1            A Summer Training Report                     On   “VITAL ROLE OF EXPORT PROCESS, EXPORTDOCUMENTATION & EXPORT...
2                              Objective of StudyThe objective of study is to find answer of the some questions, which are...
3                                                  ContentsPrefaceAcknowledgementsObjective of Study    Section 1: Introdu...
4               Benefits of Export…………………………………………………………70               Risk from Export…………………………………………………………..72     ...
5               Quotations and Proforma Invoice………………………………………....112               Difference between Proforma Invoice ...
6    INTRODUCTION          ABOUT ADITYA BIRLA GROUP          ADITYA BIRLA MANAGEMENT          CORPORATION          GROUP C...
7                                     ABOUT                           ADITYA BIRLA GROUP   The ADITYA BIRLA GROUP is Indi...
8         Aditya Birla group traces it’s origin back to the Tiny village of Pilani in theRAJASTAN desert, where late Shri ...
9      IN INDIA , A FRONTRUNNER POSITION ARE:-      •     A premier branded garments players.      •     The second larges...
10                                           CHAIRMAN: Shri Kumar                                                Mangalam ...
11     Indian companies:          PSI Data systems          Aditya Birla Minacs Worldwide Ltd.          Essel Mining & ...
12               PT Elegant Textile Industry.               PT Sunrise Bumi Textiles.               PT Indo Liberty Tex...
13•    It ranks as No. 1 in Viscous Staple Fibre•    The largest single location palm oil producer•    The third largest p...
14               JOINT VENTURES        Birla Sun Life Insurance        Birla Sun Life Asset Management Company Ltd.     ...
15              ADITYA BIRLA MANAGEMENT CORPORATION                          BOARD OF DIRECTOR     Mr. Kumar Mangalam Birl...
16         There is a direct daily train named muri expressed between jammu tawl to      tatanagar and rachi via renukoot...
17                        Renukoot                                   Renusagar                                   (CPP)    ...
18     INTRODUCTION           HINDALCO AT A GLANCE           HIGHLIGHTS OF HINDALCO           INDUSTRIES LIMITED          ...
19HIGHLIGHTS OF HINDALCO INDUSTRIES LIMITED    India ‘s largest aluminium producer.    Market share of 50 percent.    W...
20      Hindalco’s integrated operation and operational efficiency have enabled thecompany to be one of the world’s lowest...
21      customers. It is a platform for the company to showcase quality products to aquality audience in an appropriate am...
22Hindalco Vision     “To strength our position as a premium Aluminum company, sustaining, domesticleadership and global c...
23Hindalco Mission      “To pursue the creation of value for our customers, shareholders, employees andsociety at large.”H...
24      We, at Hindalco, shall aim to achieve and sustain excellence in all our activity.        We are committed to tota...
25Alumina. Aluminium fabricated product and power generation at Renukoot in order toserve the cause of sustainable develop...
26    Be a solutions provider-delivering optimum valve to our customers.BOARD OF DIRECTORNon Executive Directors     Mr. ...
27Chief financial officer      Mr. S.talukdar      (Group executive president &CFO)Corporate-      Mr.R.Ram, Senior presid...
28                               Joint venture companies of Hindalco         1.   Indo-gulf Fertilizers & chemicals Corpn ...
29     For Excellence in Energy Management-2004.    Prime Minister’s Shram Award 2004:                              Shram...
30     Belure Sheet Plant received the National Award for Excellence in Energy     Management 2005 (Energy Efficient Unite...
31     The quality circle teams at Hindalco, Renukoot were adjudged winners in the live     quiz competition organised by ...
32Above Figure Shows The Sales Revenue Of Aluminium Business               SALES REVENUE OF ALUMINIUM BUSINESS            ...
33       Aluminium production started.capacity40,000TPA1964   properzi wire rod mill commissioned.1965   Aluminium product...
34             6th generator commissioned At Renusagar.1998         Aluminium production capacity expanded to 242,000TPA. ...
35    CIOL Dataquest award for best performance in the pioneer category for 2004-2005      by CIOL an IT portal along wit...
36     COMPANY PROFILE            INDUSTRY AT GLANCE            ALUMINIUM            COPPER
37                             COMPANY PROFILEINDUSTRY AT GLANCE     Hindalco industry limited, a flagship company of ADIT...
38      installation of balancing equipment, including another co- generation plant. Thishas facilitated optimization of e...
39        ammonium phosphate, other phosphatic fertilizers and phospho- gypsum arealso produced at this plant .        Bir...
40
41                           PRODUCTION PROCESS      The aluminum production process can be categorized into up stream and...
42disposed off by means of dumpers Settler overflow pregnant liquor is filtered in Kellypresses to remove fine mud particl...
43     PRODUCT PROFILE            PRODUCT OVERVIEW            ALUMINIUM            COPPER            PRIMARY ALUMINIUM    ...
44                              PRODUCT OVERVIEW      Hindalco operations are organized into two strategic business units-...
45SEMI FABRICATED PRODUCTS:     Hindalco produces 900 different rolled product items of which 40 are standard.           ...
46                    Collapsible insulation Ducts            ALLOY WHEELS                    12 to 18 inch diameters.  ...
47                       PRODUCTION CAPACITYALUMINA     CAPACITY 12, 30,000TPA           RENUKOOT    700,000TPA         ...
48ROLLED PRODUCTS       CAPACITY 2, 37,000TPA           RENUKOOT           100,000TPA           BELUR               57,0...
49       Organizational Profile of Hindalco Industries LimitedHindalco Industries Limited, a Non-ferrous Metal powerhouse,...
50The companys commitment to quality and service along with its extensive infrastructure has madeHindalco a prime source f...
51is situated at Alupuram. Foil plants are based in the Union Territory of Silvassa and in Kalwa,Maharashtra. The foil pla...
52country. These speciality products find wide usage in diversified industries including water treatmentchemicals, refract...
53       Aluminium Foil                   Silvassa (Dadra & Nagar Haveli),             11,000 tpa                         ...
54     Thai Carbon Black Co. Ltd.     Carbon Black             Birla Carbon                               220,000 mtpa    ...
55              Key Products and Brands                    Capacities              Country     Aditya Birla Insulators    ...
56     Flame Retardant Yarn, Rayon Cotton Blended     Yarn, Micro Denier Polyester Rayon Yarn, Rayon     Silk Yarn, Slub Y...
57     Essel Mining & Industries Ltd     Iron and Manganese ore                                   15 million tons    India...
58                                       12, Ocare     PT. Indo Raya Kimia     Carbon Disulfide                           ...
59               Key Products and Brands                          Capacities                Country     Birla Global Finan...
60                                       Hindalco Product Range     1) -                                                  ...
61 Hindalco Products•        Everlast aluminium roofing sheets•        Freshwrapp aluminium foil•        Freshpakk semi-ri...
62finish of stock feed which in turn ensures quality finished products. The companys capacity in flatrolled products at pr...
63    Hindalcos cold rolled sheets are precision-finished to match international standards for tight    thickness, toleran...
64                                              Alpuram            14,000                                              Hir...
65•    World Consumption & Consumption growth%What is International Marketing?International marketing is simply the applic...
66which is a similar term. For the purposes of this lesson on international marketing and those that follow it,internation...
67The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or takingcommercial ...
68territory governments provide a wide range of services to new exporters including advice and information aboutgetting in...
69Marketing internationally, especially in both northern and southern hemispheres, can achieve an overalllevelling of seas...
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  1. 1. 1 A Summer Training Report On “VITAL ROLE OF EXPORT PROCESS, EXPORTDOCUMENTATION & EXPORT SERVICES(LOGISTICS) IN THE EXPORT OF FINISHED GOODS PRODUCTS” Of HINDALCO INDUSTRIES LIMITEDSUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULLTIME MBA SESSION (2008-2010) Preface
  2. 2. 2 Objective of StudyThe objective of study is to find answer of the some questions, which are important to clearlyunderstand the importance, procedure and role of export documentation for Aluminium & Aluminiumproducts in smooth Export working.The main objectives of doing this project are as follows:- • To study the Export Documentation Process. • To understand the global aluminium industry trends in the major demand and supply center of the world. • To understand the global marketing of Hindalco products. • To understand the Export Market Plan. • To study the Export Process from Order Booking to Shipment. • To understand the overall process involved in the Export Management System of the Hindalco Industries Ltd. • To understand the overall process used by the Hindalco to establish the Export Documentation Process. • To understand the benefits and incentives given by the government to the exporter for boosting up the Indian Export.
