1. 1
A Summer Training Report
On
“VITAL ROLE OF EXPORT PROCESS, EXPORT
DOCUMENTATION & EXPORT SERVICES(LOGISTICS) IN
THE EXPORT OF FINISHED GOODS PRODUCTS”
Of
HINDALCO INDUSTRIES LIMITED
SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULLTIME
MBA
SESSION (2008-2010)
Preface
2. 2
Objective of Study
The objective of study is to find answer of the some questions, which are important to clearly
understand the importance, procedure and role of export documentation for Aluminium & Aluminium
products 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.
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Contents
Preface
Acknowledgements
Objective 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
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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
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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
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INTRODUCTION
ABOUT ADITYA BIRLA GROUP
ADITYA BIRLA MANAGEMENT
CORPORATION
GROUP COMPANIES
AT AGLANCE
FINANCIAL FOOT PRINT
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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
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Aditya Birla group traces it’s origin back to the Tiny village of Pilani in the
RAJASTAN desert, where late Shri Seth Shiv Narajan Birla started carton trading
operation in 1857. Then one visionary the late Shri G.D. Birla set up Indian’s first
integrated aluminium manufacturing unit at Renukoot 1962 backed by captive power
plant at Renusagar in 1967.
It further evolved under the dynamic leadership of the late Shri Aditya Vikram
Birla a prominent figure in the Indian industries, under whose stewardship HINDALCO
attained its leadership position in aluminium. Today our group chairman Dr. Kumar
Manglam Birla has put together the building block to make Indian business a global
force.
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 several
countries including Singapore, Dubai, Russia, Vietnam, Myanmar and China make it
India’s first truly multinational conglomerate.
THE ADITYA BIRLA GROUP HAS THE FOLLOWING ACHIVEMENTS TO
ITS 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.
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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 each
corporate 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
Institutionalize
Group values
Integrity
Speed
Seamlessness
Passion
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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.
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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.
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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 world's most cost-efficient Aluminium and Copper producers.
Hindalco-Novelis from its fold is a Fortune 500 company. It is the largest Aluminium rolling
company
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• 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 world's top 15 BPO companies and among India's top three
• Among the best energy efficient fertilizer plants
In Asia
• The largest integrated Aluminium producer
In 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.
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JOINT VENTURES
Birla Sun Life Insurance
Birla Sun Life Asset Management Company Ltd.
Birla Sun Life Distribution Company Ltd.
Tanfac Industries Ltd
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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 mittal
FINANCIAL FOOT PRINT:
A us $28 billian corporation with a market cap of US $31.5 billian and in the
leaque of fotune 500.the A.B. group is anchored by an extra ordinary sale of 100000
employee belonging to 25 different nationalties. In India the group has been adjusted
the best employees in India and among the top 20 in asia by the Hewitt- economic
times and wall streetjournal study2007over50% of its revenues flow from overes
operations. The groupoperation in 20 country: India
thiland,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.
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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
delhi
Divisional office:-
Power division
Foil division
Guest house:-
Delhi
Mirzapur
Lucknow
Allahabad
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INTRODUCTION
HINDALCO AT A GLANCE
HIGHLIGHTS OF HINDALCO
INDUSTRIES LIMITED
HINDALCO OVERVIEW
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HIGHLIGHTS 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 & Chemicals
Corporation U.S.A, in a record time of 18 months. The plant started functioning in the
year 1962 with a capacity of 20,000 tons per annum.
The company has growth manifold and is managed by Board of Directors, with
Shri Kumar Mangalam Birla as the chairman of the Board of Directors. Day to day
affairs of the company are managed by Professional Executives headed by Shri Ratan
K Shah as the chief operation officer-Aluminium & Power.
Hindalco is one of India’s largest producers of Aluminium. The company was in
corporated on December 15, 1958 and commenced production in 1962 with an initial
smelting capacity of 20,000 TPA.
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Hindalco’s integrated operation and operational efficiency have enabled the
company 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. No
other 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 company
to be one of the world’s lowest cost producers of Aluminium.
Hindalco also owns a large captive thermal power plant at Renusagar that meets
the power requirement of the company very effectively. Hindalco currently has primary
Aluminium capacity of 3, 75,000 MTPA.
