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  • 1. Submitted by Guddi Mahto (HR+IB) Session 2010-121
  • 2. DECLARATIONI am very well aware of the ethics and guidelines one has to follow while working on a project in adisciplined manner. Being aware of a project regarding its Factuality and Authenticity, I have tried mybest to perform my task. All the information mentioned here throughout the project is true to the best ofmy knowledge and I declare it as true and the collection made through own website and by my ownpersonal observation and experience. The theoretical part is gathered from various WebsiteDevelopment reference books. Guddi Mahto 2
  • 3. OBJECTIVETo find out the best Aluminium Manufacturing Companies of India. To find out the optimal usability of the natural resources. To find out the strategy which is mostly preferred by these Companies to standardized the product. To find out the features which are most favorable. 3
  • 4. ACKNOWLEDGEMENTFirst and foremost, I offer my sincere gratitude to the founder Chairman, Dr. Sanjay B. Chordiya, whohas supported me throughout my PGDM course with his patience and knowledge and allowed me towork in a professional way. I attribute the level of my Post Graduate degree to his encouragement andeffort. I would not have been completed the Sector project without his help. I wish to express my deep sense of gratitude to its Prof. V. S. Toley, Suryadatta Institute ofManagement and Mass Communication for their guidance and useful suggestions, which helped me incompleting the project work, in time. Needless to mention Prof. Sanjeev Tanksali, HOD (Placement), who had been a source ofinformation and their timely guidance in the conduct of my project work. I would also like to thank Dr.P. K. Ghosh, for his valuable assistance in the project work. Finally, yet importantly I would like to express my heartfelt thanks to my beloved parents fortheir blessings, my friends, and all those who supported me directly or indirectly for their help andwishes for successful completion of this project. Guddi Mahto PGDM (HR + IB) Session- (2010-12) SIMMC, PUNE 4
  • 5. CONTENTSIntroduction……………………………………………………………..4-7History………………………………………………………………….8-11Product and services…………………………………………………..12-30Operational strategies………………………………………………….31-35Quality management……………………………………………………...36Smelting……………………………………………………………….37-44Aluminium consumption………………………………………………45-46Operational excellence…………………………………………………….47Fabrication……………………………………………………………..48-50Future plans…………………………………………………………….51-56Learning…………………………………………………………………....57Conclusion………………………………………………………………….58Webliography and bibliography…………………………………………….59 5
  • 6. INTRODUCTION OF THE COMPANIESI have selected the top-3 Aluminium Manufacturing Companies of India. The list of the selectedCompanies is as follows:  HINDALCO Industries Ltd.  NALCO (National Aluminium Company Ltd.)  BALCO (Bharat Aluminium Company Ltd.)HINDALCO Industries Ltd.: An industry leader in aluminium and copper, Hindalco IndustriesLimited, the metals Flagship Company of the Aditya Birla Group is the world’s largest aluminiumrolling company and one of the biggest producers of primary aluminium in Asia. Acquisition of NovelisInc. in 2007 positioned Hindalco among the top five aluminium majors worldwide and No. 1 in theworld in the rolled products market with a global footprint in 13 countries. Established in 1958, it commissioned its aluminium facility at Renukoot in eastern Uttar Pradesh,India in 1962. Over the years, it grew organically and through acquisitions and mergers, notably that ofIndal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia. This strengthened itsposition in value-added alumina, aluminium and copper products.The acquisition of Novelis Inc. in 2007 positioned Hindalco among the top five aluminium majorsworldwide and the largest vertically integrated aluminium company in India. It acquired the copperbusiness from Indo Gulf Corp (a sister company within Aditya Birla Group) in 2002, as a strategiccomplement to the aluminium business. Copper is produced at Dahej in Gujarat. It is one of the world’slargest single location smelters and uses imported copper concentrate. The copper business alsoproduces many value-added co products like DAP fertilizer, precious metals and sulphuric acid.Its growth and progress is supported by a dedicated workforce of more than 33,000 spanning sixcontinents and serving industrial growth in both emerging and developed markets. Over the years,Hindalco has grown into the largest vertically integrated aluminium company in the country and amongthe largest primary producers of aluminium in Asia. Its copper smelter is today the world’s largestcustom smelter at a single location. Hindalco has been challenging at times, but truly exhilarating.National Aluminium Company Ltd.: Nalco was founded as National Aluminate Corporation in1928 through a merger of Chicago Chemical Company and Aluminate Sales Corporation, two Chicago-based companies selling sodium Aluminate to treat water. Chicago Chemical Company sold mainly tomunicipalities and industrial plants for boiler feed water treatment. Aluminate Sales Corporation sold tothe railroads to condition water used in steam locomotives.Nalco is considered to be a turning point inthe history of Indian Aluminium Industry. In a major leap forward, Nalco has not only addressed theneed for self-sufficiency in aluminium, but also given the country a technological edge in producing thisstrategic metal to the best of world standards. Nalco was incorporated in 1981 in the Public Sector, toexploit a part of the large deposits of bauxite discovered in the East Coast. 6
  • 7. Nalco became a presence in India during the late 1970s, but in 1987 that presence was boosted with the incorporation of Nalco Chemicals India Limited. It produces a full range of blended formulations and is further enhanced by the fact that it is the only specialty chemical company in India to be ISO 9001:2008 certified. In 2010, Nalco opened a new corporate office and research and development facility in Pune, India. The $8.5 million, 60,000-square foot facility serves as the headquarters for sales, marketing and supply chain for Nalco Water India Ltd. as well as housing a new, state-of-the-art technology and innovation center. The Pune laboratory will eventually employ more than 100 engineers and chemists, three quarters of who will have advanced degrees. Bharat Aluminium Company Ltd. (BALCO): It was incorporated in the year 1965 as a Public Sector Undertaking (PSU) and since then the Company has been closely associated with the Indian Aluminium Industry, in a pivotal role. Highlights Government of India divested 51% equity in the year 2001 in favour of Sterlite Industries (I) Limited. Remaining 49% is with Government of India. BALCO is playing a crucial role in introducing Aluminium as a potential alternative to other metals like Steel in construction, and Copper in power transmission industry. Major operations of BALCO are in the town of Korba (Chhattisgarh), whereas its mines supplying high grade Bauxite are situated at Kawardha and Mainpat. The smelter capacity (installed capacity 100 KTPA), based on Soderberg Process, is being revamped to produce 345 KTPA through modern Prebake Technology. After disinvestment, a smelter of capacity 245 KTPA has been established in the year 2004. The smelter plants are being supported by uninterrupted power supply through Captive Power Plants - 270 MW at Jamnipali, Korba and 540 MW at smelter site. New power plant with rated capacity of 1200 MW is expected to commence production by the last quarter of 2011. · Finishing lines are capable of producing high quality Ingots, Wire Rods, Billets, Busbars and Rolled products. BALCO has several FIRSTS to its credit in India First integrated Aluminium Industry. First to have Captive Power Plant. First to venture into + 300 kA Prebake pots. First to produce Alloy Rods for conductors used in power transmission industry. 7
  • 8. HISTORY OF THE COMPANIESHINDALCO Industries Ltd.: The Hindustan Aluminum Corporation Limited was established in1958 by the Aditya Birla Group. In 1962 the company began production in Renukoot in UttarPradesh making 20,000 million metric tons per year of aluminum metal and 40,000 million metric tonsper year of alumina. In 1989 the company was restructured and renamed Hindalco.An industry leader in aluminium and copper, Hindalco Industries Limited, the metals Flagship Companyof the Aditya Birla Group is the worlds largest aluminium rolling company and one of the biggestproducers of primary aluminium in Asia. Its copper smelter is the world’s largest custom smelter at asingle location.Established in 1958, we commissioned its aluminium facility at Renukoot in eastern Uttar Pradesh, Indiain 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon coppermines in Australia, strengthened our position in value-added alumina, aluminium and copper products.The acquisition of Novelis Inc. in 2007 positioned us among the top five aluminium majors worldwideand the largest vertically integrated aluminium company in India. Today it is a metals powerhouse withhigh-end rolling capabilities and a global footprint in 13 countries. Its consolidated turnover of USD15.85 billion (Rs. 72,078 crore) places us in the Fortune 500 league.Hindalco is one of the leading producers of aluminium and copper. Its aluminium units across the globeencompass the entire gamut