Hindalco Aluminium Logistics (Aditya Birla) - SOP

Standard Operating
Procedures:
Hindalco Aluminium Logistics
July 2016
Standard Operating Procedures: Hindalco Logistics
HINDALCO VISION
To be a premium metals major, global in size and reach,
excelling in everything we do, and creating value for its
stakeholders.
HINDALCO MISSION
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.
Hindalco Central Logistics Division Page 1

GROUP VALUES
INTEGRITY
We define Integrity as honesty in every action. Each one of the Logistics Management team should act
and take decisions in a manner that are fair, honest and following the highest standards of
employees, suppliers, partners, shareholders, the communities or the government.
COMMITMENT
the part of the organization they are responsible for. Through this value they shall build an even sharper
results oriented culture that is high on reliability and accountability. Their commitment is likely to make
them a formidable leader and competitor in every market that they are in.
PASSION
Passion is defined as a missionary zeal arising out of an emotional engagement with work, which inspires
each one to give his or her best. Each one of the Logistics Management team are expected to be energetic
and enthusiastic in the pursuit of their goals and objectives. They should recruit and actively encourage
-
through thinking leading to superior customer satisfaction and Value creation.
SEAMLESSNESS
Seamlessness is understood as thinking and working together across functional silos, hierarchy levels,
across business lines and geographies. Each one of the Logistics Management team shall demonstrate
high level of teamwork through sharing and collaborative efforts and garner the synergy benefits from
working together. Before they can truly benefit from a borderless world, they need to build a borderless
organization. They should visualize free flow of knowledge and information across the Group.
SPEED
Speed is looked upon as responding to internal and external customers with a sense of urgency. They
should continuously seek to crash timelines and ensure expeditious completion of their tasks. Each one
of the Logistics Management team should aim on time service to the present and future needs of their
customers.

Foreword
Logistics in Hindalco covers every aspect of moving things for production and
delivery to the final customer, including handling of wastes. Given the
geography where the plants are located and the centers of raw material
sources, or the markets that we service, we have a formidable challenge to
deal with large volume of commodities to be transported over long distances.
Logistics in Hindalco touches many constituencies, inside and outside. This calls
for uniformity of processes, as one unit or region cannot execute in a manner
that the other cannot replicate. Standard Operating Procedures in Logistics is a way to bring in
interoperability continuum, so that we make one single and unique process for every commodity that
will be uniformly followed in all units. It is also require
-bound or
outbound. It would also mean essentially how we develop long-term partnerships with our suppliers in a
manner that is based on standards and codes.
SOPs must have a unique structure of communication and addresses the three key questions; how do we
organize the activities necessary to complete tasks in accordance with industry regulations, provincial
laws or even just our own standards for running our business? What KPIs can we construct to see that
the procedures deliver the right results for the business? How do we ensure that the deviation in SOPs
can be tracked and corrected?
The SOPs are not cast in stone and would need constant polishing as we go along. We define periodic
frequencies at which the SOPs would be reviewed. But once it is made, it is to be followed by all
concerned, till the next review.
The SOPs have been signed off by the stakeholders for adoption by the Aluminum business in all units
and clusters and regions for all commodities.
I would like to thank Corporate Management Services Division (CMSD) who have been instrumental in
putting this SOP together. Their inputs have made the processes laid down in line with best practices of
supply chain while keeping it relevant for the business.
Procyon Mukherjee,
Central Logistics Division

Contents
1 Strategy & Planning ................................................................................................................ 10
1.1 Objective.................................................................................................................................... 10
1.2 Key Deliverables ........................................................................................................................ 10
1.3 Scope ......................................................................................................................................... 10
1.4 Responsibility (PACE stands for Plan, Approve, Control and Execute)...................................... 10
1.5 Overall business strategy and logistics function alignment ...................................................... 11
1.6 Service & Cost Optimization ...................................................................................................... 11
1.7 Alliance / Partners ..................................................................................................................... 12
1.8 Infrastructure Development ...................................................................................................... 12
1.9 Key Performance Indicators ...................................................................................................... 13
2 Structure (Central/Regional/Unit Level)................................................................................... 14
2.1 Organization Chart .................................................................................................................... 14
2.2 Roles and Responsibility ............................................................................................................ 14
2.3 KPIs (at different tier) ................................................................................................................ 22
3 Inbound Materials .................................................................................................................. 23
3.1 Objective.................................................................................................................................... 23
3.3 Scope ......................................................................................................................................... 23
3.4 Inbound Process: General Materials (Import) ........................................................................... 24
3.5 Inbound Process: General Materials (Domestic)....................................................................... 29
3.6 Handling at Plant ....................................................................................................................... 30
3.7 Bill Payment for Road Transportation ....................................................................................... 31
3.8 Bank Guarantee for Road Transportation ................................................................................. 31
3.9 Insurance for Road Transportation ........................................................................................... 31
3.10 Inbound Process: Specific material (Coal, Bauxite, Alumina, CP Coke, Pitch) ........................... 32
3.11 PACE Matrix ............................................................................................................................... 35
4 Outbound Materials ................................................................................................................ 37
4.1 Objective.................................................................................................................................... 37
4.3 Scope ......................................................................................................................................... 37
4.4 Responsibility ............................................................................................................................ 37
4.5 FG Export ................................................................................................................................... 37
4.6 FG Domestic .............................................................................................................................. 48

4.7 Warehouse Opening .................................................................................................................. 58
4.8 Warehouse Operations ............................................................................................................. 62
4.9 PACE Matrix ............................................................................................................................... 70
5 Interplant (Metal, Alumina, Anode) ......................................................................................... 71
5.1 Alumina ..................................................................................................................................... 71
5.2 Metal ......................................................................................................................................... 75
5.3 Anode ........................................................................................................................................ 77
6 Sourcing & Contracting ........................................................................................................... 78
6.1 Sourcing ..................................................................................................................................... 78
6.2 Contract Management .............................................................................................................. 83
6.3 Vendor Relationship Management ........................................................................................... 87
6.4 PACE Matrix ............................................................................................................................... 93
7 Insurance ................................................................................................................................ 94
7.1 Insurance Claim ......................................................................................................................... 94
7.2 PACE Matrix ............................................................................................................................... 96
8 Stakeholder Management ....................................................................................................... 97
8.1 Objectives .................................................................................................................................. 97
8.3 Stakeholder Identification ......................................................................................................... 97
8.4 Stakeholder Engagement .......................................................................................................... 98
8.5 Stakeholder Matrix .................................................................................................................... 99
9 Annexure .............................................................................................................................. 101
9.1 Key performance Indicators .................................................................................................... 101
9.2 Container Despatch Checklist .................................................................................................. 104
9.3 Missing Wagons Procedure ..................................................................................................... 105
9.4 Safety Rules to Be Followed Inside Plant ................................................................................ 106
9.5 Vendor Evaluation Format ...................................................................................................... 107
9.6 Warehouse Opening Form ...................................................................................................... 110
9.7 Warehouse General Setup Guidelines .................................................................................... 118
9.8 E-auction Procedure ................................................................................................................ 120
9.9 Insurance Details ..................................................................................................................... 123
9.10 Exception Handling .................................................................................................................. 125
9.11 Related Party Policy ................................................................................................................. 126

Abbreviation
3PL Third Party Logistics LME London Metal Exchange
ARE Application for removal of excise able goods LOI Letter of Intent
BCN Bogie Covered Wagon LR Lorry Receipt
BFM Business Finance Manager MD Managing Director
BG Bank Guarantee MGT Minimum Guaranteed Throughput
BOE Bill of Entry MHO Marketing Head Office
BOXN Bogie Open MIS Management Information System
BTAP Bogie Tank for Alumina Powder MoU Memorandum of Understanding
BTCS Bogie Tank for Caustic Soda NN Non-Negotiable
BTPN Bogie Tank for Petroleum Products NOR Notice of Readiness
C&F Carrying & Forwarding OTIF On time - in full
CEO Chief Executive Officer P&B Planning & Budgeting
CFS Container Freight Station PACE Plan - Approve - Control - Execute
CHA Customs House Agent PO Purchase Order
CLD Central Logistics Division POD Proof of Delivery
CMO Chief Marketing Officer PPE Personal Protective Equipment
CMSD Corporate Management Services Division RC Certificate of Registration
Research Design & Standards
CPC Corporate Procurement Cell RDSO
Organization (Indian Railways)
CRM Customer Relationship Management RFID Radio Frequency Identification Device
DO Delivery Order RFQ Request for Quotation
DOA Delegation of Authority RG Receipt Goods
EIAC Export Import Administrative Cell RLD Regional Logistics Division
EMD Earnest Money Deposit RM Regional Marketing
EOT Electric Overhead Travel RR Railway Receipt
EXIM Export Import RTGS Real-time Gross Settlement
F&A Finance & Accounts S&M Sales & Marketing
FG Finished Goods S&OP Sales & Operations Planning
FO Furnace Oil SBU Strategic Business Unit
Freight Online Information system (Indian
FOIS SCM Supply Chain Management
Railways)
FRP Flat Rolled Products SLA Service Level Agreement
GCV Gross Calorific Value SLI Safe Load Indicator
GDR Guard Driver Report SPOC Single Point of Contact
GPS Global Positioning System SRN Service Receipt Note
GST Goods & Services Tax TAT Turnaround Time
HIL Hindalco Industries Limited TPI Third Party Inspection
HOD Head of Department UH Unit Head
ICD Inland Container Depot ULD Unit Logistics Division
ICM Ingot Casting Machine VRC Vessel Related Charges
IMWB In motion Weigh bridge VEF Vendor Evaluation Form
KPI Key Performance Indicator VGR Vehicle Guidance Report
LC Letter of Credit WH Warehouse


Business Process Logistics: Supplier & Partner Engagement

Purpose To enhance value creation in logistics (improved service and logistics cost
reduction) by identifying Strategic Logistics Partners based on relative importance
and define operational expectations and institutionalize a process for partner
interactions across the life of partner relationship.
Values Treat Partners equitably without imposing constraints and be fair maintaining
/Role consistency in all processes. Define formal processes for management
/Intent involvement; clarify internal roles and responsibilities; establish process to
effectively manage performance and develop partner capabilities to enhance
value to the organization
Goals- 1. Move towards reduction of Logistics Cost by 10% in the medium term
Short/ Med Term and 20% in the long term through process improvements and strategic
Long Term actions.
2. Provide service to stakeholders (Customers, Units, departments,
customers) and exceed satisfaction scores in terms of timeliness and
quality measures.
KPIs 1. OTIF: %
2. Logistics Cost/Ton at Mahan, Aditya: % Reduction
3. Outbound FG: Rs. /T: % Reduction
4. Logistics cost of Coal: Rs./T: % Reduction
5. Alumina cost for Mahan, Aditya: Rs./T % Reduction
6. Inventory Days at Ports: Days of Inventory
7. Qty loss: %
8. Timeliness Score: %
9. Supplier Score Card: Measures

HMF Logistics: Sub Processes and Activities
1. Develop Logistics Strategy and 2. Develop Partner 3. Develop and Manage In-
Plan Relationship Score Card bound Logistics
To strategize the best in class logistics Building relationships with the Develop SOPs for Inbound
operations that is scalable, sustainable most reliable and cost effective Logistics of all major inputs- Coal,
partners while minimizing risks of Bauxite, CP Coke, Caustic,
achieve growth and profitability targets to internal and external customers Alumina, etc.
with optimal investments. Elements: Elements:
Elements: Stakeholder Identification Inbound Process: General
Logistics Strategy Stakeholder Engagement Materials (Import)
Service and Cost Optimization Stakeholder Matrix Inbound Process: General
Strategic Alliances with Partners Materials (Domestic)
Logistics Infrastructure Development Handling at Plant
Bill Payment for Road
Transportation
Bank Guarantee and Insurance
for Road Transportation
4. Develop and manage Outbound 5. Develop Contract Management

Logistics Across the Logistics Chain
Develop SOPs for all outbound movements The use of standardized contract management
Elements: tools for better enforcement of the contract
FG Export Primary, FRP, Extrusion conditions for mutual benefit
FG Domestic Primary, FRP, Extrusion
Elements
Warehouse Opening
Sourcing RFQ, Offers, Negotiations, Bid
Warehouse Operations Evaluation, Approval, PO, DOA
Contracting Contract Administration,
Maintenance, Change Control,
Management Reporting
Vendor Relationship Management
Important Notes:
All applicable statutory requirements or SOP guidelines, whichever is stricter, should be complied
with.
In case a Unit is not compliant with any portion of the SOP from the date from which the SOP is
implemented, the Unit should seek exemption from Corporate [Head Central Logistics] to that effect;
the reasons for seeking exemption and time period therefore should be mentioned in the note
seeking such exemption. Format for exceptions is shown in Annexure.
The PACE matrix for each section has been defined in this SOP. However if needed, units may insert
more columns (positions) based on their organization structure, after obtaining due approval from
COO/BH, as applicable
Units are required to convert this SOP into suitable Operating Instructions for easy reference for
concerned users at their work stations.

1 Strategy & Planning

1.1 Objective
To strategize the best in class logistics and supply chain operations for Hindalco that is scalable,
capability to achieve growth and profitability targets in the long run with optimal investments.
1.2 Key Deliverables

Five year Road Map with identified investments
Incorporation of the investments in the Rolling Plan
Half-yearly reviews and updates on the progress against plan
Updates on engagement with railways on key projects in the related clusters
1.3 Scope
This is applicable to supply chain of all outbound e.g. Primary, FRP, Foils, Extrusions, Alumina, Chemical,
etc. being marketed by company - exports as well domestic, the interplant movements primary metal
& alumina and inbound movement coal, CP coke, FO, bauxite, caustic, fluoride etc. The strategic choices
in the area of internal and external infrastructure would be investigated with a planning rigor as part of
a well-laid out process.
The document does not cover - Anode, In-plant operations, Chemicals, Foils, Outbound port operations,
Ocean logistics, Alumina exports & Copper.
1.4 Responsibility (PACE stands for Plan, Approve, Control and Execute)
Process MD Head Head - CMO Head UH Controller Unit

- CLD planning - CPC Log
Head
To understand medium and
long term business and
1 customer requirements to A C P, E C
draw out Logistics Mission and
Strategy
To Assess the current logistics
2 capabilities people, process, A C P E
infrastructure, vendors
Identify gaps Vs requirements
3 process, infrastructure, people, A C P C E
vendors
Generate strategic options to
4 A C P,E
address gaps
Evaluate and priorities options
w.r.t. ROI, risk and get
5 A P E C C
management approval for
chosen options
Initiate cross functional
6 projects and requisite Capex or A P E E E C E
Opex sanctions

1.5 Overall business strategy and logistics function alignment

1.5.1 Strategic and Periodic Process Initiatives:
The exercise will be mandatorily done during the P&B exercise or as and when required
The 3 yearly details for volumes for material movement will be provided by the concerned units
namely
o Marketing for the demand forecast, market and product wise
o Sourcing CPC for sources and volumes
o Costs from respective plants, central logistics or vendors based on requirements
The AS-IS and TO-BE capabilities of the plants to be calculated to assess
o Evacuation
o Cost
o Flexibility
The gaps and associated risks in process or other to be identified and solution options /
mitigation measures developed
The solutions (if involves IT systems) to be ratified from the IT team to propose the operationally
and economically feasible solution
Project scope , project team and deliverables to be defined
The recommended solution to be included in the P&B exercise in terms of Capex , Opex and
project timelines
The recommendations to be presented to MD during P&B for inclusions in the business P&B
numbers
1.6 Service & Cost Optimization

1.6.1 Logistics cost vis-à-vis Total cost:
To benchmark with global and Indian companies
Initiate projects to reduce cost so as to get closer to benchmark cost
1.6.2 Network Optimization

1.6.2.1 Route optimization
Identifying the most optimum routes for transportation
1.6.2.2 Mode optimization

Road to Rail
New Modes (Multimodal, Inland Waterways etc.)
1.6.2.3 Plant / Market mix optimization to serve

Aditya Aluminum Export to Far-East markets (through Vizag port)
Mahan Export to Far-East Markets (through Kolkata Port) and domestic markets
Renukoot Domestic markets
1.6.3 Packing / Containerization

Break bulk options

1.7 Alliance / Partners

1.7.1 Partner with Indian Railways to improve Turn-around-time (TAT)
Policy
Pre-budget memorandum
Infra push
Investment in railway sidings
Increasing carrying capacity of wagons
1.7.2 Inter-unit
Common hubs etc.
Other group business units
1.7.3 Service Provider / aggregators

1.7.3.1 Strategic Vendor Development
Individual Plant Logistics to initiate this exercise on an yearly basis in March
Updating of vendor performance and potential format based on P&B numbers
Assessment of optimal number of vendors for transportation to be done on the basis of
o Criticality of supplies and sourcing
o Cost optimality
o Improving business of high potential vendors
Mapping the vendor share of business numbers for the next 3 years including the new vendors
to be planned in the Vendors Development format
Mapping the target performance KPIs for individual vendors for next year
Revisiting the vendor development plan on a quarterly basis
1.7.3.2 Tie-up with online aggregators (say, Blackbuck or other online aggregators for trucks, etc.)
1.7.3.3 Collaboration with technology service providers (say, GPS-enabled or RFID-enabled technology
services, etc.)
1.8 Infrastructure Development

1.8.1 Guidelines:
The exercise will be mandatorily done during the P&B exercise or as and when required
The 3 yearly details for volumes for material movement will be provided by the concerned units
namely
o Marketing for the demand forecast market and product wise, service levels
o Sourcing CPC for sources and volumes
o Costs from respective plants, central logistics or vendors based on requirements
The AS-IS and TO-BE capabilities of the plants to be calculated to assess
o Evacuation
o Cost
o Flexibility
The gaps in Infrastructure to be identified and solution options developed
The solutions to be ratified from the concerned plant team to propose the operationally and
economically feasible solution

Any feasibility assessments if required to be evaluated by plant logistics or technical teams
The recommended solution to be included in the P&B exercise in terms of operational numbers
with requisite Capex.
The recommendations to be presented to CEO/MD during P&B for inclusions in the business P&B
numbers
Active participation in the pre-budget process with the Railways will be done at the Industry
Association level as well as in the individual capacity to incorporate the key logistics challenges
that the company and the business is likely to face, related to movement using the Railway
infrastructure. Special attention will be drawn towards those sectors where railway projects have
been launched but moving slowly and also highlight those areas where new investments are
needed.
1.8.2 Warehouse
Reconfiguration
Capacity Enhancement
Outsourcing Vs Owned
Operations Improvement / Optimization
1.8.3 Rail
CFS (Container Freight Station) / ICD (Inland Container Depot)
Line capacity, Line doubling, Electrification
Railway Siding
Container Operator
1.8.4 Port
Alternate Ports
Demurrage
1.8.5 Road
Route Optimization
Technology-enabled Transport
1.9 Key Performance Indicators

Strategic Initiatives
Impact of strategic initiatives including process related
o Reduction of Cost (of operations/logistics/procurement)
o Improvement in asset utilization
o Service level improvements
o Improvements in safety parameters
o Risks Managed
Infrastructure Development
o Evacuation/fulfillment capability improvement
o Improvements in safety parameters
o ROI (Return on Investment)

2 Structure (Central/Regional/Unit Level)

2.1 Organization Chart
2.2 Roles and Responsibility

2.2.1 Head: Regional Logistics
Sr. No Area Key Activities
1 Port Logistics Planning of shipments by respective departments , activities towards berthing

till evacuation in case of imports & loading in case of exports
2 Rail Logistics Planning, permissions and execution of rake movements
3 Road Logistics Planning, contract finalization for various materials with units. Monitoring and
control. Modifications as and when required.
4 Service Service contracts - related to Port, Rail, Road & Warehousing on need basis
Contracts
5 Planning & MIS for the function related to the areas mentioned above
MIS
6 Funds Planning &monitoring for funds, payments , billings etc. towards freight and
Management various other logistics functions in collaboration with Units & BFM
7 Planning & Planning & Coordination with various government, private agencies along
Coordination with various service providers
8 Safety Coordinate with all concerned for spreading the concept of safety during all
activities
9 Warehousing Operations, Vendor Management, Service levels, WH Utilization & Cost
Management for regional warehouses

2.2.2 Port Operations Manager
Sr. No Area Key Activities
1 Port and Ensuring evacuation from ports as per plan

Railway Interact, liaise & deal with senior officials at Railways for ensuring maximum
Operations rakes for evacuation of coal from ports as per Plan
Ensuring timely completion of vessel and rake related formalities for discharge
and evacuation
2 Stock Keeping Co-ordinate with Port / surveyors & third party agencies for periodic stock
verification in co-ordination with Head Port Commercial
Maintain data (post verification) for analysis & reports
Maintain Yard plan ( from Ports ) & ensure stacking of Cargo as per Plan
3 Administration Ensuring port services CHA, escort services for rakes, handling and security
of service contracts are executed as per agreements
providers Tracking/ monitoring daily reports for dispatches / movements from Ports
Periodic on-site inspection to check on security arrangements
Tracking / Guiding Service providers in ensuring that stock evacuation is as per
plan
Coordinate with unit& Service providers and central teams effectively so that
logistics plan is being adhered
4 Planning Provide relevant input data to Central Logistics Planning team for preparation
of Rolling Plan
Ensure & coordinate with Port / Service providers for implementation of such
Plans
5 Safety Coordinate with all concerned for spreading the concept of safety during all
activities
2.2.3 Head Planning & Supply Chain Excellence
S. No. Area Key activities
1 Logistics Understanding export and domestic demand forecast in collaboration with

Planning marketing planning team and risks thereof
Sourcing manufacturing inputs from central planning on supply side w.r.t to
production plan, quality and variations
Logistic resource availability (container, rake and shipping vessel availability
with cost and logistic constraints) from external and internal teams
To plan supply of FG, in line with customer delivery schedules and after
optimizing for constraints
Meetings with MD office, marketing, central planning, and logistics teams and
third party vendors, CONCOR, Railways etc. for incorporating changes
Suggesting alternative plans
Finalization of collaborative plan
Monitoring the plan vs execution

Taking midway corrective actions and changing plan if required in

collaboration with the stakeholders
2 SCM Process Study and implement best SCM practices from group businesses - Novelis,
Improvement Ultratech etc., take inputs from CMSD, external consultants and other global
companies. Collaborate with business excellence teams to identify and
implement operational SOPs for logistics
Lead SCM digitization initiatives across the business
To collaborate with internal IT and external solution vendors to capture
relevant information
3 Cost Identify logistic inefficiencies in the current logistics operations
Management Devise ways to mitigate them
Influence the concerned teams plant logistics, units, vendors, marketing
and production to take suitable actions to save costs
Ensure sustenance of such initiatives
4 Performance To formulate and monitor key KPIs w.r.t supply chain service, cost and asset
Management utilization
Timely and relevant escalations and interventions to improve performance
on the KPIs
5 Logistics Map infrastructure size to manage enhanced capacities for raw material,
Infrastructure intermediate products as well as finished goods
Develop captive / leased rakes, dedicated road fleet in line with present and
future requirement in collaboration with plant logistics teams and Unit Heads
Study capacity expansion plans of service providers such as container
operators, 3PL, Railways, Ports etc. and identify options
Provide relevant information to the units and operational teams to budget
infrastructure at their units in line with the future
requirements/opportunities
6 Network Study current service related logistics bottlenecks
optimization Take feedback from the marketing teams
FG outbound Prepare optimization plan considering cost benefit analysis for various
network options as well as commercial aspects like GST
Monitor performance on the agreed KPIs
7 Team Build the team to deliver on the laid down objectives
Development Developed resources with the right blend of technical, functional and
analytical skills
Provide environment to participate and grow
8 Risk Identify potential risk and its impact, probability etc.
Management Outline risk mitigation plan for each risk
Monitor the risk & take appropriate action
9 Warehouse Operations, Vendor Management, Service levels, WH Utilization & Cost
Management.