  3. 3. 3 ContentsPrefaceAcknowledgementsObjective of Study Section 1: Introduction……………………………………………………………...  About Aditya Birla Group………………………………………..……..9  Group Companies ………………………………………………..…....14  Aditya Birla Management Corporation …………………………..……19  At A Glance ……………………………………………………..……..19  Financial Foot Prints……………………………………………..……..20  Hindalco At A Glance……………………………………………..……21  Highlights Of Hindalco Industries limited………………………..……23  Hindalco Overview ………………………………………………..……24  Company Profile…………………………………………………..…….41  Industry At A Glance…………………………………….………..…….42  Aluminium ………………………………………………..……….……42  Copper …………………………………………………...……….……..43  Production Process……………………………………..……….……….45  Extracdion Of Alumina From Bauxite………………………………….46  Extraction Of aluminium From Alumina………………………………..47  Product Profile…………………………………………………………...48  Product Overview ……………………………………………………….49  Aluminium ………………………………………………………………49  Copper……………………………………………………………………49  Primary Aluminium Product……………………………………………..49  Integrated Operation Of Hindalco ……………………….………………51  Production Capacity…………………………………………………….. 52  Organizational Profile of Hindalco Industry Ltd………………...……....54  Product and Brands of Hindalco………………………...………...……..57  Hindalco Product Range………………………………...……...………..65 Section 2: About Flat Rolled Product…………………………………………...….66  Flat Rolled Products (FRPs)…………………………………………........66  Types of FRPs (Export)……………………………………………….......67 Section 3: About International Marketing………………………………………....68  What is International Marketing?................................................................68  What is Global Marketing?..........................................................................69  Advantages and Disadvantages of Global Marketing……………………..69 Section 4: About Export……………………………………………………………..70  What is Export?............................................................................................70  Types of Export……………………………………………………………70
  4. 4. 4  Benefits of Export…………………………………………………………70  Risk from Export…………………………………………………………..72  Why we should Export?...............................................................................74  How to Export?............................................................................................75  Advantages of Export……………………………………………………..76  Process of Export Management…………………………………………...77  Export Cycle………………………………………………………………78 Section 5: Export Marketing………………………………………………………..80  Export Marketing Plan…………………………………………………….80  Practical Suggestion for Export Marketing Plan………………………….80  Tips for Export Marketing………………………………………………...81  Market Entry Strategies: Location of Importers…………………………..82 Section 6: Developing an Export Strategy…………………….…………………....86  Determining Product’s Export Potential………………….……………….90  Assessing Company’s Export Readiness………………….………………90  Developing an Export Plan……………………………….……………….90 Section 7: Developing a Market Plan…………………………..…………………..92  Marketing Strategy Benefits………………………..…………………….92  Market Research………………………………….………………………92  Method of Market Research…………………….………………………..93  Step-by-Step Approach to Market Research….………………………….94 Section 8: Methods/Channel of Exporting…………..…………………………….96  Approaches of Exporting…………………..……………………………..96  Distribution Consideration………………..………………………………97  Indirect Exporting………………………..……………………………….98  Direct Exporting……………………….………………………………....98 Section 9: Preparing Product for Export………………………………………...100  Questions to Consider…………………………………………………...100  Product Adaptation……………………………………………………...101  Engineering and Redesign……...……………………………………….102  Branding, Labeling and Packaging...…………………………………....102  Installation ……………………………………………………………….103  Warranties……………………...………………………………………..103  Servicing…………………...……………………………………………103 Section 10: Export Order…………………………………………………………......105  Processing of an Export Order………………………………………….....105  Terms and Conditions of an Export Order………………………………...107  Planning for Execution of the Export Order………………………………108 Section 11: Export Pricing, Quotation and Incoterms……………………………...109  Pricing Consideration………………………………………………….…..109
  5. 5. 5  Quotations and Proforma Invoice………………………………………....112  Difference between Proforma Invoice and a Quotation…………………..114  Use of a Proforma Invoice………………………………………………...114  Commercial Invoice……………………………………………………….115  Customs and Consular Invoice……………………………………………116  From the Proforma Invoice to the Commercial Invoice…………………..116  Incoterms or Terms of Sale………………………………………………..119 Section 12: Export Process…………………………………………………………...123  Procedure for Export……………………………………………………...124 Section 13: Logistics Process………………………………………………………....127  Brief Description of the Flow of Logistics………………………………..128  Flow of Logistics Process Implemented by Hindalco…………………….130 Section 14: Export Documentation…………………………………………………..132  Importance of Export Documentation…………………………………….132  Set of Documents Required for Exports…………………………………..133  Major Export Documents……………………………………………….…133  Need for Export Documents……………………………………………....136  Significance of Some Export Documents………………………...……….136  Common Defects in Documentation……………………………...……….143  Process of Getting Custom Clearance……………………………...……...144 Section 15: Government Policies for Export………………………………………145  EXIM Policy…………………………………………………………….145  Main Objectives of EXIM Policy……………………………………….145 Section 16: Export Incentives………………………………………………………146  Process Involved in Getting Export Incentives………………………....149  Export Finance………………………………………………………….152  Hindalco’s Export Data (From Renukoot Plant)………………………..157 Section 17: SWOT Analysis of Hindalco……………………………………………158 Section 18: Findings and Recommendations…………………………………….....159 Section 19: Bibliography………………………………………………………….....161 Section 20: Annexure…………………………………………………………...…...162  Specimen of Proforma Invoice…………………………………………..162  Specimen of Packing List………………………………………………..162  Specimen of Certificate of Origin………………………………………..163  Specimen of Bill of Lading……………………………………………...163  Specimen of Export Quotation Worksheet………………………………164  Specimen of Commercial Invoice……………………………………….164  Sample of Insurance Certificate…………………………………………164
  6. 6. 6 INTRODUCTION ABOUT ADITYA BIRLA GROUP ADITYA BIRLA MANAGEMENT CORPORATION GROUP COMPANIES AT AGLANCE FINANCIAL FOOT PRINT
  7. 7. 7 ABOUT ADITYA BIRLA GROUP The ADITYA BIRLA GROUP is India’s 1st tryly multinational corporation(MNC) whose over 30% of revenues flow frpm its operations across tehe world. The group is anchored by an extra-ordinary force of 72000 employees belonging to over 20 different nationalities the world over. The ADITYA BIRLA GROUP reaches out to the core sector in India –in industries integral to the nation’s growth-cement,aluminium,fertilizers,viscose stable fibre, textile,power,telecommunications,industrial chemicals and financial services. The ADITYA BIRLA GROUP is a dominated player in all the sectors in which it operates, such as viscoses stable fibre, non ferrous metal, cement viscoss, telecommunication and financial service. Group Overviews
  8. 8. 8 Aditya Birla group traces it’s origin back to the Tiny village of Pilani in theRAJASTAN desert, where late Shri Seth Shiv Narajan Birla started carton tradingoperation in 1857. Then one visionary the late Shri G.D. Birla set up Indian’s firstintegrated aluminium manufacturing unit at Renukoot 1962 backed by captive powerplant at Renusagar in 1967. It further evolved under the dynamic leadership of the late Shri Aditya VikramBirla a prominent figure in the Indian industries, under whose stewardship HINDALCOattained its leadership position in aluminium. Today our group chairman Dr. KumarManglam Birla has put together the building block to make Indian business a globalforce.Group Today The Aditya Birla Group is India’s first truly multinational corporation (MNC),whose over 60% of revenues flow from its operations across the world. Over 75 units in India and overseas as well (in Thailand, Indonesia, Malaysia,Philippines, Egypt and Canada) and international trading operations spanning severalcountries including Singapore, Dubai, Russia, Vietnam, Myanmar and China make itIndia’s first truly multinational conglomerate.THE ADITYA BIRLA GROUP HAS THE FOLLOWING ACHIVEMENTS TOITS CREDITS:- • The words no 1 in viscose fiber. • The word’s largest single location palm oil producer. • Asia’s largest integrated aluminum producer. • The forth largest producer of insulator. • The forth largest producer of carbon black. • The eleven largest cement producers. • Among the best energy efficient fertilizer plant. • Among the word’s top 15 largest BPO company.
  9. 9. 9 IN INDIA , A FRONTRUNNER POSITION ARE:- • A premier branded garments players. • The second largest player in viscose filament yard. • Among the top three BPO companies. • India’s leading copper producer. • The second largest in the chlor alkali sector. • Among the top five mobile telephony players. • A leading player in life insurance & asset management.Group vision “To become a premium conglomerate with clear business focus at eachcorporate level.” Group mission“To deliver value for our customer, shareholders, employees and society at large.”Group Philosophy Reset on four pillars  Customize  People-size  Strategize  InstitutionalizeGroup values  Integrity  Speed  Seamlessness  Passion
  10. 10. 10 CHAIRMAN: Shri Kumar Mangalam Birla “The winning organization will be those who regularly out perform competition They have a stable consistent strategy. A stable strategy does not means a static strategy, rather it means following a broad philosophy and continuous improvement in how strategy is manifested, incorporating the expected market requirement and the customer needs.” Kumar Mangalam Birla COMPANIES Group companies:  Grassim Industries Ltd.  Hindalco Industries Ltd.  Aditya Birla Nuvo Ltd.  Ultra Tech Cement Ltd.
  11. 11. 11 Indian companies:  PSI Data systems  Aditya Birla Minacs Worldwide Ltd.  Essel Mining & Industries Ltd.  Shree Digvijay Cement Ltd.  Idea Cellular Ltd.  Aditya Birla Insulators.  Aditya Birla Retail Limited  Bihar Caustic and Chemicals Ltd. International companies: Thailand:  Thai Rayon  Indo Thai Synthetics  Thai Acrylic Fibre  Thai Carbon Black  Aditya Birla Chemicals(Thailand) Ltd.  Thai Peroxide. Philippines:  Indo Phil Textile Mills.  Indo Phil Cotton Mills.  Indo Phil Acrylic Mfg.  Pan Century Surfactants Inc. Indonesia:  PT Indo Bharat Rayon.