of operations, from bauxite mining, alumina refining and aluminiumsmelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines.Its copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers. Our units are ISO 9001:2000, ISO 14001:2004 andOHSAS 18001 certified. Several units have gone a step further with an integrated management system(IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business excellence model. Wehave been accorded the Star Trading House status in India. Hindalcos aluminium metal is accepted fordelivery under the High Grade Aluminium Contract on the London Metal Exchange (LME). Its copperquality standards are also internationally recognized and registered on the LME with Grade Aaccreditation.On February 11, 2007, the company entered into an agreement to acquirethe Canadian company Novelis for U$6 billion, making the combined entity the worlds largest rolled-aluminium producer. At 2007 Novelis was the worlds largest producer of rolled aluminum and a majorrecycler of aluminum cans. On May 15, 2007, the acquisition was completed with Novelis shareholdersreceiving $44.93 per outstanding share of common stock.Hindalco, through its wholly owned subsidiary AV Metals Inc., acquired 75,415,536 common shares ofNovelis, representing 100 percent of the issued and outstanding common shares. Immediately afterclosing, AV Metals Inc. transferred the common shares of Novelis to its wholly owned subsidiary AVAluminum Inc. 8
  • 9. When Hindalco made this bid in 2007 this became the largest Indian investment in North America andthe second-largest overseas investment by an Indian company (behind Tata Steel Europes purchase ofCorus two weeks earlier) to this time. The day after Hindalco announced the acquisition its stock fell by13% resulting in a USD $600 million drop in market capitalization. Shareholders criticized the deal butK.M. Birla responded that he had offered a fair price for the company and stated, "When you areacquiring a world leader you will have to pay a premium."National Aluminium Company Ltd.: Nalco was founded as National Aluminate Corporation in1928 through a merger of Chicago Chemical Company and Aluminate Sales Corporation, two Chicago-based companies selling sodium aluminate to treat water. Chicago Chemical Company sold mainly tomunicipalities and industrial plants for boiler feedwater treatment. Aluminate Sales Corporation sold tothe railroads to condition water used in steam locomotives.National Aluminate Corporation is incorporated in Illinois on May 1, 1928. The company results fromthe union of two companies with Chicago roots: Chicago Chemical Company and Aluminate SalesCorporation. National Aluminate Corporation forms Visco in Sugar Land, Texas. The firm sold anadditive for drilling mud which is a mixture of clay and water use in drilling oil wells. This helpedestablish Nalco in the oil industry. National Aluminate Corporation purchases Paige Jones ChemicalCompany of New York. With this transaction,National Aluminate Corporation acquired the equipmentand chemical rights to supply water treatment chemicals in convenient and easy-to-feed ball briquetteform. This resulted in a large increase in water treatment business.National Aluminate Corporation becomes a publicly traded company with an offering of 127,000 sharesof stock in 1947. Realizing that foreign nations lag behind America in the conversion from steam todiesel locomotives, National Aluminate Corporation exploits the great potential to sell boiler treatmentsabroad by forming an Overseas Division.First Foreign subsidiary, Nalco Italian, is founded to meet growing European needs in 1962. NationalAluminate Corporation shareholders approve a name change to Nalco Chemical Company. Nalco formsNalco de Mexico, S.A., headquartered in Mexico City. A major share of the business will servicePemex, Mexicos national oil industry. Nalco enters into a joint venture with ICI of Australia and NewZealand, Ltd., to form Catoleam Pty., Ltd. in Australia.Nalco develops Material Safety Data Sheets to provide customers with handling information forhazardous substances. Nalcos corporate headquarters move from Chicago to Oak Brook, IL in 1974.ORS-419 is used in the tires of the Space Shuttle Columbia. The Nalco product is the only non-siliconeproduct of its type on the market approved by the space shuttle tires manufacturer. Nalco breaks groundfor a new 300,000-square-foot trio of headquarters buildings in Naperville, representing an investmenttotaling $90 million. Nalco introduces the PORTA-FEED® reusable container system, the mostadvanced liquid chemical handling system yet introduced. Nalco leads the chemical industry in thedevelopment of CAER (Community Awareness and Emergency Response), a forerunner of theEmergency Planning and Community Right-to-Know Act of 1986 and the CMA Responsible Care®initiative.Nalco consolidates groups from the Energy Chemicals Division and Oil Field Services Division to forma new Petroleum Chemicals Division to be headquartered in Sugar Land. The new Petroleum Chemicals 9
  • 10. Division will include Visco Chemicals, Refinery Process Chemicals, Additives, Adomite Chemicals andGas and Oil Handling Chemicals Groups. Combining the best of both companies, Nalco and ExxonChemical Company announce the formation of Nalco/Exxon Energy Chemicals, L.P. to provideproducts and services to all facets of the petroleum and natural gas industries.On June 27, 1999, Nalco enters into merger agreement with Suez Lyonnaise des Eaux, a $32 billioncompany with more than 200,000 employees worldwide. The move also integrates Suez Lyonnaisesexisting water treatment group, Aquazur and Calgon Corporation, into existing Nalco operations tocreate "the new Nalco”. Nalco returns to trading on the New York Stock Exchange under its old NLCticker symbol following an Initial Public Offering on November 11, 2004. Nalco’s global sales exceed$3 billion for the first time in company history.Nalco announces 3D TRASAR® technology, the most comprehensive approach to cooling systemmanagement available. It provides the ability to monitor and control cooling water systems in real time,keeping these vital systems operating at peak efficiency regardless of demands. A series of secondarystock offerings in the following years eliminates the investor group stake in Nalco in early 2007. Nalcopurchases majority share of Mobotec and enters air pollution control market as Nalco Mobotec.Nalco’s global sales exceed $4 billion for the first time in company history in year 2008.Bharat Aluminium Company Ltd.: Bharat Aluminium Co. Ltd. (BALCO) was incorporated inthe year 1965 as a Public Sector Undertaking (PSU). BALCO has several “firsts” to its credit. It is thefirst public sector enterprise in the country which started producing aluminium in 1975. In 1987-88, acaptive power plant of 270 MW was added to cater to the power requirement of the unit. BALCO hasbeen the first in the Indian Aluminium Industry to produce the Alloy Rods, which is a Feedstock for allAluminium Alloy Conductors, needed for today’s power transmission lines. Till 2001, BALCO was apublic sector enterprise owned 100% by Government of India (GOI). In the year 2001, GOI divested51% equity and management control in favor of Sterlite Industries (I) Limited. In the last 41 years,BALCO has built up a production capacity of 200,000 tons per annum of alumina production capacity,350,000 tons per annum of smelting capacity and expanded its fabrication facility to include threeProper Rod Mills, three pig casting machines, integrated hot and cold rolling mills, and captive powerplants of 810MW capacity.It is the first public sector enterprise in India which started producing aluminium in 1974. Till 2001,BALCO was a public sector enterprise owned 100% by Government of India. In the year 2001,Government of India divested 51% equity and management control in favour of Sterlite Industries IndiaLimited.Theres a little history behind the privatization of the company that was doing so well even being apublic sector company. The reasons were never made public and during the month of January andFebruary 2011, the town went through complete transformation. There were groups formed amongpeople or rather BALCO employees namely supporters of privatization and the ones who opposed it.Rallies and processions were carried out in the evenings to oppose the privatization and those whosupported it were left in minority. Eventually, things happened as they were planned and the companywas listed under Sterlite. 10
  • 11. BALCO has two working units – an integrated Aluminium complex situated at Korba in Chhattisgarhand the second in West Bengal at Bidhanbag. Till 2001, the government divested 51 percent of its equityand management control in favour of Sterlite Industries (I) Ltd. at a cost of US$ 123 million. Today,BALCO has an integrated aluminium plant with captive Bauxite mines, a captive power plant, refineriesand smelters. BALCO’s plant at Korba in Chhattisgarh produces 100,000 tons of aluminium every year.Its captive power plant has a capacity of 270 MW to meet its own requirement. Currently, BALCO isexecuting a US$ 863 million expansion plan to increase its aluminium production capacity from 100,000tons per annum to 345,000 tons per annum. It is also setting up a 540 MW electricity generation plantfor captive consumption.BALCO has proved its mettle by developing and supplying special aluminium alloys to the nation’sintermediate range ballistic missiles Agni and surface missiles Prithvi. 11
