Project Report on

“Hindalco”

Submitted By -:

Anushka Shandilya. (UL20BB009)

Under the Guidance of -:

Mr. Ansuman Jena

Course Instructor

Ph: +91 90402 09907

ansuman.jena@gmail.com

1|Page
 ACKNOWLEDGEMENT

We would like to express our sincere gratitude and thanks to Xavier University and Xavier
Law School who gave us an opportunity to work on a project, for conducting research on
Hindalco -related topic for our given coursework.

I would specially thank our Mr. Ansuman Jena for motivating and guiding us throughout
the project making. He devoted most of his time in helping us during any problems and
clearing misconceptions related to the report. We would also like to thank our parents who
encouraged us in doing this project by providing us moral support.

Finally, we must say that no height is ever achieved without some sacrifices made at some
end and it is here where we owe our special debt to our parents and our friends for showing
their generous love and care throughout the entire period of time

THANK YOU
 CERTIFICATE

This is to certify that Anushka Shandilya (UL20BB009) has successfully completed the
project titled “Hindalco” at Xavier Law School under my supervision and guidance in
the fulfilment of requirements of Second Semester, BBA-LLB of XAVIER UNIVERSITY,
BHUBANESHWAR. This is an original work which has not been copied from anywhere
and I certify it.

Prof. Ansuman Jena

Course Instructor

Strategic Management
Table of Contents
ADITYA BIRLA GROUP..................................................................................................................6
The Aditya Birla group enjoys a front runner position:...............................................................6
Globally:.......................................................................................................................................6
In Asia:.........................................................................................................................................6
In India:........................................................................................................................................6
GROUP VISION.................................................................................................................................7
GROUP MISSION..............................................................................................................................7
GROUP VALUES...............................................................................................................................7
INTRODUCTION...............................................................................................................................8
An industry leader in aluminium and copper-..............................................................................8
Manufacturing Location:................................................................................................................8
MANAGEMENT TEAM....................................................................................................................9
BUSINESS OUTLOOKS..................................................................................................................10
Greenfield Projects: -....................................................................................................................10
Utkal Alumina International Ltd (UAIL):...............................................................................10
Mahan Aluminium Project:......................................................................................................10
The Aditya Aluminium and Refinery project:........................................................................10
The Jharkhand Aluminium project:........................................................................................10
Brownfield Projects:......................................................................................................................10
PRODUCTS.......................................................................................................................................12
1. Billets-.....................................................................................................................................12
2. Alloy Ingots-...........................................................................................................................12
3. Alloy Wheels-.........................................................................................................................12
4. Rolled Products-....................................................................................................................12
SALES RATIO..................................................................................................................................12
 Domestic Market-..................................................................................................................12
 Export Market.......................................................................................................................12
COMPETITORS...............................................................................................................................13
 NATIONAL ALUMINIUM COMPANY LIMITED(NALCO).........................................13
 MADRAS ALUMINIUM COMPANY LTD(MALCO)......................................................13
 MAN INDUSTRIES LTD.....................................................................................................13
 STERLITE INDUSTRIES LTD...........................................................................................13
ANALYSIS.........................................................................................................................................14
 SWOT-....................................................................................................................................14
 PESTLE-................................................................................................................................14
References..........................................................................................................................................15
 ADITYA BIRLA GROUP
Aditya birla group, with the turnover of over US S 40 billion and 136,000
employees, is among top three leading business houses in India. The Group has been
ranked Number 4 in the global Top Companies for Leaders' survey and ranked
Number 1 in Asia Pacific for 2011. Top Companies for Leaders is the most
comprehensive study of organizational leadership in the world conducted by Aon
Hewitt, Fortune Magazine, and RBL (a strategic HR and Leadership Advisory firm)
The Aditya birla group is India's first truly MNC whose over 30% of revenues flow
from its operations across the world.

