A Study on HINDALCO Selling Process

Project done at, Submitted By,

Hindalco Ind. Ltd Atul Kumar Vandana Tower, Tolstoy Marg, New Delhi

Acknowledgement

My heartfelt thanks goes to Hindalco industries Ltd., an Aditya Birla Group, for giving me an opportunity to learn and complete my training. I thank Hindalco Industries Ltd. From the bottom of my heart for giving me a valuable chance to be associated with it. I extend my sincere thanks & gratitude towards Mr. Pratik Jha (Territory Manager) who shown Confidence in me and trained me and make me learn about the general selling industrial Process. In spite of his busy schedule he spend quality time with me, explaining the framework of the selling process of the Hindalco industries. My special thanks goes to Mr. Anurag Sharma(Regional head, North zone), for his cooperation and healthy guidance.

PREFACE

I have covered my project report under the SELLING PROCESS of HINDALCO, Rolled Products, which is first truly MNC of INDIA. This report has been written in response to comprehensive study conduced on the DISTRIBUTION CHANNEL OF HINDALCO INDISTRIES LIMITED. This report mentions and evaluated the various aspect, pertaining to the distribution channel of the company.

I am confident that any one who goes through the report will learn how much be I learn & benefited during this winter training period.

At ul Kumar

HISTORY:Aditya Birla Group traces its origin back from the tiny village of Pilani in the Rajasthan desert, where Late Shri seth Birla Shiv set Narayan up Indias Birla first started cotton-trading aluminium operations in 1957. Then one visionary- Late Shri G.D integrated manufacturing unit at Renukoot, in 1962, backed by captive power plant at Renusagar in 1967.

INTRODUCTION: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. Its copper smelter is the worlds largest custom smelter at a single location. 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 product.

 World leader in Aluminium Rolling (19% market share). Largest recycler of used aluminium cans. Primary Aluminium and Copper registered on the London Metal Exchange.

INDUSTRY OVERVIEW Profile of Aluminium Industry In India

The aluminium industries in India are highly concentrated, with just five plants accounting for the entire production capacity of 7, 02,000 tonnes per annum. The per capita consumption of aluminium in India is only 0.5kg. as against 25kg in USA, 19kg in JAPAN and 10kg in EUROPE. Even the worlds average per capital consumption is about 10 times of that in India. The reason of low consumption in the country could be that consumption pattern of aluminium in India is vastly different from that of developed countries. The demand of aluminium is expected to grow about 9% per annum from present consumption levels. This sector is going through a consolidation phase and existing producers are in process of enhancing their production capacity so that demand supply gap expected in future is bridged. However, in India is a net exported of alumina and aluminium metal at present.

SAILENT FEATURES OF ALUMINIUM INDUSTRY

 Highly concentrated industry in the country. Controlled by two private groups and one public sector unit. Energy cost is 40% of manufacturing cost for metal and 30% for rolled products

COST COMPETITIVENESS
Reflected through its strong manufacturing base and operational efficiencies across the value chain.

QUALITY
Through its versatile range of products serving core applications for diverse industries; and

GLOBAL REACH
Operations in 5 continents reaching Customers across more than 50 countries.

SUPER POWER IN PREMIUM METALS

The entry of Novelis into the Aditya Birla Group has provided a defining competitive edge to Hindalco as a global metals player. With its industry-leading assets and expertise. Novelis is the only company which able to produce premium aluminium rolled products on all four continents where it operates. As the largest producer of flat rolled aluminium

products, it ranks as number one in Europe, South America and Asia and is the second largest in North America. Hindalco units have the Quality certification of ISO 9001, Environment certification of ISO 14001 as also OHSAS 18001 for Occupational Health & Safety. Several units have adopted the Integrated Management System (IMS) certification, reflecting a combined business excellence model. HINDALCO THROUGH ITS GLOBAL SUBSIDIARY NOVELIS OPERATES 32 PLANTS IN 11 COUNTRIES.

PRODUCT PROFILE:Mainly Hindalco deals in three types of Products, 1. Primary Products 2. Extrusions 3. Rolled Products

HINDALCOs FLAT ROLLED PRODUCTS

As Indias largest producer of Flat Rolled Products, Hindalcos Aluminium Sheet is produced from its own cast slabs or continuous cast coils, rolled down to customized thickness, gauge and tolerances.

Value added Product offered by Hindalco:-

Hindalco caters to almost every industry sector viz:-

Packaging
Closure stock for pilfer-proof bottle Caps, Foilstock for foil and packaging industry, and Can-end Stock for beverage cans.

Printing
Lithographic Sheets and Coils for offset printing plates.