  • 12. ABOUT PRODUCTS / SERVICESHINDALCO Industries Ltd.:Aluminium: In India, It source bauxite from captive mines and through the open market to producealumina in refineries using the Bayer refining process. A part of the alumina is sold to customers fornon-metallurgical applications in the form of value-added special alumina. Captively used alumina isreduced to molten metal in reduction cells or pots in smelters.Their governance and disclosure practices are a result of a deeply ingrained value system that reflects aculture of trusteeship and strategic thought process aimed at maximizing value for our stakeholders.Their Board works within the ambit of clear and well-defined governance framework which flow fromClause 49 of the Listing Agreement in India, the Sarbanes-Oxley Act and the regulations of the USSecurities and Exchange Commission in US, and in accordance with the Australian Stock Exchange(ASX), Corporate Governance Council’s (CGC), Principles of Good Corporate Governance and BestPractice Recommendations. The governance framework describes the role of the board, its operations,its relationship with the executive management and the main tasks of its committees. 12
  • 13. This power-intensive process is supported by coal-based captive power plants. Over 40% of theproduced metal is transferred to our downstream plants for value-addition. The rest is sold to customersin India and to export markets. Novelis purchases aluminium, both primary and recycled, mainly fromexternal sources.Copper: Hindalco currently import its requirement of copper concentrate due to its non-availability inIndia. About 15 to 20% of the copper concentrate is sourced from our overseas subsidiary (ABML). Italso imports coal for our captive power plant supplying power to the copper smelter. Imports arehandled through a captive all-season jetty. Copper concentrate is first smelted to anode in the smelterand then refined to obtain copper cathodes. More than half of the cathodes are converted to copper rodsin the rod mill; the rest is used for other products. During the smelting of copper concentrate, sulphur isreleased and tapped as sulphuric acid. It use nearly one-fifth of the sulphuric acid captively to producephosphoric acid and DAP fertilizer. Another co-product of the copper refining process is anode slime.This is further treated in a precious metals refinery to extract gold and silver. Other co-products includeselenium, copper telluride, gypsum and iron slag. Both aluminium and copper businesses supply toindustrial customers and traders. The products range from commodity products (like standard alumina,primary aluminium, copper cathodes) to high-end specialized products (such as lithographic sheets andspecific extrusion products). Goods are normally transported from the factory using road or rail routeand to the port in India for export shipment.Rolled out aluminium 13
  • 14. Copper Business Performance Business Conditions: CopperPrices increased despite weak fundamentals:  Physical demand still suspect  Western world demand still declining & showing no immediate signs of Improvement.  led stimulus packages & thrust on infra spending leading to higher consumption.  But the real differentiator is China.  State Reserve Bureau (SRB) purchases behind the price revival.  Jan-May imports up 174.  SRB purchases remain an Enigma.  Unlikely to be Demand driven & more like opportunity driven as Chinese growth  has slowed down & power sector growth is sharply lower. 14
  • 15. ABOUT PRODUCTS / SERVICESNALCO Industries Ltd.:Analytical ServicesYou need immediate answers when you have a system or process problem. In some cases, testing can bedone on site to identify the cause. In other cases, you need the testing capabilities and troubleshootingexpertise only found in an experienced analytical laboratory.Analysis ProductsNalcos analytical product line offers tools to measure the effectiveness of a treatment program on-site.Standard and proprietary analysis products can assist with troubleshooting, program evaluation, directmeasurement of Nalco products, and other general water and process testing needs. Products aredesigned to offer ease-of-use, consistent operation and reliable results. From microprocessor-basedinstruments to simple drop-wise kits, our analysis products offer the quality you have come to expectfrom Nalco.Analytical LaboratoriesPh.D. researchers and technicians are thoroughly trained in sample testing and analysis. Their extensiveexperience includes operation of state-of-the-art instrumentation and sample analysis. Our analyticallabs are ISO 9001:2008 certified. Standardized, documented procedures help assure accurate answers.Our network of Nalco labs service customers around the globe.You can rely on NALCO for comprehensive answers over a wide range of areas. While many analyticallabs perform water analyses, few also have capabilities for deposit, ion exchange, metallurgical, andpulp and paper testing. Even fewer have the global network of Nalco expertise ready to help you. Counton it for insight that can help you and your Nalco field representative troubleshoot problems. You willget the answers you need, quickly.Automation & Remote MonitoringMore than ever before, business and industry today is faced with rapidly changing market dynamics, afierce competitive landscape, and a constant need to improve financial performance. You can achievepotentially significant gains in operational efficiency, risk reduction, environmental performance, andcapital expenditure avoidance, by harnessing the power of the worldwide web and associated high-techproducts and services offered by Nalco.Nalco’s TRASAR® technology is the only program that provides real-time, on-line monitoringcapability. It can save water and energy, and the improved system performance leads to betterefficiency, reliability and productivity. And now Nalco has improved TRASAR by introducing 3DTRASAR® Technology. 3D TRASAR Technology detects system variability, determines treatmentchanges, and delivers them to optimize a cooling or boiler system. 3D TRASAR delivers information ina format you find most useful: through text messages, via the Internet, at your Facility’s DCS orSCADA system or directly from the 3D TRASAR Controller. 15
  • 16. Consulting ServicesWhen you seek to optimize your process, troubleshoot or increase efficiencies, Nalcos brain-trust, ourconsultants, leverage expertise, experience, knowledge and intellectual equity to help. Individual expertconsultants not only have proven track records (average experience is 27 years), they also leverage ourknowledge management system that has been refined over the years. All consultants take a multi-disciplinary approach (mechanical, operational and chemical) to your process.Consultants provide many different plant, process or application audits and surveys. They also provide acomprehensive survey of the chemical application, processing equipment or overall application in wateror paper processing. Examples of applications include: raw & waste water, boiler water, cooling water &papermaking. Examples of industries include: paper processing, chemical processing, metals, petroleum& refining, municipalities. Consultants also determine the equipment/process performance relative toindustry norms & benchmarks.Delivery & Inventory ServicesYou need to have the right chemicals, in the right quantities, delivered on time and safely. You need tohave uninterrupted supply ready for use with minimum hassles. Sounds simple? It is not always easygetting those basic needs met. Thats where Nalco can help.Of course, well get you the chemicals you need when you need them, safely - that should go withoutsaying. But, well also work with you, on-site, to determine optimum tank location and chemical feeds,well install the system, then well monitor it to make sure everything is in compliance and running atpeak efficiency to reduce downtime and help you manage your resources. Well even manage yourinventory for you if you choose.Environmental Hygiene ServicesIts mission is to deliver efficiently pure water and air while lowering your HVAC operation cost,reducing your environmental footprint and protecting occupant health. It provide holistic solutions toreduce health risks due to pathogens in water and air systems and to maintain HVAC systems atoperational peak performance.It can manage your portable, cooling water and HVAC systems to a health and operation performancestandard. Our service helps you to maintain a healthy environment for your employees, clients andcommunity. Nalco is the only company that can offer customers a holistic approach of specializedservices to efficiently manage the water and air side aspects of a HVAC system.The EHS team is comprised of highly trained specialists who concentrate solely on customizing servicesand programs to specific customer needs and performance goals. Backing our specialists is a team ofhighly trained technicians who can execute the turn-key service solution across North America.EHS is a division of Nalco, which is recognized as an Energy Star Partner by the US EnvironmentalProtection Agency. EHS is acknowledged as a provider of products and services that contribute to better 16