The group is transactional conglomerate with 72 state-of-the-art manufacturing units and sectoral
span, in India, Thailand, Indonesia, Malaysia. Philippines, Egypt, Canada, Australia, China (36
countries) Over 66 units in India as well as abroad (in Thailand, Indonesia, Malaysia, Philippines.
Egypt. Canada, Australia, China) and international trading operations spanning several countries
included Singapore, Dubai, Russia, Vietnam. Myanmar, and China make it India's first truly
multinational conglomerate.

The Aditya Birla group enjoys a front runner position:

Globally:
A metals powerhouse among the world's most cost-efficient Aluminium and copper producers.
Hindalco Novelis from its fold in fortune 500 company. It is the largest Aluminium rolling company.

 It ranks as No.1 in viscose staple fibre

 The largest single location palm oil producer
 The third largest producer of insulators
 The third largest producer of carbon black
 The eleventh largest producer of cement and the largest in single geography
 The largest single location copper smelter
 Among the world's top 15 BPO's and among India's top three
 Among the best energy efficient fertilizer plants
 The largest Indian MNC with manufacturing operations in the USA

In Asia:
 The largest integrated aluminium producer
 Among the best energy-efficient fertilizer plants in Asia

In India:
 A premier branded garment player
 The second largest chore-alkali sector
 Among the top five mobile communication company
 Among the top three supermarket chains in the retail market
 Second largest player of viscous filament yarn
 Second largest private sector insurance company and a leading assests management company
  Among the top 6 BPO companies

GROUP VISION
"To be the premium metals major, global in size and reach, with a passion for excellence"

GROUP MISSION
"To relentlessly pursue the creation of superior shareholder value by exceeding customer
expectations profitability, unleashing employee potential and being a responsible corporate citizen
adhering to our values."

GROUP VALUES
Integrity
Commitment
Passion
Seamlessness
Speed
 INTRODUCTION
An industry leader in aluminium and copper-
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, the visionary - late Mr. G.D. Birla set
up India's first integrated aluminium facility at Renukoot, in the eastern fringe of Uttar
Pradesh, India. It was backed by a captive thermal power plant at Renusagar in 1967.
Hindalco attained its leadership position in the aluminium industry under the dynamic
leadership of the late Mr. Aditya Vikram Birla formidable force in the Indian industry. In
1958. The Company was Incorporated on 15th December, at Mumbai to manufacture
alumina, aluminium and aluminium fabricated items. The Company was formed by the house
of Birla’s in collaboration with the Kaiser Organisation of U.S.A.

Manufacturing Location:
The Kollur foil plant (Andhra Pradesh). In 2008, consequent to the acquisition of Indal by
Hindalco. Other locations are: - Belur(west Bengal), Dahej. Hirakud (Orissa), Belgaum,
Silvassa(orissa). Taloja (maharashtra). Alupuram(kerala). Renukoot (u.p). Muri (Jharkhand).

And it was through the vision and guidance of Mr. Kumar Mangalam Birla, the Group
Chairman that the business segments of aluminium and copper are consolidated to make
Hindalco the non ferrous metals powerhouse it is today. Later acquisitions and mergers, with
Indal, Birla Copper and the Nifty and Mi. Gordon copper mines in Australia, strengthened
our position in value added alumina, aluminium and copper products.

The acquisition of Novelis Inc. in 2007 positioned us among the top five aluminium majors
worldwide and the largest vertically integrated aluminium company in India. Today we are a
metals powerhouse with high-end rolling capabilities and a global footprint in 13 countries.
Our consolidated turnover of USD 15.85 billion (Rs. 72,078 crore) places us in the Fortune
500 league.
 Nearly 1,000 aluminium panels make up the outer shell of Spaceship Earth', the
world's most famous geodesic dome, at the Walt Disney World's Epcot Centre,
Florida.
 Operations in 5 continents, reaching customers in more than 50 countries.
 One of the world's leading low cost producers of aluminium.
 One of the world's leading largest custom copper smelters at a single location.
 Birla Copper is the only manufacturer of the 19 mm diameter copper rod in India. rod
is used for groove conductors and profiles.
 Largest integrated aluminium producer in the world.
 MANAGEMENT TEAM
Board of Directors