  12. 12. 12  PT Elegant Textile Industry.  PT Sunrise Bumi Textiles.  PT Indo Liberty Textiles.  PT Indo Raya Kimia. Egypt:  Alexandria Fiber Company S.A.E.  Alexandria Carbon Black Company S.A.E. China:  Liaoning Birla Carbon.  Birla Jingwei Fibres Company Ltd.  Aditya Birla Grasun Chemicals(Fangchenggang) Ltd. Canada:  AV Cell Inc.  AV Nackawic Inc. Australia:  Aditya Birla Minerals Ltd. Laos:  Birla Laos Pulp and Paper Plantation Company Ltd. North and South America, Europe and Asia:  Novelis Inc.Globally• A metals powerhouse, among the worlds most cost-efficient Aluminium and Copper producers. Hindalco-Novelis from its fold is a Fortune 500 company. It is the largest Aluminium rolling company
  13. 13. 13• It ranks as No. 1 in Viscous Staple Fibre• The largest single location palm oil producer• The third largest producer of insulators• The third largest producer of carbon black• The eleventh largest producer of cement and the largest in a single geography• The largest single location copper smelter• Among the worlds top 15 BPO companies and among Indias top three• Among the best energy efficient fertilizer plantsIn Asia• The largest integrated Aluminium producerIn India• A premier branded garments player• The second largest in the chlor-alkali sector• Among the top five mobile telephony companies• Among the top three supermarket chains in the retail business• Second largest player in viscous filament yarn• Second largest private sector insurance company and a leading assets management company.
  14. 14. 14 JOINT VENTURES  Birla Sun Life Insurance  Birla Sun Life Asset Management Company Ltd.  Birla Sun Life Distribution Company Ltd.  Tanfac Industries Ltd
  15. 15. 15 ADITYA BIRLA MANAGEMENT CORPORATION BOARD OF DIRECTOR Mr. Kumar Mangalam Birla (chairman) Mr. S.Aga Mr. D.bhattacharya,managing director Mr. S.K.jain Mr. Santrupt misra Dr. Bharat singh Mr.S.K. mitra Mr. Di mittalFINANCIAL FOOT PRINT: A us $28 billian corporation with a market cap of US $31.5 billian and in theleaque of fotune 500.the A.B. group is anchored by an extra ordinary sale of 100000employee belonging to 25 different nationalties. In India the group has been adjustedthe best employees in India and among the top 20 in asia by the Hewitt- economictimes and wall streetjournal study2007over50% of its revenues flow from overesoperations. The groupoperation in 20 country: Indiathiland,indonasia,Egypt,china,Canada,Australia,U.S.A.germany,brazil,italy,Switzerland,andmalasia.Renukoot: A general overview Lying in the foothills of the vindhya range, renukoot is about 160kms from varanasi and 154 kms from mirzapur.
  16. 16. 16 There is a direct daily train named muri expressed between jammu tawl to tatanagar and rachi via renukoot. A part from above renukoot is also connected with kolkatta through direct train named shaktipunj express.Location:-Renukoot- zonal office:-  Kolkatta  Mumbai  Bangalore  delhiDivisional office:-  Power division  Foil divisionGuest house:-  Delhi  Mirzapur  Lucknow  Allahabad
  17. 17. 17 Renukoot Renusagar (CPP) Silavasa Bauxite (Foils & Wheels) Mines (Jharkhand & Chattisgarh)
  18. 18. 18 INTRODUCTION HINDALCO AT A GLANCE HIGHLIGHTS OF HINDALCO INDUSTRIES LIMITED HINDALCO OVERVIEW
  19. 19. 19HIGHLIGHTS OF HINDALCO INDUSTRIES LIMITED India ‘s largest aluminium producer. Market share of 50 percent. World’s cost producer of aluminium. Fully integrated production facilities from bauxite mines to value added aluminium products. Fully integrated aluminium plant at renukoot,U.P. Aluminium wheels and foils plant at silvassa, in Dadra& NagarHaveli. First Indian Aluminium producer which was accorded ISO 9002 and 14001 certified. Significant economies of small scale from large scale production. Strong market presence and wide distribution network.HINDALCO OVERVIEW:- “Hindalco” was set up in collaboration with Kaiser Aluminum & ChemicalsCorporation U.S.A, in a record time of 18 months. The plant started functioning in theyear 1962 with a capacity of 20,000 tons per annum. The company has growth manifold and is managed by Board of Directors, withShri Kumar Mangalam Birla as the chairman of the Board of Directors. Day to dayaffairs of the company are managed by Professional Executives headed by Shri RatanK Shah as the chief operation officer-Aluminium & Power. Hindalco is one of India’s largest producers of Aluminium. The company was incorporated on December 15, 1958 and commenced production in 1962 with an initialsmelting capacity of 20,000 TPA.
  20. 20. 20 Hindalco’s integrated operation and operational efficiency have enabled thecompany to be one of the world’s lowest cost producers of Aluminium.Hindalco Today Aluminium has turned out to be the wonder metal of the industrialised world. Noother single metal can do so many jobs, so well, and so economically. Aluminium’s growth rate is the highest amongst the major basic metals today.Hindalco ranks as the largest Aluminium producer in India, whose more than 58%sales is in value added product and has more than 40% in total market share.Hindalco’s integrated operations and operational efficiency have enabled the companyto be one of the world’s lowest cost producers of Aluminium. Hindalco also owns a large captive thermal power plant at Renusagar that meetsthe power requirement of the company very effectively. Hindalco currently has primaryAluminium capacity of 3, 75,000 MTPA. Hindalco is a leading domestic player in two metals business segments -aluminium and copper. The aluminium divisions product range includes aluminachemicals, primary aluminium ingots, billets, wire rods, rolled products, extrusions, foilsand alloy wheels. The company has a significant market share in all the segments in which itoperates. It enjoys a domestic market share of 42 per cent in primary aluminium, 63per cent in rolled products, 20 per cent in extrusions, 44 per cent in foils and 31 percent in wheels. As a step towards expanding the market for value-added products and services,Hindalco has launched several brands in recent years, which include Aura for alloywheels, Freshwrapp for kitchen foil and Everlast for roofing sheets. Our exclusiveshowroom, The Aluminium Gallery, seeks to promote Hindalco products to its
  21. 21. 21 customers. It is a platform for the company to showcase quality products to aquality audience in an appropriate ambience. The exhibits include products like windows, doors, furniture, ladder, roofingsheets and ceiling and cladding panels. Hindalcos products are well received not only in the domestic market, but also inthe international market. The companys metal is accepted for delivery under the highgrade aluminium contract on the London Metal Exchange (LME). The company exportsabout 17 percent of its total sales volume of aluminium. The companys alumina chemical business is a leader in manufacturing andmarketing of speciality alumina and alumina hydrate products in the country. It has amajor market share in the country. These speciality products find wide usage indiversified industries including water treatment chemicals, refractories, ceramics,cryolite, glass, fillers and plastics, conveyor belts and cables, among others. Thecompany also exports these alumina chemicals to over 30 countries covering NorthAmerica, Western Europe and the Asian region. Birla Copper, Hindalcos copper division at Dahej in Gujarat, enjoys a leadershipposition in India, having built over 40 per cent of the domesticmarket share within three years of its commissioning. It has also madesuccessful forays into the export markets of the Middle East,Southeast Asia, China, Korea and Taiwan. The copper plant produces world-class copper cathodes,continuous cast copper rods and precious metals. Sulphuric acid, phosphoric acid, di-ammonium phosphate, other phosphatic fertilizers and phospho-gypsum are alsoproduced at this plant.
  22. 22. 22Hindalco Vision “To strength our position as a premium Aluminum company, sustaining, domesticleadership and global competitiveness through innovation quality and value addedgrowth.”
  23. 23. 23Hindalco Mission “To pursue the creation of value for our customers, shareholders, employees andsociety at large.”Hindalco Values INTEGRETY: Honesty in every action. COMMITMENT: Doing whatever it takes to deliver, as promised. PASSION: Missionary zeal arising out of an emotional engagement with work. SEAMLESSNESS: Thinking and working together across functional silos,hierarchy levels, business and geographies. SPEED: Responding to stockholders with a sense of urgency. Hindalco Strategy EFFICIENCY FOCUS: To be one of the lowest cost producers globally. EFFECTIVENESS FOCUS: To continue to remain the market leader domestically. GROWTH FOCUS: To pursue value adding growth opportunities.HINDALCO’S MARKETING VISION “To be a premium marketing organization sustaining domestic market leadershipand establishing global presence in each product category.”HINDALCO’S MARKETING MISSION “To create value for our customers and profitable markets for Aluminium,ensuring rapid and sustained long-term growth.”HINDALCO POLICYQUALITY POLICY
  24. 24. 24 We, at Hindalco, shall aim to achieve and sustain excellence in all our activity. We are committed to total customer satisfaction by providing products and services, which meet or exceed the customer, expectations. Modernization of the manufacturing facilities stress on technological innovation and training of employee at all level shall be a continuous process of Hindalco. A motivated workforce with a sense of pride in the organization shall us towards total quality.SAFETY POLICY We at Hindalco value as our most importance resource and hence committed toachieve health and safety. Excellence by providing healthy and safe workingenvironment our objective therefore, will be Use appropriate technology and other resources to upgrade safety standards. To continuously improve the working condition leading to prevention of accidents. Not only continue to comply with all the applicable laws and regulation but also strive to achieve beyond and set new standards. To continuously monitor and control work places hazard and project employees and community from them. To creation awareness and concern for safety amongst employees through active involvement participation continuous training etc.ENVIRONMENT POLICY We at Hindalco Industries Ltd. are committed to resources conservation andcontrol of environmental aspect of our activities internally relating to production of
  25. 25. 25Alumina. Aluminium fabricated product and power generation at Renukoot in order toserve the cause of sustainable development our objective therefore will be to Innovate and improve our process equipment operations maintenance and other practices continuously for population prevention. Adopt cleaner technologies wherever techno-Economically viable. Conserve key input resources such as bauxite caustic soda coal, power, water furnance oil and other oil. Keep exploring the flexibility of recycling and utilization of inevitable waste especially of water tube oil red mud fly ash. We shall make this policy available to all employee and public.TPM-WCM POLICY Weat hindalco shall continuosly TPM-WCM practices as a key to optimization ofresource, and recognition as a world class company constantly aspiring to exceed theezception of all atakeholder. We shall: Involve all our people in the pursuit of efficient production system. Target zero accident, Zero breakdown, and Zero defect. Work vigorously for elimination of losses and wastage of resource. Promote process capability through innovation. Conserve energy and ensure healthy a green environment through pollution prevention and control. Be flexible, so as to meet the challenge of change through association assimilation and improvisation.