  • 17. indoor environmental quality, reduction in energy use, and a comprehensive contribution toenvironmental, economic and social sustainability.Water Risk ManagementEHS can reduce health risks due to pathogens in water systems. It bring customers years of experience.Starting over a decade ago, Nalco’s groundbreaking work in risk reduction has provided guidance inestablishing a global approved code of practice for Legionella control. Its approach is to provide anassessment of a customers facility to identify and reduce risks before they affect employees and guests.It offers a portfolio of services to address concerns about waterborne pathogens, and have developed amodel that first identifies and quantifies risks, develops an action plan, and employs turn-keyremediation services when needed. It then holds the gains through control and legionella analysis,followed by periodic reviews, including re-assessment of risks, with people in your organization.Backing our specialists is a team of researchers and technicians who have studied the issues related tolegionella. Using their global expertise, It have developed a risk assessment and turn-key remediationservice program that can be customized to reduce risk and potential liability from water systems. No twoproblems or solutions are identical.HVAC Air ManagementIts mission is to restore and to boost the cooling and heating capacity of HVAC systems, whileproviding Indoor Environmental Quality (IEQ) solutions that reduce the risk of airborne pathogens,contaminants or other environmental hazards.Its specialized consulting team customizes the solutions to your specific HVAC operation needs andperformance goals such as cooling capacity, air quality, reduction in energy cost and environmentalfootprint. First, we benchmark your HVAC systems by conducting a performance, energy and IEQaudit, which also includes an ROI analysis. Based on the findings and your operational goals we suggestthe best customized solutions, which can be implemented efficiently with our P4-certified servicetechnicians. Its monitoring services guarantee that the performance and ROI goals are maintained overtime.Its Air Services include turn-key solutions such as performance/energy audits, coil cleaning with aninnovative patented technology, filter replacement management and IEQ monitoring.Equipment SolutionsNalco offers complete systems from feed and process control equipment to integrated wireless, web-based, data collection services. In addition, Nalco has a wide product offering of field test kits, processmonitoring equipment, and complete chemical feed and storage systems proven and tested for industrialenvironments.Chemical Feed and Contol Systems Components & Accessories - Name brand pumps,controllers and packaged systems (easy to select, install, start-up) 17
  • 18. Water Pretreatment Equipment - UltraTreat™ - A complete line of pretreatment equipment includingfilters, softeners, and reverse osmosisTechnical Services - Including Integration Engineering (on-site, to integrate Nalco’s equipmentsolutions into your facility), Application Engineering, and our Technical Support Help DeskIntegrated Water ManagementReuse, recycle, recoverNalco’s integrated Water Management (IWM) process is a complete audit-to-operation approach forincreased water reuse and recycling. Its package Nalco’s global expertise into a single offering,including water treatment process design, build, own, operate and management services. It provides itscustomers with best practices by leveraging the knowledge and experience gained across a wide range ofindustries. The IWM process identifies the technology, chemistry and expertise required for long-termsustainable solutions, improving your profitability and environmental performance. IWM – driven by industry needs Outsourcing maintenance and operation Complying with stricter discharge rules and permits Managing water shortage, toxicity, and water-borne disease Solving turnkey sole supplier requests Meeting time constraints Providing environmentally safe water reuseYour goals are our goalsNalco has partnered with industrial and institutional customers worldwide to develop reliable, cost-effective and safe solutions. Our ultimate goal is to deliver a measurable return on investment (ROI). Wehelp you:Increase profitability Reduce fresh water consumption and cost Reduce waste treatment cost Reduce waste water discharge costImprove quality Improve feed water quality Improve treated and recycled water quality Improve process and rinse water quality Improve product qualityIncrease productivity Reduce water related shutdown and associated production loss Increase cooling tower cycles of concentration and plant cooling efficiency for increased production and reduced energy consumption 18
  • 19.  Upgrade boiler water quality and reduce steam related production downtime and energy wastage due to blowdown Achieve best-in-class water efficiencyEnhance reliability Enhance equipment reliability Improve system integrity Improve process reliability Reduce downtime and breakdownsMeet environment, health and safety standards Meet EH&S standards Meet or exceed environmental goals Reduce environmental and health risksImprove safety Conduct safety inspections Implement safety audit programs Execute emergency response programsIndustries Served metals mining power generation oil and gas chemical & petrochemical food, beverage & pharmaceuticals hotels, resorts & hospitals manufacturing(aerospace,microelectronics, automotive, tire & rubber) 19
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  • 21. WATER PRETREATMENT SERVICESWorld-class engineers and scientists are passionate about solving problems: the vision and dedicationcome naturally. Its teams qualifications are among the best in the industry, so great service is just part ofthe difference you get when youre working with Nalcos Membrane Solutions Group. As part of ourthree-part solution, our comprehensive service offering includes:Plant auditsTo solve the right problems, you need the right data. We work with you to perform a survey of yourplant.Membrane autopsiesWhen questions about declining membrane performance need clear answers, a membrane autopsy maybe required. We recommend when to perform a membrane autopsy, perform it for you, and help youinterpret the results. It can identify the type of fouling, scaling, and damage to the membrane and canrecommend steps you can take to resolve the issues.Field cleaningsRequest our on-site field cleaning services to get an experts help.Pretreatment optimization servicesIts team also advises on the best pretreatment options to optimize your membrane performance.Water analysisAn accurate water analysis will help you get a good assessment of your plants condition and help youdetermine the best pretreatment options.TrainingSkilled plant operators mean better membrane performance and longer membrane life. PermaCaretraining services provide fundamental membrane system pretreatment, operation, monitoring, andtreatment knowledge for your staff.Service PackagesNalco provides service packages that can be customized to meet your specific needs.Biofuels & EthanolWith increasing pressure to reduce water use without compromising product quality, biofuelmanufacturers need a partner who understands their challenges and will help them extract maximumvalue from every step of the production process.Nalco has an excellent core team of researchersdedicated to solving the primary issues faced by the ethanol industry. Our core capabilities in solid-liquid separation, scale, corrosion, and fouling give us an unparalleled advantage in discoveringsolutions for biofuel producers, and our research team understands the most important issues that areyour main concern, and most importantly, how to solve them. We are also constantly refining traditionalofferings and reaching further into your process to effectively drive improvement.Its on-site research experts are trained in examining your facility with a Mechanical, Operational, andChemical (MOC) approach and can help you with the following: 21
  • 22.  Anticipating, preventing and solving problems Devising unique solutions and leveraging a wide range of Nalco resourcesState of the Art Solutions focused on Ethanol Production: BUILDINGS & INSTITUTIONSNalco’s Institutional programs increase the operational efficiency of HVAC systems by maintainingclean heat transfer surfaces and reducing water and energy consumption in chillers, boilers and airhandling unit coils (AHU’s), increase client/patient satisfaction by maintaining reliable heating andcooling operations and reducing total site risk by controlling waterborne pathogens. The Building andInstitutions group is focused on the following market segments: Commercial Buildings Hospitals and other healthcare sites Education (University & K-12) Hotels, Casino’s Resorts & Leisure Amusement sites Government sites (military bases and government buildings) Data Centers New Construction District Heating and Cooling Airports and Rail Terminals Research and Development facilitiesThe Buildings and Institutions team can deliver on-site expertise in all major Metropolitan areasglobally, with full coverage in the USA and Canada. Field reps are trained professionals in watertreatment for HVAC operations and will identify opportunities to reduce water and energy use in yourfacility. We can also help you gain LEED ® points for certification, implement ENERGY STAR projects,improve indoor air quality management and reduce the risks of waterborne pathogens in water systems.If you are looking for ways to improve your HVAC operations, Nalco has a solution for you: Reduce water use in chillers and energy consumption in HVAC equipment Improve water treatment control with automation and 24/7 monitoring/alarming by Nalco Measure actual chemistry and respond to systems stress with patented control technology  Improve client satisfaction and loyalty by working with one company to manage your air and water systems  Implement sustainable solutions – green programs, water use reduction, energy use reduction, hands off delivery and a reduced CO2 footprintChemicalsEfficiency, reliability and productivity are three critical needs important in all sectors of the chemicalindustry, and we understand that all of these are vitally important to your bottom line.Nalco is the preeminent water and process treatment provider to the chemical industry, with more than75 years of relevant experience. Its mission is to create value for our chemical customers byimplementing solutions that are sustainable, reliable, efficient and profitable. With its focus on resourcemanagement (water, energy, materials), emissions reduction (gas, liquid, solid wastes), and innovativecost management, we can assist you in improving your plant’s business and environmental 22