 Mr. Kumar Mangalam Birla, Chairman

 Mrs. Rajashree Birla
 Mr. C.M. Maniar
 Mr. M.M. Bhagat
 Mr. K.N. Bhandari
 Mr. A.K. Agarwala
 Mr. N.J. Jhaveri
 Mr. Ram Charan
 Mr. Jagdish Khattar
 Mr. D. Bhattacharya, Managing Director
 Mr. M. Damodaran

Chief Financial Officer

 Mr. Parveen Maheshwari

Head- Corporate Projects & Procurement Cell

 Mr. B.B. Jha

Company Secretary
 Mr. Anil Malik

Chief People Officer

 Mr. Vineet Kaul

Business/ Unit Head

 Mr. Dinesh Kumar Kohly,

Chief Operating Officer (Renukoot & Renusagar Unit)
 BUSINESS OUTLOOKS
This Company has successfully demonstrated benefit of integrated approach with low-cost
upstream operations and significant abilities and reach in downstream business. The
robustness of Novelis de-risked business model by virtue of its geographic spread-strong
presence in emerging markets, product portfolio-with a strong proportion of recession proof
and yet high potential beverage cans in the product mix and focused approach to leverage the
status of preferred vendor to global auto majors have withstood these uncertain times.
Hindalco's aggressive expansion programme has made a significant headway, despite tough
ground. conditions at its project locations.

Greenfield Projects: -
Greenfield Projects have made significant progress during the year despite tough ground
conditions at the project locations.

Utkal Alumina International Ltd (UAIL):

The construction of the alumina refinery. along with a 90 MW captive co-generation plant is
in progress at UAIL, a 100% subsidiary of the Company. The output from UAIL would be
sufficient to feed alumina to the Mahan and the Aditya Smelters.

Mahan Aluminium Project:

This 359 KTPA Aluminium Smelter, along with 900 MW CPP, is coming up in Bargwan,
Madhya Pradesh. The project is on the verge of commissioning. Mahan Aluminium project
and Utkal Alumina project are now close to the stage of commissioning. These projects will
re-define Hindalco's aluminium business since all these projects will have a world beating
cost structure. The Group of Ministers constituted by the Government of India to consider
environmental and developmental issues related to coal mining etc, has reported to have
recommended granting of forest clearance by the Ministry of Environment & Forest [MoEF)
for Mahan Coal block on certain conditions.

The Aditya Aluminium and Refinery project:

A 359 kipa, Aluminium smelter along with a 900 MW captive power plant, identical to the
Mahan Project, is coming up in Odisha. The project is slated for completion in 2013. A coal
block has been allotted for this project jointly with Mahanadi Coal Fields Limited and
Neyveli Lignite Corporation Limited. Alumina Refinery along with a cogen plant, is also
coming up.

The Jharkhand Aluminium project:

Aluminium smelter along with a captive power plant is coming up in Sonahatu, Jharkhand.
The land acquisition process has already begun. For. this project the Tubed coal mine has
been allotted to the project jointly with Tata power.

Brownfield Projects:
There were important developments in India w.rt. your Company's strategic goal of higher
VAP proportion.
The Hirakud FRP project has made a significant progress. This project, which involved
relocation of some equipment from a closed facility of Novelis, will be the first and the only
facility that will have the capability to produce canbody stock in India. This facility will take
Hindalco's FRP play on a higher plateau in terms of capability and profitability in the coming
years.
 PRODUCTS
1. Billets-
These are top quality billets with a smooth surface finish. Billets are used mainly for producing
extrusion products and forgings. Hindalco's metal is a registered brand at London Metal Exchange.

2. Alloy Ingots-
These products are used in automobile industry as well as electrical applications. These are further
melted and processed into a large number of products for various downstream applications.

3. Alloy Wheels-
Hindalco manufactures world class alloy wheels. Branded as aura alloy wheels these high-
performance wheels are available for nearly all vehicles running on the Indian roads. Maruti Suzuki,
tat motors, fiat India and HM-Mitsubhisi. Hindalco s awarded the prestigious ISO/TS 16949:2002
certification by RWTUV.