  26. 26. 26 Be a solutions provider-delivering optimum valve to our customers.BOARD OF DIRECTORNon Executive Directors Mr. Kumar Mangalam Birla (chairman) Mrs. Rajashree Birla Mr. A. K. Agarwala Mr. E. B. Desai Mr. S.S. Kothari Mr. C. M. Maniar Mr. M. M. Bhagat Mr. K. N. Bhandari Mr. N. J. JhaveriExecutive Director Mr.D.Bhattacharya Managing DirectorRENUKOOT UNIT Mr. D. K. Kohly, Chief Operating Officer Mr. Ashok Machher, Joint President(F& C) Mr. G.M.Pandey,Joint President (Renusagar Power)
  27. 27. 27Chief financial officer Mr. S.talukdar (Group executive president &CFO)Corporate- Mr.R.Ram, Senior president (project corporate) Mr. Pratik roy. (Chief people officer)Advisors Mr.R.K. Kasiwal Mr.Amit Basu.Key executives- (aluminium business) Mr.Shashi k. maudgal (chief marketing officer) Mr.R.S.Dhulkhed president Mr shanker roy president Mr S.M. Bhatia, presidentCopper business Mr Dilip gaur(group executive president copper) Mr N.M. pathaik, Mr j.p.paliwal,( commercial president) Mr B.M. sharma (chief marketing officer copper)
  28. 28. 28 Joint venture companies of Hindalco 1. Indo-gulf Fertilizers & chemicals Corpn Ltd. 2. Bihar Caustic & Chemicals Ltd. 3. Tanfac Industries Ltd. 4. Mangalore Refinery & Protochemicals Ltd. 5. Birla AT & T Communication Ltd. 6. Bina Power Supply Co. Ltd. 7. Birla Global Finance Ltd. 8. Birla Capital International AMC Ltd. 9. Century Enka.Recent Awards won by Hindalco in Different fields. National Safety Award 2003: ByMinister of Labor and Employment. Rajiv Gandhi National Quality Award 2003: Joint awardwinner of R.G.N.Q.A. 2003 in large –scale manufacturing category. The award isinstituted by Bureau of Indian Standard, Ministry of Consumer Affairs, Government ofIndia. CIOL Dataquest Award: For best performance in the pioneer category for 2004-05 by CIOL, an IT portal along with Dataquest Magazine. Green Tech Gold Award 2003-04: By Greentech Foundation, New Delhi for organizational Health & Safety. Qualtech Award 2004: ForQuality Management by Quimpro college, Mumbai. CII National Award:
  29. 29. 29 For Excellence in Energy Management-2004. Prime Minister’s Shram Award 2004: Shram Veeraward to Mr. Ram Kailash of Aluminium plant won the Excellence Case StudyPresentation Award at NCQC, Mumbai in December 2004. National Energy Conservation Award 2004: In aluminium sector – Government of India, Ministry of Power. Aditya Birla Planet Award 2004: Jt. Winner of Aditya Birla Planet Award 2004 for community initiative & Rural Development Works. Our Mines Division has been reorganized by Indian Bureau of Mines, Government of India for A forestation; Plantation, waste Dump Management, Topsoil Management, Reclamation and Rehabilitation, Dust suppression Arrangement, Publicity & propaganda and overall Performance. Training & Development (HR) Practices 2004: Renusager Power has declared winner of Innovation Training & Development (HR) Practices 2004. Award given by Indian Society for Training & Development, New Delhi. Annual Greentech Safety Gold Award: Hindalco own the 4th Annual Greentech Safety Gold award for the year 2004-05 in Metallurgy Sector. The award will be presented on 11th May 2005 at Hyderabad. National Award for Excellence in Energy Management 2005:
  30. 30. 30 Belure Sheet Plant received the National Award for Excellence in Energy Management 2005 (Energy Efficient Unite) from CII –Sohrabji Godrej Green Business Center. National Safety Award 2004: Owned by Renukoot Plant, given by the Ministry of Labor and Employment, Government of India. Vishkarma Rashtriya Puraskar: Awarded to Five workmen of our smelter, Mr. Rajesh Pal, Mr. A.K. Gupta, Mr. R.K. Singh, Mr. H.N. Singh, & Mr. S.K. Singh, given by the Ministry of Labor and Employment, Government of India. National Energy Conservation 2005: Renukoot plant won the 1st Prize in Aluminium sector, given by Ministry of power, Government of India. ICWAI National Award for Excellence in Cost Management-2005: Hindalco was awarded by Institute of Cost and Works Accountants of India. “National Energy Conservation Award-2006” Hindalco was awarded by Ministry of Power, Government of India National Award for Excellence in Water Management 2006 Hindalco, Renukoot has won the National Award for Excellence in Water Management 2006 organised by CII Quality Circle Forum of India Award
  31. 31. 31 The quality circle teams at Hindalco, Renukoot were adjudged winners in the live quiz competition organised by the Quality Circle Forum of India. Rajiv Gandhi National Quality Award 2007 Renukoot was selected for the Rajiv Gandhi National Quality Award 2007 – Silver Trophy, presented by the Bureau of Indian Standards, in the large scale manufacturing (metallurgy) category National Award for Excellence in Water Management 2007". Hindalco awarded the CII-Sorabji Green Business Centre "National Award for Excellence in Water Management 2007". “D.L. Shah National Award for Economics of Quality” Hindalco won the prestigious “D.L. Shah National Award for Economics of Quality” given by quality council of India. Chief manufacturing officer, Mr. R. P. Shah and Mr. Arun Kumar received the award from the President of India, H.E. Dr. A.P.J. Abdul Kalam on 9 February 2007 at New Delhi IT Competition 2008 Award By CII: Hindalco Hirakud Systems ranked runners up at the state level IT Competition 2008 organised by CII in association with the department of informational technology, Government of Orissa. Greentech Safety Gold Award 2008: Greentech Safety Gold Award 2008 for outstanding achievement in safety management in coal based power sector
  32. 32. 32Above Figure Shows The Sales Revenue Of Aluminium Business SALES REVENUE OF ALUMINIUM BUSINESS CHEMICAL 10% FOIL&WHEEL 8% PRIMARY PRIMARY EXTRUSION 37% ROLLED 9% EXTRUSION FOIL&WHEEL CHEMICAL ROLLED 36% IMPORTANT MILESTONES OF PROGRESSYEAR ACHIEVEMENTS1958 Date of registration1962 Aluminium production started.capacity20,000TPA
  33. 33. 33 Aluminium production started.capacity40,000TPA1964 properzi wire rod mill commissioned.1965 Aluminium production capacity expanded to 40,000TPA. Renusagar pawar plant commissioned with 65.7mw capacity. Aluminium production capacity expanded to 60,000TPA. Properi mll no.2,extrusion press 2&3.1969 Aluminium production capacity expanded to. 80000TPA1972 Aluminium production capacity expanded to 95,000TPA.1981 Aluminium production capacity expanded to 120,000TPA. Third generater at renusagar commissioned.1886 Alumina production capacity expanded to 300,000.1988 Conferm extrusion press commissioned.1990 Continuous caster installed.1991 Aluminiumproduction capacity expanded to 150,000TPA.1993 Dave cold rolling mill commissioned.1994 Aluminium production capacity expanded to 350,000TPA.1996 Continuos ingot casting machine installed. Aluminiumproduction capacity expanded to 210,000TPA Wag stuff slab casing machne installed.1997 Bliss hot & cold mill revamped. Co-generation power plant of 37 mu commissioned. Wag stuff billet casing machine commissioned.
  34. 34. 34 6th generator commissioned At Renusagar.1998 Aluminium production capacity expanded to 242,000TPA. Aluminiumproduction capacity expanded to 450,000TPA. Aluminium fil production commenced at silvassa.1996 wheel plant commissioned at silvassa.20011997 under brown field expansion of smelter, pot line 9 commisioned and aluminium production capacity expanded to 275, 000TPA2002 brown field expansion of capitive power plant completed power production capacity enhanced by 160 mu .2002 brown field expansion of alumina refinery completed.2004 co generation power plant of 40 mu commissioned.2005 HIndalco received the ICWAI national award for excellence in cast management.2006 In may the company singed a mow wih the government of Madhya Pradesh for setting up a green field aluminium smelter and a captive power plant.2007 In may novelis become a Hindalco subsidery with the completion of the acquisition process.ACHIVEMENTS:-Recent awards won by Hindalco of labour and employment:- National safety award 2003 by ministry of labour and employment. Joint award winner of Rajive Gandhi national quality award 2003 in large scale manufacturing category. The award I sinstotuted by bureau of Indian standerds ministry of consumer affairs, govt. of India.