2.2.4 Central Coordinator & Head-FG Operations

1 Compliance to Sales Ensuring availability of Rakes and containers at plant to clear the stock
& Operations and achieve the export sales target.
Planning Ensuring availability of desired fleet at Plants.
Ensuring availability of material as per agreed S & OP plans in active
collaboration with Plant Logistics.
Monitoring of the inventory in region, plants & at ports
Prioritization of dispatches as per material availability & marketing
requirement
Regulation of regional movement based on market demand, material
availability at plant & Marketing priorities
Inter plant transfers based on inventory position & market
requirement
Minimizing transit damage by process improvement and training
2 Cost Management Trend analysis of shortage, damages and reasons for same. Fixing
accountability at loading / unloading / storage point based on analysis
& necessary reports.
Evaluation & recommendation for handling rate and the Contract
management for freights.
3 Achievement of Meeting customer requirements in terms of fast delivery
desired Customer Reducing customers complaints
Service Levels Improving quality of supplies in terms of loading, packing and delivery
as per International standard.
4 Vendor Management Feedback to the Transporter / Handling Agent on actual performance
providing visibility of the expected services of the market w.r.t
additional infrastructure requirement, Rail rake, fleet size etc. to
enable availability of the desired resources and services from the
vendor.
Understanding and providing support required by the vendor w.r.t
Freights, handling rates, payments, financial support, targeted
efficiencies etc. for scaling up his operations to expected levels.
Liaison with the Railway officials at each rail head / division to ensure
fast movement of goods
Placement of rake in desired siding, follow up for stranded rakes, zero
or minimal incurrence of demurrage, etc.
5 Railway Coordination Maintain an excellent PR (Public Relation) with CONCOR officials to
& Management allot the rakes to Hindalco on need based basis
Keep a regular track over rake movement for early placement and fast
clearance
Dotted point Liaoning with Railway officials for providing power and
assistance reroute as and when required
6 New Initiatives Study on rail dispatch to explore new siding & infrastructure support
required with collaboration with industry for a better customer service
& contribution.
Propose for various new mode of transportation and exploring new
techniques to balance the demand-supply (For example, exploring
break bulk shipment for the export of ingots).

7 Safety Necessary training to container handling staff and stuffing team to
achieve 0% accident
Ensure everyone to follow safety standards at plants.
Transportation Safety
8 Process Coordinating with IT department for smooth functioning/compliance
Improvement of statutory requirement in various functions of logistics.
Coordination with IT department for process improvement/ new
report development for various activities of logistics.
2.2.5 Head Central Railway Coordinator
S. No. Area Key Activities
1 Rail Logistics Controlling all traffic related rake movements of Hindalco.

Advising and Guiding logistics heads in different units as well as central
logistics for optimization of rake movements, cost optimization, safety
and setting standards. To prepare Hindalco to take care of their
maximum traffic in near future.
2 Railway Sidings Advising and guiding new sidings of Hindalco to get requisite permissions
for inbound and outbound traffic, distinctly defining the steps involved.
3 Railway Permissions Nodal Authority in central logistics for dealing with railway board and at
zonal levels for traffic permission related issues. Advising and guiding the
units of Hindalco for quick redressal of permissions in the similar fashion
from Board as well Zonal levels.
4 Team Building Monitoring and guiding Units and other central logistics functions with
competent Rail Logistics personnel to meet the targets and future
challenges.
5 Capex planning All capex planning where Rail traffic is involved, concurrence from Head-
railways is necessary.
As regards to alumina movement, implementing decision on future rake
procurement (above the existing 9 rakes) for revised size configuration of
smelters and refineries of Hindalco.
6 Traffic planning Advising & guiding the logistics function heads for planning of various
rakes between loading and unloading points to take care of congestion and
other eventualities in case of crisis.
7 Alumina - Operation Empty rake availability at refinery plants as per schedule
& Maintenance Loaded rake availability at destination as per schedule
In time loading and In time unloading at all plants
Finalization of transporters and negotiation with transporters
8 Cost Control Avoiding detention / stabilizing during movement
Guiding siding owners to minimize demurrages in traffic.
Optimum dispatch through BTAP movements only.
Timely evacuation of loaded/empty rakes from Units

S. No. Area Key Activities
9 Facilitating Plant To ensure the silo levels at various refineries should not go up
smooth operation to drastically. Prior evacuation plan must be ensured.
maintain Alumina Silo top of smelters must have minimum 21 days of stock.
stock To optimize alumina evacuation from the refineries, keeping adequate
stocks at silos of smelters, while meeting their maximum production
schedule.
Optimizing evacuation by rake movements, emphasizing need based
stress on road logistics (truck and bulker) to maximize freight benefits.
10 Alumina Export To optimize export to the port as per the schedule, without affecting
internal needs of smelters.
Facilitating railway approvals in continuing BOXN movement for
outbound logistics and coal (including imported coal) to various units.
Facilitating inter zonal rake movements by avoiding detentions
11 Rake operation Ensuring rake movements in Muri Mahan route
Maximizations rake movements for logistics to ensure saving in freight
seamlessness
Ensuring the movement of newly procured BTAP rakes of Hindalco by
obtaining requisite Railway permissions.
Maximizing alumina rake movements in a month once all the rakes are
in operation.
Ensuring CP coke rakes (BCN) to Aditya and Mahan.
Arranging power through a stiff environment, for timely evacuation of
loaded/ empty rakes, avoiding stability/ detention to minimize
turnaround time of a rake movement.
12 Rail Safety Obtaining inter zonal safety permissions for rake movements as well
advising and guiding units on Rail Safety as when required.
13 Rail Examination Finalization of Examination facility for all the BTAP rakes of Hindalco to
optimize movements
2.2.6 Head Unit Logistics
S. No. Areas Key Activities

1 Inward logistics of Formulating strategy on selection of mode
Raw Material Truck/Bulker/Multimodal/BOXN on the basis of navigation plan
and availability
Facilitating and maximizing BTAP movement between Utkal-
Mahan and Muri-Mahan for transportation of Alumina
Augment and facilitate movement of Bulkers/BOXN for alumina
transportation
Facilitate augmentation of internal infrastructure for handling of
rakes
Decide on mode of transportation of CP Coke/Alf3/Cryolite-
rake/road/multimodal depending on route availability

2 Outward Logistics of Maximizing FG shipment through Rail and minimize truck
Finished Goods shipments
Minimize stuffing of containers and rake loading time for faster
turn around
Evaluate and assess of strength and potential of various service
providers for engagement
Appointing the service providers
Facilitate augmentation of internal infrastructure for storage and
rake loading.
Monitoring performance- address and resolve constraints for the
rake/service providers
Implement MIS for tracking of consignments
3 Railway operation Appoint service provider for onsite railway operation and
maintenance of Locos
Onsite management of railway operation
Liaison with Railway officials for end-to-end smooth movement of
rakes
Obtaining permissions from various railway authorities and
documentation as and when required
Plan and schedule incoming rakes according to the allowed
capacity to prevent congestion and route restrictions
Maximize Mahan siding utilization
Maximize route capacity utilization
4 Warehouse Implementing system for receiving, storing, segregating, stacking

management according to grade and shape of ingots/ billets and Wire Rods
Ensuring appropriate documentation and record keeping of
warehouse inventory
Facilitating coordination with Sales for allocation of FG inventory
as per customer requirement
Facilitate creation of warehouse infrastructure, space and handling
system
5 Inward logistics- Coal Daily tracking and monitoring of incoming Coal consignments-
imported, domestic-e-auction, mines and Washeries
Handling and transportation of coal rakes from/to the public
sidings
Coordinate with coal procurement team for scheduling
,sequencing and selection of siding for rake movement
Selection of rail route for incoming rakes
6 Negotiation and Tendering and freight negotiation for transportation of Raw

contracting- Freight Materials and FG
and Service Award service contracts for handling and stuffing of finished
goods, feeding of Alumina/ CP Coke, FG handling in Warehouse
7 Freight budgeting Track and analyze freight cost
Budget for freight expenses- inwards and outward, by optimizing
resource utilization

8 Cost Reduction Increase vendor base of the service providers
through Vendor Infuse and create competition
development
9 Ensure safety in logistic, store and onsite Alumina handling
operation through implementation and usage of appropriate tools,
tackles, PPEs and practices and implementation of SOPs
Provide training to the operating staff on safe operating practices
Demonstrate
Impose penalty for unsafe operation
Instruct and ensure safe movement to coal trucks inside the
Safety in operation premise
Encourage recording of near misses
10 Infrastructure Plan and facilitate infrastructural development to facilitate logistic

development- operation
Logistics and Store Plan and facilitate infrastructural development to facilitate Storage
operation
11 Facilitating Store Monitor routine activities- receipts, issues and resolve backlogs;
operation reduce cycle time of operation
Ensure management of inventory at optimum level prevent stock
outs/spoilage/obsolescence
Resolve in consultation with FH/DHs operational issues like
pending GRNs/ RGPs
Facilitate resolution of operational and project related issues in
consultation with other functional heads
Ensure effective operation of weighbridges
12 Reconciliation-Coal Track consumption and receipts

and Alumina Monitor and reconcile actual vs invoiced , particularly for Coal and
Alumina
Advise accounts for recovery
13 Statutory compliance Ensure compliance of various statutory & legal compliances as per
companies act and ensure audits without non-conformity
14 IMS/WCM Facilitate IMS/WCM documentation, audit and implementation
implementation Motivate for improvement projects, kaizens etc
15 People development Enhance learning through job rotation and new assignments
& Manpower Empower reports to take decision
planning Subject reports to training
Identify gaps wrt requirement and plan for manpower
augmentation
Identify and deploy additional manpower
16 Planning and Plan and budget for expenditure and expenses

Budgeting Execute the plans

2.3 KPIs (at different tier)

2.3.1 Imported Coal
Volumes Quantity Planned vs Actual
Cost Rs M/Kcal (Imported) - Planned vs Actual
Rake Achievement - Port Wise - Planned vs Actual
In Transit Loss - Plant wise - Planned vs Actual
GCV M/Kcal (ARB) Loss - Plant wise - Dispatch GCV vs Receipt GCV
Dead Freight - Port wise
Vessel Demurrage
2.3.2 Domestic Coal (In case arranged by Logistics Department)

Volumes Quantity Planned vs Actual
Cost Rs M/Kcal (Domestic) - Planned vs Actual
Rake Achievement - Planned vs Actual
In Transit Loss - Plant wise - Planned vs Actual
GCV M/Kcal (ARB) Loss - Plant wise - Dispatch GCV vs Receipt GCV
Dead Freight
Demurrage
Punitive Charges
2.3.3 Primary FG
Inland Freight - Plan vs Actual (Rs./MT)

Port Dues - Plan vs Actual (Rs./MT)
Ocean Freight - Plan vs Actual (Rs./MT)
Total Cost - Plan vs Actual (Rs. /MT)
Total Savings - Plan vs Actual (Rs.Crs)
2.3.4 Central Logistics Alumina Navigation

Volumes BTAP vs Bulker vs Trucks vs BOXN
Freight Cost BTAP vs Bulker vs Trucks vs BOXN
Total number of trips of BTAP rakes per month
Percentage of total volumes thru BTAP rakes Plan vs Actual
Throughput per rake
TAT circuit wise
Maintenance - rake days
Avg. MT loaded per rake
Hours taken for loading / unloading times
Refer Annexure for details

3 Inbound Materials
3.1 Objective
The objective of this document is to summarize and standardize all processes of various incoming
materials both by Rail & Road. This will also provide a framework for monitoring, execution and analysis
of Inbound Logistics in order to improve operational and financial performance.

Standardization of the Inbound Logistics Process across various locations
Develop KPIs for performance improvement
Develop key control measures and institute self-reporting to key functions
3.3 Scope
This is applicable to all procedures related to incoming materials like Alumina, CP Coke, Aluminium
Fluoride & Other Miscellaneous materials by Road & Rail.

3.4 Inbound Process: General Materials (Import)

3.4.1 Flowchart for Import Logistics

3.4.2 Pre Berthing & Payment Process Flow
(*) CLD to collect Original set of documents from bank through Treasury, after payment and forward them to respective units & EIAC for
onward submission to Customs only in case of imported coal for HIL. For Utkal this process is done by unit & for all other commodities it is
done from Kolkata.
3.4.3 Port Handling Agreement

CLD will be responsible for signing the Cargo Handling Service Agreement as per the requirement, on an
annual basis for ports where regular and planned cargo is envisaged and on case-to-case basis for other
ports. The Agreement will be approved as per Delegation of Authority (DOA). The agreement should
cover the following major points.
Vessel Details: Mentions the maximum draft, LOA, beam, displacement etc.
Cargo & Parcel Size: Maximum parcel size port can handle
Contract Period
Cargo Volume and minimum guaranteed throughput (MGT) : Annual volumes committed by HIL
Terminal Handling Charges (THC)
Vessel Nomination & Scheduling : Advance nomination of vessel by HIL and regular intimations
Guaranteed Discharge Rate at port
Time to Count for arriving at Discharge Rate: Lay time commencement, vessel related stoppages
etc.
Applicable Demurrage & Dispatch
Storage Space & Period available at port
Acceptable Handling Loss
Wagon Haulage Charges
Siding Charges

Vessel Related Charges (VRC) Responsibility
Payment Terms
Vessel & Cargo Insurance
All the applicable & non applicable liabilities of port and HIL
Periodic reporting of yard plan at port
Hindalco & its Agents access to material in stack yard
3.4.4 Vessel Arrival at Port to Evacuation of Material
(*) Currently Imported Coal & C P Coke are handled by CLD. Other commodities like Caustic, Alloys, ALF3 etc. will be either handled by CLD
or units based on management decision.
3.4.5 Appointing Handling Agency, Inspection Agency & Security Agency
Major material like Coal, CPC & Caustic will be handled by CLD. For the rest of the items, CLD Head &
CPC Head will jointly decide if the consignment will be handled by CLD or ULD.
CLD/CPC/Plant will be responsible for appointing, signing agreements with Handling, Inspection &
Security Agency at ports as per the joint decision mentioned in the point above.

The process should involve scanning of market and generate a list of prospective agents. Shortlist the
vendor from the approved list, get quotation, negotiate & finalize the vendors as per terms as set out
The agreements should cover the following scope of work.
3.4.5.1 Inspection Agency at Port (TPI appointed by Hindalco)

Supervision of draft survey at discharge port and assess quantity
Ensure that all measuring and testing equipment provided at the time of inspection must be duly
calibrated
Sampling & analysis during discharge
Timely submission of MIS & reports containing analysis
Supervision of handling operations from vessel discharge to rake loading
Coordination for ensuring clean wagons/vehicles
Informing CLD/RLD/unit about sick wagons/unfit vehicles
Noting of wagon number & counting of wagons loaded
Witness loading & weighment of rakes /vehicles
Supervise tight closing of wagon/vehicle doors after loading and tightening with iron wire and
wood
Sampling and analysis of material at the yard or siding before being loaded into rakes /vehicles
Share rake /vehicle wise reports as per survey/sampling contracts to the concerned people
Periodic stock assessment & reporting as instructed by CLD/RLD/unit
Coordinate with appointed Handling Agency
3.4.5.2 Handling Agency at Port*

Coordination with Master/Agent of the Vessel for cargo discharge preparation
On board vessel stevedoring and discharging of Cargo
Coordinate with Railways/transporters & Port and keep track on a daily basis
Transfer of cargo from berth to stack yard
Storage at stack yard
Shifting to railway siding,
Check health & cleanliness of rakes /vehicles
Loading of rakes (as per railway norms) or vehicles and checking weight
Ensure that overloading and under loading is within permissible limits
Coordinate with appointed inspection agency
Security of material at stack yard
*Scope of work for handling agent varies from port to port depending upon the contract terms with
the port authorities. Some of the above activities may carried out by the port directly and hence CLD
may or may not appoint additional handling agent at a designated port. The scope of work will also
depend on the nature of cargo - bagged or break bulk and will be defined by CLD accordingly at the
time of finalization of the contract.

3.4.5.3 Security Agency at Port
Arrange round the clock security at port for Hindalco material if required and specifically included
in the contract
3.4.5.4 Handling Agency / Security Agency in rakes during transit (if applicable)
Monitor sealing with tarpaulin covers and line marking if asked for by Hindalco
Ensure & witness tight closing of wagon doors and tightening with iron wires / wooden pegs
Escorting the in-transit rake & reporting pilferage if any to CLD/RLD/Plant
3.4.5.5 Inspection Agency at Unit (TPI agency appointed by respective units as per DOA)
Sampling & Analysis
3.4.6 Railways Transportation (Import)

Major material like Coal, CPC & Caustic will be handled by CLD. For the rest of the items, CLD Head &
CLD/RLD/Unit is responsible for this activity as per the joint decision mentioned in the point
above, although it may be outsourced at some ports. The following activities needs to be
covered.
Placement of Indents with Railways

Liaison with Railways for placement of Rakes
Collection of RR and send to destination unit
Keep a daily update on status by being in touch with ports/railway/concerned agencies for
placement of rakes
Tracking of the consignment through FOIS
3.4.7 Road Transportation (Import)

Major material like Coal, CPC & Caustic will be handled by CLD. For the rest of the items CLD Head &
CLD/RLD/Unit is responsible for this activity as per the joint decision mentioned in the point
above. The following activities needs to be covered.
Receive port clearance (out of charge) details from CHA

Placement of order with transporters in line with contracts signed (Refer section: Sourcing &
Contracting)
Keep a daily update on status by being in touch with transporters/concerned agencies for
placement of vehicles
Coordinate with concerned authorities for permits, forms etc. if required.
Receive shipment notification from the handling agency/transporter
Deploy in-transit tracking (RFID,GPS, e-mail, phone, SMS, escort etc.) of consignments

3.4.8 Custodian of Documents (Import)

Unit or CLD will be the custodian of all documents listed below depending who is responsible
(released contracts) for the concerned activity for that particular commodity.
Initial & final draft survey at discharge port

Sampling and Analysis report during discharge
Sampling and Analysis report of stock loaded into wagons
Copy of Statement of Facts provided by Port
Copy of Purchase Order and Non-negotiable set of documents
Railway Receipt Copy
Contracts with Port, CHA, Handling Agent, Inspection Agency & Security agency
BFM will maintain record of payments made to Port, Railways, Handling Agent, CHA, Inspection
Agency & Security agency.
The EIAC team will be the custodian of all documents listed below.
Out of Charge
Bill Of Entry Copy
TR6 Challan Copy
Letter of Indemnity
3.5 Inbound Process: General Materials (Domestic)

3.5.1 Railways Transportation (Domestic)
Unit Logistics is primarily responsible for this activity. The following activities needs to be
covered.
Receive delivery schedule details from CPC on regular basis and for specific consignments
Placement of Indents with Railways
Liaison with Railways for placement of rakes
Keep a daily update on status by being in touch with the Railways/concerned agencies for
placement of rakes
Tracking of the consignment through FOIS
3.5.2 Road Transportation (Domestic)

Unit Logistics is primarily responsible for this activity. The following activities needs to be covered.
Receive delivery schedule details from CPC/Unit procurement dept. on regular basis and for
specific consignments
Placement of order with transporters in line with contracts signed (Refer section: Sourcing &
Contracting)
Keep a daily update on status by being in touch with transporters/concerned agencies for
placement of vehicles
Coordinate with concerned authorities for permits, forms etc. if required.

Receive shipment notification from the vendor, either by CPC or unit
Deploy in-transit tracking (RFID,GPS, e-mail, phone, SMS, escort etc.) of consignments
3.5.3 Custodian of Documents (Domestic)

Unit Logistics will be the custodian of all documents listed below.
Sampling and Analysis report during dispatch (if applicable)

Copy of Purchase Order
Railway Receipt Copy
Contracts with Transporter, Handling Agent, Inspection Agency & Security agency etc.
Record of payments made to Transporter, Railways, Handling Agent, Inspection Agency &
Security agency etc.
3.6 Handling at Plant

3.6.1 Rakes
Loaded rake departs from origin port. Tracking for rake is done in FOIS.
Loaded rake arrives at local station
Against RR, indemnity bond is submitted to the Railways
Local station is intimated for line clearance
After submission of line clearance, station provides shunt for placement at plant siding
Weighment of loaded rake in our rail weighbridge. Speed of rake is limited to 5 to 7 km/hr. or as
specified by for each weighbridge
Loaded rake placement at specified/designated lines siding
Power is detached from loaded rake
Line clear private number is exchanged with local station for evacuation of power
Wooden skid in the wheels at the front & rear end of the rake
In case of missing wagons, the concerned HIL person to obtain a non-receipt certificate of the
respective wagon number from the local Station Manager of the Railways (Directly or through
Rail operator, as the case may be). Refer Annexure for procedure.
No doors of the wagons to be in open condition at receiving end (if so, the concerned person
must obtain the same in writing from the Railway Guard in order to raise transit loss with the
Railways)
In case of wagon not properly locked or found damaged, it has to be reported to, in writing to
the Station Manager (so as to avoid recovery by the Railways on damage of wagons).
Siding Operator to provide In-Motion W.B operator: - i) printed wagon no. sheet, ii) stencil tare
weight of wagons. iii) Wagon type for preparing of In-Motion W.B. report for gross / tare weight
for loaded rakes and tare weight for empty rakes
RR quantity to be considered for purpose of making payment to Railways. Actual net weight
(gross weight tare weight Hindalco weighbridge) will be considered as book receipt quantity.
However for the purpose of reporting the transit loss the calculation will be based on stencil
weight for receipt quantity.
Unloading by unit team/outsourced vendors

After unloading, release memo is submitted at local station
CHECKS:
o All wagons are physically checked for left over material or any foreign material
o Any spillover on the track/ platform
Power Enter into Plant & attached with empty BTAP Rake CHECKS:
o GDR inspection
Empty BCN Rake Ready For Evacuation
Again Line Clear Private Number is exchanged with Local Station
Rake Evacuation with weighment at In-motion weighbridge
Bill is submitted to Stores Department
CHECKS:
o Received weight is checked with BOE weight
o 0.5% variation by weight is allowable tolerance
General Instruction
Siding operator to ensure at the time of shunting that all points are properly set and
clamped for avoiding any accident/derailment
Proper monitoring to be maintained at the time of shunting performed towards dead-end
Siding operator to ensure that all LCs are properly manned and closed at the time of
rake/locomotive movement in yard.
3.6.2 Vehicles by Road
Unit logistics team will be responsible for timely unloading and release of vehicles from plant
premises.
The team will also monitor the compliance of the transport order parameters like vehicle type,
quality etc.
3.7 Bill Payment for Road Transportation

Bills are submitted against the transportation done to Stores department.
Documents submitted along with bill are:
o Proof of Delivery (POD)
o PO copy to indicate quantity & rate
SRN is generated & forwarded to F&A for further processing.
Deduction is also checked against all LD clauses in the contracts
3.8 Bank Guarantee for Road Transportation

For all types of miscellaneous transportation, a BG is will be sought from transporter for a period
not less than the contractual period. BG amount will be decided based on guidelines circulated
from CLD from time to time.
3.9 Insurance for Road Transportation

Insurance of the material transported is arranged by Accounts department.