Hindalco is a leading domestic player in two metals business segments -
aluminium and copper. The aluminium division's product range includes alumina
chemicals, primary aluminium ingots, billets, 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 a domestic market share of 42 per cent in primary aluminium, 63
per cent in rolled products, 20 per cent 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 has launched several brands in recent years, which include Aura for alloy
wheels, Freshwrapp for kitchen foil and Everlast for roofing sheets. Our exclusive
showroom, The Aluminium Gallery, seeks to promote Hindalco products to its
21. 21
customers. It is a platform for the company to showcase quality products to a
quality audience in an appropriate ambience.
The exhibits include products like windows, doors, furniture, ladder, roofing
sheets and ceiling and cladding panels.
Hindalco's products are well received not only in the domestic market, but also in
the international market. The company's metal is accepted for delivery under the high
grade aluminium contract on the London Metal Exchange (LME). The company exports
about 17 percent of its total sales volume of aluminium.
The company's alumina chemical business is a leader in manufacturing and
marketing of speciality alumina and alumina hydrate products in the country. It has a
major market share in the country. These speciality products find wide usage in
diversified industries including water treatment chemicals, refractories, ceramics,
cryolite, glass, fillers and plastics, conveyor belts and cables, among others. The
company also exports these alumina chemicals to over 30 countries covering North
America, Western Europe and the Asian region.
Birla Copper, Hindalco's 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. It has 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 precious metals. Sulphuric acid, phosphoric acid, di-
ammonium phosphate, other phosphatic fertilizers and phospho-gypsum are also
produced at this plant.
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Hindalco Vision
“To strength our position as a premium Aluminum company, sustaining, domestic
leadership and global competitiveness through innovation quality and value added
growth.”
23. 23
Hindalco Mission
“To pursue the creation of value for our customers, shareholders, employees and
society 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 leadership
and 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 POLICY
QUALITY POLICY
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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 to
achieve health and safety. Excellence by providing healthy and safe working
environment 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 and
control of environmental aspect of our activities internally relating to production of
25. 25
Alumina. Aluminium fabricated product and power generation at Renukoot in order to
serve 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 of
resource, and recognition as a world class company constantly aspiring to exceed the
ezception 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.
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Be a solutions provider-delivering optimum valve to our customers.
BOARD OF DIRECTOR
Non 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. Jhaveri
Executive Director
Mr.D.Bhattacharya
Managing Director
RENUKOOT 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
Chief 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, president
Copper 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
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: By
Minister of Labor and Employment.
Rajiv Gandhi National Quality Award 2003: Joint award
winner of R.G.N.Q.A. 2003 in large –scale manufacturing category. The award is
instituted by Bureau of Indian Standard, Ministry of Consumer Affairs, Government of
India.
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: For
Quality Management by Quimpro college, Mumbai.
CII National Award:
29. 29
For Excellence in Energy Management-2004.
Prime Minister’s Shram Award 2004: Shram Veer
award to Mr. Ram Kailash of Aluminium plant won the Excellence Case Study
Presentation 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:
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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
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
Above 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 PROGRESS
YEAR ACHIEVEMENTS
1958 Date of registration
1962 Aluminium production started.capacity20,000TPA
33. 33
Aluminium production started.capacity40,000TPA
1964 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. 80000TPA
1972 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
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.2001
1997 under brown field expansion of smelter, pot line 9 commisioned and
aluminium production capacity expanded to 275, 000TPA
2002 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
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
COMPANY PROFILE
INDUSTRY AT GLANCE
ALUMINIUM
COPPER
37. 37
COMPANY PROFILE
INDUSTRY AT GLANCE
Hindalco industry limited, a flagship company of ADITYA BIRLA group, with a
turnover of Rs.192,010.00 crore in 2007-08, ranks
M vmd ndnvkl among India’s top 10 companies in terms of capital market
capitalization a non ferrous metal powerhouse Hindalco’s operations are organized into
two strategic business units –Aluminium and Copper. The company is an industry
leader in both these business.
ALUMINIUM
Hindalco is Asia’s largest integrated primary producer of aluminium and among
the most cost efficient producers globally. In India, Hindalco enjoys a leadership
position for aluminium and downstream products.
Synergies of operations with it’s wholly – owned subsidiary Indian aluminium
company 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 and
alloy 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, 0000
tones, and captive power generation of 167.5MW.
The company further enhanced the smelter capacity of 4, 29,140MT and alumina
refinery to 7, 00,000 tones, by streamlining to eliminate bottlenecks and
38. 38
installation of balancing equipment, including another co- generation plant. This
has facilitated optimization of expand facilities and, more importantly, has been
achieved within the original budget.