  • 23. performance. Our novel services and solutions help you meet your plant’s goals by achieving thefollowing:  Performance improvement  Asset preservation  Environmental sustainability  Reliable operations  Reduced total operational cost  Improved production ratesOther industry segments we serve and offer innovative programs for include:  Ammonia & Fertilizer  Inorganic Chemicals  Polymers  Specialty Chemicals  Industrial Gases  Petrochemicals ENERGY SERVICESIts Energy Services division provides on-site, technology-driven chemical and service solutions to theglobal natural gas, petroleum and petrochemical industries. In addition to stimulation, recovery,production and process enhancements, It also deliver a full range of water treatment offerings to floatingproduction storage and offloading vessels as well as refineries and petrochemical plants.The division is divided into an Upstream group composed of our Gas and Oil Field ProductionChemicals and Adomite businesses, and a Downstream Refinery andPetrochemical processing business.Its upstream applications improve oil and gas production, extend equipment life and decrease operatingcosts through value added services and a full suite of production chemistry. Its downstream applicationsincrease refinery and petrochemical plant efficiency and the useful life of customer assets, whileimproving refined and petrochemical product quality and yields.Its mission is to lead the industry in creating value for our customers and Nalco through differentiatedtechnologies that save water and energy, enhance production and improve air quality, while reducingtotal cost of operations. FOOD & BEVERAGENalco provides Essential Expertise for Water, Energy and Air to the Food and Beverage Industry. Itbegan using water treatment and other innovative process technologies to improve the operatingperformance of industrial boilers in Chicago food processing plants in 1928. Since then, over the pasteight decades, we have been providing global solutions to more than 70,000 customers in 130 countries.As a result of this experience, Nalco understands the most important industry challenges you face as afood and beverage processor. From optimizing your profitability through cost management andensuring high quality products, to ensuring the safety of your employees, visitors and community orfacilitating your sustainability goals, we understand that you operate in a highly challenging businessenvironment. It will work with you to proactively manage these challenges to achieve all of your goals,as this process has been part of our heritage throughout our history. 23
  • 24. Some of the key performance metrics that Nalco can address include: Water Usage Energy Usage Asset Life Safety Compliance Labor CostsTo achieve these metrics, we bring our global experience of more than 8,000 Nalco field professionals, aworld-class Research and Development group, and a wide range of products and Advanced Services.Some of our Advanced Service capabilities include Analytical Services, Automation & RemoteMonitoring, and Consulting Services of which Integrated Water Management focuses on water recovery,re-use and recycle. Please click on the “Services” tab to the right of your screen to discover Nalco’scomplete line of service offerings. MANUFACTURINGNalco’s manufacturing group has over 80 years of experience with programs that improve the use ofwater, reduce energy consumption, and improve process operations globally across a wide range ofindustries. No matter what manufacturing process you use at your facility, we will have relevantexperience with providing value added programs to meet your needs. Among the key industry segmentsfor our manufacturing group are the following: Automotive Assembly and Automotive Parts Microelectronics Photovoltaic Aerospace and Defense Manufacturing Plastic Products Tire and Rubber Products Nonwoven Textiles Building Materials and Packaging Products General Electronics and General Equipment ManufactureWithin these and other industries, our manufacturing group specializes in programs in three key areas:Water – Improving water quality, reducing water usage, improving system and energy efficiency,reducing carbon footprints, and preserving asset life.Air – Improving indoor air quality and HVAC system energy efficiency through utilizingcomprehensive programs that include HVAC coil cleaning and exclusive high performance filtration.Improving Production Processes through the use of:Process – Paint detackification, foam control, microbiological control, viscosity modifiers, dispersants,retention and drainage programs, scale and corrosion inhibition, etc.In today’s challenging economic environment, water and energy savings and sustainable programs aremore crucial than ever before. Nalco has myriad resources and experience as the global leader in water 24
  • 25. and energy programs to implement world class technology that can help effectively meet the needs ofyour facility. NALFLEETNalfleet is pleased to announce that the company has been acquired by Wilhelmsen Ships Service, aleading maritime services company. Its team of marine chemicals experts will join Wilhelmsen ShipsService starting 1 February and all Nalfleet business will be transferred to Wilhelmsen Ships Service bythe end of the first quarter. . ONLINE SERVICESBy understanding the needs and capabilities of our customers, It is creating online applications thatdeliver and strengthen businesses and industries. Nalcos Extranet is your gateway to access customer-specific information, online order center, and tools. By making it easier and more convenient to dobusiness with us, it opens a whole new way to bring onsite expertise to your fingertips. Creating endlessnew possibilities to solve and troubleshoot our customers’ challenges, and maximize your operationaleffectiveness and lower overall costs.3D TRASAR® WebAccess your data from anywhere in the world via the 3D TRASAR Web. 3D TRASAR sends data to theInternet using phone, LAN, or wireless technology.Nalcos ExtranetDelivering customer-specific information and online ordering to allow a new level of partnering withour valued customers.Online Training ServicesThe Nalco Learning Center provides interactive online training that teaches operators and engineers howto work smarter and better.Nalfleet Interactive Management System (NIMS)Nalfleet Interactive Management System is an on-line client resource that provides Nalfleet clients acomplete download resource for all product information 25
  • 26. ABOUT PRODUCT AND SERVICES: BHARAT ALUMINIUM COMPANY LTD.(BALCO)When values meet with business acumen you are sure of successThe impressive presence of the Balco Group of Companies enables it to make forays into diversebusinesses while maintaining economies of scale. At the moment it have large-scale businessinterests in over 22 countries and most of our investments, business undertakings and equityholdings are shaped according to indigenous economies. For instance most of our commoditiestrading takes place in China because of a conducive environment for metals and minerals trading,and similarly, based on demand and supply our Diamond endeavors are based in the UK, South,Central and West Africa and Russia.The fundamental roster of BALCO’s businesses encompasses• Investment banking, securities and investment management• Diamond mining• Shipping• Minerals and metals-commodities tradingIt follows a disciplined investment policy backed with customized and sophisticated strategies.Although it have diversified into a multitude of financial opportunities our core values of honesty,integrity and hard work always remain with us. The Balco Group of Companies leads one of themost robust and dynamic portfolio of investments and development projects in all major continentsand financial hubs.BALCO Financial ServicesWith more than 30 years of financial success, management of money is second nature to itBeing an investment trust with no outside shareholders Balco Financial Services is free to chart its ownpath whether it comes to focusing on short-term growth to leverage current market conditions or long-term sustainable financial undertakings. As a positive consequence we can focus on organic growthrather than worrying about bottom-lines and growth charts to keep investors happy (it doesn’t meanwe’re not concerned about bottom lines but they simply serve as intra-organizational milestones to keepour management focused). It concentrate more on gaining in-depth industry knowledge and then steer itsfinancial plans accordingly.Its companies under this segment are Balco International B.V., Balco Finanz AG, Balco FinancialServices Ltd. (UK) and Balco Financial Services Pvt. Ltd. (India).Our companies under this segment are Balco International B.V., Balco Finanz AG, Balco FinancialServices Ltd. (UK) and Balco Financial Services Pvt. Ltd. (India).It primarily specialize in financial instruments like Government bonds and sovereign, central and tradedebts. Many of its financial transactions involve various types of debt instruments including 26