  35. 35. 35 CIOL Dataquest award for best performance in the pioneer category for 2004-2005 by CIOL an IT portal along with dataquestr magazine. Green tech gold awad 2003-2004 by greentech foundation new delhi for organization health and safety. Qualtech award 2004 for quality management bu quimpro college. CLL national award for excellence in energy management 2004. Prime minister’s shram awards 2004 sharam veer award to mr.Ram kailash of alumina plant and Sharam shree award to Mr. Suresh Prasad of alumina plant. Quality circle shakti of reduction plan won the excellence case study presentation award at NCQC Mumbai in December 2004. National energy congervation award 2004 in aluminium sector government of India, ministry of power. Jt.winner of Aditya Birla planed award 2004 for commity initiative & rural development works. Our mines division has been recognized by Indian bureau of mines, govt of India for afforestation, plantation management publicityn and propaganda and overall performance. Renusagar power has declared winner of innovation training and development practice 2004 award givin by Indian society for training & development new delhi. Hindalco won the 4th annual greentech safety gold award for the year 2004-2005 in metallurgy sector. The award will be presented on the 11th may 2005 at hydarabad.
  36. 36. 36 COMPANY PROFILE INDUSTRY AT GLANCE ALUMINIUM COPPER
  37. 37. 37 COMPANY PROFILEINDUSTRY AT GLANCE Hindalco industry limited, a flagship company of ADITYA BIRLA group, with aturnover of Rs.192,010.00 crore in 2007-08, ranks M vmd ndnvkl among India’s top 10 companies in terms of capital marketcapitalization a non ferrous metal powerhouse Hindalco’s operations are organized intotwo strategic business units –Aluminium and Copper. The company is an industryleader in both these business.ALUMINIUM Hindalco is Asia’s largest integrated primary producer of aluminium and amongthe most cost efficient producers globally. In India, Hindalco enjoys a leadershipposition for aluminium and downstream products. Synergies of operations with it’s wholly – owned subsidiary Indian aluminiumcompany Ltd. (Indal), have enhanced the company share in value addition segments,in which the Hindalco – Indal combine has a market share of over 50 %. As a step towards expanding the market for value –added products and services,Hindalco has launched several brands in past year –“Aura”, “Freshwrapp”, Everlast”,and, “Al plant”. The company’s product range includes primary aluminium ingots, billets, wire rods, rolled products, extrusions, and foils andalloy wheels. To enhance its capacities, the company had under taken Brownfield expansions,leading to smelting capacity of 1,46,000 tpa, an alumina refining capacity of 4,50, 0000tones, and captive power generation of 167.5MW. The company further enhanced the smelter capacity of 4, 29,140MT and aluminarefinery to 7, 00,000 tones, by streamlining to eliminate bottlenecks and
  38. 38. 38 installation of balancing equipment, including another co- generation plant. Thishas facilitated optimization of expand facilities and, more importantly, has beenachieved within the original budget. Besides being a dominant player in the Indian aluminium market, Hindalco’sproducts are well accepted in international markets. The company’s metal is acceptedfor delivery under the high grade aluminium contract on the LME (London MetalExchange). The company’s export efforts have led to its reorganization as a “StarTrading House”. Hindalco is an ISO 9001 company, and has been awarded the ISO14001certification for its entire operations at Renukoot and Silvassa, including itspower plant and mines. It has received several awards from the export promotioncouncil as well as the government of India. With the completition of on goingBrownfield expansion, Hindalco will further consolidate its domestic market leadership,and reach out to international markets in larger measure.COPPER Birla copper enjoys leadership position in India, having built up-------percentdomestic market share with in three years of commissioning. It has also madesuccessful forays into the export markets of the Middle East, South East Asia, chinaKorea and Taiwan. Birla copper has a mega green field copper smelting and refining complex atdahej in the bharuch district of Gujarat, India. With an investment of Rs 1,850. Crore, itis largest of its kind in India. The plant produces world- class copper cathodes,continues cast copper rods and precious metals. Sulphuric acids, phosphoric acid, di-
  39. 39. 39 ammonium phosphate, other phosphatic fertilizers and phospho- gypsum arealso produced at this plant . Birla copper aspires to be among the world’s foremost cost competitiveproducers of cooper. To reach this goal, it had under taken a brown field expansionraising its smelter capacity from 65,000 tones per annum to 146000 tones per annum.The copper division is evaluating a further expansion as well, so as to rank among thetop 10percent of cost competitive producer globally. To make birla copper an integrated producer of copper, the company believesthat upstream expansion through ownership in mines is important for a smelter of itssize. As a first step in this direction, birla copper acquired the nifty copper mines inAustralia. Nifty currently has a capacity of 25000 tones per year of copper cathodes,with a large underdeveloped copper sulphide. PRODUCTION PROFILE PRODUCTION PROCESS EXTRACTION OF ALUMINA FROM BAUXITE EXTRACTION ALUMINIUM FROM ALUMINA
  40. 40. 40
  41. 41. 41 PRODUCTION PROCESS The aluminum production process can be categorized into up stream and downstream activities. The upstream process involves meaning and refining bauxite toalumina while the downstream process involves smelting and casting and fabricating. Hindalco refines bauxite primarily obtained from captive mines, to extractalumina, which is smelted into alumina ingots or billets. Hindalco smelts its entireproduction of alumina into aluminum and does not engage in alumina trade.Production of aluminum can be categories in two stages, namely • From bauxite to alumina • From alumina to aluminum EXTRACTION OF ALUMINA FROM BAUXITE Alumina is manufactured by conventional bayers process i.e. treating bauxitewith caustic soda. Bauxite is brought to the site from mines by means of railwayswagon tippler. Primary crushing is done in cone crusher where bauxite size is reducedform 8”- 12” to 3” - 4” and then stockpiled. Secondary crushing is done by means ofhammer mills where process liquor known as a spent liquor and 600 psig. Seam ismixed together. This solution of alumina from bauxite into caustic solution in the formof sodium aluminates is carried out of digesters at 240 degrees centigrade temperatureand 36-kg/sq.cm pressures. The digested slurry is placed flashed and brought toatmosphere pressure; flashed vapors are utilized for pre heating the spent liquor andcondensed returned to boiler hose for generation of steam. Digested flashed slurry ispumped to clarification area for removal of solid Impurities (red mud). Red mud isseparated out, in solid liquid hydrocyclon and stellar. Separated mud slurry is washedin counter current and washing Circuit without using water. Washed mud slurry iscauterized by treating with lime slurry to recover soda. Cauterized mud slurry is filteredon drum filters. Filtrate liquor is taken back into the system and red mud cake is
  42. 42. 42disposed off by means of dumpers Settler overflow pregnant liquor is filtered in Kellypresses to remove fine mud particles. Clear pregnant liquor is pumped to precipitatorsthrough plate heat exchanges after exchanging heat with the spent liquor where it isseeded with alumina trihydrate. Alumina trihydrate is separated out in thickness andpan filter. Alumina trihydrate cake thus obtained is fed into the gas suspension calcinerwhere furnace oil is burnt for calcining alumina. The reduction grade alumina thusproduced is transported to smelter plant. Spent liquor generated and separated from precipitation circuit is fed to theevaporation unit for increasing caustic concentration to the desired level andrecirculated to digesters through heaters for further processing of bauxite and thus theprocess goes on. EXTRACTION OF ALUMINUM FROM ALUMINA Alumina from alumina plant is conveyed to the reduction plant. The reductionplant has 11 prebaked pot – lines which have 1278 pot cells. Each pot has 24/26carbon anodes and it is lined with carbon cathode. Alumina is converted to metallicaluminum is these pot cells by the standard “hall heroult” process. The pot cells work atan average 4.3-volt D. C. current of 5800/6300 amperes. Electrolysis of the aluminatakes place in molten bath of cryolte at a temperature of 955 to 960 degreescentigrade. The molten aluminum that collects at the cathodes is siphoned intocrucibles periodically. The entire process is controlled by microprocessor system.
  43. 43. 43 PRODUCT PROFILE PRODUCT OVERVIEW ALUMINIUM COPPER PRIMARY ALUMINIUM PRODUCTS INTEGRATED OPERATION OF HINDALCO PRODUCTION CAPACITY
  44. 44. 44 PRODUCT OVERVIEW Hindalco operations are organized into two strategic business units- aluminumand copper. The company is an industry leader in both these businesses.ALUMINUM Hindalco’s Aluminum business comprises primary aluminum, extrusions, rolledproducts, foils and alloy wheels. In the value-added segment, hindalco, along with itssubsidiary Indal, has a 50 percent market share. In the past year, hindalco haslaunched several brands – “Aura”, Freshwrapp”, “Everlast”, “Permashield”, and, AlPlanet”.COPPER BIRLA copper, with an over 45 per cent market share, is India leading copperproducer in private sector. Its plant at dahej in Gujarat, produces world class coppercathodes, continuous cast copper rods and precious metals. A part form copper products, euphoric acid, phosphoric acid, di-ammoniumphosphate, other phosphates fertilizers and phosphor –gypsum are also produced atthis plant.PRIMARY ALUMINIUM PRODUCTS INGOTS: Is an LME (London Metal Exchange) registered brand. These are also known as virgin metal. These are used as raw material for making aluminium product. ROUND BILLETS: These are use for making extrusion. CAST SLABS: Slabs are used input in Hot Rolling Mill, which is converted intothinner sheets, plates or coils.