Besides being a dominant player in the Indian aluminium market, Hindalco’s
products are well accepted in international markets. The company’s metal is accepted
for delivery under the high grade aluminium contract on the LME (London Metal
Exchange). The company’s export efforts have led to its reorganization as a “Star
Trading House”.
Hindalco is an ISO 9001 company, and has been awarded the ISO
14001certification for its entire operations at Renukoot and Silvassa, including its
power plant and mines. It has received several awards from the export promotion
council as well as the government of India. With the completition of on going
Brownfield 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-------percent
domestic market share with in three years of commissioning. It has also made
successful forays into the export markets of the Middle East, South East Asia, china
Korea and Taiwan.
Birla copper has a mega green field copper smelting and refining complex at
dahej in the bharuch district of Gujarat, India. With an investment of Rs 1,850. Crore, it
is 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
ammonium phosphate, other phosphatic fertilizers and phospho- gypsum are
also produced at this plant .
Birla copper aspires to be among the world’s foremost cost competitive
producers of cooper. To reach this goal, it had under taken a brown field expansion
raising 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 the
top 10percent of cost competitive producer globally.
To make birla copper an integrated producer of copper, the company believes
that upstream expansion through ownership in mines is important for a smelter of its
size.
As a first step in this direction, birla copper acquired the nifty copper mines in
Australia. 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
41. 41
PRODUCTION PROCESS
The aluminum production process can be categorized into up stream and down
stream activities. The upstream process involves meaning and refining bauxite to
alumina while the downstream process involves smelting and casting and fabricating.
Hindalco refines bauxite primarily obtained from captive mines, to extract
alumina, which is smelted into alumina ingots or billets. Hindalco smelts its entire
production 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 bauxite
with caustic soda. Bauxite is brought to the site from mines by means of railways
wagon tippler. Primary crushing is done in cone crusher where bauxite size is reduced
form 8”- 12” to 3” - 4” and then stockpiled. Secondary crushing is done by means of
hammer mills where process liquor known as a spent liquor and 600 psig. Seam is
mixed together. This solution of alumina from bauxite into caustic solution in the form
of sodium aluminates is carried out of digesters at 240 degrees centigrade temperature
and 36-kg/sq.cm pressures. The digested slurry is placed flashed and brought to
atmosphere pressure; flashed vapors are utilized for pre heating the spent liquor and
condensed returned to boiler hose for generation of steam. Digested flashed slurry is
pumped to clarification area for removal of solid Impurities (red mud). Red mud is
separated out, in solid liquid hydrocyclon and stellar. Separated mud slurry is washed
in counter current and washing Circuit without using water. Washed mud slurry is
cauterized by treating with lime slurry to recover soda. Cauterized mud slurry is filtered
on drum filters. Filtrate liquor is taken back into the system and red mud cake is
42. 42
disposed off by means of dumpers Settler overflow pregnant liquor is filtered in Kelly
presses to remove fine mud particles. Clear pregnant liquor is pumped to precipitators
through plate heat exchanges after exchanging heat with the spent liquor where it is
seeded with alumina trihydrate. Alumina trihydrate is separated out in thickness and
pan filter. Alumina trihydrate cake thus obtained is fed into the gas suspension calciner
where furnace oil is burnt for calcining alumina. The reduction grade alumina thus
produced is transported to smelter plant.
Spent liquor generated and separated from precipitation circuit is fed to the
evaporation unit for increasing caustic concentration to the desired level and
recirculated to digesters through heaters for further processing of bauxite and thus the
process goes on.
EXTRACTION OF ALUMINUM FROM ALUMINA
Alumina from alumina plant is conveyed to the reduction plant. The reduction
plant has 11 prebaked pot – lines which have 1278 pot cells. Each pot has 24/26
carbon anodes and it is lined with carbon cathode. Alumina is converted to metallic
aluminum is these pot cells by the standard “hall heroult” process. The pot cells work at
an average 4.3-volt D. C. current of 5800/6300 amperes. Electrolysis of the alumina
takes place in molten bath of cryolte at a temperature of 955 to 960 degrees
centigrade. The molten aluminum that collects at the cathodes is siphoned into
crucibles periodically. The entire process is controlled by microprocessor system.