  • 27. investment-grade debt securities, high-yield debt securities, bank and bridge loans and emerging marketdebt securities that may be issued by corporate, sovereign as well as agency issuers. Aside from thesewe also provide financial services in common and preferred stock, convertible and exchangeablesecurities, asset-backed securities and real estate related securities such as mortgage-related securitiesand the securities of real estate investment trusts. It also put our capital into collateralized debtobligations.At Balco we aim to provide a broad array of financial services to provide unmitigated financial growthto our business partners (our clients).BALCO ShippingGlobal shipping solutions delivered locallyShipping thousands of tons of materials and valuables from one corner of the globe to another, takesgrit, vision, trust and resources and the Balco Group of Companies by default comes with these qualitiesand traits. Being a capital intensive industry it was but natural for us to take on the challenge ofmanaging infrastructure assets of such magnitude. Irrespective of geographic locations the quality of ourshipping services are at par with every developed and industrialized region of the world; with our strongpresence we have been able to usher in an air of uniformity (in terms of quality and service) across theregions we operate in.Ever since we started our shipping services in Jutland (Jylland) in Denmark in 1979 we have neverlooked back and it has turned into one of our major ventures. The flagship companies under thiscategory are Balco Shipping- Denmark, Balco Shipping Ltd (UK) and Balco Shipping Services Pvt. Ltd(India).Our primary areas of focus are• Shipping• Port-based services• Intermodal logistics• DredgingShipping is the most important mode of large-scale intercontinental transport and the entire worldeconomy depends on it. With more liberalization and relaxed trade relationships between myriadcountries and industrial groups there are greater shipping activities than ever before and we endeavor todeliver these benefits to our customers and business partners.But shipping does not just depend on the raging ocean waters; it also requires state-of-the-art ports andother related facilities. We have established strong cooperation lines between major and minor ports. Wehave also struck partnerships with major infrastructure players in South Asia for developing minor portsin the hinterlands. As far as commercial shipping goes Balco Shipping aims to provide total turnkeysolutions from main ocean carriers to subsidiary services such as ports, shipping related warehousingand transportation and distribution around the port area. 27
  • 28. The primary focus of our shipping services is in Central Europe, Scandinavian countries, the MiddleEast, China and India. Our ownership and leasing of shipping assets extend to China and India and theMiddle East.As already mentioned above we strive to provide total turnkey shipping services. Aside from providingshipping services our customers also have the following advantages of partnering with us for theirshipping requirements: Simplifying document procedures: Global trade complexities can be overwhelming for persons andorganizations not directly handling shipping and port services internationally. Different countries havedifferent regulations and payment modes and clearance procedures that need to be obtained on a timelybasis. Then there are currency variations and fluctuations. We take care of all major documentationrequirements, clearances and currency rate adjustments. Making procurement and sourcing smooth: Having an international presence certainly has itsadvantages. Our various businesses have presence in over 22 countries and this enables us to satisfyexpectations of our international customers in terms of procurement, supply chain, and sourcing, trans-shipping, maritime transportation and related logistics Consolidating your costs for various shipping services: All its port and shipping services includebrokering, freight forwarders, customs-house agency, NVOCCs, export management house along withother intermediary services.Arranging contracts with third party and fourth party logistics (3PL/4PL) providers.While providing shipping services we primarily focus on providing global coverage, cost efficiency andsuperior quality of service. Due to extensive depth and breadth of our institutional and fleet capacity weglobally provide integrated logistics services that include door-to-door and global transportation,warehousing and inventory management, forwarding an agency and communication and IT services.BALCO DiamondBalco enjoys unrivalled expertise when it comes to exploring, mining and supplying highest qualitydiamonds.The Balco diamond mining arm of the Balco Group of Companies has valuable assets in the Kimberlyregion in South Africa, Kumi in Russian Republic, Bangi in Central Africa and Sierra Leone in WestAfrica. Our main office is based out of UK and India. Our another company called Balco DiamondsFZCO is in Dubai that deals in rough stones and also performsdiamond cutting/polishing operations.Aside from owning and operating mines Balco Diamond Mines also sorts, evaluates and sells roughdiamonds to clients all over the world 28
  • 29. Why diamonds?Diamonds can be one of the most consistent, long-term investments. There are no significant booms andbusts in the diamond mining industry. The prices remain comparatively stable and there is an amplesupply of them provided the mining operations are handled with experience, knowledge, diligence andforesight. The greatest plus point of this industry is that there is a great demand for rough as well assemi-processed diamonds. They are not just used for jewelry; many machines and tools also usediamonds due to their unbreakable nature.The value of a diamond is gauged by its color, clarity and cutting. There is no universal price percarat/gram as might be the case with other valuable metals and minerals. Throughout centuriesdiamonds have remained great investment vehicles due to lack of liquidity and homogeneity.Our company specializes in identification, acquisition and operation of high return projects in one of themost promising regions of the world. Through the unit at Dubai rough diamonds are supplied to marketslike India and other countries in the Indian subcontinent giving rise to local diamond cutting andpolishing industries. In a short span of time we havent just been into growing markets like India wehave expanded our branches to all major diamond markets rapidly too.BALCO Minerals and Metals - Commodities TradingBalco Metals and Minerals—the Company makes markets—in and trades a variety of commodities,commodity derivatives and interests in commodity-related assets, including metals, coal and agriculturalproducts. As part of its commodities business, the Company acquires and disposes of interests in, andengages in the development and operation of, iron ore facilities and related activities.Major trade occurs in high grade iron ore, coal and agriculture products. Exports are mostly to China.The gap between high-income and developing country macroeconomic policy has also affectedcommodity markets, both because of exchange rate movements and because of the search-for-yield thatlow interest rates have induced.The dollar prices of virtually every commodity grouping rose during the second half of 2010, suggestingthat common factors may have been at play. Part of the explanation lay in the depreciation of the U.S.dollar during the course of the year. While the dollar value of commodities was rising, expressed inEuros, commodity prices were more stable.Indeed, the depreciation of the dollar against most currencies, and the cumulative effect of the rise inprice of other goods and services, means that during the past few years, the real at-the-border localcurrency price of internationally traded commodities in developing countries has increased much lessthan the U.S. dollar price normally quoted. In contrast, in countries that are pegged to, or closely follow,the dollar, real commodity prices in local currency terms have risen. This in a large way has benefittedour trading in Asia especially to China and from India. 29