  45. 45. 45SEMI FABRICATED PRODUCTS: Hindalco produces 900 different rolled product items of which 40 are standard. HOT ROLLED PRODUCTS: These are the product which are used after the process of hot rollingaccording to their specification and requirements, these products are as follows: 1. Hot rolled plates electrical application 2. Hot rolled wire. COLD ROLLED PRODUCT. (plane sheets) (Cold rolled coil) 3. Circle 4. checkered sheet 5. alkaloid sheets.EXTRUSIONS Hindalco extrusions offer an enormous range of shapes,wide range of alloys for decorative, structural and functionalapplication. The present die catalogue included over one thousanddie for various sections and we are fuy equipped to design and makenew die as per exclusive requirement. Some of the common shapes are as follows:  ROD, BAR-Flat, Square, Hexagonal  STRUCTURAL SHAPES-Angles, Channels, Tee, I-beans, H sections etc.  TUBES-Round, Oval, Square, Rectangular, Triangular  MOUDINGS FOIL  Cable Rape stock  Light Gauge Foil  Bare & Coated Fine stock
  46. 46. 46  Collapsible insulation Ducts ALLOY WHEELS  12 to 18 inch diameters. OTHERS: The main by products of the process included  VANADIUM SLUDGE  GALLIUM INTEGRATED OPERATION OF HINDALCO S DA M INE SO ITE ST IC UX CA BA RY EF INA INI UM AR M M IN ALU IDE ALU FLU R ER ESS OC ELT NP R SM SIO UM TRU MINI EX ON ALU ER ATI EN T O-G P LA NC ON ATI BRIC E R IFA P OW SEM AR SAG EL RENU LL HE NT MI W P LA IN G UM OLL M INI LLS R ALU T D MI N RO PLA R AW RED IL S FO
  47. 47. 47 PRODUCTION CAPACITYALUMINA CAPACITY 12, 30,000TPA  RENUKOOT 700,000TPA  BELGAUM 350,000TPA  MURI 180,000TPASMELTER (PRIMARY ALUMINIUM) CAPACITY 5, 59,000TPA  RENUKOOT 375,000TPA  HIRAKUND 1,43,000TPA  ALPURAM 14,000TPA  TALOJA 25000TPA  BELGUAUM 2000TPA
  48. 48. 48ROLLED PRODUCTS CAPACITY 2, 37,000TPA  RENUKOOT 100,000TPA  BELUR 57,000TPA  TALOJA 50,000TPA  MOUDA 30,000TPAFOIL CAPACITY 40,000TPA  SILVASA 30,000TPA  KALWA 6,000TPA  KOLLAR 4,000TPA EXTRUSIONS CAPACITY 46,000TPA  RENUKOOT 33,000TPA  ALPURAM 13,000TPA ALLOY WHEELS CAPACITY 3,00,000 pcs. PA  SILVASA 3,00,000 pcs. CAPATIVE POWER CAPACITY 1188MW  RENUSAGAR 742MW  RENUKOOT 78MW  HIRAKUD 368MW
  49. 49. 49 Organizational Profile of Hindalco Industries LimitedHindalco Industries Limited, a Non-ferrous Metal powerhouse, is the flagship company of the AdityaBirla Group.Hindalco is one of India’s producers of Aluminium. The company was incorporated on December 15,1958 and commenced production in 1962 with an initial smelting capacity of 20,000 TPA. Thecompany has sales and distribution network that covers all of India and includes five sales officeslocated in Mumbai, New Delhi, Bangalore, Chennai and Renukoot.In India Hindalco enjoys a leadership position in Aluminium and Copper. All of the Hindalco’s unitsare ISO 9001:2000, ISO 14001:2004 and several have attained the OHSAS 18001— theoccupational health and safety certification. On the export front, the company has been accorded aTrading House status by the Indian government.Both in Aluminium and Copper, Hindalco is the largest Company in India. The company’s Aluminiumproduct range includes Primary Aluminium Ingots, Billets, Rolling Slabs, Redraw Roads, Alloy WireRods, Flat Rolled Products, Extruded Profiles, Foils and Alloy Wheels.Hindalco is the largest manufacturer of the entire range of flat rolled products in India. Hindalco’sdomestic market share in Flat Rolled Products is nearly 60% and its rolled products are widely usedin various segments such as packaging, transportation, building and construction, electrical, defenseand general engineering applications. Hindalco is registered as a star Trading House. About 35% ofFlat Rolled Products are exported to more than 50 countries.
  50. 50. 50The companys commitment to quality and service along with its extensive infrastructure has madeHindalco a prime source for best-selling brands. Continuous improvements in manufacturing,processes, practices and systems ensure that customers needs and expectations are fully met.Efficiency and product quality are ensured by using state-of-the-art equipment and a strong researchand development set-up, supported by dedicated and motivated employees and the Oracle ERPsystem.Wag staff Air Slip™ slab casting technology is used to ensure consistent quality and surface finish ofstock feed, which in turn ensures quality, finished products. The companys capacity in flat rolledproducts at present is 2,30,000 tonne per annum and new plans are being implemented to increasethe manufacturing capacity Of the total production of Hindalcos flat rolled products, around 40 percent is exported and customers in more than 50 countries are using the products.Ever last, a Hindalco brand for aluminium-roofing sheets, offers ideal and economical solutions for allroofing and cladding needs. Hindalco also offers colour-coated and tiled roofing profiles.Hindalco is one of Asias largest producers of primary aluminium and one of the most cost-efficientproducers globally. In India, Hindalco enjoys a leadership position in specialty alumina, primaryaluminium and downstream productsThe companys integrated complex at Renukoot houses an alumina refinery, aluminium smelter andfacilities for production of semi-fabricated products. Power is sourced from the companys captivepower plant at Renusagar, located at a distance of about 45 km from Renukoot. It has a captivecapacity of 820.2 mw.Besides the integrated complex at Renukoot, Hindalcos other manufacturing facilities are situated atlocations across the country. While the captive bauxite mines are located in western and easternIndia, the alumina refineries are located in Belgaum in southern India and Muri in eastern India.Smelters are located at Hirakud, Orissa, with a captive power plant and coal mines, and at Alupuram,Kerala. Rolled product manufacturing facilities are located at Belur and Taloja, and an extrusion plant
  51. 51. 51is situated at Alupuram. Foil plants are based in the Union Territory of Silvassa and in Kalwa,Maharashtra. The foil plant at Kollur, Andhra Pradesh is the only remaining entity with the erstwhileIndal after the merger of Indal with Hindalco. The wheel plant of Hindalco is also located at Silvassa.The company has two R&D centres: the Belgaum Research and Development Centre in Belgaum,Karnataka and Taloja Research and Development Centre in Taloja, Maharashtra. They have beenrecognized by the Government of Indias Department of Scientific and Industrial Research (DSIR).Hindalco is a leading domestic player in two non-ferrous metals business segments- Aluminium andCopper.The Aluminium divisions product range includes alumina chemicals, primary Aluminium ingots andbillets, wire rods, rolled products, extrusions, foils and alloy wheels.The company has a significant market share in all the segments in which it operates. It enjoys adomestic market share of 42 per cent in primary aluminium, 63 per cent in rolled products, 20 percent in extrusions, 44 per cent in foils and 31 per cent in wheels.As a step towards expanding the market for value-added products and services, Hindalco haslaunched several brands in recent years, which include Aura for alloy wheels, Freshwrapp for kitchenfoil and Ever last for roofing sheets. Our exclusive showroom, The Aluminium Gallery, seeks topromote Hindalco products to its customers. It is a platform for the company to showcase qualityproducts to a quality audience in an appropriate ambience. The exhibits include products likewindows, doors, furniture, ladder, roofing sheets and ceiling and cladding panels.Hindalcos products are well received not only in the domestic market, but also in the internationalmarket. The companys metal is accepted for delivery under the high-grade aluminium contract on theLondon Metal Exchange (LME). The company exports about 17% of its total sales volume ofAluminium.The companys alumina chemical business is a leader in manufacturing and marketing of specialityalumina and alumina hydrate products in the country. It has a market share of 90 per cent in the
  52. 52. 52country. These speciality products find wide usage in diversified industries including water treatmentchemicals, refractories, ceramics, cryolite, glass, fillers and plastics, conveyor belts and cables,among others. The company also exports these alumina chemicals to over 30 countries coveringNorth America, Western Europe and the Asian region.Birla Copper, Hindalcos copper division at Dahej in Gujarat, enjoys a leadership position in India,having built over 40 per cent of the domestic market share within three years of its commissioning. Ithas also made successful forays into the export markets of the Middle East, Southeast Asia, China,Korea and Taiwan.The copper plant produces world-class copper cathodes, continuous cast copper rods and preciousmetals. Sulphuric acid, phosphoric acid, di-ammonium phosphate, other phosphatic fertilizers andphospho-gypsum are also produced at this plant. Products and Brands of HINDALCO Key Products and Locations Capacities Country Brands Hindalco Industries Ltd. Alumina Chemicals Renukoot (Uttar Pradesh), 1,160,000 tpa India Muri (Jharkhand), Belgaum (Karnataka) Primary Aluminium Renukoot, Hirakud (Orissa), 489,000 tpa Taloja Extrusions Renukoot, Alupuram 27,700 tpa Rolled Products Belur (West Bengal), Taloja 200,000 tpa (Maharashtra), Renukoot, Mauda (Maharashtra) Wire Rods Renukoot, Alupuram (Kerala) 64,400 tpa