43. 43
PRODUCT PROFILE
PRODUCT OVERVIEW
ALUMINIUM
COPPER
PRIMARY ALUMINIUM
PRODUCTS
INTEGRATED OPERATION
OF HINDALCO
PRODUCTION CAPACITY
44. 44
PRODUCT OVERVIEW
Hindalco operations are organized into two strategic business units- aluminum
and copper. The company is an industry leader in both these businesses.
ALUMINUM
Hindalco’s Aluminum business comprises primary aluminum, extrusions, rolled
products, foils and alloy wheels. In the value-added segment, hindalco, along with its
subsidiary Indal, has a 50 percent market share. In the past year, hindalco has
launched several brands – “Aura”, Freshwrapp”, “Everlast”, “Permashield”, and, Al
Planet”.
COPPER
BIRLA copper, with an over 45 per cent market share, is India leading copper
producer in private sector. Its plant at dahej in Gujarat, produces world class copper
cathodes, continuous cast copper rods and precious metals.
A part form copper products, euphoric acid, phosphoric acid, di-ammonium
phosphate, other phosphates fertilizers and phosphor –gypsum are also produced at
this 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 into
thinner sheets, plates or coils.
45. 45
SEMI 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 rolling
according 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 functional
application. The present die catalogue included over one thousand
die for various sections and we are fuy equipped to design and make
new 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
Collapsible insulation Ducts
ALLOY WHEELS
12 to 18 inch diameters.
OTHERS: The main by products of the process included
VANADIUM SLUDGE
GALLIUM
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49. 49
Organizational Profile of Hindalco Industries Limited
Hindalco Industries Limited, a Non-ferrous Metal powerhouse, is the flagship company of the Aditya
Birla 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. The
company has sales and distribution network that covers all of India and includes five sales offices
located in Mumbai, New Delhi, Bangalore, Chennai and Renukoot.
In India Hindalco enjoys a leadership position in Aluminium and Copper. All of the Hindalco’s units
are ISO 9001:2000, ISO 14001:2004 and several have attained the OHSAS 18001— the
occupational health and safety certification. On the export front, the company has been accorded a
Trading House status by the Indian government.
Both in Aluminium and Copper, Hindalco is the largest Company in India. The company’s Aluminium
product range includes Primary Aluminium Ingots, Billets, Rolling Slabs, Redraw Roads, Alloy Wire
Rods, 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’s
domestic market share in Flat Rolled Products is nearly 60% and its rolled products are widely used
in various segments such as packaging, transportation, building and construction, electrical, defense
and general engineering applications. Hindalco is registered as a star Trading House. About 35% of
Flat Rolled Products are exported to more than 50 countries.
50. 50
The company's commitment to quality and service along with its extensive infrastructure has made
Hindalco 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 research
and development set-up, supported by dedicated and motivated employees and the Oracle ERP
system.
Wag staff Air Slip™ slab casting technology is used to ensure consistent quality and surface finish of
stock feed, which in turn ensures quality, finished products. The company's capacity in flat rolled
products at present is 2,30,000 tonne per annum and new plans are being implemented to increase
the manufacturing capacity Of the total production of Hindalco's flat rolled products, around 40 per
cent 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 all
roofing and cladding needs. Hindalco also offers colour-coated and tiled roofing profiles.
Hindalco is one of Asia's largest producers of primary aluminium and one of the most cost-efficient
producers globally. In India, Hindalco enjoys a leadership position in specialty alumina, primary
aluminium and downstream products
The company's integrated complex at Renukoot houses an alumina refinery, aluminium smelter and
facilities for production of semi-fabricated products. Power is sourced from the company's captive
power plant at Renusagar, located at a distance of about 45 km from Renukoot. It has a captive
capacity of 820.2 mw.
Besides the integrated complex at Renukoot, Hindalco's other manufacturing facilities are situated at
locations across the country. While the captive bauxite mines are located in western and eastern
India, 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
is 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 erstwhile
Indal 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 been
recognized by the Government of India's Department of Scientific and Industrial Research (DSIR).
Hindalco is a leading domestic player in two non-ferrous metals business segments- Aluminium and
Copper.