3.10 Inbound Process: Specific material (Coal, Bauxite, Alumina, CP Coke, Pitch)
3.10.1 Coal
3.10.1.1 Imported Coal
Imported Coal for Aluminum-
3.10.1.2 Domestic Coal
November 2014
3.10.2 Bauxite
3.10.2.1 Bauxite: Domestic
The processes related to domestically sourced/m
- Feb 2015
3.10.3 Alumina
3.10.3.1 Alumina: Domestic
Feb 2016
3.10.4 CP Coke
3.10.4.1 CP Coke: Domestic
March 2016
3.10.5 Pitch
3.10.5.1 Pitch: Domestic
The processes related to domestically sourced Pitch shall be in
March 2016
3.10.6 Furnace Oil

3.10.6.1 Rake Receipt
Before Rake Arrival
Based on forecasting of BTPN Wagon Rake arrival, advance information given to contractor /
concerned department for arranging labour for unloading
Based on forecasting of rake & wagon wise details, advance unloading plan to be made by Raw
Material Dept. Generally the unloading is done during daytime.
At the time of arrival of rake, gross weight of each part is carried out at In-motion Weigh Bridge.
All tools, consumables and hose pipes required for decanting should be arranged in advance at
appropriate location so that it is readily available to the workers.
Checking & recording of dip level & fuel temperature of main storage tanks and stop transferring
of FO in day tanks of Calciner.
Close all the valves connected to discharge line of main storage tanks
Connection of reducer with hose pipe should be complete before rake placement at unloading
side.
Ensure contractor provides adequate workers at work place before placement of rake
Ensure all workers are with safety appliances and follow all safety procedures during the work

After Rake arrival

Each part of rake as required is placed for weighment on in-motion Weigh Bridge
Pump should be started by the operator without time loss
Individual wagon should take on load after completion of connection work
Operator should ensure whether pump is taking load properly or not
During unloading, the checking of tank wagon should continue whether the wagon is decanting
or not
Sample drawing by User Technical Dept. from all wagons during unloading process
Post Decanting
After decanting, again record the temperature & levels of same storage tanks
Transferring of fuel during decanting process may be avoided during decanting of FO
For monitoring of actual quantity received, it is very important to decant fuel in separate tank so
that temperature correction factor can be applied to calculate the actual receipt.
For calculation of actual receipt, temperature correction factor should be applied on the basis of
initial temperature in main tank before decanting; and actual receipt temperature to calculate
the decanting quantity of fuel into the main storage tank, and tally it with supplier invoice
quantity.
Calculation of receipt quantity as per dip level of individual wagon for cross checking of receipt
quantity in Storage tank after decantation.
After decantation, checking of all wagons with dip rod & visual checking with torch from both
side inspection doors for ensuring complete emptying of wagons.
In winter with steam usage, after decantation of FO, bottom valve of wagons to be kept open
until last wagon is decanted to ensure complete emptying of material with condensate vapor to
eliminate residual quantity.
After disconnection of all wagons, Unit should inform railway immediately for drawn-out of said
wagons.
After completion of unloading of each part, then part rake to send to In-motion weigh bridge for
tare weight.
Rake formation made after completion of each part of rake & give report to the Railways for
certification of empty rake
After rake formation, pass it through in-motion weigh bridge for weighment of each empty
wagon
Based on information, Railway to arrange to the Engine for drawn out the Rake
Ensure 100 % Safety during unloading process
3.10.7 Caustic
Before Rake Arrival
Based on forecasting of BTCS Rake arrival, advance information given to contractor/ concerned
department for arranging labour for unloading
Based on forecasting of rake & wagon wise details, advance unloading plan to be made by Raw
Material Dept. Generally the unloading is done during daytime

At the time of arrival of rake, gross weight of each part is carried out at In-motion Weigh Bridge
All tools, consumables and hose pipes required for decanting should be arranged in advance at
appropriate location so that it is readily available to the workers
Checking & recording of dip level if needed to be done
Close all the valves connected to discharge line of main storage tanks
Connection of reducer with hose pipe should be complete before rake placement at unloading
side.
Ensure contractor provides adequate workers at work place before placement of rake
Ensure all workers are with safety appliances and follow all safety procedures during the work
After Rake arrival
Each part of rake as required is placed for weighment on In-motion Weigh Bridge
Pump should be started by the operator without time loss
Individual wagon should take on load after completion of connection work
Operator should ensure whether pump is taking load properly or not
During unloading the checking of tank wagon should continue whether the wagon is decanting
or not
Sample drawing by User Technical Dept. from all wagons during unloading process
Post Decanting
After decanting again record the levels of same storage tanks.

Transferring of caustic during decanting process may be avoided during decanting.
Calculation of receipt quantity as per dip level of individual wagon for cross checking of receipt
quantity in Storage tank after decantation.
After decantation, checking of all wagons with dip rod & visual checking with torch from both
side inspection doors for ensuring complete emptying of wagons.
After disconnection of all wagons, Unit should inform railway immediately for drawn-out of said
wagons.
After completion of unloading of each part, then part rake to send to In-motion weigh bridge for
tare weight
After rake formation, pass it through in-motion weigh bridge for weighment of each empty
wagon
Rake formation made after completion of each part of rake & give report to the Railways for
certification of empty rake
Based on information, Railway to arrange to the Engine for drawn out the Rake
Ensure 100 % Safety during unloading process.

3.11 PACE Matrix

3.11.1 Imported Coal, C P Coke & Caustic
Plant Unit
Head ULD Unit
Activity Sub Activity CPC CCC EIAC CLD RLD F&C Head/
CLD Inbound Accounts
Head COO
Contract with supplier P, E A C
Contract for sea logistics P, E C
Contract with Port C C A P, E
Contract with handling
C A P, E C
agency (If not port)
Contract with CHA P, E C
Contract
Contract with Inspection
C A P, E C
Agency
Contract with Security C A P, E C
Contract/Indent with Rail
C A P, E C
Operator/Railways
Contract with Road
C A* P, E P, E C A*
Transporter
Coordinating with shipping
P, E
line/agent
Draft survey C P, E
Sampling & Inspection C P, E
Unloading, Shifting, Storage
C P, E
& Loading
Port
Security at Port C P, E
Supervision Customs Clearance at Port P, E
Payment for Customs Duties C P, E A
Payment to Handling agency
C P, E A
/ Port
Payment to
C P, E A
Inspection/security agency
Payment to CHA C P, E A
Indenting & Arranging of
C P, E
Rakes
Railway co-ordination C P, E
In transit tracking & security
C P, E
- Rail
Rail
Rake receipt / placement at
Operations plant C P, E
Arranging power for
C P, E
withdrawal plant
Derailment restoration C P, E
Shunting C P, E
Payment to Railways C C P, E A
Arranging & coordination of
C P, E
vehicles
Road In transit tracking & security
C P, E
Operations -Road
Vehicle receipt / placement
C P, E
at plant
Payment to Transporter C P, E A
*All approvals related to financial values will be as per DOA

3.11.2 Domestic Coal, C P Coke, Bauxite, Caustic & Key Raw Material
Unit Unit Plant Unit
Mines Head ULD
Activity Sub Activity CPC Procure CCC CLD RLD Acco F&C Head
Dept CLD Inbound
ment unts Head / COO
Contract with supplier
(incl. e-auction, FSA and P, E C C P, E A
other orders for coal)
Contract with supplier
(CP Coke, FO, Caustic & A,C P,E C P,E
other key Raw Material)
Contract with coal
handling agency (from P,E C A
mines)
Contract with Inspection
Contract P, E C A
Agency (coal)
Contract with Security
P, E C A
(coal)
P, E C A
Operator
Contract with Road
Transporter (bauxite mines P, E C A* C A*
to siding)
Contract with Road
C A* P, E C A*
Transporter (others)
C P, E C
Rakes
Railway co-ordination C P, E C
In transit tracking &
P, E C
Rail security
Operations Rake receipt / placement
P, E C
at plant /Shunting
Arranging power for
C P, E C
withdrawal from plant
Payment to Rail Operator
P, E C A
/Railways
Arranging & coordination
C P, E
of vehicles
In transit tracking &
Road C P, E
security
Operations Vehicle receipt /
P, E
placement at plant
Payment to Transporter P, E C A

4 Outbound Materials
4.1 Objective
The Finished Goods as receipted from Cast House are to be dispatched to various export, domestic &
interplant customers as per the order communicated from MHO, through different modes of
transportation, as desired and needed by the business. The procedures provide the framework under
which the activity is to be executed.
To establish and maintain documented procedure for dispatch of Finished Goods, while standardizing the
relevant processes across various locations.

Standardization of the Out bound Logistics Process across various locations
Develop KPIs for performance improvement
Develop key control measures and institute self-reporting to key functions
4.3 Scope
Applicable for dispatch of all Finished Goods including Ingots, Billet, Extrusions, Wire Rods etc.
4.4 Responsibility
Responsibility for ensuring implementation, maintenance and amendment of this procedure rests with
HOD Warehouse, Logistics and Stores (at Units).
4.5 FG Export
4.5.1 Despatch
4.5.1.1 Planning for Despatch
Export plan is the basis for planning day to day dispatches
The export plan is prepared by Central Planning Dept. in consultation with CLD on a monthly basis
at the month beginning. It is re-visited around 20th of the month to accommodate variations
The export plan mentions the type of material, volumes, destination & mode of transport
The decision to move by road or rake is based on the logistics cost optimization and availability
of the particular mode
CLD then arranges for the rakes and Unit Logistics Division arranges for trucks based on the export
plan
In case of rakes; a detailed rake plan, indicating shipping lines, type of container and rake
schedule is prepared.
The optimal plant - port combination is decided on a periodic basis based on market demand and
relative cost matrix by Central Planning Dept. in consultation with CLD.

4.5.1.2 Taking Over Material from Cast House and Stockyard Management
Cast house provides the list of declared FG in Oracle to the warehouse supervisor within 1 hour
of completion of production
The supervisor checks the cast number/packing quality/ marking / number of pieces at random
Cast House shall ensure Quality confirmation & quantity verification in each ICM Ingot bundle
Combined check to be done by Cast House, Warehouse & Logistics officials of lot no, weight and
sticking of proper stickers
Grade wise segregation & stocking of each ICM Ingot/SOW
Material found to be as per the declared list with appropriate packing/marking are allowed to
move in the FG area
The FG should be released to logistics according to lot (grade wise)
Logistics staff transfers the cast produced in system by Barcode scanner (Wherever applicable)
Material found to be with discrepancy with respect to the declared list and/or with inappropriate
packing or marking are returned to the cast house
Receipted materials are stacked grade wise/lot wise in combination of desired container/truck
load
After completion of handover/takeover, the warehouse supervisor and cast house supervisor
signs off in the Handover-Takeover file.
Pig Ingot should be properly strapped in compliance with LME stipulation. No-
overhead/improper stacked bundles should be accepted by the warehouse. Warehouse should
ensure that all the Casts are kept separately as per their purity & not mixed with other lots.
Note: Separate area to be identified for each cast in the FG yard.
Warehouse to reject the non-confirming lots to production for re-strapping.
In case of any problem like loose strapping, bad quality, overwriting in casts, weight variation,
mismatch in pieces, poor surface etc.; the same to be brought to the notice of Head-Cast House
& Head-Logistics.
Note: Such cast to be sent back to cast house by making captive documentation.
Off line strapping of Ingots to be done by pneumatics tools only
Online strapping of pig bundles by production as soon as possible
Restacking of the ICM rejected bundles on priority by Production
Stock Report to be checked at every shift by Shift In charge- Warehouse
Production shall ensure the availability of required material as per the export order booked by
Marketing
Any abnormality to be informed to the Marketing team & all concerned immediately for
necessary corrective measures
Inventory check
a. To be checked daily morning, according to actual available material ready for dispatch by
Incharge - Warehouse.
b. Inventory needs to be reported to all concerned according to grade

4.5.2 Rail Movement (Export)

4.5.2.1 Standard Practice for Rake Requisition (For Export by Rail)
Planning for rake is done centrally based on the monthly export plan from Marketing
Requisition for rake placement and follow up shall be sent by Central Logistics
CLD monitors rake movement on FOIS and expedites placement
DO for lifting EXIM containers to be released by EIAC
EIAC shall ensure timely allotment of EXIM containers for rake formation
The concerned station master informs the siding operator around an hour in advance on the
arrival of the rake
Siding operator informs all concerned in the unit and also makes sure the line is clear to avoid
detention
respective wagon number from the local Station Manager of the Railways (Directly or through Rail
operator, as the case may be). Refer Annexure for procedure.
Tare weight of rake with empty containers to be captured on arrival at plant
Loading plan to be shared by Export marketing team with Warehouse team 24 hours before
placement of rake. Warehouse team should share the plan with loading operator.
After rake is placed at plant siding, all containers are checked as per the container checklist given
in Annexure
Siding Operator to provide In-motion weighbridge operator printed wagon sheet, stencil tare
weight of wagons, wagon type for preparing report for gross/tare weight for loaded rakes and
tare weight for empty rakes
On advice of WH-in-charge, the unloading of containers from rake and placement in export yard
is done by Rail Operator
Rail Operator to provide the list of shipping line wise container details (like container number &
tare weight) to warehouse for documentation purpose
4.5.2.2 Standard Practice for Rake Loading & Loading Slip Generation (For Export)
Physical verification of each container for damages/stains before loading, supported by
photographs
Ensuring proper cleanliness of containers
Empty Containers are moved to the Cast House
The handling contractor arranges for the crew, Reach Stacker, Fork Lift and trucks to unload the
empty container
The containers are unloaded by the handling contractors crew/mechanical maintenance crew
Allocate the FG (Finished Goods) in Oracle as per the requirement of the Customer/ Order
received from marketing department
Verification of proper stacking and ensures all straps are in place before and after stuffing of the
container, supported by proper photographs. In case of loose strapping and or damaged
strapping, the same should be brought in the notice of the warehouse officials and needs to be
rectified before stuffing.
Loading plan containing cast no, grade, production weight, etc needs to be handed over to
loading staff for loading with shipping line details

Weight of FG to be loaded per container as advised by the Marketing Dept.
Combined physical checking by Security, WH supervisor & Rail operator to be done after each
stuffing to verify number of bundles/pieces loaded into the container
Photograph to be taken before and after the loading of container with clear visibility of container
number
CD to be made and handed over to Logistic department with a copy to MHO. The CD should
contains at least 3-photographs of each container with container number clearly visible in all
photographs:
a. Empty container
b. Stuffed container
c. Stuffed container with one gate open & another closed with container number.
The photographs to be retained for a period of one year reckoned from the date of stuffing
Check list to be signed by respective departments (WH & Loading operator) against the assigned
responsibilities and it will be verified by Security Dept.
Maintaining and filing of the completely filled checklist
Loading slip generation & other documentary formalities to be processed
Once the containers get stuffed with required materials, immediately to be sealed in the
presence of security staff & stacked in designated places/rake. Security staff on duty must note
down Container no, Sr. No of FG loaded & Seal no in his register.
Security Staff needs to checks the FG & the weights of each lot. On any discrepancy, shift staff is
intimated for further action.
Loading operator should ensure that he keeps on feeding the required information to
documentation team in batches, rather than waiting for the stuffing to get completed.
Documentation team needs to prepare the documentation simultaneously and try to give the
same within the stipulated time, on completion of the stuffing.
Containers are then sealed by Liner seals & Excise seals in presence of Excise officials, Warehouse
& Rail Operator.
Stuffed containers are moved to the export yard and loaded on empty rake
4.5.2.3 Standard Practice for Rake Release

After container placing is complete, whole rake is checked whether all automatic & manual lock
are in locked position. Proper checklist is prepared & handed over to Rail logistics team.
Completion Memo to the Railways to be sent immediately by the Rail operator after completion
of Loading of container on rake.
-duty station master for rolling out rakes
Copy of each Railway Receipt to be submitted to Logistics/Accounts for records
Subsequently, signed copy of invoice & ARE-1 to be handed over to the rail operator, who in turn
must send the same to their designated Port office before the actual train is reached at the port.
Rakes are tracked on FOIS
4.5.2.4 General Instructions

Siding operator to ensure at the time of shunting that all points are properly set and
clamped for avoiding any accident/derailment
Proper monitoring to be maintained at the time of shunting performed towards dead end
Accountability of Rail Operator/Freight Forwarders/Hindalco should be clearly defined in
all contracts

4.5.3 Road Movement (Export)

4.5.3.1 Order Booking & Truck Requisition
Primary Metal
Extrusion And Rolled Products

Rolled and Extrusion
Process Owner : ULD
Receipt of Order Hold / Release by

Start Marketing/
Order Entry
Coordinators
Packing as per Order and Auto allocation to the

Acceptance Production uploading in defined order and
system shifting to Warehouse
Production as per schedule Manual allocation by

and delivered to packing coordinators for left
out material
Downloads
Promise date entry
Order
Truck Tare weight at Weigh Truck Gross weight

Truck grouping/ bridge and Truck sent to after loading at weigh
Hiring of Truck Loading area with loading slip bridge
Yes Weight variation ?
No
Truck in by Security as Invoicing by Accounts and Truck

per the Hiring Slip Out by Security after rechecking End
and Gate pass generation
Stock report is sent every day to Marketing department & Central Planning
Order booking is done by respective regional marketing department & intimated to Logistic Sales
Coordinator
Truck requisition is sent to transporters by mail/SMS/phone after confirmation of all orders from
marketing department.

In case the waybill is not available, then customer /MHO is informed in advance.
In case of any amendment/ new order received from Marketing, transporters are intimated
accordingly.
Follow up with transporter is done to ensure placement of 100% vehicles
Truck Allocation for next day: Transporter who performs/ provides almost 100%
placement gets more allocation of order for the next day.
4.5.3.2 Truck Entry inside the Plant
All documents of truck & driver are checked at truck parking area (Outside the plant) by Security.
Documents include RC copy, DL of driver, Transporter's Challan, Chassis no, Engine no &
Tool list of truck.
details, Insurance Details, Pollution details, RC copy etc. All details are then cross checked by
security present.
DO/Hiring slip is given to transporters for bringing truck inside for loading.
Gate entry is done in Oracle at the main gate
Initial weighment slip (Tare weight) of each truck for each entry into unit premises is collected &
captured in Oracle through Weighment scale itself
Tare weight is checked from the Initial Weighbridge slip. Driver's name & contact no is provided
on the tare weight slip.

a) For 10 wheeler, tare weight should be less than 9.5MT

For 12 wheeler, tare weight should be less than 11MT
For Trailers: As per RC actuals
b) If a vehicle has substantial difference in tare weight during multiple trips
In both the above cases, reason for deviations to be investigated and corrective action to
be taken/documented.
For any emergency, Chassis no & Engine no of the entering truck are cross checked on the
following website: https://vahan.nic.in/nrservices/
Note: Safety rules to be followed inside plant are given in Annexure
4.5.3.3 Truck Loading & Loading Slip Generation
Allocate metal considering the tare weight of the truck , so that the Gross Weight of the loaded
truck does not exceed total of approx. 40.2MT for Trailers, 31 MT for 12 Wheelers & 25 MT for
10 Wheelers.
Gross weight & tare weight is cross checked in the RC book.
received from marketing department
Group FG (Finished Goods) after all relevant data are provided in the delivery grouping in Oracle.

Loading slip is generated from Oracle & handed over to loading staff for loading. No of pieces
loaded are written on Slip.
Loading slip contains destination, transporter name, truck no, cast no, grade, production weight,
etc.; satisfying the maximum safe bearing load (tare weight+ material weight) of the provided
truck. Weight of FG loaded is compared with loading slip & physically adding the weights
mentioned in each lot.
Once the trucks were loaded with required materials, it must be parked at the parking areas as
identified
4.5.3.4 Invoicing
Upon completion of loading of FG, truck goes to the weighbridge to get the gross weight. LR no.
/ Consignment note no. required is provided by the transporter.
Allocation: Order Qty purity vs FG purity.

Grouping: Zone, Truck no, Tare weight, loading capacity.
Trip Completion: Trip no, Transporter name, Shipping location, LR no, Net weight.
Upon receiving of gross weight, invoice is generated from Oracle. For rake, gross weight & net
weight are considered to be same in oracle.
Weight difference: +/- 50kg variance is allowed as per Oracle.
Truck Checklist is prepared by unit logistics and checked by Shift in charge & Security.
Print outs of invoice, test certificate & loading slips are taken
Head-Warehouse checks all the papers
For export order, ARE-1 is generated, signed by respective Authorized signatory to Excise
department for signatures.
For ARE-1, five different copies in five different colors are printed out.
Original The said Superintendent or Inspector of Central Excise shall return to

(First Copy) the exporter immediately after endorsements and signature
Duplicate The said Superintendent or Inspector of Central Excise shall return to

(Second Copy) the exporter immediately after endorsements and signature
Sent to the bond sanctioning authority, either by post or by handing

Triplicate
over to the exporter in a tamper proof sealed cover after posting the
(Third Copy)
particulars in official records.
Quadruplicate
Retain for official records
(Fourth Copy)
Optional copy - The said Superintendent or Inspector of Central
Quintuplicate
Excise shall return to the exporter immediately after endorsements
(Fifth Copy)
and signature.

4.5.3.5 Truck Release

Following data are checked at the Main Gate:
a. Quantity mentioned in invoice & loading slip is cross checked with actual material loaded on
truck
b. Actual material loaded is determined from the weighbridge slip having tare weight, net
weight & gross weight
c. Signed Truck Checklist
d. Whether Transporter Stamp is there on the LR copy
e. Customer name mentioned in Invoice is same as that in LR
f. Waybill is valid & signed (Party name, Vehicle no, Invoice no)
g. Vehicle no is same as that mentioned in invoice & weighbridge slip
If any discrepancy is found in any of the above data, then the truck is sent back to the
Warehouse.
Departing of the truck is done through Oracle & then released from Main Gate.
Copy of gate entry pass, invoice, truck checklist, loading slip, weighbridge slip & LR is kept at the
Main Gate for documentation.
4.5.4 Port Handling Agreement, Appointing Customs House Agent (CHA), Handling Agency &
Inspection Agency
EIAC will be responsible for appointing, signing agreements with Ports, CHA, Handling and
Inspection Agency
4.5.5 Shipping documentation
The following documents are required for export:

Bill of Lading
Commercial invoice
ARE-1
Packing list
Shipping bill/ bill of export
Certificate of origin (if required)
Inspection certificate (if required)
Insurance certificate
Any other document as required by the buyer or statutorily.
4.5.6 In-transit tracking

The following tracking can be deployed:
GPS tracking (Trucks)

FOIS (Railways)

4.5.7 Customer Relation Management

4.5.7.1 Customer Requirements
Various types of Customer requirements are:
1. Tightly strapped PIG Ingot

2. Limited Ferrous, Silicon & Vanadium% in the FG supplied
3. No shortage in the quantity of FG supplied
4. Dispatch of total Order within a span of time
5. Favorable freight charges
6. Minimal transit time
7. Batch no. in every PIG/ SOW Ingot
4.5.7.2 Customer Complaints

Various types of Customer complaints that are received are:
1. Loosely strapped PIG Ingot

2. Ferrous, silicon & vanadium % mismatch than specified by the customer in the order
3. Failure to dispatch some quantity against Total Order quantity in the agreed period of time
Based on each specific complaint, actions are taken by Warehouse:
1. Regarding strapping, Cast-house to be regularly intimated

2. If required by customer, ferrous, silicon & vanadium % are properly checked during planning
4.5.8 Safety Aspects

Warehouse & Logistics
Safety Consideration:
The following PPEs are essential:
1. Safety shoes
2. Safety goggles
3. Safety helmet
ACTIVITY CONCERN EXISTING RISK CONTROL MEASURE
Loading of FG into Reach Stacker Before start of loading, Shift-in-charge: Logistics does a
containers full physical check of the Reach Stacker. The checking
included Front & Back gear horn, Front & Back light, SLI
etc.
Forklift Before loading begins, the Shift-in-charge: Logistics does
a full physical check of the Forklift. The checking included
Front & Back gear horn, Front & Back light etc.
Additionally, team members to ensure compliance with all the safety guidelines of respective Units.

4.5.9 Transporters Bill Payment

4.5.9.1 Transporter Bill Payments
Fortnightly, the bill is submitted by the transporter for freight payment
Warehouse person verifies the LR receipt & bill submitted by the transporter
Verification of Customer stamp & signature mentioning the no. of pieces & weight received
at their end.
In case the original LR receipt is lost by the transporter/ driver, a declaration in notary attested
stamp paper & application is submitted by the transporter & the confirmation from the Customer
is taken to process the bill.
Penalty for late delivery is verified, calculated & deducted
After completing all necessary formalities as per contract, the payment is done to the
transporters account through RTGS.