  • 30. While international prices play an important role in determining local price changes over the longerrun, both the level of, and short-run changes in, local prices depend importantly on local productionconditions, trade policies, infrastructure and distance from major production centers.Another factor from our aspect has been increased investor interest in commodities as a new asset class,with relatively low correlation with other assets. The emergence of actively traded commodity-basedinvestment vehicles in recent years has allowed financial speculation in commodity markets to expand,thereby contributing to higher price volatility. Following this logic, low interest rates may be driving usinto taking such commodity positions. While intuitively reasonable, to-date empirical studies haveproduced mixed evidence on the effect of investment fund activity on commodity prices.A final factor cited, and one that underpins some market expectations that commodity prices (especiallymetals and minerals) are destined to continue rising relative to other goods and services, is based in thestrong growth of developing countries, their rising share in global commodity demand and their growingeconomic weight. According to this view, the world may be entering into a super-cycle during whichcommodity prices will continue to rise (or stay elevated) as supply seeks to meet demand.Prices are now higher, making economically viable exploration projects and known reserves that couldnot be profitably pursued when prices were lower. The question is whether supply will respond rapidlyenough to meet that demand (and importantly how higher prices will affect demand). For most metalsand energy sources, experts concur there are no impending supply constraints, and that today’s prices (orprices close to them) will induce sufficient new investment and supply so as to meet demand. 30
  • 31. OPERATIONAL STRATEGIES OF THE COMPANIESHINDALCO Industries ltd.Starting from 1958, based on the then prevailing state-of-the-art technology, we have been regularlyaddingcapacity to existing operations, acquired capacities and set up green-field capacities inaluminium, copper and power plants. This has resulted in a range of technologies being employed in ouroperations at different maturity levelsStrategy for technology:It recognizes that regularly upgrading processes and technologies and integrating them to the existingset-up is a key sustainability risk and a significant opportunity for reducing costs, conserving energy,reducing environmental pollution, developing new products and promoting new applications.We arealways looking to extract the best performance by combination of technologies, equipment andpractices.Data base systems like CTDB, KS 2100, minitabs, etc. are being used for technologicalimprovements in the plant. 31
  • 32. Continuous tracking of thetechnology, equipment supploers. Training at all levels on Operations and Maintenance of new technology Sharing of Information to other Plants : reports, reviews 32
  • 33. HINDALCO Operational StrategyIt focuses on sustainable consumption of raw material and sustainable product development andalignment of research and development (R&D) initiatives with business requirements. One of the focusareas of Hindalco is to concentrate on the resource conservation and environmental protection.Minimizing and eliminating environmental effects of Hindalco’s products and processes at any point intime in their life cycle, as well as making its own productionprocesses environment friendly and less resource-intensive is embedded in HIC’s technical efforts. HICis supported by Taloja R&D Centre (TRDC) and Belgaum R&D Centre (BRDC), two centralized R&Dset-ups focusing on downstream business (Tribology, Metallurgy, Foil Conversion, Modeling,Environment and Energy) and upstream Alumina business(fields of Bauxite, Bayer process and Specialty Hydrates and Alumina).Novelis has a state of-the-artR&D Set Up at Kingston, Canada. To encourage sustainability innovation, we are building a GlobalR&D Facility at Atlanta, USA. We believe R&D and Corporate Strategy go hand in hand, and bringingthem physically together will make this possible.Novelis has some of the leading technologies. We are working on leveraging these technologies at theIndian operations and collaborating internally (between Novelis and HIC) on development of newtechnologies.Strategy Sustainability Connect Specifics of TechnologyTo be one of the lowest cost Resource conservation; Aluminium:producer of Aluminium environmental protection; • use of high silica bauxite;where commodity prices are reducing GHG emissions; • high temp digestion (RTA asgoverned by cyclic LME waste collaborator);To get maximum benefits minimisation; land usage • de-bottlenecking of existingduring the up cycle and be the reduction; energy conservation pot lines to higherlast man standing in the down and reduction of specific kA (collaboration withcycle energy consumption; efficient technology provider); asset utilization; conservation • advanced Process Control in of ecosystem; and recycling collaboration with ABSTC (internal partner), and Gami (for brown field expansion). • partnered Kan-nac to help in challenging the design of the pots, to extend the limits of pot current beyond that recommended by technology suppliers. • 360KA Pre-baked, point feed 33
  • 34. technology from Pechiney for new green-field smelters. • technology upgrades to increase current efficiencies (in house). • greening of red mud fields and making them suitable for vegetation Copper: • along with 3 technology suppliers for 3 smelters , also worked with F L Smidth to develop solution for the copper concentrate dusting issue and a significant reduction in capital cost per tonne of copper • use of Phospo-Gypsum (a waste) for Agriculture & CementTo be a market leader and Sustainable product Power:low cost downstream player development; light weighting • technology for efficient, lowas a hedge against the cyclic for energy efficiency and cost,nature of the upstream Al minimising environmental environmentally superiorcommodities business impact thermal power (CFBC technology); • surface mining technology for coal • setting up of Hirakud rolled plant with equipment and process technologies suitable for can body stock - technology sourced from Novelis the largest can body stock producer in the world. • actively considering setting up of Novelis fusion technology – a patented technology and the only one of its kind for clad alloy 34
  • 35. production. • development of technologies for improving the quality, reliability and range of lithographic sheets at Taloja, partnering with Novelis • setting up of equipment, facilities and processes with suitable technologies for producing high quality packaging foil at very competitive costs35
  • 36. 36
  • 37. Copper Smelting at HINDALCO 37
  • 38. OPERATIONAL STRATEGY AT NALCOEHS SustainabilityEfficient delivery of pure air and water will lower your costs, reduce your environmental footprint, andprotect occupant health. Sustainable development in building operation strategies is more than just socialresponsibility or environmental sensitivity. It’s good business.Nalco EHS delivers the knowledge and tools to deliver on all aspects of the sustainable developmenttriad.Environmental Sustainability: Helping you minimize your building’s environmental footprint iscentral to the Nalco approach. This includes reduction of your energy and water inputs and theirassociated costs. But our approach addresses your gaseous and liquid waste streams, as well as youroverall carbon footprint.Social Sustainability: Buildings are about people. Those who work or live in your building are directlyimpacted by your sustainable development strategy. Pleasant and healthful conditions keep occupantshappy and occupancy rates where you want them. Further, the community at large may look favorablyupon your sustainable development principles.Economic Sustainability: Operating costs are a critical building management responsibility, and aneffective sustainable development strategy can have a direct (and sizeable) impact. Operatingsustainably can mean lower operating costs and a higher profit.An effective, measurable sustainable development strategy.Save Water: More efficient use of water for cooling, potable purposes and decorative ambiance is acore deliverable from Nalco. This directly translates to lower input costs through effective recycling andreuse.Save Energy: Industrial and commercial buildings use 68 percent of all electricity consumed in theU.S. Your part of this electricity consumption can be dramatically lowered through more effectivemanagement programs. Nalco keeps your current systems running at peak efficiency, without the needfor burdensome capital expenses, all while delivering an ROI that is attractive, fully documented andseen in a relatively brief period of time.Reduce Carbon Footprint: Your carbon footprint reaches far beyond your building. Think about theinputs necessary to produce the energy you consume or the effects of the resulting greenhouse gasesyou produce. Nalco can have a direct impact on reducing many aspects of your carbon footprint.Optimize Productivity: Humidity and dew point control can have a major impact on your productionoutput. Nalco helps you to maintain your HVAC and refrigerant systems at peak performance,optimizing indoor climate control and production efficiency.Improve Indoor Environmental Quality: Clean, fresh air and water are essential to your business,because they’re demanded by your building’s occupants. That’s the end-game, but getting there requires 38