The Aluminium division's product range includes alumina chemicals, primary Aluminium ingots and
billets, 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 a
domestic market share of 42 per cent in primary aluminium, 63 per cent in rolled products, 20 per
cent 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 has
launched several brands in recent years, which include Aura for alloy wheels, Freshwrapp for kitchen
foil and Ever last for roofing sheets. Our exclusive showroom, The Aluminium Gallery, seeks to
promote Hindalco products to its customers. It is a platform for the company to showcase quality
products to a quality audience in an appropriate ambience. The exhibits include products like
windows, doors, furniture, ladder, roofing sheets and ceiling and cladding panels.
Hindalco's products are well received not only in the domestic market, but also in the international
market. The company's metal is accepted for delivery under the high-grade aluminium contract on the
London Metal Exchange (LME). The company exports about 17% of its total sales volume of
Aluminium.
The company's alumina chemical business is a leader in manufacturing and marketing of speciality
alumina and alumina hydrate products in the country. It has a market share of 90 per cent in the
52. 52
country. These speciality products find wide usage in diversified industries including water treatment
chemicals, refractories, ceramics, cryolite, glass, fillers and plastics, conveyor belts and cables,
among others. The company also exports these alumina chemicals to over 30 countries covering
North America, Western Europe and the Asian region.
Birla Copper, Hindalco's 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. It
has 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 precious
metals. Sulphuric acid, phosphoric acid, di-ammonium phosphate, other phosphatic fertilizers and
phospho-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
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
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
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
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
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
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
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
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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 HINDALCO
Hindalco is the world's largest aluminium rolling company with the acquisition of Novelis, the global
leader in value-added high-end aluminium flat rolled products and
aluminium can recycling. The combined volume of sales of flat rolled
products in the world market is about 3 million tonnes and the market
Hindalco is now world
share is more than 20 percent. No.1 in aluminium flat
rolled products
Hindalco is the largest manufacturer of the entire range of flat rolled
products in India. It enjoys nearly 60 per cent of market share and its rolled
products are widely used in various segments such as packaging, transportation, building and
construction, electrical, defence and general engineering applications.
The company's commitment to quality and service along with its extensive infrastructure has made
Hindalco 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 research
and development set-up, supported by dedicated and motivated employees and the Oracle ERP
system. Wagstaff Air Slip™ slab casting technology is used to ensure consistent quality and surface
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finish of stock feed which in turn ensures quality finished products. The company's capacity in flat
rolled products at present is 2, 00,000 tonnes per annum and new plans are being implemented to
increase the manufacturing capacity.
Of the total production of Hindalco's flat rolled products, around 40 per cent is exported and
customers in more than 50 countries are using the products.
Everlast, a Hindalco brand for aluminium roofing sheets, offers ideal and economical solutions for all
roofing 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 Hindalco
i.e.
1. Cold rolled Coils
2. Cold rolled Sheets
3. Circles
Cold Rolled Coils
Hindalco's cold rolled coils are precision-finished to match international
standards. They have good shape, high tolerance, versatility and
blemish-free surfaces. They are used in commercial and general
engineering applications such as bus bodies, cladding and fan blades.
The company meets the demands of its ever-growing clientele with
continuous upgrades and process improvement.
Cold Rolled Sheets
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Hindalco's 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
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• 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,
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which 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 see
international marketing as a simple extension of exporting, whereby the marketing mix is simply adapted in
some way to take into account differences in consumers and segments. It then follows that global marketing
takes a more standardized approach to world markets and focuses upon sameness, in other words the similarities
in consumers and segments.
“At its simplest level, international marketing involves the firm in making one or more marketing mix decisions
across national boundaries. At its most complex level, it involves the firm in establishing manufacturing
facilities 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 company's goods and
services to consumers or users in more than one nation for a profit. International marketing is the application of
marketing orientation and marketing capabilities to international business.
If the exporting departments are becoming successful but the costs of doing business from headquarters plus
time differences, language barriers, and cultural ignorance are hindering the company’s competitiveness in the
foreign market, then offices could be built in the foreign countries. Sometimes companies buy firms in the
foreign countries to take advantage of relationships, storefronts, factories, and personnel already in place. These
offices still report to headquarters in the home market but most of the marketing mix decisions are made in the
individual countries since that staff is the most knowledgeable about the target markets. Local product
development is based on the needs of local customers. These marketers are considered polycentric because they
acknowledge 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 company's assets, experience and products globally
and upon adapting to what is truly unique and different in each country.
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The Oxford University Press defines global marketing as “marketing on a worldwide scale reconciling or taking
commercial advantage of global operational differences, similarities and opportunities in order to meet global
objectives.”