4.6 FG Domestic
4.6.1 Despatch
4.6.1.1 Planning for Despatch
Domestic plan is the basis for dispatches
The domestic plan is prepared by Central Planning Dept. in consultation with CLD on a monthly
basis at the beginning of the month. It is re-visited around 20th of the month to accommodate
variations, if any.
The domestic plan mentions the type of material, volume, destination & the mode of transport
The decision to move by road or rake is based on the logistics cost optimization and availability
of the particular mode
CLD then arranges for the rakes and Unit Logistics Division arranges for trucks based on the
domestic plan
4.6.1.2 Taking Over Material from Cast House and Stockyard Management
Cast house provides the list of declared FG in Oracle to the warehouse supervisor within 1 hour
of completion of production
The supervisor checks the cast number/packing quality/ marking / number of pieces at random
Cast House shall ensure quality confirmation & quantity verification in each ICM Ingot bundle
Combined check to be done by Cast House, Warehouse & Logistics officials of lot no, weight and
sticking of proper stickers
Grade wise segregation & stocking of each ICM Ingot/SOW
Material found to be as per the declared list with appropriate packing/marking are allowed to be
moved into the FG area
The FG should be released to Logistics according to lot (grade wise)
Logistics staff transfers the cast produced in system by Barcode scanner (Wherever applicable)
Material found to be with discrepancy with respect to the declared list and/or with inappropriate
packing or marking are returned to the cast house
Receipted materials are stacked grade wise/lot wise in combination of desired container/truck
load
After completion of handover/takeover, the warehouse supervisor and cast house supervisor
signs off in the Handover-Takeover file
Pig ingot should be properly strapped in compliance with LME stipulation. No-
overhead/improper stacked bundles should be accepted by warehouse. Warehouse should
ensure that all the Casts are kept separately as per their purity & not mixed with other lots.
Separate area to be identified for each cast in the FG yard.
Warehouse to reject the non-confirming lots to production for re-strapping

In case of any problem like loose strapping, bad quality, overwriting in casts, weight variation,
mismatch in pieces, poor surface etc.; the same to be brought into the notice of Head-Cast House
& Head-Logistics.
Such cast to be sent back to Cast house by making captive documentation.
Off line strapping of ingots to be done by pneumatics tools only

Online strapping of Pig bundles by production as soon as possible

Restacking of the ICM rejected bundles on priority by Production
Stock report to be checked at every shift by Shift-in-charge (Warehouse).
Production shall ensure the availability of required material as per the export order booked by
Marketing.
Any abnormality to be informed to Marketing & all concerned immediately, for necessary
corrective measures
Inventory check
a. To be checked daily morning according to actual available material ready for dispatch by
Warehouse-in-charge.
b. Inventory needs to be reported to all concerned according to grade
4.6.2 Rail Movement

4.6.2.1 Standard Practice for Rake Requisition (For Domestic by Rail)
Planning for Rake is done centrally based on the monthly despatch plan. Requisition for rake
placement and follow up shall be sent by Central Logistics.
CLD monitors rake movement on FOIS and expedites placement
The concerned station master informs the siding operator around an hour in advance on the
arrival of the rake
Siding operator informs all concerned in the unit and also makes sure the line is clear to avoid
detention
respective wagon number from the local Station Manager of the Railways (Directly or through Rail
operator, as the case may be). Refer Annexure for procedure.
Tare weight of rake with empty containers to be captured on arrival at plant
Loading plan to be shared by domestic marketing team with Warehouse team 24 hours before
placement of rake. Warehouse team should share the plan with loading operator.
After rake is placed at plant siding, all containers are checked as per checklist given in Annexure
Siding Operator to provide In-motion weighbridge operator the following documents, namely;
printed wagon sheet, stencil tare weight of wagons, wagon type for preparing report for
gross/tare weight for loaded rakes and tare weight for empty rakes
On advice of In-charge, WH, unloading of containers from rake and placement in export yard is
done by Rail Operator
Rail Operator to provide the list of shipping line wise, container details (like container number &
tare weight) to warehouse for documentation purpose
4.6.2.2 Standard Practice for Rake Loading & Loading Slip Generation (For Domestic)
Physical verification of each container for damages/stains before loading, supported by
photographs.
Ensuring proper cleanliness of containers.
Empty Containers are moved to the Cast House
The handling contractor arranges for the crew, Reach Stacker, Fork Lift and trucks to unload the
empty container
The containers are unloaded by the handling contractors crew/mechanical maintenance crew

received from marketing department.
Verification of proper stacking and ensures all straps are in place before and after stuffing of the
container, supported by proper photographs. In case of loose strapping and or damaged
strapping, the same should be brought in the notice of the warehouse officials and needs to be
rectified before stuffing.
Loading plan containing cast no, grade, production wt. etc. needs to be handed over to loading
staff for loading with shipping line details.
Weight of FG to be loaded per container as advised by marketing.
Combined Physical checking by Security, WH supervisor & Rail operator to be done after each
stuffing to verify number of bundles/pieces loaded into the container.
Photograph to be taken before and after the loading of container with clear visibility of container
number.
CD to be made and handed over to Logistic department with a copy to MHO. The CD should
contains at least 3-photographs of each container with container number clearly visible in all
photographs:
a. Empty container
b. Stuffed container
c. Stuffed container with one gate open & another closed with container number.
The photographs to be retained for a period of one year.
Check list to be signed by respective departments (WH & Loading operator) against the assigned
responsibilities and it will be verified by Security dept.
Maintaining and filing of the completely filled checklist
Loading slip generation & other documentary formalities to be processed.
Once the containers get stuffed with required materials, immediately to be sealed in the
presence of security staff & stacked in designated places/rake. Security staff on duty must notes
down Container no, Sr. No of FG loaded & Seal no in his register.
Security Staff needs to checks the FG & the weights of each lot. On any discrepancy, Shift staff is
intimated for further action.
Loading operator should ensures that he keeps on feeding the required information to
documentation team in batches, rather than waiting for the stuffing to get completed.
Documentation team needs to prepare the documentation simultaneously and try to give the
same ASAP, on completion of the stuffing.
Containers are then sealed by Excise seals in presence of Excise officials, Warehouse & Rail
Operator
Stuffed Containers are moved to the export yard and loaded on empty rake
4.6.2.3 Standard Practice for Rake Release

After container placing is complete, whole rake is checked whether all automatic & manual lock
are in Locked position. Proper checklist is prepared & handed over to Rail logistics team
Completion Memo to railway to be sent immediately by Rail operator after completion of Loading
of container on rake.
-duty station master for rolling out rakes.
Copy of each Railway Receipt to be submitted to Logistics/Accounts for records.

Signed copy of Invoice is handed over to rail operator, to send the same to their
destination/customer.
Rakes are tracked on FOIS
4.6.2.4 General Instructions

Siding operator to ensure at the time of shunting that all points are properly set and clamped for
avoiding any accident/derailment
Proper monitoring to maintained at the time of shunting performed towards dead-end of smelter
yard,
4.6.3 Road Movement (Ware house & End Customer)

Primary Metal
Order Booking & Truck Requisition
Process Owner :
Stock Transfer by
Start Casthouse (Physically
& in Oracle)
Casthouse is intimated. Physical Verification of

If required materials Stock by Security &
are sent back to Logistics
Casthouse
If any issue (Relating

Yes
weight, Quality & No
of Pcs) ?
No
Current Stock Mail Zone/destination wise

Acceptance of
to all RMs & dispatch plan placement
Order
Central Marketing by RMs/Central Planning
Sales Order
Booking in Oracle
by S&M
After Order confirmation Truck Requiting

to respective Transporters (By Mail,
Follow up for
Whatsapp & Phone) In case of Rail,
Truck End
Monthly rake requisition sent by Central
Logistics

Extrusion and Rolled Products
Stock report is sent every day to the Marketing Department & Central Planning
Order booking is done by respective regional marketing department & intimated to Logistic Sales
Coordinator
Truck requisition is sent to transporters by mail/sms/phone after confirmation of all orders from
the Marketing Department
In case the waybill is not available then customer /MHO is informed in advance.
In case of any amendment/ new order received from Marketing, transporters are intimated
accordingly
Follow up with the transporter is done to ensure placement of 100% vehicles
Truck allocation for next day: Transporter who performs/ provides almost 100% placement
gets more allocation of Order for the next day.

4.6.3.2 Truck Entry inside Plant
Truck Entry inside Plant
Process Owner :
Check RC of Truck, DL of driver,

Gate Entry Any issue with the
Start , Chassis no, Yes Truck is returned
(Security Gate) above document?
Engine, no & Tool list of truck
No No
Tare/Initial weighment
For 10 wheeler: Tare wt.<= 9400 KG
for the trucks is done at
For 12 wheeler: Tare wt.<= 11000 KG Final Weighment/
weighbridge
Gross Weight of End
loaded vechile
Yes
Material planned & allocated by staff Loading of Vehicle/ Containers

1. Provisional Loading slip is prepared with
For Road: Hydra with Operators & Riggers, reference to stock report by Logistics
By Rail: Forklift with Operators) & Reach Stacker
with driver & Rigger) 2. Identification/ Locating of material (different
Wire Rod: Hydra with Operator) Billets: Hydra Purity)
Security Supervisors (To Check & Advise to load the 3. Loading of the Vehicle/ Containers(Stock
material) Yard)
Documents include RC copy, DL of driver, Transporter's Challan, Chassis no, Engine no &
Tool list of truck.
details, Insurance Details, Pollution details, RC copy etc. All details are then cross checked by
security present.
Gate entry is done in Oracle at Main gate
Initial weighment slip (Tare weight) of each truck for each entry into unit premises is collected &
captured in Oracle through Weighment scale itself
Tare weight is checked from the Initial Weighbridge slip. Driver's name & Contact no is provided
on the Tare weight slip.
In both the above cases, reason for deviations to be investigated and corrective action to be
taken/documented.
For any emergency, Chassis no & Engine no of the entering truck are cross checked on the

taken/documented.
Allocate metal considering the tare weight of the truck , so that the Gross Weight of the Loaded
Truck does not exceed total of approx. 40.2MT for Trailers, 31 MT for 12 Wheelers & 25 MT for
10 Wheelers.
Gross weight & Tare weight is cross checked in the RC book.
Group FG (Finished Goods) after all relevant data are provided in the Delivery grouping in Oracle.
Loading slip contains destination, transporter name, truck no, cast no, grade, production wt. etc.
satisfying the maximum safe bearing load (tare weight+ material weight) of the provided truck.

Weight of FG loaded is compared with Loading slip & physically adding the weights mentioned in
each lot.
Once the trucks got loaded with required materials, then these must be parked at the parking
areas as identified.
4.6.3.4 Invoicing
Upon completion of Loading of FG, Truck goes to the Weighbridge to get the Gross weight. LR
no. / Consignment note no. required is provided by transporter.

Upon receiving of Gross weight, Invoice is generated from Oracle. For rake, Gross weight & Net
Truck Checklist is prepared by Unit logistics and checked by Shift in charge & Security.
Print outs of Invoice, Test certificate & Loading slips are taken.
Head-Warehouse checks all the papers.

Following data are checked at Main Gate:
a. Quantity mentioned in Invoice & Loading slip is cross checked with Actual material loaded on
truck
b. Actual material loaded is determined from the weighbridge slip having Tare weight, Net
weight & Gross weight.
c. Signed Truck Checklist.
d. Whether Transporter Stamp is there on the LR copy.
e. Customer name mentioned in Invoice is same as that in LR.
f. Waybill is valid & signed (Party name, Vehicle no, Invoice no).
g. Vehicle no is same as that mentioned in Invoice & Weighbridge slip.
If any discrepancy is found in any of the above data, then the truck is sent back to the
Warehouse.
Departing of the Truck is done through Oracle & then released from Main Gate.
Copy of Gate entry pass, Invoice, Truck checklist, Loading slip, weighbridge slip & LR is kept at
4.6.3.6 Transporter Performance Evaluation

At the end of each Month/ Quarter/ Financial year, performance for each transporter is evaluated
Based on the above parameters, rating is given to each transporter by staff of Logistics
Final rating is given based on the simple average of the above ratings

4.6.4 Associated documentation

LR copy
Commercial invoice
Test certificate wherever applicable
Waybill wherever applicable
Vehicle related documents like Insurance, Permits, licenses etc. as applicable
4.6.5 In-transit tracking

GPS tracking
FOIS (Railways)
Rail operator will provide daily status for last mile movement to warehouse or customer
4.6.6 Order closure/receipt confirmation

Customer or Warehouse acknowledgement on invoice/challan/LR
4.6.7 Transporters Bill Payment

4.6.7.1 Transporter Bill Payments
Fortnightly, the bill is submitted by the transporter for freight payment
Warehouse person verifies the LR receipt & bill submitted by the transporter
Verification of Customer stamp & signature mentioning the no. of pieces & weight received
at their end.
In case the original LR receipt is lost by the transporter/ driver, a declaration in notary attested
stamp paper & application is submitted by the transporter & the confirmation from the Customer
is taken to process the bill.
Penalty for late delivery is verified, calculated & deducted
After completing all necessary formalities as per contract, the payment is done to the
transporters account through RTGS.

4.6.8 PACE Matrix

4.6.8.1 Outbound Finished Goods
ULD Plant Unit
Head Plant Unit
Activity Sub Activity EIAC CLD RLD Out- F&C Mktg. Head/
CLD WH Acct.
bound Head COO
Contract with Shipping
line/Agent, CHA, Port P, E C A
Handling & Inspection Agency
Contract for container
C A* P, E C A*
handling at plant
Contract for loading/stuffing
C A* P, E C A*
Contract at plant
Contract with ICD Handling
C A* P, E C A*
Agency
C A* P, E C A*
Operator
Contract with Road
A* C P, E C A*
Transporter
Arranging empty containers E C P
In plant container
C P, E
movement/handling
Container Container inspection /
C P, E C
Handling stuffing
Payment to container
handling agency/inspection/ C P,E A
stuffing
P,E A C
Rakes
Railway co-ordination P,E C
Rake receipt / placement /
C P,E
Rail shunting at plant
Operations Arranging power for
C P,E
withdrawal plant
In transit tracking E
Payment to Rail Operators /
C C P,E A
Railways
Arranging & coordination of
C P,E
vehicles
Road Vehicle receipt / placement at
C P,E
Operations plant
In transit tracking C P,E
Payment to Transporter C P,E A
Unloading & Stacking P, E C
Inspection / sealing (At
Port P, E C
Customs)
Operations
Payment to CHA, Port
P, E A C
Handling & Inspection Agency
Unloading, Stacking & Loading C P, E
Inspection / sealing (At
C P, E
ICD Customs)
Operations Tracking Of Containers C P, E
Payment to ICD Handling
P,E A C
Agency
WH Warehouse; Mktg. Marketing; Acct. Accounts

4.7 Warehouse Opening

4.7.1 Scope
This "Warehouse Opening SOP" is applicable to all warehouses for Aluminium products (Aluminum-
Primary, FRP, extrusion, foils) including shared warehouses with copper. This document specifies the
process of opening a new warehouse/replacement of existing warehouse. This SOP also specifies the
process &, procedure to be followed for approval from competent authority.
4.7.2 Responsibility
4.7.2.1 Regional Logistics will be responsible for:
a. Analyzing the warehouse requirement in coordination with regional marketing
b. Initiating the proposal for opening of Warehouse in prescribed format (refer Annexure) in case
of warehouse replacement
c. Conducting cost benefit analysis with the support of Regional Accounts
d. Searching of warehouse space, C&F Agent in co-ordination with regional marketing
e. Providing necessary support for excise and sales tax registration to Regional Accounts
4.7.2.2Regional Accounts will be responsible for:

a. Statutory compliance such as Excise, Sales Tax Registration etc.
b. Providing support to Regional logistics in estimation of cost incurred
c. Providing support to Regional Logistics to estimate quantitative benefit to validate tax impact if
any
d. Providing support to Regional Logistics and marketing SPOC to quantify financial feasibility
4.7.2.3 Marketing SPOC

a. Initiate the proposals for warehouses at new locations
b. Review all warehouses proposals and give suitable remarks on proposal taking into
consideration key aspects like the location of the warehouse, customer requirements from
SPOC will also coordinate with the SBU Heads and regional marketing (Aluminum-Primary, FRP,
extrusion and copper) and take their inputs wherever required.
4.7.2.4 BFM Central Logistics

Coordinates with the regional logistics for securing and collecting approval and validating the
proposal, which is then forwarded to the Marketing Finance Head, Central Logistics Head/ CMO.
4.7.2.5 Marketing Finance Head

Evaluate the financial feasibility of proposed warehouse. If required he/she may coordinate with
regional accounts for relevant inputs
4.7.2.6 CMO and Central Logistics Head

Review, seek further inputs if needed and approve the proposal
4.7.3 Initiation of Proposal

New/Replacement warehouse opening proposal will be initiated at regional level in prescribed
warehouse opening format (refer Annexure) by Regional Logistics. Alternatively, Marketing SPOC will
initiate for a warehouse at new location. Regional Logistics is responsible to provide all details, cost

benefit analysis and provide justification for opening of new replacement warehouse in consultation
with regional accounts.
Regional Logistics or Marketing SPOC should also workout the impact of new warehouse over the
existing warehouse (for replacement warehouse) and the cost benefit covering areas like-
Transportation, location from plant, availability of labor, C &F Agent, Security, etc.
In particular, the following should be included in the proposal:
a . Qualitative benefits and quantitative benefits are to be worked out in consultation with
Regional Accounts
b . Cost impact on account of opening a new warehouse, to be worked out in consultation with
the Regional Accounts (e.g. transportation, closing of other warehouse after opening of new
warehouse etc.)
4.7.4 Coordination with Other Products at Regional level/ SBU Heads

At the time of finalizing the requirements of new warehouse (both replacement and new location),
there should be co-ordination by Marketing SPOC with all relevant SBU Heads (Aluminum-Primary, FRP,
extrusion and copper) to understand their requirement of the proposed warehouse.
The inputs from concerned SBU Heads need to be incorporated by the Regional Logistics or Marketing
SPOC to be suitably incorporated in the proposal.
Marketing SPOC will get suitable due diligence on aspects like -location of warehouse, customer
requirements from propos
if required through concerned marketing teams.
4.7.5 Coordination with Regional Logistics:

After receiving proposal from Regional logistics, BFM central logistics will review and forward the same
to marketing finance Head.
4.7.6 Marketing Finance Head:

Marketing finance head will review the proposal and forward it onward to CMO & Central Logistics
Head through BFM Central logistics. Marketing Finance will also coordinate with regional accounts to
understand feasibility from statutory point of view, requirement and availability of resources etc. if
required.
4.7.7 Central Logistics Head and CMO:

Central logistics head and CMO will approve the proposal or send back to the concerned with remarks
through BFM Central Logistics.
4.7.8 Process: Additional Activity

For opening a new warehouse, following process has to be followed for additional activity:
4.7.8.1 Selection of Warehouse space:

Regional Logistics will look for a suitable area for a suitable place in consultation with Regional
Accounts and Marketing SPOC. Marketing SPOC will provide assistance in finalizing the warehouse
space requirement, confirmation of the location of warehouse and communicating any special
marketing related requirements that may be there. The Warehouse agreement has to be vetted by
legal department before finalizing if any special legal conditions are to be complied with. Otherwise

a standard template duly approved by the Legal Dept. will be used with suitable modifications to
commercial and operational terms. (Refer Infra and Manpower requirement guidelines in Annexure)
4.7.8.2 Selection/Replacement of C&F Agent:

Regional Logistics will invite proposals for the C & F Agent and send the proposals with comparison
to BFM Central Logistics. BFM Central Logistics will analyze the proposal and send it to the Head-
Central Logistics for their approval. The C&F Agreement will have to be vetted by the Legal
Department. Working hours should be clearly mentioned in warehouse opening form.
4.7.8.3 Cost:
Break up of rates (fixed and variable) must be mentioned in both C&F or warehouse or a combined
proposal. In case of replacement of existing warehouse, comparison of existing and proposed
warehouse cost components must be mentioned clarifying increase/decrease in cost, component
wise.
4.7.8.4 Excise and Sales tax Registration:

Regional Accounts will take care of all the activities and fulfill all requirements for obtaining the
excise and sales tax registration with the support of Regional Logistics.
4.7.8.5 Bank Guarantee for Warehouse

For all types of warehouses, a BG is will be sought from warehouse operator for a period not less
than the contractual period. BG amount will be decided based on guidelines circulated from CLD
from time to time.
4.7.9 Deviation in Cost

In case of any deviations from approved proposal, new approval has to be taken for the revised
proposal, with necessary details clearly mentioned.
4.7.10 Time Limit

In the process of opening a new warehouse, it is required to follow the time limit strictly as mentioned
below:
4.7.10.1 Regional Logistics/Marketing SPOC should ensure that all the proceedings are completed within
21 working days from the date of initiation of proposal.
4.7.10.2 BFM Central Logistics should ensure that the entire proceedings are completed within 7 working
days from the date of receiving of proposal from Regional Logistics/Marketing SPOC.
4.7.11 Special Approval of CFO and MD

CMO / Central Logistics Head requires special approval from CFO and Managing Director, where
estimated cost of operating a warehouse is more than Rs. 10 lacs per month per premises or as per
extant DOA.
Note: WH infra and manpower guidelines to be referred in Annexure

4.7.12 Warehouse Opening Process Chart
Regional Logistics (RL) or Marketing SPOC

RL and Marketing SPOC will initiate the proposal for replacement warehouse
and new location warehouse respectively
Marketing SPOC
He will discuss with all concerned SBU heads /regional marketing for suitable
remarks/comments/inputs
BFM Central Logistics

BFM Central Logistics will foward proposal to Head Marketing Finance after
reviewing the same.
Head Marketing Finance

To analyse the godown opening proposal and send to CMO/Central Logistics
through BFM Central Logistics
CMO/Central Logistics Head

CMO/Central Logistics Head will approve the proposal
BFM Central Logistics

BFM will circulate to Marketing SPOC for records, Regional logistics for
operations, and Regional Accounts for compliance and payments

4.8 Warehouse Operations

4.8.1 Introduction
Hindalco warehouses for Aluminium Metal Business (outsourced), are located presently at 13 locations
across India, which will serve as independent facilities for receiving, storage, staging, and loading-out of
Finished Goods (Primary, FRP, Extrusions, Foils products) that have been dispatched for sale from various
Hindalco plants.
a) Objective
The Standard Operating Procedure (SOP) provides necessary instructions for warehouse operations and
further lays down structured guidelines for day to day functioning of the warehouses.
b) Scope and assumptions
The SOP is applicable to the below listed warehouses present in 13 locations across India and all other
warehouse coming up in future:
Warehouse Finished Goods supplied from various Hindalco plants

S. No. Region
location to these warehouses
1 North Delhi Primary - Renukoot, Mahan
FRP Taloja, Mouda, Belur, Renukoot, Hirakud FRP
Extrusions - Renukoot, Alupuram
2 North Faridabad Primary - Renukoot, Mahan
3 North Bhiwadi Primary - Renukoot, Mahan
4 North Ludhiana Primary - Renukoot, Mahan
5 East Kolkata Renukoot, Alupuram, Hirakud FRP, Belur, Taloja, Mahan,
(Domestic) Aditya
6 South Bangalore Primary Renukoot, Mahan, Aditya
FRP Taloja
Extrusions Alupuram, Renukoot
7 South Hyderabad Primary Renukoot, Mahan, Aditya
FRP - Taloja
8 South Cochin Primary Mahan, Aditya
FRP Taloja, Belur
9 South Chennai Primary Aditya, Mahan, Renukoot
FRP - Hirakud
Extrusions Renukoot, Alupuram
10 West Ahmedabad Primary Renukoot, Mahan, Aditya
FRP Taloja

Warehouse Finished Goods supplied from various Hindalco plants
S. No. Region
location to these warehouses
11 West Bhiwandi Primary Renukoot, Mahan, Aditya
FRP Belur, Hirakud
12 West Indore Primary Renukoot, Aditya
FRP - Taloja
13 West Dadra Primary - Renukoot, Mahan, Aditya
FRP Taloja, Hirakud, Belur
These warehouses will be under Regional Logistics Heads supported by warehouse coordinators for each
region.
The inbound transportation to warehouse shall be arranged by each Hindalco plant

Each warehouse will receive, store, and stage approved orders (Finished Goods) from respective
Hindalco plants for customer pick-up from the warehouse
For outbound goods movement from warehouse, the customer will provide own transportation for
order pickup from respective warehouses. In some cases, Hindalco may also provide transport to
dispatch the Finished Goods from the warehouse to the customer location and charge customer for
the same
4.8.2 Warehouse Operations

Central Logistics Department (CLD) will be the process owner to administer the warehouses and act as
the single point of contact with the service provider (Regional Logistics will functionally report to Central
Logistics). The Hindalco warehouses will be owned and operated by credible logistics vendors (service
provider) with significant experience in handling Aluminum Finished Goods. The performance benchmark
for operating the warehouses will be based upon a separate KPI dashboard shared with respective
warehouse managers and CLD.
4.8.2.1 Warehouse Functional Procedures

The warehouse facility will essentially be responsible for 3 major operational areas: receipt, storage
and dispatch of Finished Goods.
RECEIPT OF FINISHED GOODS

The material is off-loaded from the arriving trucks and confirmed against the plant dispatch
order
STORAGE OF FINISHED GOODS

The off-loaded material is stored in dedicated storage areas in accordance with product
specific instructions
DISPATCH OF FINISHED GOODS

The stored material is checked against the customer dispatch order and loaded on to the
transport vehicle

The aforementioned operational processes and related functional procedures have been detailed below:
a) Order identification and processing

Marketing will identify the demand for Aluminium Finished Goods (Primary, FRP, Extrusions, Foils)
and recognize the customers in a specific catchment area within the 4 domestic regions (North, East,
South, West)
Marketing will be entering Internal Sales Order (ISO).