  53. 53. 53 Aluminium Foil Silvassa (Dadra & Nagar Haveli), 11,000 tpa Kalwa (Maharashtra) Aluminium Wheels Silvassa (Dadra & Nagar Haveli) 300,000 pcs For Taloja recycling plant Indal (subsidiary of Hindalco) Foil Rolling Kollur (Andhra Pradesh) 4,000 tpa Key Products and Brands Locations Capacities Country Birla Copper (Hindalco Industries Ltd.) Copper Cathodes Dahej (Gujarat) 500,000 tpa India Continuous Cast Copper Rods 97,200 tpa Sulphuric Acid 1,670,000 tpa Phosphoric Acid 180,000 tpa Gold (Birla Gold) 15 mt Silver (Birla Silver) 150 mt Power 135 mw DAP and Complexes (Birla 400,000 tpa Balwan) Hindalco Industries Ltd. (Aditya Birla Minerals Resources Pty. Ltd.) Copper Cathodes Nifty mines 25,000 tpa Australia Copper in concentrate Mt. Gordon mines 40,000 tpa Australia Power Mt. Gordon mines 28 mw Australia Key Products and Brands Capacities Country Aditya Birla Nuvo Ltd (Hi-Tech Carbon) Carbon Black Birla Carbon 2,30,000 mtpa India
  54. 54. 54 Thai Carbon Black Co. Ltd. Carbon Black Birla Carbon 220,000 mtpa Thailand Alexandria Carbon Co. S.A.E Carbon Black Birla Carbon 285,000 mtpa Egypt Liaoning Birla Carbon Co. Ltd. Carbon Black Birla Carbon 55,000 mtpa China Key Products and Brands Capacities Country Grasim Industries Ltd. White Cement Birla White 475,000 tpa India Grey Cement UltraTech 13.12 mn tpa Cement (formerly Birla Plus), Birla Super Shree Digvijay Grey Cement Kamal 1.08 mn tpa UltraTech Cement Ltd. Ordinary Portland Cement, 17 mn tpa Portland Blast Furnace Slag Cement, Portland Pozzolana Cement and Grey Portland Cement Key Products and Brands Capacities Country Indo Gulf Fertilizers Ltd. Urea Birla Shaktiman 864,600 mt India Birla Copper (Hindalco Industries Ltd.) DAP/NPK Birla Balwan 400,000 tpa India Complexes
  55. 55. 55 Key Products and Brands Capacities Country Aditya Birla Insulators Insulators 38,800 tpa India Key Products and Brands Capacities Country Pulp Grasim Industries Ltd. Rayon Grade Pulp 70,000 tpa India AV Cell Inc. Softwood / Hardwood Pulp 122,500 tpa Canada AV Nackawic Inc. Dissolving Pulp 189,000 tpa Canada Fibre Grasim Industries Ltd. Viscose Staple Fibre Birla Viscose 270,100 tpa India (VSF) Thai Rayon Public Company Ltd. VSF Birla Viscose 110,000 tpa Thailand PT Indo Bharat Rayon VSF Birla Viscose 155,000 tpa Indonesia Thai Acrylic Fibre Acrylic Fibre Texlan 100,000 tpa Thailand Alexandria Fiber Company, S.A.E Acrylic Fibre 18,000 tpa Egypt Yarn Aditya Birla Nuvo Ltd. Viscose Filament Yarn Ray One 16,400 tpa India Aditya Birla Nuvo Ltd. (Jaya Shree Textiles) Flax Yarns 15,340 spindles India Worsted Yarns 25,548 spindles PT Indo Liberty Textiles Rayon Yarn, Polyester, 45,120 ring spindles Indonesia Blended Yarn PT Elegant Textile Industry Rayon, Polyester, 168,088 spindles Indonesia Rayon-Polyester Blended Spun Yarn PT Sunrise Bumi Textiles Viscose Rayon, Polyester Viscose, Spun Polyester, 89,376 spindles Indonesia Polyester Combed Cotton, Anti Pill Yarn, Sewing Thread, High Twist Yarn, Reverse Twist Yarn,
  56. 56. 56 Flame Retardant Yarn, Rayon Cotton Blended Yarn, Micro Denier Polyester Rayon Yarn, Rayon Silk Yarn, Slub Yarn, Lycra Core Spun Yarn Indo Phil Acrylic Manufacturing Corporation High Bulk Acrylic Dyed Yarn, Non-bulk Acrylic Dyed 3,700 mtpa Philippines Yarn Indo Phil Textiles Mills Inc Poly Viscose Blended Yarn, Poly Cotton Blended 13,500 mtpa Philippines Yarn, Polyester Yarn Indo Phil Cotton Mills Inc Cotton Yarn 10,000 mtpa Philippines Indo Thai Synthetics Co. Ltd. Synthetic Yarns 98,568 spindles Thailand Fabrics Grasim Industries Ltd. Fabric -Polyester, Viscose, Silk and Wool Blends 146 looms India Uncrushables, Ice Touch, Purista, and Clean Fab 18 million meters Aditya Birla Nuvo Ltd. Pure Linen and Linen Linen Club 107 looms India Blends Flame Retardent Fabrics Pyroguard Branded apparel Aditya Birla Nuvo Ltd. (Madura Garments) Ready-to-wear Louis Philippe, India Garments Allen Solly Van Heusen, Peter England Key Products and Brands Capacities Country Grasim Industries Ltd. (Vikram Ispat) Sponge Iron (HBI & DRI) 900,000 tpa India Key Products and Brands Capacities Country
  57. 57. 57 Essel Mining & Industries Ltd Iron and Manganese ore 15 million tons India Key Products and Brands Capacities Country Grasim Industries Ltd. Caustic Soda 258,000 tpa India Aditya Birla Nuvo Ltd. Caustic Soda 82,125 tpa India Liquid Chlorine 50,340 tpa Hydrochloric Acid 5,475 tpa Tanfac Industries Ltd. Aluminium Fluoride 17,000 tpa India Hydrofluoric Acid 17,000 tpa Bihar Caustic and Chemicals Ltd. Caustic Soda Lye 92,750 mt India Liquid Chlorine 65,785 mt Hydrochloric Acid 29,040 mt Sodium Hypochlorite 1,800 mt Compressed Hydrogen 17,42,400 nm3 Aluminium Chloride 12000 tpa Captive Power Plant 30 mw Aditya Birla Chemicals (Thailand) Ltd. Sodium Triployphosphates, Polyphos Thailand Tetrasodium Pyrophosphate, Epotec sodium Hexametaphosphate, Birlasulf-SS, Sodium Acid Pyrophosphate, Birlasulf-SM, Monosodium Phosphate, Birlasol 35 Disodium Phosphate, Trisodium Phosphate, Speciality Phosphates Epoxy Resins (bis-a and bis- f), Diluents, Curing Agents and Allied Products Sodium Sulphite, Sodium Metabisulphite, Sodium Bisulphite Epichlorohydrin Caustic Soda Chlorine Thai Peroxide Co. Ltd. Hydrogen Peroxide, Peracetic Encare, Ecare, 15,000 mtpa Thailand Acid, Calcium Peroxide Aqua-x, Birlox 5, Birlox
  58. 58. 58 12, Ocare PT. Indo Raya Kimia Carbon Disulfide 50,000 tpa Indonesia Key Products and Brands Capacities Country Pan Century Surfactants Inc. Fatty Acids 55000 mtpa Philippines Fatty Alcohol 30000 mtpa Glycerin 6500 mtpa Key Products and Brands Capacities Country PSI Data Systems Ltd. (subsidiary of Aditya Birla Nuvo Ltd.) IT Solutions (Banking, Finance and Insurance) India Key Products and Brands Capacities Country Aditya Birla Minacs Worldwide Limited (subsidiary of Aditya Birla Nuvo Ltd.) BPO / ITES 9,089 seats India
  59. 59. 59 Key Products and Brands Capacities Country Birla Global Finance Company Ltd. Financial Services India Birla Sun Life Insurance Company Ltd. Insurance Solutions India Birla Sun Life Asset Management Company Ltd. Mutual Funds India Birla Sun Life Distribution Company Ltd. Investment Planning Services India Birla Insurance Advisory Services Ltd. Non-life Insurance Advisory Services India Key Products and Brands Capacities Country Idea Cellular Cellular Services Idea 21 million subscriber base India Key Products and Brands Capacities Country Aditya Birla Retail Limited Multi-format Stores More 170 retail outlets India Sources: Through the website www.hindalco.com/www.adityabirla.com
  60. 60. 60 Hindalco Product Range 1) - 2) - 3) - 4) - 5) -Primary Aluminium Alloy ingots Billets Slab Aluminium sheet Ingots 6) - 7) - 8) -9) - 10) - Wire rods sheet Circle Alloy Wheel Watch Blister Pack 11) - 12) - 13) - 14)- Ladder Door Handle Can
  61. 61. 61 Hindalco Products• Everlast aluminium roofing sheets• Freshwrapp aluminium foil• Freshpakk semi-rigid containers• Permashield waterproofing• Aluminium foil• Aura alloy wheels• Hindalco extrusions FLAT ROLLED PRODUCTS (FRPs) Of HINDALCOHindalco is the worlds largest aluminium rolling company with the acquisition of Novelis, the globalleader in value-added high-end aluminium flat rolled products andaluminium can recycling. The combined volume of sales of flat rolledproducts in the world market is about 3 million tonnes and the market Hindalco is now world share is more than 20 percent. No.1 in aluminium flat rolled productsHindalco is the largest manufacturer of the entire range of flat rolledproducts in India. It enjoys nearly 60 per cent of market share and its rolledproducts are widely used in various segments such as packaging, transportation, building andconstruction, electrical, defence and general engineering applications.The companys commitment to quality and service along with its extensive infrastructure has madeHindalco a prime source for best-selling brands. Continuous improvements in manufacturing,processes, practices and systems ensure that customers needs and expectations are fully met.Efficiency and product quality are ensured by using state-of-the-art equipment and a strong researchand development set-up, supported by dedicated and motivated employees and the Oracle ERPsystem. Wagstaff Air Slip™ slab casting technology is used to ensure consistent quality and surface
  62. 62. 62finish of stock feed which in turn ensures quality finished products. The companys capacity in flatrolled products at present is 2, 00,000 tonnes per annum and new plans are being implemented toincrease the manufacturing capacity.Of the total production of Hindalcos flat rolled products, around 40 per cent is exported andcustomers in more than 50 countries are using the products.Everlast, a Hindalco brand for aluminium roofing sheets, offers ideal and economical solutions for allroofing and cladding needs. Colour-coated and tiled roofing profiles are also offered by Hindalco. Types of Flat Rolled Products (Export)Basically, there are three kinds of Flat Rolled Products (FRPs) which is being exported by Hindalcoi.e. 1. Cold rolled Coils 2. Cold rolled Sheets 3. CirclesCold Rolled CoilsHindalcos cold rolled coils are precision-finished to match internationalstandards. They have good shape, high tolerance, versatility andblemish-free surfaces. They are used in commercial and generalengineering applications such as bus bodies, cladding and fan blades.The company meets the demands of its ever-growing clientele withcontinuous upgrades and process improvement.Cold Rolled Sheets