4. Rolled Products-
Hindalco has become the world's largest aluminium rolling company with its acquisition of Novelis,
the global leader in value-added high-end aluminium flat rolled products and aluminium can
recycling. The combined volume of sales of flat rolled products in the world market is about 3 million
tonnes, and the market share is more than 20 per cent.

SALES RATIO
 Domestic Market-

Aluminium Catheter- 12%

Ingot - 44.20%
Wire Rod - 23.38%
Extrusion - 7.48%
Rolled - 13.56%
Vanadium - 1.78%
Total - 90.00%

 Export Market

Ingot - 1.26%
Wire Rod - .35%
Extrusion - .01%
Rolled - 7.84%
Total - 10.00%

COMPETITORS
 NATIONAL ALUMINIUM COMPANY LIMITED(NALCO)

Incorporated in 1981 as a public sector enterprise government of india, NALCO is Asia's

largest integrated aluminium. encompassing boxite, alumina, refining aluminium smelting
and casting, power generation, rail and port operations Commissioned during 1985-
87.NALCO has emerged to be a star performer in production and export of aluminium, and
more significantly. in propelling in self-sustained growth.

 MADRAS ALUMINIUM COMPANY LTD(MALCO)

MALCO is a part of Vedanta resources, a London listed metals and mining major with
aluminium with copper and zine in operations in U.K. india and Australia. MALCO is a
primary aluminium producer in south india with operations encompasses mining, refining,
smelting and power generation, MALCO is surging ahead to achieve global recognition in
aluminium production,

 MAN INDUSTRIES LTD

Man industries ltd, is a member of the man group, UK. The organization has been expanding.
integrating and growing at a speed of excellence.

 STERLITE INDUSTRIES LTD.

Sterlite industries Itd. is the principal subsidiary of Vedanta resources pl. a FTSE 100
diversified global natural resources major. Sterlite produces copper aluminium, zine, led,
silver & commercial energy. They have strong balance with capital employed of rs 58255
crores, and a strong cash flow of rs, 8400 crores and gearing of 27% as at march 31" 2012.
 ANALYSIS
 SWOT-
Strengths
1. Diversified business across both
upstream and downstream segments.
2. Strong business model with better
outcomes every year.
3. Global presence of manufacturing units
and operations.
4. Key Performance Indicators (KPI)
depicts the success story.
Opportunities
1. Aluminium consumption is less in the
domestic market compared to the
global average.
2. Increasing market share as automobile
industry is replacing steel with
aluminium.
3. Copper has positive demand forecast
4. Expansion in domestic market through
government’s initiative.
 PESTLE-
Political
1. US China trade war will impact the
aluminium sector.
2. Strong political will to frame policy for
aluminium sector.
Social
1. Aluminium- an integral part of modern-
day mobility and packaging.
Legal
1. Acquisition of Aleris is still pending for
regulatory clearance.
2. Environmental regulations have been
violated in few operational sites leading
to temporary shutdowns.
Weakness
1. Increasing operational cost is
impacting profit margin.
2. Upstream business linked to global
Aluminium Price volatility.
Threats
1. Global economy slowdown and
pandemic is leading to uncertainty
2. Vulnerable to government backed
competitor and its performance over
years.
Economical
1. Recent economic reforms will boost
growth potential in years to come.
2. Less imports and economic slowdown
have impacted operations.
Technological
1. Incorporating ERP, loT, Blockchain and
GPS has empowered the organisation.
2. Innovation in products and services to
consumers.
Environmental
1. Recycling initiatives have been
undertaken to make world greener.
2. Combating climate change with proper
measures on poluution.
 References
Hindalco Industries SWOT & PESTLE Analysis - SWOT & PESTLE.com (swotandpestle.com)

Hindalco’s Competitors, Revenue, Number of Employees, Funding, Acquisitions & News - Owler
Company Profile

https://en.wikipedia.org/wiki/Hindalco_Industries#Listings_and_shareholding

https://www.adityabirla.com/about-us/vision-values