Invoices will be generated by invoicing section and orders (FG) are loaded on to the transport vehicles.
The loading should be carried out by authorized plant personnel / operators using appropriate
material handling equipment (Crane, Fork Lift, Hydra) as applicable
Plant personnel shall be responsible for proper stacking of customer orders on the transport vehicle
and ensure that the customer orders (FG) are covered with high grade tarpaulin alongside adequate
lashings. Photographs of the truck and the loaded order will be taken by the plant personnel.
The customer order will thereafter be dispatched by the plant through the transport vehicle to the
identified warehouse or directly to the customer per order request.
Plant logistics will furnish details of dispatch orders to Regional Accounts (WBT within branch
transfer) at end of every month.
Flowchart for Order Identification and Processing
b) Transit Damage
The transport vehicles will arrive from the respective Hindalco plants to deliver the Finished Goods
(Primary, FRP, Extrusion, Foils) at respective warehouses
While off-loading the Finished Goods at the warehouse, if there is any visible damage (tarpaulin is
torn, Finished Goods are wet etc.), the details of the nature of the damage along with the truck

information (driver name, truck registration number, transporter name) and photograph of the
damaged goods will be captured on the Loading Report (LR) by the Warehouse Manager. The driver
signature will also be obtained on the LR this is important for the insurance claim in case of product
losses due to damage or accident.
All the aforementioned details will be sent by the Warehouse Manager (via email) to the Regional
Accounts, Regional Logistics, and Marketing by EOD or latest by the next working day.
The off-
inside the warehouse by the Warehouse Manager.
The insurance claim process will be followed by Regional Accounts thereafter.
Flowchart for Transit Damage
Receipt of goods at the warehouse
Finished Goods will be off-

warehouse personnel / operators using appropriate material handling equipment (Crane, Fork Lift,
Hydra) as applicable. Photograph of the truck (along with the Finished Goods) should be taken before
and after removing the tarpaulin cover
The goods will be weighed and confirmed against the plant dispatch order documents i.e. Loading
Report (LR), packing list, weigh slips, and invoice
In the case of a mismatch with the plant dispatch order documents or truck details, the
warehouse personnel should enter the discrepancies in the inward register and make a
discrepancy report to be sent to Marketing, Regional / Central Logistics, and the
originating plant
In case there is no mismatch, received goods entry details will be entered into the 1. Order
Management System (Oracle), 2. The inward RG register, 3. and the truck arrival register ( (with details
such as truck arrival time, unloading start time, unloading stop time, overall transit time)
The warehouse manager will sign-off the LR copy to acknowledge receipt of goods in OK condition

Flowchart for Receipt of Goods
c) Storage of Goods at the Warehouse

On receipt of Finished Goods, the goods will be marked with the invoice number for easy
identification and the warehouse personnel will proceed to move the material at designated storage
area per product type.
For recommended storage and handling instructions for the Finished Goods i.e. Primary, FRP,
warehouse.
The warehouse manager will conduct a periodic stock-take fortnightly (or whenever demanded) of
the inventory stored in the warehouse. The stock-take reports will be shared with Regional Accounts
and Regional / Central Logistics.
Regional Accounts will check for variance in the physical inventory and the system inventory. In case
of a difference, Regional Accounts and Regional Logistics will conduct an inquiry (warehouse visit) to
find the cause of the discrepancies and impose penalties (value of missing stock per invoice) on the
warehouse manager.
Physical verification of the stored inventory will be conducted by Regional / Central Logistics and
Regional Accounts as per pre-published plan (circulated in advance for each quarter). In case of any
significant non-compliance issues (incorrect storage, mismatch in physical and system inventory,
safety issues etc.), the Regional Accounts along with Central Logistics will conduct an inquiry to find
the cause of the discrepancies and penalties are imposed (value of missing stock per invoice) on the
warehouse manager if required.

Flowchart for the Storage of Goods
d) Dispatch of Goods from the Warehouse

Marketing will allocate the customers for order dispatch and inform the same to the warehouse
manager by email. The warehouse manager will receive the shipment number from Marketing and
confirm on the same.
Marketing will intimate the customer for loading the requested Finished Goods order on to the
Goods from the warehouse to the customer location and charge customer for the same.
receiving area for the loading of Finished Goods. The warehouse manager will record the truck
arrival and dispatch in a truck detention register and send the same to Regional Logistics on a daily
basis by email.
An invoice will be generated from the Order Management System (Oracle) by the warehouse
manager. He will further check the same against the original plant invoice and other documents:
packing list, weigh slips and LR.
In case of a discrepancy with the invoices, the warehouse manager will inform Regional Accounts of
the same. Regional Accounts will cancel the invoice and inform the excise department of the same
within 24 hours.
Marketing will again allocate the customers for dispatch of the customer order and generate a new
invoice within 24 hours.
In case there is no discrepancy, the warehouse personnel will load the Finished Goods on the truck(s)
using appropriate material handling equipment (Crane, Fork Lift, Hydra) as applicable. Any tarpaulin
cover / lashings (or lack of it) should be recorded along with a photograph on the LR copy.

The Warehouse manager will sign-off the LR copy to acknowledge dispatch of goods in good
condition.
Additionally, the warehouse manager / Marketing should ensure that the customer picks up the
order as per the requested order pick up date. In case of non-compliance of the pick-up date,
Regional Accounts / Marketing should initiate procedure of imposing penalties on the customer as
applicable.
Flowchart for Dispatch of Goods from the Warehouse
e) Sales Returns from the Customer

In case the customer is not satisfied with the quality of the Finished Goods dispatched from the
warehouse, the customer may lodge a complaint directly in the CRM database or inform Marketing
who will log the complaint in the CRM database.
Marketing will assess the nature of the complaint lodged in the CRM database, inform Regional
(accept or reject complaint):
Depending upon the extent of Finished Goods damage / quality issue, the customer may be asked
by Marketing to use the goods
If that is not the case, the customer may want to return only a part of the consignment that is
damaged and retain the rest, or the entire consignment. Hindalco will bear the cost of transport
of these damaged goods back to the respective warehouse subject to approval by Marketing.
The warehouse manager will accept receipt of rejected goods against the invoice and off-load the
goods (per standard off-loading instructions) to store them in a separate demarcated area for
rejected goods within the warehouse

The warehouse manager will prepare a Rejection Goods Report and send it with scanned copy of
invoice to Marketing, Regional / Central Logistics, and Regional Accounts within 24 hours of the
receipt of rejected goods.
The returned rejected material by the customer will be manually entered into the Order
Management System by the warehouse manager to match the book stock and physical stock
The originating plant will arrange for transport of the rejected material back to the originating plant
from the warehouse. In case of small volumes, rejections may be accumulated to form truck load and
then the same will be transported to the originating plant within 15 days of receipt of rejected goods.
In the case the rejections volume is small and sending the same to originating plant involves
significant costs, the rejected materials may be sent to nearest the plant by following below
mentioned procedure:
Marketing will initiate note for approval along with cost benefit analysis (in consultation with
Regional Logistics if required)
This will be vetted by Regional Accounts
Final approval will be done by CMO
Approved note will be sent to Regional / Central Logistics for transporting the rejected
materials
MIS on rejections will be provided every month by Regional Accounts to Marketing and Regional /
Central Logistics for necessary action
Flow chart for Sales return from the Customer

Sales Return from the Customer
Process Owner :
Complaint registered in
Start
the CRM database
Customer agrees to
retain the entire order
Nature of complaint assessed

Customer returns a part of the
and next course of action
consignment that is damaged
decided (accept or reject
and retains the rest
complaint)
Customer returns the

entire consignment
In case the sending of small rejection

Rejected goods report sent to
Returned rejected goods off- volumes to the originating plant
Marketing, Regional / Central
loaded at the respective involves significant costs, the
Logistics, and Regional Accounts
warehouse and stored in the rejected goods from the warehouse
within 24 hours of receipt of
may be sent to nearest plant
rejected goods from customer
following appropriate approvals
Rejected goods transported back to the

Rejected material transported back to originating plant from the warehouse. In
the originating plant directly from case of small volumes, rejections
customer location in case of Finished accumulated to form a full truck load and
Goods sales directly from the plant then dispatched to the originating plant

4.9 PACE Matrix

4.9.1 Warehouse Management
CLD Regional Mktg Regional Mktg
Activity Sub Activity CLD RLD ULD CMO
Head / Mktg SPOC Accounts Finance
Plan for replace/ new
warehouse
A* C P,E P A*
/ Renewal of existing
warehouse
Techno-commercial
P E C C
Evaluation
Scope of work- Technical/
commercial A P,E C C
Warehouse / Safety/statutory
Management Commercial Compliance &
P,E A,C
Statutory Requirements
Negotiation C P,E P,E C C
Approval of Contract Proposal A* C P,E A* C
Release of Contract C P,E C C
Performance monitoring C P,E C E
Accounting and Payments C P,E A
Disposal of rejected FG C E E P A C

5 Interplant (Metal, Alumina, Anode)

5.1 Alumina
5.1.1 Objective
Alumina is the basic input material of Smelter, which is required for production of Aluminium metal.
Alumina is sourced from two refineries of ABG viz. Utkal Alumina and Hindalco, Muri. The primary task
of the team is to bring alumina cost effectively from these Units through the available modes of
transportation viz. BTAP, BOXN, Truck, Multimodal and Bulkers. The primary focus should be on
availability of each of these modes, quantity to be transported and how maximum quantity can be
transported using the least cost mode.
To establish and maintain documented procedure for Alumina Navigation.
5.1.2 Scope
Applicable for sourcing of Alumina from different ABG refineries.
Responsibility for ensuring implementation, maintenance and amendment of this procedure rests with
HOD Warehouse, Logistics and Stores in respective Units
5.1.4 Planning
5.1.4.1 Navigation Plan for Alumina
The P&B provides the overall alumina requirement for the year, on the basis of projected
production of metal and specific consumption.
The Reduction plant provides rolling plan for the next quarter at the month end, on the projected
alumina requirement, on the basis of projected metal production to the Logistic and the Central
Logistic team.
sale and Export

Central Logistics allocates the total alumina production among various units
Central Logistics also specifies the quantum to be sourced from either of the refineries, Utkal
and Muri, the mode of transportation (including bulk & bag mode) to be adopted.
5.1.4.2 Planning for Transportation Facility

Each of the mode of transportation viz. Truck, Bulker, BOXN, Multimodal and BTAPs have limited
capacity, availability and differential operational cost. The transportation planning rests on the
fundamentals of optimization of operating cost, maximizing delivery and minimizing transit wastage.
While BTAPs are owned by Hindalco, other modes are outsourced.
5.1.5 Road & Rail Transportation

5.1.5.1 Road Transportation
Road transportation happens through Truck and Bulker

Truck: Used for transportation of Alumina packed in bags. This mode is limited by availability. Transit
losses are the most in this mode. Cost of transportation is moderate.
Bulker: Bulkers are bogie tanks on road. After BTAP, these are the best mode to transport alumina
in loose condition. Bulkers are limited by availability and transit time. Since such tankers are required
to be operated in close loop, only dedicated vehicles are required to be deployed. Transit loss is
minimal in this case and cost of transportation is the highest.
5.1.5.2 Rail Transportation
Rail transportation happens either through privately owned BTAP wagon rakes or through railway
owned BOXN rakes for Bulk movement of Alumina:
a) BTAP: Privately owned Bogie tank wagons are the best mode of Alumina transportation in loose
form, with least cost and wastage. Limited by number of rake availability.
b) BOX N: These are railway owned open top BOX wagons, with freight cost higher than BTAP but
lower than other modes. It is available in plenty. It is used for transportation of bagged alumina
in bulk quantity. BOXN transportation can be used in two ways.
(i) Direct to Plant: Safest mode of transportation at moderate cost. Least possibility of wastage
and contamination. Since there is no transshipment, no wastage due to multiple handling.
(ii) MM (Multi Modal): Can be used when use of the company owned siding is restricted by the
Railways. It involves transshipment at some intermediate location and moving the same
through trucks to the plant. Cost is high and transit loss could be substantial.
5.1.6 Dispatch and Monitoring

5.1.6.1 Central Level
1. Daily reporting of dispatch and receipt at units and inventory levels at receiving & dispatching
plants
2. Rake movement planning
3. Rake maintenance (PME) scheduling at the railway facility
5.1.6.2 Unit Level
1.
department and the transporters deployed at each locations
2. Escalate or de-escalate dispatch in tune with navigation plan, month to date dispatch quantity
and to meet any navigational deviation from other unit
3. Monitor inventory at trans-shipment points
4. Monitor placement of BOXN rakes by the service provider
5. Coordinate with rail coordination on placement of BOXN rakes at the yard
6. Monitor placement of BTAP rake by the supplying plant
7. Rake coordination at unit level
8. Ensure minimization of dead weight and full rake formation (51 wagon)
9. Super structure maintenance for nominated rakes for BTAP rake
10.Ensure timely release of rakes to avoid demurrage

5.1.7 PACE Matrix

5.1.7.1 Alumina Navigation
Head Rly CLD - ULD - Rly Chemical
Head Unit
Activity Sub Activity MD CLD & Alumina Traffic Operation Bus. Mktg
ULD Head
Navigation Mgr s Head
Rake Plan A P,C
Navigation Road Plan A P,C
Plan Export A C P C P P
Third Party Sale P,C A
Rake Placement and shunting E C
Loading / Unloading of Rake E C C
Execution -
Release of Memo C E
Rake Plan Weighment E C
Rake Evacuation & Transit C E
Arrival at Unloading plant C E
Order Booking A C P,E
Execution - Selecting the mode of transport A C P,E C
Export Loading at Plant C P,E C
Arrival at Port and unloading E C
Loading of Vessel E C
Execution - Bulker Deployment C E
Road Bulker loading, Unloading, transit
E,C
and weighment
Contract with maintenance
C P,E A
contractor
Periodic Maintenance of BTAP as
Maintenance per Railway schedules C P,E
Repair & Maintenance of Super
Structures of BTAP by owning C E P
units
Rake Plan A P,C
Navigation Road Plan A P,C
Plan Export A C P C P P
Third Party Sale P,C A
Rake Placement and shunting E C
Loading / Unloading of Rake E C C
Execution -
Release of Memo C E
Rake Plan Weighment E C
Rake Evacuation & Transit C E
Arrival at Unloading plant C E
Order Booking A C P,E
Execution - Selecting the mode of transport A C P,E C
Export Loading at Plant C P,E C
Arrival at Port and unloading E C
Loading of Vessel E C
Execution - Bulker Deployment C E
Road Bulker loading, Unloading, transit
E,C
and weighment
Contract with maintenance
C P,E A
Maintenance contractor
Periodic Maintenance of BTAP as
C P,E
per Railway schedules

Head Rly CLD - ULD - Rly Chemical
Head Unit
Activity Sub Activity MD CLD & Alumina Traffic Operation Bus. Mktg
ULD Head
Navigation Mgr s Head
Repair & Maintenance of Super
Structures of BTAP by owning C E P
units
All approval related to financial values will be as per DOA
Mgr Manager; Mktg Marketing; Rly - Railways

5.2 Metal
5.2.1 Planning for Despatch
Interplant movement plan is the basis for despatches.
The Interplant movement plan is prepared by Central Planning Dept. in consultation with CLD on
a monthly basis at the month beginning. It is re-visited around 20th of the month to accommodate
variations.
The Interplant movement plan mentions the type of material, volumes & destination
Material is moved by road.
Unit Logistics then arranges for the trucks based on the Interplant movement plan.
5.2.2 Road Transportation

Truck requisition is sent to transporters by mail/SMS/phone after confirmation of all orders from
marketing department.
In case the waybill is not available then customer /MHO is informed in advance.
Follow up with transporter is being done to ensure placement of 100% vehicles.

Truck Allocation for next day: Transporter who performs/ provides almost 100% placement
gets more allocation of Order for the next day.
5.2.2.2 Truck Entry inside Plant

Documents include RC copy, DL of driver, Transporter's Challan, Chassis no, Engine no & Tool
list of truck.
details, Insurance Details, Pollution details, RC copy etc. All details are then cross checked by the
security personnel present.
Gate entry is done in Oracle at the Main gate
Initial weighment slip (tare weight) of each truck is collected & captured in Oracle through
Weighing scale itself
For any emergency, chassis no & engine no of the entering truck are cross checked on the



taken/documented.
Allocate metal considering the tare weight of the truck , so that the Gross Weight of the Loaded
Truck does not exceed total of approx. 40.2MT for Trailers, 31 MT for 12 Wheelers & 25 MT for
10 Wheelers.
Gross weight & Tare weight is cross checked in the RC book.
Group FG (Finished Goods) after all relevant data are provided in the Delivery grouping in Oracle.
Loading slip contains destination, transporter name, truck no, cast no, grade, production wt. etc.
satisfying the maximum safe bearing load (tare weight+ material weight) of the provided truck.
Weight of FG loaded is compared with Loading slip & physically adding the weights mentioned in
each lot.
Once the trucks got loaded with required materials, then these must be parked at the parking
areas as identified.
5.2.2.4 Invoicing
Upon completion of Loading of FG, Truck goes to the Weighbridge to get the Gross weight. LR
no. / Consignment note no. required is provided by transporter.

Upon receiving of Gross weight, Invoice is generated from Oracle. For rake, Gross weight & Net
Truck Checklist is prepared by Unit Logistics and checked by Shift in charge & Security.
Print outs of Invoice, Test certificate & Loading slips are taken.
Head-Warehouse checks all the papers.

Following data are checked at Main Gate:
a. Quantity mentioned in Invoice & Loading slip is cross checked with Actual material loaded on
truck
b. Actual material loaded is determined from the weighbridge slip having Tare weight, Net
weight & Gross weight.

c. Signed Truck Checklist.
d. Whether Transporter Stamp is there on the LR copy.
e. Customer name mentioned in Invoice is same as that in LR.
f. Waybill is valid & signed (Party name, Vehicle no, Invoice no).
g. Vehicle no is same as that mentioned in Invoice & Weighbridge slip.
If any discrepancy is found in any of the above data, then the discrepancy cause should be
investigated, addressed / escalated to next level and documented.
Departing of the Truck is done through Oracle & then released from Main Gate.
Copy of Gate entry pass, Invoice, Truck checklist, Loading slip, weighbridge slip & LR is kept at
5.3 Anode
Standard Practice for Anode from Aditya By Road for Hirakud
Pre-Baked Anodes are required at Pot room.

Fundamental Inputs are taken from User (E.g. Quantity, Origin, Type of packing).
Based on target set, truck requisition is sent to transporter and follow up done for placement of
truck.
Movement of the truck is regularly followed. Transporter sends tracking report of the truck.
5.3.1 Bill Payment

Bills are submitted against the transportation done to Stores department.
Documents submitted along with bill are:
o Proof of Delivery (POD).
o PO copy to indicate quantity & rate.
SRN is generated & forwarded to F&A for further processing.
Deduction is also checked against higher Transit period or Short-receiving of material

6 Sourcing & Contracting

6.1 Sourcing
6.1.1 Objective
To ensure a comprehensive and transparent logistics sourcing & contract management process in line
with the business objectives; which provides a framework for contract creation, execution and analysis
to improve operational and financial performance, while mitigating risks for the organization.
Develop and institutionalize the use of standardized contract management tools for better enforcement
of the contract conditions for mutual benefit.
6.1.2 Key Deliverables

Standardized contractual terms for all logistics contracts
Ease of monitoring of the agreed terms
Development of MIS related to costs and service elements
6.1.3 Scope
This is applicable to all logistics contracts including handling, transportation and other service contracts
like surveying, inspection, escort and inspection services including turn-key contracts.
(PACE stands for Plan, Approve, Control and Execute)
This excel document clearly defines at base level the role of individuals in planning, approving, controlling
& executing an activity or a sub-process.
Process MD/CEO Plant Head - Financial Plant Port Plant

Logistics Central Controller Head Logistics commercial
Logistics Head
Approved list of P,E A C P,E C
Vendor
RFQ process P,E C P,E C
Bid evaluation and P,E A C P,E P,E
Negotiation
Award of contract A P,E A C A P,E
Note: The approval will be based on the financial limits as mentioned in the DOA.
6.1.5 Sourcing Strategy

6.1.5.1 CLD will prepare strategy & decide timelines for taking procurement action on
annual/quarterly/half yearly /spot basis based on market conditions, in consultation with CPC
and Marketing.
6.1.5.2 Possibility of entering into long term off-take agreements will be evaluated on an ongoing basis.
6.1.5.3 Endeavor will be to negotiate with vendors on long term basis to maximize benefits of
economies of scale. Price may be fixed or variable with price linked to any transparent index.
6.1.5.4 CLD may decide to finalize orders on periodic/spot basis in following cases:-
Where vendor is not willing for annual contract due to high volatility of market conditions.

Where CLD feels there is scope of procuring it on spot basis at better prices due to volatility
in market conditions which makes it difficult to have a transparent & fair index for reference.
6.1.5.5 In case of imports / exports, possibility of confirming shipping contract in the currency of
country of export/ import vis-à-vis US Dollar will be evaluated in conjunction with Risk
Management Cell.
6.1.6 Request for Quotation (RFQ)

6.1.6.1 RFQs will be sent by emails only.
6.1.6.2 RFQ will be sent in standard formats
6.1.6.3 RFQ will be sent to all approved vendors.
6.1.6.4
idea of the latest market trend.
6.1.6.5 In case of emergencies, decision can be taken in the best interest of the business to float RFQs
to restricted number of vendors who could be any of the 3 categories (identified / empanelled
/ approved). However, the reasons/justifications for the same will be documented.
6.1.6.6 Record of RFQs sent will be maintained in system.
6.1.6.7 Vendors will be asked to send offers by email on a defined email id only.
6.1.6.8 Every enquiry will have only one last date of receipt of quotation from vendors.
6.1.6.9 The RFQ should also include all applicable terms & conditions including type of vehicle required,
type of packing, fuel escalation terms, delivery time etc. (Refer section 6.2.1 Content of
Contract Agreement)
6.1.6.10 Follow-up will be done to receive all offers within the due date. If sufficient offers are not
received by due date, extension of due date will be communicated by email to all vendors. If
sufficient techno- commercially acceptable offers are not received, enquiries may be sent to
additional vendors.
6.1.6.11 In times of short lead time, and/ or non-availability of suitable alternatives, negotiations may
be held with those vendors only who has responded, provided they qualify technically
6.1.7 Receipt of Offers

6.1.7.1 Offers will be received by emails to the defined email address only. Vendors may send hard
copies in sealed envelope at their option. Obtain minimum three technically acceptable
quotations from mutually unrelated approved vendors
6.1.7.2 CLD/RLD/ULD should, wherever possible, seek written reasons/acknowledgements from
vendors in cases where they do not wish to participate/abstain from the tendering process.