When a company becomes a global marketer, it views the world as one market and creates products that will
only require weeks to fit into any regional marketplace. Marketing decisions are made by consulting with
marketers in all the countries that will be affected. The goal is to sell the same thing the same way everywhere.
Global marketing: Advantages and Disadvantages
Advantages
• 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 player
Disadvantages
• 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 world's markets. Export products include
manufactures, 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 exported
unless all the necessary export permits have been obtained from the relevant agency. The federal, state and
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territory governments provide a wide range of services to new exporters including advice and information about
getting into exporting and assistance on the ground in foreign markets.
Types of Export
Export is divided into two main types: direct and indirect exports
Direct exports
Direct exports are transactions where exporters enter into direct relationships with importers overseas and
negotiate a contract for the sale of goods and services. Alternatively, exporters may use a commission agent in
the overseas market to solicit orders and generally represent the exporter's interests. The agent is paid by means
of a commission on the value of orders obtained.
Indirect exports
Indirect exports are transactions arranged in Australia through local merchants or the Australian-based branch
of an overseas company. Sales are negotiated with a trader in the exporter's country with payment made in local
currency from the trader's office.
For example, a Japanese trading house in Victoria arranges the contract for the supply of a particular product for
the Japanese market. In such cases, payment will probably be made in Australian dollars.
The Benefits of Export
The benefits of exporting products and/or services include:
Development of Additional Sales
For most companies, exporting is a logical way of expanding sales when the domestic market has been fully
developed.
Optimizing Prices
We may be able to achieve a much higher price for exported goods than is possible on the domestic market.
Maximizing Resources
Expansion into overseas markets can be an excellent way of increasing production with corresponding
economies of scale in plant utilization and raw material purchases.
Levelling Seasonal Demand
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Marketing internationally, especially in both northern and southern hemispheres, can achieve an overall
levelling of seasonal demand for products like summer and winter clothing, sports equipment, heating and
cooling equipment etc.
Distribution of Market Risk
A company can protect itself from the risk of a downturn in any one particular market by operating in a number
of different markets, both domestic and overseas.
Increased Competitive Advantage
An improvement in product and service will usually flow from exposure to international competition. This in
turn will lead to an increased competitive advantage in both the international and domestic areas.
Improved Morale
Being part of an internationally successful company will boost staff morale, particularly if the contribution of
all staff members is recognized as an integral part of the company's international success.
Capitalization of A Unique Product or Technology
A unique product, service or technology that's difficult to sell on the domestic market may be easier to sell
overseas.
A Proactive Measure to Combat Foreign Competition
It's possible to neutralize overseas competitors in the domestic market by exporting to the overseas competitor's
market.
The Risks From Export
It is not possible to eliminate risk from export transactions. The development of export markets must be
regarded as a long-term investment and companies should not expect an immediate return on the time and
capital they invest. Banks, accountants, export consultants and government agencies can advise on ways of
minimizing financial risks and exporters are encouraged to use external advice to supplement their own skill
base.
A risk management strategy developed as part of exporter export business plan will help identify risks to your
export business and provide a strategy to minimise and handle those risks should they occur.
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There are a number of different types of risks that exporter should consider, including:
• Financial
• Intellectual property
• Increased insurance claims
• Inadequate resources
Financial risks
A. Failure to Pay
Be aware that there's a series of international payment terms ranging from totally secure (exporter paid before
goods are dispatched) to minimum security (exporter send the goods and wait for payment). Which particular
term is used is negotiable between the buyer and seller when entering into a contract.
B. Cash Flow
Export will have a significant effect on the cash flow cycle of exporter business. It's not always possible to
negotiate payment in advance of or immediately after shipment. This may lead to a considerable delay in
receiving payment for goods and result in a cash flow problem. Alternatively, if favourable terms are available,
export can have a very positive effect on the cash flow cycle.
C. Foreign Currency Risk
If export contracts are written in foreign currencies, fluctuations in rates of exchange can result in financial loss.
This risk can be avoided by quoting in Australian dollars or, if this isn't acceptable to the overseas buyer, by
taking forward exchange cover with the bank.
D. Inadequate Working Capital
Exporters may need additional working capital to purchase the raw materials and other components they require
to produce goods for export. Access to adequate pre-shipment finance is crucial to export success. There are
risks involved in over-borrowing and firms must ensure that they can fully service the additional borrowings
export may entail.
