aluminium Company (BALCO) to partially suspend operations at its new 245,000
tons per annum (tpa), aluminum smelter at Korba in 2006, as a result of which the smelter did not
become fully operational again until November 2006. The loss from this interruption included lost
production, repair costs, and other expenses. Such risks would increase the operating costs of
Hindalco which would have a material impact on the company’s profits.
Intense competition
There is substantial competition in the copper and aluminum industries, both in India and
internationally. The company’s competitors in the copper, and aluminum markets outside India
include major international producers. Certain of these international producers have significantly
larger scale of operations, greater financial resources and manufacturing and technological
capabilities, more established and larger marketing and sales organizations, and larger technical
staffs.
In the Indian copper market, the company competes primarily against Sterlite Industries, Hindustan
Copper, and imports. In the Indian aluminum market, it competes primarily against National Aluminum
Company (NALCO), Bharat Aluminium Company (BALCO), Pennar Aluminium Company, Sterlite
Industries, and imports. Many of the company’s competitors are also expanding their production
capacities. If domestic demand is not sufficient to absorb these increases in capacity, its competitors
could reduce their prices, which may force the company to do the same or cause the company to
lose market share or sell its products in overseas markets at lower prices. Such an intense competition
threatens to erode the market share of the company.
© Datamonitor
SWOT Analysis
TOP COMPETITORS
The following companies are the major competitors of Hindalco Industries Limited
National Aluminium Company
Pennar Aluminium Company Ltd
BHP Billiton Group
Rio Tinto Limited
Aluminum Corporation of China Limited
Bharat Aluminium Company Ltd
Sterlite Industries (India) Limited
© Datamonitor
Top Competitors
COMPANY VIEW
A statement by Kumar Mangalam Birla, the Chairman of the Board of Directors at Hindalco Industries,
is given below. The statement has been taken from the company's annual report for FY2009:
As I look at the numbers at the current maelstrom, whilst our revenues and profits have been impacted
across businesses, in relative terms, measured against the competition, we stood our ground. The
litmus test we apply is: if a down turn of this magnitude were to persist for some time, would we be
the last man standing, which means, will be the industry player, least likely affected.
Without doubt, we are facing toughest challenge, but we still, all the same, will be the 'last man
standing' once the dust settles down, as the statistics for our various businesses bear out.
We believe that tough times don't last, tough people do. At a time like this, we constantly remind
ourselves, that collective endeavor as an organization is to build businesses for the long haul. In the
past too, there have been sharp swings in business cycles - and there will be more of these in the
future, though hopefully not the magnitude and ferociousness we are seeing today. And each time
in the past we have come out of the eye of the storm, we have emerged fitter and stronger.
At the business level too we had to grapple with many challenges given the piquant environment.
Your Company's consolidated turnover (gross) crossed US$ 13.5 billion (Rs.65,625 crores) and
EBIDTA of US$ 763 million (Rs.3,665.2 crores). Of the revenues, over US$ 11.3 billion came from
the aluminium business, while copper accounted for US$ 2.2 billion (Rs.10,760.26 crores).
Your Company has taken major initiatives to ensure to sustain profitable growth. An in-depth
presentation of these steps has been detailed in the Management Discussion and Analysis, so I will
highlight only the key points.
As part of its strategic growth initiatives, your Company has embarked on a series of expansion
projects.
Your Company's Greenfield's projects - Utkal Alumina and Aditya Aluminium in Orissa, Mahan
Aluminium in Madhya Pradesh and Jharkhand Aluminium in Jharkhand will go on stream between
2011 and 2013. With these, your Company's smelting capacity will increase from 0.5 million tons to
1.7 million tons with three new projects of 360 ktpa each. Likewise, your Company's refining capacity
will increase from 1.7 million tons at present to 6.15 million tons. These expansions will give your
Company a greater edge.
I would like to add that the liquidity position of Novelis has remained stable despite challenging
market conditions. The Company's actions taken to adjust metal intake, reduce production and
decrease fixed costs will deliver an estimated $140 million annualized future savings.
© Datamonitor
Company View
The fundamental reason for which we acquired Novelis - global market leadership, cutting edge
technology, going up the value chain in the largest segment of value added products and a highly
competent team, remain unchanged. However, Novelis has been impacted negatively, especially
due to the falling off of markets in North America and Europe. Our Hindalco/Novelis teams are
working double time to take appropriate action. I remain very confident, that the inherent strengths
of Novelis will see us through the next two years. Our commitment to Novelis remains unflinching.
Birla Copper demonstrated outstanding resilience by delivering highest ever PBT in a year when
the TcRcs fell by 39% and market volitality was unprecedented. This was achieved through a
combination of savvy marketing, innovative cost management and deft leveraging of its business
model to maximise value creation. Effort towards significant value unlocking through marketing of
waste materials are unrelenting. Birla Copper is today in the top quartile in the global pecking order,
in so far as it relates to smelting costs.