6.1.8 Negotiations
6.1.8.1 Negotiations will be initiated after all offers are technically at par. If all vendors cannot be
brought technically at par & negotiations still have to be done, reasons for the same will be
mentioned in the approval note. Wherever possible negotiations will be jointly done with ABG
group companies to leverage on volumes
6.1.8.2 Negotiations will be carried out either by e-mail, telephone, meetings or by adopting e-auction
process (refer annexure for guidelines). Vendors will give their final offers by e-mail. In case of
face to face negotiations, if vendor is able to give final price during negotiations, the same will
ve who has come for
negotiations.
6.1.8.3 Final negotiations will be taken up with vendors after getting required inputs from CPC
pertaining to inbound and Marketing on outbound movement.
6.1.8.4 Break up of negotiated price to be clearly mentioned.
Note: Negotiation for road transportation shall generally include current diesel price, distance, and
comparison on pro-rata basis, return load from destination, route followed in specific cases etc.
6.1.9 Bid Evaluation

6.1.9.1 Bid evaluation sheets will be prepared in excel & copy of final evaluation sheet after
incorporation of negotiated rates will be attached with approval notes.
6.1.9.2 Bid evaluation sheets will include the following:-
Quoted & final negotiated rates for each vendor
Final negotiated rates with break-up of all costs
Cost will be worked out considering forward exchange rate of the respective currency in
the month when payment is likely to fall due.
6.1.10 Approval Process & Award of Contract

6.1.10.1 Decision to place orders either on single or multiple vendors will depend on the volumes
required & offered. The share of business amongst the multiple vendors will be decided based
on the past performance, present capability and the party offering lower prices first.
6.1.10.2 The endeavor will be to finalize orders on L1 basis. In case of multiple vendors, all vendors will
be asked to match L1 rate.
6.1.10.3 If order is finalized on any vendor other than L1 vendor, proper justification will be given in the
approval note.
6.1.10.4 Approval note will include the following:-
a) Material type & dimensions (as applicable)
b) Scope of work
c) Initial & final quote
d) Plant(s) to be serviced
e) Annual volumes as per P&B
f) Volumes being ordered
g) P&B rate for relevant period

h) Comparison with benchmark (Rates negotiated by competitors/other big buyers and/or
published indices), wherever possible.
i) Bid evaluation sheet
j) Detention charges, Distance, Guarantee weight
k) Payment Terms
l) Quarterly Rolling plan(s) for the month
m) Recommendations
n) Justification(s) for deviation(s) from Sourcing Manual, if any
o) Mention details of joint negotiation with other ABG companies if applicable
6.1.10.5 In case of market volatility, the negotiation team will give an in principle consent to the most
competitive vendor(s) after taking offline clearance from Approving authority as per DOA. This
is because any delay in order confirmation to vendors post negotiation brings in a loading factor
on price to accommodate for the perceived volatility. Approval note will be initiated & approved
as per extant DOA.
6.1.10.6 Any amendment/addendum required will also be governed by the extant DOA
6.1.11 Purchase Order (PO)

6.1.11.1 CLD/Regional Logistics (RLD)/Unit Logistics (ULD) will release the PO/MoU/LOI and maintain all
required documentation
6.1.11.2 Vendors are required to provide acknowledgements/acceptance for all MoU/LOI so on an
immediate basis within 7 working days. CLD /Regional Logistics (RLD)/Unit Logistics (ULD) will
ensure its compliance and communicate to all concerned at regional and unit level.
6.1.11.3 All warehouse agreements will be signed by Head CLD
6.1.12 PO/LoI/MoU Amendments

6.1.12.1 A PO/LOI/MoU may need to be amended in following circumstances:
If the vendor request the company for a price change. Supporting to be provided.
Change in taxation structure or any other incidental statutory charges applicable.
Supporting to be provided.
6.1.12.2 Amendment to be initiated by RLD/ULD for approval by officials who had approved the original
PO/LOI/MOU.
6.1.12.3 If applicable corresponding amendment in PO/LOI/MOU would be required at the respective
plants.
6.1.13 Delegation of Authority

The delegation of authority will be as per the extant DOA

6.1.14 Roles, Responsibilities & Timelines
S. No. Activity Responsibility

1 Selection of vendors for floating enquiry RLD/ULD
2 Floating of enquiry for next requirement RLD/ULD
3 Due date for offers RLD/ULD
4 Evaluation of offers RLD/ULD
5 Negotiations with vendors RLD/ULD
6 Move approval note RLD/ULD
7 Approval of the proposal Approving Authority
8 Confirm order to vendors after approval RLD/ULD
Table 1
The final order confirmation to vendors should be within 14 working days of bid opening date. In case of
single vendors this period will be 21 working days. Beyond this period, the approval for extending the
processing period to be obtained from CLD with necessary supporting justification/s.
6.1.15 Negotiations & Purchase Order Flow chart

6.2 Contract Management

6.2.1 Contract Administration
Contract administration will require appropriate resourcing and should be the responsibility of a
nominated individual. If not, and the responsibility should be shared across a contract Management
team, it is important that all members of the team deal promptly with contract administration tasks,
particularly during the early stages of implementation.
The procedures that combine to make up contract administration are as follows:

Contract maintenance and change control
Charges and cost monitoring
Ordering procedures
Payment procedures
Budget procedures
Resource management and planning
Management reporting
Asset management
These procedures will need to be designed to reflect the specific circumstances of the contract and the
organization.
6.2.1.1 Contract Maintenance

Keeping the contract documentation up to date is an important activity. It should be ensured that
the contract is sufficiently flexible to enable changes to the requirement and pricing mechanism
within agreed parameters without needing to change the contract documentation.
Keep the contract documentation up to date and ensure that all documents relating to the
contract are consistent, and that all parties have a common view.
For a large or complex contract, or a situation where a number of Service Level Agreements
(SLAs) are covered, a formal document management procedure is critically important; some form
of change control procedure is needed for all contracts.
The document management principles should involve:

Identifying all relevant documentation (including contract clauses and schedule, SLAs,
procedures manuals etc.)
Change control procedures, and ensuring no changes are made without appropriate
authorization
Recording the status of documents (current/historic, draft/final)
Ensuring consistency across documents
New service descriptions and/or SLAs will have to be produced for any services that are introduced
during the life of the contract.
existing services for example the creation of a new business unit that is still supported by the
departmental contract the contract must be reviewed and revised as necessary.

The contract manager should act as the interface between the service provider and the rest of
the organisation in handling requests for incorporating new requirements into the service
contract.
A preliminary investigation into the new requirement, possibly with the assistance of the service
provider, is required to determine whether it should go forward in the formal change control
procedure.
It is particularly important that additional demands on the service provider should be carefully
controlled. In many cases orders for services may only be submitted through the contract
manager. In other cases, especially where budgets are delegated, business managers may have
authority to submit orders within specified budgetary and technical constraints.
Formal authorization procedures should be followed to ensure that only those new requirements
that can be justified in business terms are added to the service contract.
6.2.1.2 Change Control

Changes to services, procedures or contracts may have an effect on service delivery, on
performance, on costs and on whether the contract represents value for money. So the specification
and management of change control is an important area of contract administration.
Change control procedures should be included in the contract.

The respective roles and responsibilities of both parties in the change control process must be
clearly identified, along with the procedures for raising, evaluating, costing and approving change
requests.
A single change control procedure should apply to all changes, although there may be certain
delegated or shortened procedures available in defined circumstances such as delegated
budget tolerance levels within which a contract manager would not have to seek senior
management approval. However, flexibility needs to be built into this procedure to deal with
issues such as emergencies.
A change control procedure should provide a clear set of steps and clearly allocated
responsibilities covering:
o Requesting changes
o Assessment of impact
o Prioritization and authorization
o Agreement with provider
o Control of implementation
o Documentation of change assessments and orders.
Responsibility for authorizing different types of change should be well defined and documented
internal procedures will need to reflect this.
In particular, changes to the overall contract, such as changes to prices outside the scope of
agreed price variation mechanisms must have senior management approval as per Delegation of
Authority.
6.2.1.3 Management Reporting

Management reporting is very important to determine the performance of the contract.
Some of the key points in management reporting are:

Requirements for Contract performance reports and Management Information should have been
defined before and during contract negotiations, and confirmed during the transition period of
the contract.
attention is focused on areas that need it most.

The ability to access detailed performance figures should be available to facilitate trend analysis
and investigation of exceptions.
The contract manager may be required to provide additional quarterly or annual reports on the
service to concerned end users.
6.2.1.4 Asset Management

If ownership of assets used in the delivery of services is retained by the Hindalco, then Hindalco will
have responsibility for those assets. In many cases day-to-day management of assets will be carried
out by the service provider, but the contract manager should ensure that:
-to-date
Any third party use of assets is recorded (for example if the service provider is able to deliver
services to other customers)
Upgrades and replacements are planned and budgeted for
The contract manager should be responsible for liaison with the service provider on administration,
upkeep and maintenance of assets.
If the ownership of assets is by the service provider, then the responsibility of assets will remain with
the service provider.
6.2.1.5 Checklist applicable for tenders

Tender documents to be ready before inviting tenders
Notice inviting tenders

Standard form of tender
Complete scope of work
Schedule of quantities of work
Essential drawings (If applicable)
Information to be provided in notice (indicative)
Qualifications
Name
Earnest Money Deposits (EMD)
Security deposit
Time limit
Cost
Mode of submission
Date, time and place of opening tenders
Selection criteria
6.2.1.6 Award of Contract

After the completion of the tendering process the contract is awarded. The following are important
elements:

Letter of Intent/Purchase Order

Mode of Communication
Date of Acceptance
Revocation of Acceptance
Rejection of Tender
6.2.1.7 Contents of Contract Agreement

The basic contents of a contract agreement are listed below:
Definitions
Parties to the contract
Scope of Work
An agreed level of service
Schedule of list of work or items of work
General Conditions (Health & Safety, Statutory compliance, limit of liability, Insurance cover,
Indemnity, Force Majeure, Conduct of Contractors employees, )
Special Conditions
Specifications
Service Quality levels
Notice of Tender, Correspondence to acceptance and letter of acceptance
Pricing mechanisms, Taxes
Contractor incentives, penalties
Payment terms
Bank Guarantee (BG)
Contract timetable
Means to measure performance
Documentation, Service sheet, certification
Communication routes
Escalation procedures, Arbitration, Jurisdiction
Change control procedures
Transfer and Sub-contracting
Confidentiality, Intellectual Property
Agreed exit strategy and agreed break options
All the other formal mechanisms that enable a contract to function
6.2.1.8 Contract Risks Assessment

Many risks involved in contract management relate to the service provider being unable to deliver or not
delivering to the right level of quality. These could include:
Lack of capacity
Key staff on the service provider side is redeployed elsewhere, eroding the quality of the service
provided
ess focus moves to other areas after contract award, reducing the
added value for the customer in the arrangement
their ability to maintain agreed levels of service.
The arrangement may include some agreement on how the provider will replace key staff and/or assets,
including giving the customer some input into the process of selecting replacements.
They include:

Demand for a service is much greater than expected and the provider cannot cope
Demand for a service is too low, meaning economies of scale are lost and operational costs are
disproportionately high
Force majeure: factors beyond the service
premises cannot be accessed because of a natural disaster
make the arrangement a higher or lower priority or change the level of demand for the service
Where risks are perceived or anticipated, Hindalco and service provider should work together to decide
who is responsible for the risk, how it can be minimized and how it will be managed should it occur.
6.3 Vendor Relationship Management

6.3.1 Objective
To ensure a comprehensive vendor engagement process in line with business objectives which provides
a framework for contract monitoring, improvement of vendor performance leading to vendor
engagement score development.
6.3.2 Scope
This is applicable to all logistics suppliers including handling, transportation and other service contractors
like surveying, inspection, escort and inspection services including turn-key contracts.
6.3.3 Responsibility (PACE stands for Plan, Approve, Control and Execute)
Plant
Plant Head - Financial Plant Port
Process Commercial
Logistics CLD Controller Head Logistics
Head
Supplier engagement
P, E A, C C P, E C
parameter identification
Communication to Supplier P, E C P, E C
Proactive measures to
P,E A C P.E P,E
improve Scores
Review of Supplier
P,E C C A P,E C
performance
Monitoring of
P,E A C P, E C
Improvement Measures
Yearly meet of suppliers P,E A, C C P,E C
6.3.4 Vendor Evaluation

6.3.4.1 Vendor Management Procedure
A formal vendor registration process to be completed for all vendors as defined herein below &
Vendor Evaluation Form (VEF) to be filled by all new vendors being registered.
There will be two sets of vendors as under:
a) Empaneled Vendors
b) Approved Vendors

6.3.4.2 Empaneled Vendors

6.3.4.2.1 New vendors must fill the Vendor Evaluation Format (VEF), so that they can be evaluated for
empanelment.
6.3.4.2.2 New vendors can be identified by any of the following ways:
a) Reference by User Units, CLD, CPC and Group Companies.
b) Internet search
c) Standard web site/portal for the vendors to indicate their interest and provide details of
areas / commodities
d) E-auction / services offered by service providers
e) Advertisements in the media
f) Conferences, Seminars, Exhibition, Trade Shows
g) Through Industrial finders & magazines
h) Personal networking of any official.
6.3.4.2.3 Decision to include vendors in empaneled list will be based on the information provided in
the VEF.
6.3.4.2.4 The empaneled vendors are eligible for trial orders.
6.3.4.2.5 VEFs for vendors are attached as per Annexure
6.3.4.2.6 The criteria for empanelment of vendors includes:
a) Capabilities & available resources
b) Government authorized/registered/approved
c) Statutory compliances all relevant tax registrations, labor and industrial laws etc.
d) Customer references (outside Aditya Birla Group)
e) Financial Strength - capital employed, revenues, assets, bank approved etc.
f) Market Reputation & Position - No of customers and size of total business, our share
of business
g) Competency to service
h) Services to Aditya Birla Group
i) Related Party (Refer Annexure)
Note: Units must determine the weightage and qualifying criteria for each of the above in consultation
with CLD and document the same.

The list of activities are as below:

1 Periodic scan for new vendors RLD/ULD/Port Logistics
2 Preliminary screening RLD/ULD/Port Logistics
3 Send VEFs to selected vendors RLD/ULD/Port Logistics
4 Follow up and get VEF s duly filled in RLD/ULD/Port Logistics
5 Get scanned copies of the certificates, licenses etc. RLD/ULD/Port Logistics
6 Verify all required details as per VEFs RLD/ULD/Port Logistics
7 Get missing information / details RLD/ULD/Port Logistics
8 Evaluate based in the data provided and recommend for RLD/ULD/Port Logistics
inclusion in list of empaneled vendors, if qualified
9 Document reasons if vendor does not qualify for empanelment RLD/ULD/Port Logistics
10 Approve as empaneled vendor Head-CLD
etc. to be done.
The list of activities for conducting vendor visits:

1 Decision to inspect facilities of vendors Head-CLD/RLD/ULD
2 Prior intimation to be given to vendors about the purpose of CLD/RLD/ULD
visit
3 Explain the importance of their service in our operation Visiting team
during vendor visit
4 Check all parameters as per our check list during vendor visit Visiting team
5 Check all certifications, licenses etc. and collect verified Visiting team
copies of the same during vendor visit
6 Evaluations to be done based on check list CLD/RLD/ULD

6.3.4.3 Vendor Empanelment Flowchart
6.3.4.4 Approved Vendors

6.3.4.4.1 Will be those vendors who are finally selected and approved after their performance in trial
orders based on criteria like quality of service or after their performance is found satisfactory
for a period of 3 months.
6.3.4.4.2 These vendors would be eligible to get enquires for regular business
6.3.4.4.3 Vendors will be assessed on the following criteria before inclusion in approved vendor list:-
a) OTIF
b) Price
c) Responsiveness
d) Quality of service (damages etc.)
e) Cost reduction
f) Safety compliance
g) Documentation timeliness and accuracy
Note: Units must determine the weightage and qualifying criteria for each of the above in consultation
with CLD and document the same.
6.3.4.4.4 If found suitable, vendors will be included in approved vendor list after approval by Head CLD
6.3.4.4.5 The list of approved vendor will be updated on a quarterly basis and synchronized with vendor
performance rating.
6.3.4.4.6 Exceptions:
6.3.4.4.7 In case of emergencies, orders can be placed on empaneled vendors with approval of Head
CLD. Reasons for the same will be explicitly mentioned in approval note.

6.3.4.5 Approved Vendor Flowchart
Process for approval of vendor
Process Owner : Head CLD
Approve
Yes
No Yes
Empanelled
Vendor No
Database
Trial order to be Qualifies as per Recommend? No Record the reasons End

Start No
given? VEF?
Yes
Coordinate for Prepare proposal for Include in Approved Approved

Receive plant report
samples, Yes vendor registration vendor central Vendor
and document
specifications etc as approved vendor repository Database
Supply as per trial

Yes
order
No
Receive sample
Quality passed?
material and check
6.3.4.6 Vendor Review

RLD/ULD will carry out vendor review as below:
6.3.4.6.1 Performance: This will be based on the inputs (including vendor rating) provided by plants,
CPC and also assessment by CLD.
6.3.4.6.2 Vendor performance will be reviewed at least quarterly and feedback will be provided to
vendors for improvement/development. Vendors not performing for consecutive 3 quarters
will be processed for removal from Approved list to Empaneled List.
6.3.4.7 Vendor Performance Rating

Vendor performance rating to be conducted in line with Hindalco Vendor Rating parameters as
mentioned below:
Monthly % volume of truck against target if applicable

Timeliness of service
Damages/shortages caused to material
Documentation conformance & correctness (Ex: LR or bill correctness)
Customer & Internal Complaint
Response to requirement example, % of refusals
Value added service provided (say in-transit tracking information)
Adherence to all Safety & Statutory rules that are to be followed inside plant.
Attitude & behavior of Transporter representative.
Respective plants/users should send vendor performance report quarterly (say in the first
fortnight of every quarter) to CLD/RLD.

6.3.4.8 Vendor Blacklisting

6.3.4.8.1 Definition of Blacklisting: Vendor becomes ineligible for business opportunities. Blacklisting
6.3.4.8.2 Blacklisting - Blacklisting will be done under exceptional circumstances and the parameters
will be:
a) Unethical practice
b) Loss to organization due to negligence of vendor
c) Unlawful activities which may affect ABG image or impose fines / penalties on company.
d) Bankruptcy of the vendor
e) Pending litigations of serious nature
6.3.4.8.3 The blacklisting will be done as and when required and communicated to all concerned plants
and group companies.
6.3.4.8.4 Suspension - Suspension will be done for a temporary period until revoked, under the
following circumstances:
a) Poor response
b) Overdue deliveries
c) Quality issues
d) Failure to meet commitments
6.3.4.8.5 Based on the recommendations of RLD/ULD, Head-CLD will approve the removal of vendors
from empaneled / approved list.
6.3.4.9 Related Party Policy

Refer Annexure for detailed policy.
6.3.5 Communication Process with Suppliers

All suppliers in the four categories would have a system of communication at regular intervals.
For Indian Railways, the typical communication will start from the pre-budget engagement process kicked
off by the Minister himself. But preparation for the pre-budget meeting would typically involve the
Aluminum Association. During the year communication process would involve meetings with the board
and the zonal heads at least once a year where issues would be discussed proactively.
For all the other categories the communication process would have to be developed as follows:
Annual Meet: Once a year to discuss broad areas of business issues and their resolution. Setting
up of expectations would happen around this time.
Finalization of yearly contract would freeze the specifications for monitoring.
Weakness areas would need to be identified for further development
Regular feedback would be part of the process
All engagement parameters would have to be tracked and communicated transparently with the
supplier

6.4 PACE Matrix

6.4.1 Contract Management
CLD Central Plant F&C Unit Head
Activity Sub Activity CPC EIAC CLD RLD ULD Mktg.
Head BFM Head /COO
Define Scope of work-
C C A P, E
Technical, safety
C C A P, E C C
Commercial , Legal
Vendor Shortlisting C A P, E P
Port RFQ to Approved vendors P, E
Technical evaluation of offers C P, E
Negotiation C P, E
Approval of Proposal A P, E A
Award of contract A P, E
Performance monitoring C E
C A P, E
Technical, safety
C A P, E C C
Commercial , Legal
Port Vendor Shortlisting A P, E P
related RFQ to Approved vendors P, E
services Technical evaluation of offers C P, E
Negotiation C P, E
Approval of Proposal A P, E C A
Award of contract A P, E C
Performance monitoring C P, E
A P, E P*
Technical, safety
A P, E P P
Commercial , Legal
Road Vendor Shortlisting A P, E P
(Inbound & RFQ to Approved vendors P, E
outbound) Technical evaluation of offers C P, E
Negotiation C P, E P, E* C
Approval of Proposal A P, E P* C A
Award of contract A P, E P* C
P E C
Technical, safety
P E C C
Commercial , Legal
Vendor Shortlisting A, C P, E P C C
Rail
RFQ to Approved vendors C P, E C
Operator
Technical evaluation of offers C P, E C C
Negotiation P, E C C
Approval of Proposal A^ P, E P, E C A^
Award of contract C P, E C
A^ - All approvals related to financial values will be as per DOA
(*) - Activities are performed based on sector & volumes

7 Insurance
Although Hindalco Industries Limited have an Marine Sales Turnover Policy covering the all transit risks
including strike riot and civil commotion, subject to specified exclusions, as mentioned in the relevant
policy, for input costs as well as final sales turnover, it is the responsibility of the carrier to bear the loss,
as per Carrier Act, and hence right of recovery should be protected as mandated in the detailed insurance
SOP. On the basis of the evidence of protection of right of recovery against carrier, the insurance
company will start recovery proceedings post settlement of the claim, for which Hindalco has to execute
a letter of subrogation.
7.1 Insurance Claim

Unit Logistics will inform Unit/Regional Accounts about the incident (accident/loss etc) with 24 hours
of happening of loss, hijacking etc. The loss has to be endorsed while accepting the delivery from a
common carrier.
Unit/ Regional Accounts should immediately lodge a monetary claim on carrier under registered a/d,
and preserve the receipted a/d card within the time period mentioned in the detailed SOP. A
monetary suit to be preferred as well on carrier, before it is time-barred.
In all accidental or hijacking cases, Unit/Regional accounts, in coordination with logistics, legal should
organize a FIR and pursue for final police report. Such final report will be required before the claim
is settled.
Unit/Regional Accounts will intimate about the transit damage to respective Regional Managers and
plants, on receipt of damaged Finished Goods by End of Day (EOD), and also incorporate details in
insurance template (refer Annexure) and advice Insurance company/Intermediary under advice to
Insurance Cell, for deputation of surveyor, with 48 hours of the loss incidence/ disappearance.
Unit/Regional Accounts will check with Marketing whether goods can be sold. If not, they will
proceed with claim. Unit Accounts will send an intimation letter containing consignment loss details
to the insurance company or agent
Survey is mandatory for all losses. Initial intimation should be given in a template. As initially, the
identification of quantity would be a problem and hence, initially loss will be preferred with the LR
quantity.
After completion of final survey report, it will be ratified, as per the weight of damage certified by
the independent loss assessor, and accordingly the final claim bill will be prepared by Unit/Regional
Accounts.
Insurance Surveyor will be deputed by Insurance Cell, based on intimation received from Insurance
company/agent with claim serial number, within 1 working day. The facility for un-coiling if required
may be organized at suitable premise to verify corrosion damages due to seepage within layers.
Survey will be conducted in one day.
Unit/Regional Accounts will intimate plant logistics for obtaining damage certificate from the
contracted transport vendor.
The survey report (contains damaged quantity and estimated value of loss) will be shared by the
surveyor with the Insurance company/Intermediary. Intermediary will share the survey report with
respective plant/ branch accounts depending on the circumstances. LR copy, invoice copy, damage
certificate, and claim bill will be sent by Unit Accounts to the insurance company or agency within 15
days of survey completion.