Electrical
Lamp Cap stock ford Tube lights, High conductivity sheets.

Consumer Durables
cookware. Industry. Circles for pressure cookers, non-stick Roll bond sheets and coils for refrigeration

Building and Construction

Colour Coated coils for Aluminium Composite Panels, false ceiling,etc,High Strength and Corrosion Resistant Roofing Sheets in various Profiles and Colours.

Automobiles

Auto Radiator Finstock, Heat shield coils, Al-Clad Sheet and Finstock.

Road Transport
Sheets/Coils for bus/ van body panelling, Chequered/ Pattern Sheets for flooring and panelling.

Marine
Sheets/ Plates for boats, ships etc.

Defence and Industrial

Strong alloy Sheets and Plates for various defence and industrial applications.

SELLING PROCESS:Mainly there are two types of a selling Process, given below
1.

Direct selling :- It is a process where there is a direct involvement of a seller and buyer. There are no mediator in this selling process. Distribution Channel:- It is a process where there are availability of market intermediaries like Wholesellers, retailers, stockist etc.

2.

Industrial selling Process:Industrial selling process comparises of direct selling. A Selling process consists of following steps in Industrial selling Market:1. Identification of needs 2. Presentation or, Demonstration 3. Price Negotiation 4. Proper Agreement (offer and acceptance) 5. Product Design/ Product Planning 6. Actual Production 7. Shipping/ Delivery of the manufactured Product 8. Payment Collection 9. Feedback

1.

Identification

of

needs:-

It

the

most

important step in the selling process as it helps in identifying the customers needs. In case of Hindalco as what are the products manufactured by the concerned company is being judged and how they can modify their product according to their need is being done.
2.

Presentation or, Demonstration:-

This is

one of the P of the marketing process. This is being done by giving them certain sample.

3.

Price Negotiation:-

This is also one of the

Ps of marketing. Pricing is the most important factor in any of the process as it is the only factor which brings revenue. The quality of the product for which hindalco is being known, the ability to deliver the product at the right time and the optimal price helps Hindalco dominating Proper the customer in the negotiation process.
4.

in

price and

Agreement

(offer

acceptance):- This is being done by MOU or on the stamp paper.

5.

Product Design/ Product Planning:- This is also one P of Marketing Process. This is being done in the Plant of the Hindalco as according to the need of the customer. The customer has to provide details of the required product and the factory arrange and meeting with the the technical persons manufactures

product. This is the sample and the customer checks it whether they are satisfied with the product or not and if not corrective measures are being taken.

6.

Actual Production:- After the sample being okk the plant manufactures the product in the given quantity. Shipping/ Delivery of the manufactured Product:- After the production the product is being delivered to the concerned place according to the need of the customer.

7.

8.

Payment Collection:- Generally In Hindalco the full payment or some of the part of the payment is taken in advance and if not the payment is collected here from the customer. Feedback:- After the sales process completes here comes the feedback. Feedback is very necessary relationship as it helps it also in building future in and helps a firm

9.

improving its product as well as in the development of the company.

An example of a Selling Model:-

Customer Service:-

1.

Regular interaction:- It helps in building a healthy environment. CRM :- Helps in making a customer loyal. Here Hindalco has a unique CRM where there is a website where the customer and the concerned selling person sits together online and if the customer is having any query then it will be solved. This process also helps a senior executive in knowing the managerial performance and the ability of the concerned sales executive.

2.

3. Survey:- Helps in knowing about the current market scenario.

Observation :Industrial marketing is done with proper strategy. A person needs to have proper market knowledge and the present situation as it will him in building strong relationship with the customer and it will also help him in judging the other competitors as comparison to his product. A marketing manager needs to make regular visits to his client list i.e, the concerned

industries as they may have various issues and it will be very much beneficial for both of them i.e, for the Buyer as well as Seller for the future professional relationship.

Learnings and Findings:

It has been seen that regular visit to the customer is necessary as it helps in finding the hidden needs of the customer.

Regular visits also helps a person in knowing the customer profile in a better manner. Feedback is very much necessary as from it we will know that Whether the customer is satisfied with the Product or not. If not then what are corrective measures which should be undertaken by the company to improve its product. Price Negotiation should be done with proper market knowledge and strategy. So a marketing manager must have current market information. Regular visit to the customer is also necessary for maintaining the balance between Demand and Supply.

 If

any

misunderstanding

is

present

there

in

between Buyer and Seller then in that case that can be solved by the mutual understanding by sitting together.

If

any

misunderstanding

is

present

there

in

between Buyer and Seller then in that case that can be solved by the mutual understanding by sitting together. S ubmitted by, Atul Kumar