Outlook
Your Company will continue to strengthen its leadership position. Substantial increase in capacities,
improved cost optimization, higher productivity and strong fundamentals augur well for your Company
in the years to come.
I believe our people are our biggest strength.We have further strengthened our endeavour, in these
times of slowdown, to aggressively establish a performance - oriented culture that rewards better
performance and distinguishes the best performers from the others. I would like to acknowledge all
of our performers who deliver results.
The Aditya Birla Group: In Perspective
Today, we manage multinational teams - 1,30,000 employees, comprising 30 nationalities, across
25 countries, anchor our US$ 29.2 billion meritocratic conglomerate. Our values - Integrity,
Commitment, Passion, Seamlessness and Speed, is the thread that strings us together.
Post our Group being declared the "Best Employer" in 2007 by the Hewitt / Economic Times / Wall
Street Study, our brand as an employer continues to grow strongly. More than 8,000 leading
professionals from India and globally have teamed up with us.
Our rigorous assessment process, inclusive of Development Assessment Centres, assesses our
people early in their career on their potential to hold leadership roles. This way, we have ensured
that we have a robust bench strength of talent.We also use short term secondments and long term
assignments to develop the capability of our people to work across borders. This year over 1,700
colleagues have been job rotated.
Over 80% of our businesses have participated in a compensation benchmarking exercise this year
and we have taken significant corrective and proactive measures to stay competitive and attractive.
This positioning will further help us to attract and retain the right talent.
© Datamonitor
Company View
We lay great emphasis on continuous learning through our in-house learning university - Gyanodaya.
This globally benchmarked institution leverages resources from around the world to meet the
development needs of our people. Over a 1,000 executives have taken courses this year. Additionally,
more than 14,000 employees spread across the world, from Farmington Hills in USA to Giza in Egypt
to Perth in Australia and Renukoot in Uttar Pradesh have used Gyanodaya's E-learning platform
called GVC. GVC prides itself in having a course completion ratio of 90%, which is a world benchmark.
As perhaps many of you may be aware we track the organisational climate every two years.We use
the Organisational Health Survey (OHS), as the barometer of employee engagement at work. It is
conducted by Gallup. Over 22,000 executives, across 17 businesses, spanning 25 countries and
750 cities/interiors participated in the OHS6. The participation level at 94%, according to Gallup, is
a benchmark. 83% of the employees surveyed in the OHS6 said that they are proud to be an employee
of the Aditya Birla Group and get professional satisfaction working here. 67% of our management
employees have clearly emphasized their confidence in the ability of the leaders at various levels
to successfully manage the emerging challenges that the Group is facing. Almost threefourths of
our employees (73%) have stated that they would definitely advocate our Group as a place to build
a meaningful career.
Going forward, I would like to emphasize that the brand of leadership that we seek to build combines
the virtues of professionalism with the commanding power of the mind, heart and soul. The mind
which has the intellect to perceive the right from the wrong, the heart which has an emotional bond
with the organisation that cannot be severed, and a soul that is indomitable. Our biggest strength
has been an emotional bonding that our employees have with the Group that makes the paradigm
of duty truly boundaryless.
© Datamonitor
Company View
LOCATIONS AND SUBSIDIARIES
Head Office
Aditya Birla Centre
S. K. Ahire Marg
Worli
Mumbai 400 030
Maharashtra
IND
P:91 22 6652 5000
F:91 22 6652 5841
http://www.hindalco.com
Other Locations and Subsidiaries
Hindalco Industries Limited Novelis Inc.
Century Bhavan 3rd floor 3399 Peachtree Road North East
Dr. Annie Besant Road Suite 1500
Worli Atlanta
Mumbai 400 030 Georgia 30326
Maharashtra USA
IND
Aditya Birla Minerals Limited Hindalco-Almex Aerospace Limited
Level 3 Century Bhavan 3rd Floor
256 Adelaide Terrace Dr. Annie Besant Road
Septimus Roe Building Worli
Perth Mumbai 400 030
Western Australia 6005 Maharashtra
AUS IND
Hindalco Industries Limited Hindalco Industries Limited
Regional office – Aluminium Regional office – Aluminium
Vandhana Industry House 7th Floor
5th Floor 45 Race Course Road
11 Tolstoy Marg Bangalore 560 001
New Delhi 110 001 Karnataka
IND IND
© Datamonitor
Locations and Subsidiaries
Hindalco Industries Limited Hindalco Industries Limited
Regional office – Aluminium Regional office – Aluminium
Industry House 9th Floor Ahura Centre 1st Floor
10 Camac Street 82 Mahakali Caves Road
Kolkata 700 017 Mumbai 400 093
West Bengal Maharashtra
IND IND
© Datamonitor
Locations and Subsidiaries

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