The damaged goods, Post initial survey, will be sent back, (if the surveyor and Insurance Cell/
Insurance company/Intermediary agrees that the basis of indemnity will be reprocessing cost) to the
originating plant where Final survey of the damaged goods may be carried out at the plant. This is
mandatory.
A copy of the RMR, weight slip, and freight bill has to be submitted along with reprocessing cost, by
Unit/Regional Accounts, and furnished to Insurance company/Intermediary. If however, it is decided
that the settlement would be on salvage/ allowance basis, the damaged quantity will have to be
parted with salvage buyer, identified by the surveyor, based on e-tendering or otherwise.
The originating plant will arrange for transport of the transit damage material back to the originating
plant from the warehouse. In case of small volumes, rejections may be accumulated to form truck
load and then the same will be transported to the originating plant within 15 days of receipt of
rejected goods. LR wise damage quantity should be kept duly segregated for such comingled items.
In the case the rejections volume is small and sending the same to originating plant involves
significant costs, the rejected materials may be sent to the nearest plant by following the below
mentioned procedure:
Marketing will initiate note for approval along with cost benefit analysis (in consultation with
Unit Logistics)
This will be vetted by Unit/Regional Accounts
Final approval will be done by CMO
Approved note will be sent to Central Logistics for transporting the rejected materials
(Any delay in the process would be cascading on the claims adjustment, as complexities will arise
on the applicability of reprocessing cost, as cost component differs in different plant).
The claim amount will be received at the originating plant within 1-2 months of the date of
providing all documents as per check list and query resolution for completion of final survey report,
to Insurance company/Intermediary.
Unit/Regional Accounts should account for claim as and when it happens on memorandum basis,
to track the claim. On receipt of the claim amount this entry will be reversed, and claim realization
should be booked and differential amount should be charged off, with appropriate approval. It
would be the responsibility of the Branch/Unit Accounts to account for as per accounting procedure
in vogue.
It will be the responsibility of the branch accounts in case of sales from Depot, and Plant accounts in
the event of a direct sale, to take over the ownership of claim, provision of requisite documents
including damage certificate, Final Police Report etc. ( depending on the circumstances of the case).
Insurance Cell through the Insurance company/Intermediary would pursue the claims for settlement
when all documents as per check list is received. Clarification on queries, bifurcation of the claim
costs with supporting has to be provided directly to the Insurance company/Intermediary under
advice to Insurance Cell by Unit/Regional Accounts.

Flowchart for Insurance Claim
Regional Logistics will be responsible for the overall coordination of all activities to ensure timely disposal
of claims and return of damaged material.
7.2 PACE Matrix
Insurance Unit Plant F&C

Activity Sub Activity RLD ULD
Cell Accounts Head
Intimation about the accident / loss C E
Reporting the incident in standard format C E
Communicating to Insurance
P, E C
Agency/Broker
Insurance Inform Insurance Co./Intermediary for
C E
Spot Survey
FIR Survey report through transporter E C
Resurvey at Unit level (In case of total
C P, E C
loss)
In case of Warehouse all activities done above by Unit Accounts will be executed by Regional Accounts and
controlled by Marketing Finance.

8 Stakeholder Management
8.1 Objectives
Develop long term relationship with the most reliable and cost effective partners while
minimizing risks of stakeholders in the area of Logistics
Select, develop and manage key partners to deliver our goals
Score Card to cover key parameters of satisfaction on an on-going basis

Stakeholder Score Card development
Periodic Review
Positive trends in Improvement of Scores
8.3 Stakeholder Identification

CLD in order to carry out its activities smoothly recognizes the need for effective stakeholder
management. The first step in this direction is to identify the key stakeholders.
The key stakeholders are classified as below:
8.3.1 External stakeholders

8.3.1.1 Customers
8.3.1.2 3 PL / Transporters / truck owners
8.3.1.3 CHA, Handling Agencies at Ports
8.3.1.4 Shipping lines / Freight Forwarders
8.3.1.5 Material handling contractors at Plants/ nearby sidings
8.3.1.6 Group businesses like Cement, Chemical etc
8.3.2 Internal stakeholders

8.3.2.1 Units/Plants
8.3.2.2 Export Import Administration and Control
8.3.2.3 Marketing
8.3.2.4 Treasury
8.3.2.5 Corporate Procurement Cell
8.3.3 Government & Public Sector

8.3.3.1 Railway
8.3.3.2 Customs
8.3.3.3 Ports
8.3.3.4 State governments (Road Transport)

8.3.4 Community
8.3.4.1 Local population
8.3.4.2
8.3.4.3 Local Panchayat / representative
8.3.4.4 Trade associations
8.4 Stakeholder Engagement

8.4.1 Level of engagement
The level of engagement required could be
8.4.1.1 Inform
8.4.1.2 Consult
8.4.1.3 Involve
8.4.1.4 Collaborate
8.4.1.5 Empower
8.4.2 Method of engagement

The method of engagement required could be
8.4.2.1 Open houses, workshops, training

8.4.2.2 Newsletters, bulletins, circulars
8.4.2.3 Websites, webinars
8.4.2.4 Capacity building
8.4.2.5 Shared projects
8.4.2.6 Websites, webinars
8.4.3 Timing
The timing of engagement required could be
8.4.3.1 Regular / Periodic

8.4.3.2 Need based
8.4.3.3 Project based
8.4.4 Resources
The resources required could be
8.4.4.1 Consultants
8.4.4.2 CSR, Legal, IR department
8.4.4.3 Technology
The responsibility for engagement needs to be assigned based on

8.4.5.1 Stakeholder type
8.4.5.2 Level of engagement
8.4.5.3 Engagement objectives
8.4.5.4 Organization structure (central, regional, unit based)
8.4.6 Communication
The communication for engagement could be planned based on
8.4.6.1 Key message to be conveyed
8.4.6.2 Frequency of communication
8.4.6.3 Mode of communication
8.4.6.4 Participants / hierarchy of communication
8.5 Stakeholder Matrix

The following stakeholder matrix is to be prepared by Logistics department.
Engagement Engagement
Stakeholders Responsibility Timing
Level Method
Regional Logistics,
Customers etc. Low Site visits Case to case
Central Logistics Cell
Transporters/ 3 PL / Performance
High Plant Logistics Monthly
truck owners Review Meets
Regional Logistics
CHA, Handling Performance
High Head, Port operations Monthly
Agencies at Ports Review Meets
head
External
Shipping lines /
Moderate Meeting FG head, CLD Cell Quarterly
Freight Forwarders
Material handling Quarterly, monthly

contractors at Plants/ Moderate Meeting Plant Logistics for high
nearby sidings dependency
Group businesses like

Common
Cement, Moderate CLD Head Case to case
group forums
Chemical etc.
Review meets, Port logistics, Central

Units/Plants High Need basis
plant visits Logistics Cell
Internal
Regional Logistics
Review Meets,
EIAC Moderate Head East, Central Daily
daily calls
Logistics Cell, BFM

Engagement Engagement
Stakeholders Responsibility Timing
Level Method
Planning and
FG operations, Head Daily
Marketing High review
planning, CLD head
meeting, calls
Planning and
Corporate Regional Logistics Daily
High review
Procurement Cell Head, Planning head,
meetings, calls
Head Railway
Formal and Monthly at plant ,
Operations, Plant
Railway High informal quarterly at central
logistics, Central
Meetings level
Logistics head
FG operations head,
Government &
Public Sector
Formal Port operations head,

Customs Low Need based
meetings regional logistics
head, CLD head
FG operations head,
Monthly at
Formal Port operations head,
Ports High Gangavaram Port,
Meetings regional logistics
others need based
head, CLD head
State governments Formal
low Plant Logistics head Need based
(Road Transport) Meetings
Community
Trade Formal
low Plant Logistics Head
Associations/Unions meetings

9 Annexure
9.1 Key performance Indicators
9.1.1 Supply Chain KPI
Process Supply Chain KPI Description Review Frequency & Forum
Total Quantity procured Vs - Monthly Review
Quantity compliance
Quantity Received at plant - Central Logistics for imported
GCV compliance Received Vs Planned - Unit logistics for domestic
- Monthly Review
Railway freight + Port or
Imported Coal/ Logistics cost - Central Logistics for imported
Siding charges, Actual Vs P&B
Domestic Coal/ - Unit logistics for domestic
CP Coke - Daily Review
Mode wise volumes planned
Despatch mode Compliance - Central Logistics for imported
Vs Actual mode wise volumes
- Unit logistics for domestic
Cost Savings Actual against P&B Monthly review by Central Logistics
Despatch/ Sales Actual movement/Sales Vs

compliance Vs Plan Planned
Share of BTAP rakes % Actual Vs % P&B Monthly review by Central Logistics
Alumina
Cost per MT of alumina
Actual Vs P&B
(except sales)
Cost savings Actual Vs P&B Monthly review by Central Logistics
Quantity Total Qty procured vs
Compliance Quantity received at plant
Total Available Alumina
Received Vs Planned Monthly by Unit Logistics
(TAA) Compliance
Bauxite Railway freight + Port or
Logistics Cost
Despatch mode Mode wise volumes planned
Daily by Unit logistics
Compliance Vs Actual mode wise volumes
Cost Savings Actual vs P&B Monthly by Unit Logistics
Total Qty Procured vs
Quantity Compliance
Quantity received at plant
Caustic Lye % Received Vs Despatched
Monthly by Unit Logistics
Sludge % (FO) Received Vs Despatched
Railway freight + Port or
Caustic/FO Logistics cost
Mode wise volumes planned
Despatch Compliance Daily by Unit logistics
Vs Actual mode wise volumes
Cost Savings Actual vs P&B Monthly by Unit Logistics
Despatch
Actual against Target
Compliance
Finished OTIF Actual against Target
Goods Mode wise Actual Vs P&B
Logistics cost
(including port and ocean
(Rs per MT)
freights)
Safety Fatalities No of fatalities Monthly by Unit

Process Supply Chain KPI Description Review Frequency & Forum

Cost per MT - Warehousing
Actual vs P&B
Warehouse and Operations Monthly by Regional Logistics
Management Customer complaints No of complaints
Savings/Cost Reduction from
Actual vs P&B Annually by Regional Logistics
Contract Contracts
Management Service Level/Fulfilment of
Compliance to SLA's Monthly by Regional Logistics
SLA's in contract
9.1.2 Process KPI
Process Process KPI Description Review Frequency & Forum

Quantity Received at Unit Vs
Transit loss (%)
Railway Receipt Qty
- Monthly Review
Port Loss (%) BOE Qty Vs Despatched Qty - Central Logistics for imported
Chargeable Vs Actual loaded
Dead freight (%)
in rakes
Storage Cost Storage cost at port per MT of
Monthly review by Central Logistics
(Rs per Mt) received material
Vessel Demurrage Value per MT of received

Monthly review by Central Logistics
(Rs. Per MT) material
Imported Coal/
Domestic Coal/ - Monthly Review
Rake Demurrage Value per MT of received
CP Coke - Central Logistics for imported
(Rs per MT) material
Monthly review by Unit and Central
No of BTAP trips Actual Vs Planned
logistics
Turn Around Time Monthly review by Unit and Central
Actual Vs Target
(TAT) sector wise logistics
Monthly review by Unit and Central

Loaded Qty per rake Actual Vs Target
logistics
Punitive charges Rs per MT Monthly by Unit Logistics
Quantity Received at plant Vs

Transit loss (%) Monthly, Unit Logistics
Railway Receipt Qty
Monthly by Unit Logistics for
Port Loss (%) BOE Qty Vs Despatched Qty
imported
Chargeable Qty Vs Actual
Dead freight (%) Monthly by Unit Logistics for rake
loaded Qty in rakes
Bauxite
Storage Cost Storage cost at port per MT of Monthly by Unit Logistics for
(Rs per Mt) received material imported
Vessel Demurrage Value per MT of received Monthly by Unit Logistics for
(Rs. Per MT) material imported
Received at plant qty Vs RR
Caustic/FO Transit loss (%) Monthly by Unit Logistics
qty

Process Process KPI Description Review Frequency & Forum

Port Loss (%) Despatch qty Vs BOE qty
Moisture (%) as per BIS measurement
Chargeable Qty Vs Actual
Dead freight (%)
loaded Qty in rakes
Storage Cost Storage cost at port per MT of
(Rs per Mt) received material
Vessel Demurrage Value per MT of received Monthly by Unit Logistics for
(Rs. Per MT) material imported
Monthly by Unit Logistics for rake
Actual transit time Vs
Transit Compliance (%) Monthly by Unit Logistics
Finished Standard transit time
Goods Wet and Transit damages Actual Vs previous financial
(MT/month and %) year
No of safety trainings Actual vs Target Monthly by Unit

Safety
No of incidences No of near misses Monthly by Unit
Warehouse Utilisation Average of Actual vs Capacity

Warehouse Monthly by Regional Logistics
(% avg. and peak) Peak of Actual vs Capacity
Management
Time to award contract from
Order Processing time Annually by Regional Logistics
opening of Bid
Contract
No of changes in Rate, Scope,
Management
Contract Amendments terms and condition during Monthly by Regional Logistics
contract period

9.2 Container Despatch Checklist

Container Checklist
1. Inside / Outside Doors
a. To ensure that secure and reliable locking mechanisms are attached to the container
b. Be on the lookout for different color bonding material which might indicate repairs done
c. Be on the lookout for loose bolts
d. Be on the lookout for plates and repairs. Solid plates should not cover standard container
cavities
e. Check for insects
2. Side Walls
a. Look for unusual repairs to structural beams and side walls
b. Use tool to tap side walls. Listen and feel for hollow sound to detect any repairs.
3. Front Wall
a. Check if blocks and vents are visible and appropriately spaced.
b. Use tool to tap side walls. Listen and feel for hollow sound to detect any repairs.
4. Ceiling / Roof
a. Check to make sure ceiling height from floor is accurate.
b. Check if blocks and vents are visible and appropriately spaced. c. Look for unusual repairs to
structural beams and ceiling walls
d. Use tool to tap side walls. Listen and feel for hollow sound to detect any repairs.
5. Floor (inside)
a. Check to make sure the floor is the correct height from the ceiling.
b. Make sure the floor is flat. Do not need to step up to get inside.
c. Make sure the floor is a uniform height.
d. Be on the lookout for unusual repairs.
e. Check for any oil mark or any white powder

9.3 Missing Wagons Procedure

The receiving unit of the rake will carry out the following procedure in case of missing
wagons.
On receipt of rake, collect the Vehicle Guidance Report (VGR) from Railway guard and driver
If VGR mentions about detached wagons, then match the said wagon numbers with original RR.
On matching numbers collect short receipt certificate from local station manager
Receive the rake and check no of wagons with quantity.
Supervisor immediately.
On receipt of certificate claim for NR (Non receipt) wagons with value of material + rail freight of
receiving zone of railways with copy to Senior Divisional Commercial Manager / Coal Area
Manager.
Fortnightly follow up with Railway for getting NR Wagons.
If wagons not received within 6 months then file the suit to Railway Claim Tribunal.
To file a claim of total amount of commodity value including rail freight attaching copies of all
the documents at Railway claim Terminals at regional office.

9.4 Safety Rules to Be Followed Inside Plant

Follow all traffic rules while driving trucks inside our premises (e.g. use of traffic signals /
indicators, keep left, speed limit etc.)
Always carry driving license. Produce it at the Factory Gate while entering and on demand to
Company officials. Driving of trucks by individuals who is not in possession of valid license is an
offence under Motor Vehicle Act and is strictly prohibited within our plant premises.
Check the following before entering the factory premises: Brakes, tyre (air pressure), brake lights,
horn, rear view mirror, registration number plate, side indicator, etc.
Ensure tarpaulin is tucked properly and is not hanging outside the truck body
Carry only two persons in the cabin including the driver. In factory premises, only driver and
cleaner are allowed.
Stop for security checks at the gates
Ensure that the driver & helper are adults (18 years and above). Entry of teenagers below 18
years is strictly prohibited in the factory premises.
Ensure tax permit, insurance and other statutory requirements of vehicle are up to date
Follow all instructions given by Company officials while inside the Factory premises
All trucks should have at least 2 nos. of wooden choke blocks, for choking of wheels when parked
All the trucks entering the Plant should have valid Emission Certificate issued by the Pollution
Control authority.
Ensure presence of helper on rear side of the vehicle while reversing the truck

9.5 Vendor Evaluation Format



9.6 Warehouse Opening Form

PART A: REGIONAL OFFICE
A. BASIC DETAIL
1 Regional Logistics in charge
2 Products
3 Region
A1. BASIC DETAIL OF PROPOSED WAREHOUSE
4 City/Town (In which warehouse proposed)
5 State
6 Nearest Hindalco office
7 Distance from Hindalco Office
8 Required Area in Sq Feet (Product wise) Attach

a drawing/Map of warehouse area, parking )
9 Requirement of Crane Facility
10 Requirement of weighing Machine
11 Requirement of other infrastructure
12 Proposed warehouse working hours

B. TENTATIVE QUANTITY OF PRODUCTS TO BE SOLD (MARKETING SPOC)

Product Sub-category Expected Customers to be covered Current place of Dispatch
Volume (TPM)
Primary
FRP
Extrusion
Copper
C. NEAREST 4 WAREHOUSE OF HINDALCO FROM PROPOSED WAREHOUSE (MARKETING SPOC)
S. City & State No. of Km from Product Covered Avg. Sale of last 6
No. proposed month
Warehouse
(Product wise)

D. Detail of competitors Warehouse nearest to Proposed Warehouse (MARKETING SPOC)

S. Nearest Warehouse of Competitor City & State Product covered Volume
No. competitor (Approx.)

E. REGIONAL LOGISTICS/Marketing SPOC:
(PRIMARY / FRP / EXTRUSION )
1. WHY PROPOSED WAREHOUSE REQUIRED
2. HOW NEW WAREHOUSE WILL AFFECT EXISTING BUSINESS
3. CONSEQUENCE/IMPACT IF PROPOSED WAREHOUSE IS NOT OPENED

4. ALTERNATIVE TO SERVE THE TARGET CUSTOMER/S
5. QUALITATIVE BENEFIT AVAILABLE TO HINDALCO
6. QUANTITATIVE BENEFIT, to be worked out in consultation with regional accounts.(Note: Detail of working
OF THE COST BENEFIT ANALYSIS should be attached separately)
7. COST TO BE INCURRED, to be worked out in consultation with Regional Accounts

(Note: Detail of working should be attached separately)

8. COST IMPACT, to be worked out in consultation with Regional Accounts. Comparison of existing and
proposed warehouse if replacement of existing warehouse should be attached separately.
9. Comments from SBU heads through Marketing SPOC on above points.
Primary
FRP
Extrusions
Copper

PART B: CORPORATE OFFICE
F. HEAD MARKETING FINANCE
Marketing finance Head: Date:
G. CENTRAL LOGISTICS HEAD
Central logistics Head: Date:

H. CMO
CMO: Date:

9.7 Warehouse General Setup Guidelines

The warehouse facility will have the following dedicated essential areas
Receiving: for receiving Finished Goods (Primary, FRP, Extrusions, Foils) from the respective
Hindalco plants
Storage: for storing (stacking) the Finished Goods in a standardized manner per the received
product class
Staging*: area where the picked-up Finished Goods will be staged for load-out
Load- s transport facility
*Depending upon the warehouse size and load out requirement, staging area may not be present in
every warehouse
In addition to the aforementioned key areas, the warehouse management will ensure proper
identification of:
Off-limit areas for unauthorized personnel

Entrance, parking, and exit for delivery vehicles
Critical safety issues and associated procedures to avoid hazards and unsafe working conditions
(all facility specific safety procedures; material handling safety; slips, falling, and lifting hazards
etc.)
Staff training requirements
Office space for restrooms, break rooms, and other staff facilities (shift to WH opening)
Equipment
All material handling equipment (Crane, Fork Lift, Hydra) will be provided and operated by the
warehouse facility (either owned or outsourced)
Other equipment needs for operation of the warehouse have been listed in the table below (may be
supplied by the service provider / Hindalco). While it is preferred to have all the below mentioned
equipment, the warehouse may operate adequately even if all the items are not present at the time
of warehouse opening / activation
S. No. Item Description Count*

1 Crane 1
2 Fork Lift 1
3 Hydra 1
4 EOT 1
5 Weighing scale for packed materials 1-2
6 Computer system 2-3
7 Printer / Scanner / Copier (with refill cartridges) 2-3
8 Fax (with refill cartridges) 1
9 CCTV Varies
10 DG Set 1-2
11 Hand Held radios Varies
12 Telephones Varies

S. No. Item Description Count*
13 Fire protection system 1
14 Tea / coffee vending machines 2-3
15 Water dispensers 2-3
16 First Aid kit 1-2
17 Hygiene / housekeeping clean-up supplies Varies
18 Flashlights 2-3
*The count may vary in each warehouse
Staffing
The material handling equipment (Crane, Fork Lift, and Hydra) will be unique to each warehouse
facility. Hence, the service providers will provide their own personnel / outsourced personnel to
operate the equipment to perform material movement within the warehouse
The warehouse administrative functions like data entry, order processing, and inventory
management will be handled by a documentation control manager employed by the service provider
Each warehouse will have an adequate number of housekeeping staff (employed by the service
provider) to maintain warehouse cleanliness and hygiene standards, as well as security personnel to
guard the warehouse premises
S. No. Warehouse Staff Count*

1 Warehouse Manager 1
2 Crane operator 1
3 Hydra operator 1
4 Fork Lift operator 1
5 Documentation control manager 1-2
6 Housekeeping personnel 2-3
7 Security guard 1-2
*The count may vary in each warehouse

9.8 E-auction Procedure

Reverse auction should be adopted for negotiations wherever feasible. Concerned may engage external
service provider for the auction tool. This section gives broad guidelines to be followed for reverse
auction. Unit/Region specific requirements may call for certain modifications. The overall process chart
is given below:
9.8.1 Auction Flow chart
9.8.2 Key Points:

1. Request for Quote (RFQ) & List of Vendors
The RFQ which includes the scope of work and all applicable techno commercial terms and
conditions (contract) is prepared by business and sent to auction tool service provider along with
list of approved vendors. The RFQ is floated to vendors by auction tool service provider through
e-mail.
2. Documents to be sent to Vendors by Auction tool Service Provider

Request for quote - RFQ (inclusive of all terms & conditions), Bidder Agreement & SPOC Form.
3. Documents to be collected from Vendors

Vendors will confirm acceptance of all terms and conditions of RFQ online along with pre-bids.
Vendors to also accept the Bidder Agreement copy and enter their Single Point of Contact (SPOC)
for the auction. Technically qualified vendors will be allowed to participate in the auction and no
further revisions will be permitted.
4. Pre-bid Prices
Pre-bids from all vendors are collected online before the auction
5. Pre-bid Analysis
As per delegation of authority of business, committee to meet one day before the auction or on
the morning of the event and evaluate the pre-bids and other terms & conditions and approve

the final list of vendors who will participate in the auction. Decision taken will be recorded in the
approval note/comparison chart.
6. Auction Starting Prices