  63. 63. 63 Hindalcos cold rolled sheets are precision-finished to match international standards for tight thickness, tolerance, flatness and dimensional accuracy. Sound metallurgical properties for further fabrication, anodizing characteristics and a blemish-free surface make it useful in both commercial and general engineering applications. Circles Hindalco offers circles, also known as flat circular sheets, in a variety of diameters and thickness to meet specific needs. Extensively used in the manufacture of pressure cookers, non-stick cookware, coated cookware, cans, etc they have earned the trust of many leading brands. Continuous upgrades and improvement of processes enable the company to keep pace with the demands of its ever-growing clientele.• Major Aluminium Producer Industries in India. Company Ownership Location Capacity Hindalco AB Group Renukoot 345,000
  64. 64. 64 Alpuram 14,000 Hirakud 65,000 Belgaum 31,000 NALCO Public Sect. Angul 345,000 BALCO Sterlight Korba 350,000 MALCO Sterlight Mettur 40,000• EXTRUSIONS CAPACITY, PRODUCTION & DEMAND 1991-2020(MT) Particulars 91-92 99-00 03-04 2010 2020 Capacity 122000 190000 202000 202000 400000 Production 61000 109000 132000 188000 370000 Domestic 60000 105000 117000 166000 325000 Demand Export Nil 4000 15000 22000 45000 Excess 62000 81000 70000 14000 30000 Capacity • Product segment of Hindalco
  65. 65. 65• World Consumption & Consumption growth%What is International Marketing?International marketing is simply the application of marketing principles to more than one country. However,there is a crossover between what is commonly expressed as international marketing and global marketing,
  66. 66. 66which is a similar term. For the purposes of this lesson on international marketing and those that follow it,international marketing and global marketing are interchangeable.The intersection is the result of the process of internationalisation. Many American and European authors seeinternational marketing as a simple extension of exporting, whereby the marketing mix is simply adapted insome way to take into account differences in consumers and segments. It then follows that global marketingtakes a more standardized approach to world markets and focuses upon sameness, in other words the similaritiesin consumers and segments.“At its simplest level, international marketing involves the firm in making one or more marketing mix decisionsacross national boundaries. At its most complex level, it involves the firm in establishing manufacturingfacilities overseas and coordinating marketing strategies across the globe.” Doole and Lowe (2001)International Marketing is the performance of business activities that direct the flow of a companys goods andservices to consumers or users in more than one nation for a profit. International marketing is the application ofmarketing orientation and marketing capabilities to international business.If the exporting departments are becoming successful but the costs of doing business from headquarters plustime differences, language barriers, and cultural ignorance are hindering the company’s competitiveness in theforeign market, then offices could be built in the foreign countries. Sometimes companies buy firms in theforeign countries to take advantage of relationships, storefronts, factories, and personnel already in place. Theseoffices still report to headquarters in the home market but most of the marketing mix decisions are made in theindividual countries since that staff is the most knowledgeable about the target markets. Local productdevelopment is based on the needs of local customers. These marketers are considered polycentric because theyacknowledge that each market/country has different needs.What is Global Marketing?Global marketing refers to marketing activities coordinated and integrated across multiple country markets. Johansson (2000)Global/transnational marketing focuses upon leveraging a companys assets, experience and products globallyand upon adapting to what is truly unique and different in each country.
  67. 67. 67The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or takingcommercial advantage of global operational differences, similarities and opportunities in order to meet globalobjectives.”When a company becomes a global marketer, it views the world as one market and creates products that willonly require weeks to fit into any regional marketplace. Marketing decisions are made by consulting withmarketers in all the countries that will be affected. The goal is to sell the same thing the same way everywhere. Global marketing: Advantages and DisadvantagesAdvantages• Economies of scale in production and distribution• Lower marketing costs• Power and scope• Consistency in brand image• Ability to leverage good ideas quickly and efficiently• Uniformity of marketing practices• Helps to establish relationships outside of the "political arena"• Helps to encourage ancillary industries to be set up to cater for the needs of the global playerDisadvantages• Differences in consumer needs, wants, and usage patterns for products• Differences in consumer response to marketing mix elements• Differences in brand and product development and the competitive environment• Differences in the legal environment, some of which may conflict with those of the home market• Differences in the institutions available, some of which may call for the creation• Differences in the institutions available, some of which may call for the creation of entirely new ones• Differences in administrative procedures• Differences in product placement.What is Export?Export is the provision of goods, services or knowledge across national and international boundaries.Australia offers a wide range of goods and services to the worlds markets. Export products includemanufactures, computer software, business consultancies, education services and technology transfer.Exporting of goods from Australia is controlled by laws and government policies. Goods may not be exportedunless all the necessary export permits have been obtained from the relevant agency. The federal, state and
  68. 68. 68territory governments provide a wide range of services to new exporters including advice and information aboutgetting into exporting and assistance on the ground in foreign markets. Types of ExportExport is divided into two main types: direct and indirect exportsDirect exportsDirect exports are transactions where exporters enter into direct relationships with importers overseas andnegotiate a contract for the sale of goods and services. Alternatively, exporters may use a commission agent inthe overseas market to solicit orders and generally represent the exporters interests. The agent is paid by meansof a commission on the value of orders obtained.Indirect exportsIndirect exports are transactions arranged in Australia through local merchants or the Australian-based branchof an overseas company. Sales are negotiated with a trader in the exporters country with payment made in localcurrency from the traders office.For example, a Japanese trading house in Victoria arranges the contract for the supply of a particular product forthe Japanese market. In such cases, payment will probably be made in Australian dollars. The Benefits of ExportThe benefits of exporting products and/or services include:Development of Additional SalesFor most companies, exporting is a logical way of expanding sales when the domestic market has been fullydeveloped.Optimizing PricesWe may be able to achieve a much higher price for exported goods than is possible on the domestic market.Maximizing ResourcesExpansion into overseas markets can be an excellent way of increasing production with correspondingeconomies of scale in plant utilization and raw material purchases.Levelling Seasonal Demand
  69. 69. 69Marketing internationally, especially in both northern and southern hemispheres, can achieve an overalllevelling of seasonal demand for products like summer and winter clothing, sports equipment, heating andcooling equipment etc.Distribution of Market RiskA company can protect itself from the risk of a downturn in any one particular market by operating in a numberof different markets, both domestic and overseas.Increased Competitive AdvantageAn improvement in product and service will usually flow from exposure to international competition. This inturn will lead to an increased competitive advantage in both the international and domestic areas.Improved MoraleBeing part of an internationally successful company will boost staff morale, particularly if the contribution ofall staff members is recognized as an integral part of the companys international success.Capitalization of A Unique Product or TechnologyA unique product, service or technology thats difficult to sell on the domestic market may be easier to selloverseas.A Proactive Measure to Combat Foreign CompetitionIts possible to neutralize overseas competitors in the domestic market by exporting to the overseas competitorsmarket. The Risks From ExportIt is not possible to eliminate risk from export transactions. The development of export markets must beregarded as a long-term investment and companies should not expect an immediate return on the time andcapital they invest. Banks, accountants, export consultants and government agencies can advise on ways ofminimizing financial risks and exporters are encouraged to use external advice to supplement their own skillbase.A risk management strategy developed as part of exporter export business plan will help identify risks to yourexport business and provide a strategy to minimise and handle those risks should they occur.

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