Starting price for the auction can be decided based on market intelligence OR the pre-bid quoted
price by each vendor will be the starting price for that particular vendor, whichever is more
competitive.
7. Tie for L1 position

Tie will not be permitted
8. Minimum bid decrement/increment

This may be decreased/increased as per value. Suggested value is 0.25% of estimated freight
amount, preferably a whole number.
9. Maximum bid decrement /increment

10% of their previous bid
10. Duration of each lot

Each lot should be open for sufficient time (15 to 30 min or based on strategy adopted) followed
by extensions if applicable.
11. Sequencing of lots

Lots are run one after the other in a sequence without any overlap, to ensure adequate
participation.
12. Price validity

Prices will be valid for 30 days from close of auction. HIL will send a confirmation to vendors within
this time period.
13. Visibility to Bidders

Bidders will be able to view their quoted/bid rates, current L1 rate and their current ranking
(This can be modified based on strategy adopted)
14. Quantity /Volume Offered by vendors

Quantity / Volume offered by vendors is entered by them online during submission of pre-bids.
15. Extensions of auctions

If fresh bids are received in last 3 minutes for L1 position, the bidding will be kept open for next
3 minutes. (This can be modified based on strategy adopted).
Auction should be extended strictly as per the terms and conditions mentioned in the RFQ. No
extensions or any other consideration should be granted in case one of the bidders faced
challenges during bidding due to infrastructural issues at his end. Bidders are advised to have a
standby computer system ready to manage such eventualities.
16. Access Issues at Vendors end (To be mentioned in RFQ)

All bidders should log in well before the stipulated time to check for any log in challenges. In case
vendors are facing difficulty in accessing the portal they should inform the auction tool service

provider well in advance so that the same can be rectified. Although HIL & our auction tool
service provider will give full support to address such issues, they will not be responsible in case
bidders are not able to access the auction, and HIL will take the final decision based on the results
of the auction.
17. Access to view auction

Access to view auction is to be provided only to HOD of concerned dept. If required the auction
may be viewed only by other relevant individuals from business as per DOA at one central place
for better monitoring & control. Use of cell phones is not allowed inside the room during live
bidding. The viewers will not be able to see the real names of the bidders. The bidder names will
be masked.
18. Earnest Money Deposit

Earnest Money of at least Rs.1, 00,000 (Rupees One lakh) is to be deposited by way of Demand
Draft /Online transfer by the bidders who are participating in Reverse Auction. EMD value should
be based on the estimated contract value. The DD will be encashed by HIL. EMD by way of
DD/Online transfer shall be valid for all transaction during the year to avoid receipt and refund
for each event. No interest will be payable on the Earnest Money Deposit. Vendors unable to
provide DD/Online transfer will be required to submit a Bank Guarantee (BG) on annual basis.
Vendors who do not want to deposit EMD will not be allowed to participate in any e-auction. If
any vendor requests for refund of EMD, it will be refunded to them, however they will not be
allowed to participate in e-auction.
Regular vendors may request to hold the amount equivalent to EMD put of their receivable
amount from HIL, which may be accepted after verification.
19. Internal Approval

The approval for contract is taken as per delegation manual
20. Communication during Auction

Communication between buyers (HIL) and bidders should happen through the service provider.
Service provider to ensure that bidders cannot access any more information than what is
provided on the screen. No cell phone or e-mail communication is permitted from HIL.
21. Data Entry Error by Bidders

If any bidder enters a wrong price the bidder will have to honor the price or will be ineligible for
next auction. In case the transporter makes such data entry errors twice in one year, suitable
action will be taken. (Ex: The vendor will not be permitted to participate in any auction by HIL for
one year from that date)
22. Post-bid price break up (If applicable)

Bidders have to enter post-bid price break up online within one hour of completion of auction
23. Other Points

All transporters must be given proper training and individual demonstrations.
Price negotiation post auction should be avoided to maintain the sanctity of the process.

9.9 Insurance Details

9.9.1 Transit Damage Reporting Template
Particulars Details
Transporter Name.
Truck No.
LR. No. & Date
Challan No. & Date
Invoice. No. & Date
Total Invoice Value
Gross Qty. (Kgs)
Net Qty. (Kgs)
Material Description
Supplied from
Customer Name & Address
Reason for loss
Damage Qty. & Estimated Loss amount
Location Address where Damaged Material
is Lying:
Contact Person Name & Mobile No.
(Insurance Surveyor can contact)
In case of Accident :
Accident Date :
Accident Location:
Photos at Accident spot along with Truck No.
Driver & Damaged Material
FIR Copy ( FIR should be in ENGLISH Only)
Damage Certificate
Copy of Driving License of Driver
Documents of Truck i.e. RC Book, permit etc.

9.9.2 Marine Claims Documents List

1. Copy of Invoice/Bill of lading/Bill of entry
2. Original /Carbon Copy of LR/Airway Bill/Railway
receipt
3. Claim bill
4. Original Monetary notice to transporter with acknowledgement
5. Original Damage Certificate & Shortage Certificate
6. Freight Bill in case of freight not reflected in Invoice
7. FIR copy/ Acknowledgement of police complaint in case of accident /Theft
8. Final police report/charge sheet in case of theft
9. Photographs of affected cargo

9.10 Exception Handling

9.10.1 Process Exemption for Units
Sl. No. Process Process Unit Reasons Period of Request Approved
Ref. No. for Exemption By By
Name Exempted
Exemption
1. Say ABCD (Say From:

4.3.2.1 Mahan
(For
exempted)
Example)
To:
2.
3.
4.
In case a Unit is not compliant with any portion of the SOP from the date from which the SOP is
implemented, the Unit should seek exemption from Head - Central Logistics to that effect; the reasons
for seeking exemption and time period therefore should be mentioned in the note seeking such
exemption.

9.11 Related Party Policy

1. Introduction & Purpose
Hindalco
below) can present potential or actual conflicts of interest and may raise questions about whether such
transactions are in the best interest of the Company and its
Company, to ensure high standards of Corporate Governance while dealing with Related Party (ies) (as
defined below) and sets forth the procedures under which the Related Party Transactions must be
reviewed, approved or ratified and reported.
This policy shall be guided by the Group Guidelines Governing Related Party Transactions and has been
drafted with an objective of ensuring compliance with the provisions pertaining to Related Party
Transactions in Companies Act, 2013, Revised Clause 49 of the Listing Agreement, Accounting Standard
18 and Income-Tax Act, 1961.
2. Definitions & Key Principles

Definitions
Related Party Transaction

A Related Party Transaction is a transfer of resources, services or obligations between a company and a
Related Party, regardless of whether a price is charged.
Related Party
Related Party' is a person or entity that is related to the company. Parties are considered to be related
if one party has the ability to control the other party or exercise significant influence over the other party,
directly or indirectly, in making financial and/or operating decisions and includes the following:
A.
Is a Related Party under Section 2(76) of the Companies Act, 2013;or
Has control or joint control or significant influence over the company; or
Is a key Management personnel of the company or of a parent of the company; or
B. An entity is related to a company if any of the following conditions applies:

The entity is a Related Party under Section 2(76) of the Companies Act, 2013; or
The entity and the company are members of the same group (which means that each parent,
subsidiary and fellow subsidiary is related to the others); or
One entity is an associate or joint venture of the other entity (or an associate or joint venture
of a member of a group of which the other entity is a member); or
Both entities are joint ventures of the same third party; or
One entity is a joint venture of a third entity and the other entity is an associate of the third
entity; or
The entity is a post-employment benefit plan for the benefit of employees of either the
company or an entity related to the company. If the company is itself such a plan, the
sponsoring employers are also related to the company; or

The entity is controlled or jointly controlled by a person identified in (1).

A person identified in (1)(b) has significant influence over the entity (or of a parent of the
entity);
have the same meaning as defined in SEBI (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011.
Key Principles
Material Related Party Transaction
Nature of Transactions Materiality as per Materiality as per Applicable threshold of

Companies Act, SEBI (B) materiality for a listed
2013 (A) entity (lower of A and B)
Sale, purchase or supply of Exceeding 10% of Exceeding 5% of Exceeding 5% of annual
any goods or materials annual turnover or 100 annual turnover or turnover or 20% of net
directly or through Crore, whichever is 20% of net worth worth or Rs. 100 Crore
appointment of agents lower
Buying, selling or disposing Exceeding 10% of net Exceeding 5% of Exceeding 5% of turnover or
of property of any kind worth or 100 Crore, turnover or 20% of 10% of net worth or Rs. 100
directly or through whichever is lower net worth Crore
appointment of agents
Leasing of any kind of Exceeding 10% of net Exceeding 5% of Exceeding 5% of turnover or
property worth or turnover or turnover or 20% of 10% of net worth or Rs. 100
Rs. 100 Crore net worth Crore
whichever is lower
Availing or rendering of Exceeding 10% of Exceeding 5% of Exceeding 5% of turnover or
any services directly or turnover or Rs. 50 turnover or 20% of 20% of net worth or Rs. 50
through appointment of Crores, whichever is net worth Crores
agents lower
Appointment to any office Monthly remuneration Exceeding 5% of Lower of (A) and (B)
or place of profit in the exceeding Rs.250,000 turnover or 20% of
company, its subsidiary net worth
company or associate
company
Remuneration for Exceeding 1% of net Exceeding 5% of Exceeding 5% of turnover or
underwriting the worth turnover or 20% of 1% of net worth
subscription of any net worth
securities in or derivatives
thereof

The arm's length principle (ALP) is the condition or the fact that the parties to a transaction are
independent (un-related) and on an equal footing from all aspects such as quality, realization,
commercials terms etc. Such a transaction is known as an "arm's-length transaction".
In absence of any prescriptive guidelines in the Companies Act, the Company shall take guidance from
principles emerging from international laws in relation to determination of ALP in the context of transfer
pricing regulations. Additionally, the Company may also adopt any other reasonable approach or
methodology to demonstrate ALP for the specified RPT identified by them. For example: in case the
Company is not doing a similar transaction with any non-related party, the terms between two non-
Ordinary Course of Business

The crite
the two selective criteria are satisfied namely a) the transaction must be ascribed to business objectives
or operational activities or alternatively, related to financial activities and b) the same transaction must
also fall under the perimeter of the ordinary exercise of operational activities or related financial
activities.
Transactions with third parties within the Aditya Birla Group

While dealing with third parties, the Company should give preference to its company (ies) promoted by
the Company, associate company (ies), company (ies) that are part of Aditya Birla Group, promoter
company (ies), joint venture company (ies), director (s), employee (s) or their relative(s) provided that
policy. Where ever required, the Company shall obtain requisite approvals as per the process laid down
in this policy.
3. Identification and Monitoring of Related Parties

Process for Identification of Related Parties
The Company Secretary shall identify all Related Parties for the Company on the basis of disclosures
received from the Directors/KMPs, corporate structure review with the CFO and other supporting
documents/ information. The names of all Related Parties identified shall be consolidated to draft a
on an annual basis. The Company secretary shall share that list with all Business Heads for their reference.
Process for Monitoring Related Parties

The Directors and KMPs are required to immediately communicate changes in the initial disclosure
submitted by them. The Company Secretary shall be responsible to update the Related Party Reference
List on the basis of intimations received from the Directors/KMPs. Additionally the Company Secretary
shall also ensure that the amendments or revisions in the relevant regulation with respect to Related
Parties or Related Party Transactions are updated in the Reference List.

The Reference List shall be periodically validated by the CFO and Senior Management. An independent
validation shall be conducted by an internal auditor or any person appointed by the Secretarial team with
specific terms of reference in this regard.
4. Identification, Review and Approval of Related Party Transactions

Before effecting any transaction whatsoever, each Unit Head and Functional Head shall determine, on
the basis of the Related Party Reference list received from Company Secretary, whether the name of the
counterparty is reflecting in the Reference list.
If the name of the counterparty is not reflecting in the Reference List, the Functional Head shall follow
the normal business process for executing the transactions/ contract/ arrangement. However, if the
counterparty is identified as Related Party, the Functional Head shall refrain from proceeding and shall
give timely notice of such fact along with transaction details to the CFO and the Company Secretary so
as to enable the latter to take timely action to implement the relevant RPT procedures. The transaction
details submitted by the Functional Head shall highlight if the proposed transaction is to be categorised
as a Material RP Transaction (including as a result of the cumulative effect of several transactions).
On receipt of intimation and transaction details from the respective Functional Head, the CFO shall
determine if the proposed transaction is price sensitive and therefore subject to the procedure for the
management of inside information. The detailed report with comments thereof from CFO on the
proposed RPT shall be forwarded to Company Secretary.
Upon receiving such information from the CFO, the Company Secretary shall forward the details of the
proposed RPT along with CFO report/ recommendation and other supporting documents if any to
members of the Audit Committee for their seeking approval. Any member of the Committee who has a
potential interest in any particular Related Party Transaction will rescue himself or herself and abstain
from discussion and voting on the approval of that particular Related Party Transaction. While obtaining
approval from the Audit Committee, the following must be ensured:
Provide all details of the proposed transactions which may enable informed decision making (value,
quantity, tenure, etc.)
and qualitative aspects

Provide rationale for final selection of a Related Party as compared to other alternates
Provide monetary limits/thresholds, if relevant, for aggregate value of such transaction to be
entered with the Related Party during the year
If the aggregate of transactions proposed to be entered and already entered is likely to exceed 5%
of turnover or 20% of net worth of the Company entering into the transaction (as per last audited
financial statements), then plan for obtaining prior approval from the Board (voting only by
disinterested directors) and approval from the shareholders (voting only by disinterested
shareholders) through special resolution
Provide summary of such transactions entered to the Audit Committee on a periodic basis (say
quarterly/monthly)
In determining whether to approve, ratify, disapprove or reject a Related Party Transaction, the Audit
Committee shall review all the material facts of a Related Party Transactions and shall take into account,
among other factors as it may deem appropriate, the following factors, at the minimum:

Whether the Related Party Transaction is on terms no less favourable than terms generally available
to an unaffiliated third-party under the same or similar circumstances and what is the extent of the
nterest in the Related Party Transaction;
Whether there was a bidding process and if yes, the results thereof;
Whether there are any compelling business reasons for the Company to enter into the Related Party
Transaction and the nature of alternative transaction, if any;
Whether the Related Party Transaction would impair the independence of an otherwise
independent director or nominee for director;
Whether the Company was notified about the Related Party Transaction before its commencement
and if not, why pre-approval was not sought and whether subsequent ratification would be
detrimental to the Company;
Whether the Related Party Transaction would present an improper conflict of interest for any
director or key managerial personnel or their relatives or any other Related Party of the Company,
taking into account the size of the transaction, the overall financial position of such Related
terest in the transaction and the ongoing nature of any proposed relationship;
The opinion/approval of the Audit Committee shall be recorded in the minutes of the meeting which,
together with the illustrative material made available by the Functional Head, shall remain in the archives
of the Secretarial department. The Committee approval should be obtained through voting only by
disinterested members in the respective transaction.
The Audit Committee shall be authorized to review in advance and provide standing pre-approval in
advance for certain Related Party Transactions or categories of Related Party Transactions. Each of the
Related Party Transactions described therein shall be deemed to have been reviewed and approved in
advance by the Committee under the terms of this policy.
If the proposed Related Party Transaction is identified as material transaction or outside the ordinary
RPTs in the agenda of the following Board Meeting for seeking Board approval The Board of Directors
may approve the transaction only if the Audit Committee expresses a favourable opinion in such regard.
Based on recommendation of Audit Committee, Board may take an independent view on the approval
of the RPT and may request for exhaustive information and other technical details on the said transaction.
Board approval should be obtained through voting only by disinterested directors in the respective
transaction.
A prior approval of the shareholders through special resolution shall be required for such RPTs. A member
of the Related Party of the transaction should abstain from voting on the special resolution agenda item
for such transaction.
Recurring RPTs
If a Related Party Transaction will be ongoing, the Audit Committee may establish guidelines for the
fter, the Audit
Committee shall periodically review and assess ongoing relationships with the Related Party. Any
material amendment, renewal or extension of a transaction, arrangement or relationship previously
reviewed under this Policy shall also be subject to subsequent review under this Policy.

Effect on Related Party Transaction not approved under this policy

In the event the Company becomes aware of a Related Party Transaction with a Related Party that has
not been approved under this policy prior to its consummation, the matter shall be reviewed by the Audit
Committee and the Audit Committee shall consider all relevant facts and circumstances regarding the
Related Party Transaction evaluate all options available to the Company, including ratification, revision
or termination of the Related Party Transaction.
In any case where the Audit Committee determines not to ratify a Related Party Transaction that has
been commenced without its approval, the Audit Committee, as appropriate, may direct additional
actions including, but not limited to, immediate discontinuation or rescission of the transaction, or
modification of the transaction to make it acceptable for ratification. In connection with any review of a
Related Party Transaction, the Audit Committee has authority to modify or waive any procedural
requirements of this Policy.
5. Exclusions
The following shall not be deemed Related Party Transactions:
Any transaction that involves the providing of compensation to a director, which he or she is entitled
to receive as a director by way of salary, fee, commission, perquisites, rent free accommodation or
otherwise, in connection with his or her duties to the Company or any of its subsidiary or associates;
Contributions made by the Company to a charitable organization, foundation or university at which
a Related Party is a trustee, director or employee other than an officer (or comparable position),
preceding three financial years;
issued by the Company and all holders of such securities receive the same benefits pro rata as the
Related Party.
6. Administrative Measures
Management shall institute appropriate administrative measures to provide that all Related Party
Transactions are not in violation of, and are reviewed in accordance with, this policy. All persons dealing
with the Related Party will, irrespective of the level, be responsible for compliance with the policy. All
Unit Heads and F&C Heads will certify compliance with this policy, on a quarterly basis, to the Company
Secretary. It is the duty of all employees to ensure that they do not deal with Related Parties under any
kind of influence or coercion. The cases involving any unwarranted pressure should be promptly reported
as per the Whistle Blower Policy of the Company.
7. Interpretation
In any circumstance where the terms of this policy differ from any existing or newly enacted law, rule,
regulation or standard governing the Company, the law, rule, regulation or standard will take precedence
over these policies and procedures until such time as this policy is changed to conform to the law, rule,
regulation or standard.
In case of any clarification required with respect to this policy, kindly contact the Company Secretary of
the Company.

8. Disclosure
The policy shall be made available at Hindalco Industries Limited website www.hindalco.com and also in
The details of Related Party Transactions, as required under the Companies Act, 2013, shall be disclosed
ls of all material transactions with Related Parties shall be disclosed
on a quarterly basis along with the compliance report on corporate governance filed with the stock
exchanges where the securities of the Company are listed.
Procedure for Related Party Transaction:

1. To follow the Hindalco Related Party Transaction (RPT) Policy as attached.
2. Procedure for identification of related party:
a) Related Parties (RP) will be identified by the Company Secretary and forwarded to all units &
concerns.
b) Time to time updation in RP will be intimated to all units and concerns.
c) It is responsibility of concerned units/ department to ensure that all transactions with RP are
done strictly as per the Policy
3. Procedure before entering into transaction with related parties by locations:
a) All RP identified by the Company Secretary as per point no 1 to be flagged in ERP/other system
by all units/ locations by amending customer masters. Going forward, the system should not
allow creating customer master until a relationship is identified in the system.
b) Each unit/location should ensure that any transaction entered with RP is approved by the Unit
head/ Commercial head.
c) In case of any doubt, unit must seek clarification from the Company Secretary.
d) All RPT to be in the ordinary course of
e)
f)
basis.
g) Executives signing a Purchase Order/executing agreement, documents etc. with RP are
responsible for ensuring contemporaneous documentation.
4.
a) All RPTs needs prior approval of the audit committee. Further all material RPT (i.e. any
transaction entered either individually or taken together with previous transactions during a
financial year, exceeds five percent of the annual turnover or twenty percent of the net worth
of the company as per the last audited financial statements of the company, whichever is
higher) needs prior approval of the Board and shareholders.
b) All RPTs hence need to be sent to the Company Secretary and Accounts Department on
quarterly basis for taking necessary actions.

c) It is to be noted that the Companies Act 2013 makes employees executing RPT responsible
for ensuring compliances of the Act and make them liable for penal provisions for any
violation of RPT provisions.
5. Steps to be followed:
a) As mentioned above, all RPT needs prior approval of the Audit Committee, hence all
units/locations must provide details of all RPT to the Company Secretary for taking approval
of the Audit Committee on quarterly basis.
b) Details as per point (a) to be provided by for all transactions already identified and / or in the
process of being identified.
c) Any other RPT to be identified in future ( other than as mentioned above in point no 5 (a)
and (b)), details of all such RPT to be first sent to the Company Secretary for taking audit
d)
point no 5 ( a to c)
e) Certification for compliances of all Related Party Transactions to be provided on quarterly
basis to the Board of Directors by all Unit Heads/Location Heads.
f) Please ensure to read carefully the RPT Policy of the Company. Please ask for a clarification
from the Company Secretary, if required.

Format for Disclosure

The attached format is to be used for declaration.

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Standard Operating

Hindalco Central Logistics Division Page 1

employees, suppliers, partners, shareholders, the communities or the government.

Hindalco Central Logistics Division Page 2

Hindalco Central Logistics Division Page 3

Hindalco Central Logistics Division Page 4

Hindalco Central Logistics Division Page 5

Hindalco Central Logistics Division Page 6

Hindalco Central Logistics Division Page 7

Business Process Logistics: Supplier & Partner Engagement

Hindalco Central Logistics Division Page 8

HMF Logistics: Sub Processes and Activities

4. Develop and manage Outbound 5. Develop Contract Management

Hindalco Central Logistics Division Page 9

1 Strategy & Planning

1.2 Key Deliverables

Process MD Head Head - CMO Head UH Controller Unit

Hindalco Central Logistics Division Page 10

1.5 Overall business strategy and logistics function alignment

1.6 Service & Cost Optimization

1.6.2 Network Optimization

1.6.2.2 Mode optimization

1.6.2.3 Plant / Market mix optimization to serve

1.6.3 Packing / Containerization

Hindalco Central Logistics Division Page 11

1.7 Alliance / Partners

1.7.3 Service Provider / aggregators

1.8 Infrastructure Development

Hindalco Central Logistics Division Page 12

1.9 Key Performance Indicators

Hindalco Central Logistics Division Page 13

2 Structure (Central/Regional/Unit Level)

2.2 Roles and Responsibility

Sr. No Area Key Activities

1 Port Logistics Planning of shipments by respective departments , activities towards berthing

2 Rail Logistics Planning, permissions and execution of rake movements

Hindalco Central Logistics Division Page 14

2.2.2 Port Operations Manager

Sr. No Area Key Activities

1 Port and Ensuring evacuation from ports as per plan

2.2.3 Head Planning & Supply Chain Excellence

S. No. Area Key activities

1 Logistics Understanding export and domestic demand forecast in collaboration with

Hindalco Central Logistics Division Page 15

Taking midway corrective actions and changing plan if required in

Hindalco Central Logistics Division Page 16

2.2.4 Central Coordinator & Head-FG Operations

S. No. Area Key activities

Hindalco Central Logistics Division Page 17

2.2.5 Head Central Railway Coordinator

S. No. Area Key Activities

1 Rail Logistics Controlling all traffic related rake movements of Hindalco.

Hindalco Central Logistics Division Page 18

2.2.6 Head Unit Logistics

S. No. Areas Key Activities

Hindalco Central Logistics Division Page 19

4 Warehouse Implementing system for receiving, storing, segregating, stacking

6 Negotiation and Tendering and freight negotiation for transportation of Raw

Hindalco Central Logistics Division Page 20

10 Infrastructure Plan and facilitate infrastructural development to facilitate logistic

12 Reconciliation-Coal Track consumption and receipts

16 Planning and Plan and budget for expenditure and expenses

Hindalco Central Logistics Division Page 21