  • 39. combined chemical, filtration, monitoring and maintenance programs. Nalco integrates them all into aneffective indoor environment management strategy.Increase Safety: Properly functioning HVAC and water systems contribute in many ways to overallbuilding safety. Of critical concern, of course, is microbiological safety. The control of pathogens,especially Legionella, is core to the Nalco building management strategy.ApplicationsIt understand how manufacturingprocesses and water, energy andair systems work, and how its services andtechnologies can positively impact them. Itare always exploring new ways to serve itscustomers better and create value for themthrough reducing their total costs ofoperation..WaterBoiler Water Treatment Condensate Treatment | FeedwaterPretreatment | FiresideTreatment | Internal Treatment |Cooling Water Treatment Bio Control | Cleaning & Passivation | Closed Loop System Treatment | Corrosion & Scale Control | Once Through System Treatment | Open Recirculating System Treatment |Green Water TreatmentMembrane Treatment Membrane Bio Control | Membrane Bioreactor | Membrane Cleaning | Membrane Pretreatment | Membrane Post Treatment | Membrane Scale Control |Raw Water/Potable Water Preparation Coagulation and Flocculation for Raw WaterWastewater Treatment Heavy Metal Removal | Primary Treatment | Oily Wastewater | Foam Control | Odor Control forWastewater | Secondary Treatment | Dewatering | Water Reuse & Recycling |EnergyAsset IntegrityBiocides | Corrosion Inhibitors | Iron Sulfide Dissolver/Dispersants | Scale Inhibitors | Multi-FunctionalInhibitors | Oxygen Scavengers | Hydrogen Sulfide ScavengersEnhanced Oil RecoveryBrightWaterFlow AssuranceLow-Dose Hydrate Inhibitors | Multi-Functional Chemistries | Paraffin & AsphalteneInhibitors | SurFLO Plus Certification Program | Scale Dissolvers 39
  • 40. Petrochemical ApplicationsEthylene Applications | Water Treatment for Petrochemical Plants | Reactive Monomer ApplicationsProduction MaximizationEmulsion Breakers | Reverse Emulsion Breakers | Foam Control | Calcium Napthenate Inhibitors | GasWell Deliquification | Enhanced Oil Recovery | Drag Reducing Agents | Heavy Oil Viscosity ReducersRefinery ApplicationsOpportunity Crudes | Desalting | Corrosion Control | Fouling Control | Fuel Additives | OtherApplicationsWell Completion and Stimulation ChemicalsAcidizing Additives | Cementing Additives | Fracturing Additives | Air Dust Control Equipment| Emissions Control | Carbon Footprint Reduction | Odor Control |ProcessColloidal Silica Technologies | Beverage Fining | Catalyst Materials | Investment Casting Shell Systems | Nano Particles for Polishing | Refractory Binders |Food and Beverage Process Applications Nalco Yeast Activity Monitor | Ethanol Corrosion Inhibitor | Evaporator Deposit Control | Corn OilRecoveryMarine ChemicalsMining & Mineral Processing Applications Corrosion Inhibitors for Mining | Dust Control | Solid Liquid Separation | Tailings Management |Pulp and Paper Process Applications | Fiber Savings | Machine Efficiency | Chemical Savings | Water and Energy | GradeDevelopment | Air Quality |UAN Corrosion Management |3D TRASAR® Technology for BoilersNalco was built on boilers. Weve worked in thousands of boiler plants, asking and listening, auditingand sampling for 80 years. Now weve pushed far beyond traditional performance boundaries to help ourcustomers produce safe, reliable, cost-effective steam.Since changing conditions impact different parts of the boiler system...often very quickly...3D TRASARBoiler Technology is your most effective defense. Nalco will do a complete audit of your boiler systemsin order to understand the gaps and make recommendations specific to your operational goals.Delivers: Water & energy savings Increased steam production reliability Extends asset life Real-time system knowledge with instantaneous response Reduces maintenance and increases labor efficiency 40
  • 41. Research and DevelopmentNalcos global technology leadership demands a strong commitment to identifying, nurturing, protectingand growing innovative new technologies to meet customer needs today and for the future. Throughglobal research groups, we develop key ideas, advancing them rapidly and efficiently through ourproduct development process. US$80.3 million invested in Research and Development (2010) 600+ chemists, engineers, microbiologists, metallurgists and analytical experts 330+ PhDs 1,800+ patents Increasingly focused on breakthrough developments Regularly partner with customersOur 14 core Technology Centers, including locations in the United States, the Netherlands, Brazil,Singapore, Finland, India and China, are involved in the research and development of products andofferings and in providing technical support, including chemical analyses of water and process samples.Nalco scientists search for sustainable solutions to benefit our customers and the communities whichsurround them.ScienceCore capabilities in corrosion and polymer science, industrial microbiology and biofouling control, solidand liquid separation technology, metallurgy, sensor development, data acquisition and process controlall provide Nalco with a unique advantage in discovering innovative solutions for our customers. Nalcoalso has one of the largest teams of microbiologists in the world and has become a major global force inunderstanding and developing responses to the problem of detecting, monitoring and controllingwaterborne pathogens. It is constantly refining its traditional offerings and reaching further into yourprocess to drive sustainble improvements.Because of our research teams interdisciplinary expertise, it have been able to focus on findingsolutions to its customers problem holistically. Ultimately, Nalcos unique strength lies in our ability tointegrate mechanical, operational, and chemical variables with control concepts that minimize processvariability and offer sustainable solutions for our customers and the environmentProduct StewardshipAs an initiative under Responsible Care, the International Council of Chemical Associations (ICCA)established the Global Product Strategy (GPS). Through the development of Product StewardshipSummaries, GPS is intended to improve product stewardship throughout the chemical industry and willincrease public awareness of the uses, hazards, and risks associated with all manufactured chemicals incommerce.Nalco is committed to this effort and will, over the course of the program, produce Product StewardshipSummaries for all manufactured chemicals in commerce via the Tiered Process of Prioritizationdescribed below. This prioritization process was developed in consideration of the chemical hazards,exposure and risks when used as intended as components of Nalco products. 41
  • 42. Tiered Process of PrioritizationTier IChemicals manufactured in a high production volume (HPV)Chemicals reviewed in response to current or upcoming regulatory needsREACHEPA HPV/ eHPV Challenge ProgramChemical Assessment and Management Program (ChAMP)Canadas Chemicals Management PlanGlobally Harmonized System (GHS)Chemicals with a high potential hazardCarcinogens, mutagens, reproductive or developmental toxicantsPersistent and/or the ability to bioaccumulateHighly flammable, reactive, and/or corrosiveChemicals with a high potential for exposureTier IIChemicals manufactured in a moderate production volume (MPV)Chemicals with a moderate potential hazardChemicals with a moderate potential for exposureTier IIIChemicals produced in a low volumeChemicals with a low potential hazardChemicals with a low potential for exposurePARETO Mixing TechnologyPARETO Mixing Technology effectively balances and provides the optimal feeding solution of theinterrelated and dependent variables of hydrodynamics, chemistry and water management to bring youmultiple benefits, such as reduced cost, improved operational efficiencies and enhanced finished productquality.PARETO Mixing Technology is used to improve and optimize the delivery of retention aid and otherprocess chemicals to the paper machine. This technology focuses on the many variables that impactquality in modern papermaking, delivering optimization of key system inputs and improved machineefficiency. PARETO Mixing Technology can provide significant improvement in chemical efficacywhile minimizing the consumption of key resources such as water and energy.The offering delivers reduced fresh water consumption, reduced associated energy costs of fresh waterheating, improved chemical efficacy, improvements in operational efficiencies and improvements inquality control.The PARETO Mixing Technology offering has saved in five yearsof operation nearly 5.2 billiongallons of fresh water (~20 million m3) and nearly 3.4 trillion BTUs (>670 GW-Hr) of energy,meaning: ~ 50,000 American homes annual fresh water consumption 42
  • 43.  ~ 10 hrs. of Niagara Falls flow ~ 400,000 barrels of crude oil ~ 33,000 cars removed from the road ~170,000 tons of CO2 prevented from release to the environmentPARETO Mixing Technology is a patented, custom-engineered approach to feeding technology. Centralto the technology offering is the PARETO Optimizer, whose unique design works in combination withcustom CFD calculations and an unique understanding of chemistry to ensure that injection into theprocess stream is achieved efficiently and effectively.The integration of PARETO Mixing technology with our chemical programs begins with a preliminarysystem analysis and a comparison to alternative feed methodology. The delivery systems will then beengineered to your specific needs, aided by additional physical simulations that will optimize feed pointand system additive. Combined with other novel Nalco technologies such as Core Shell, POSITEK 3Gand ULTIMER, a PARETO program delivers profitable and sustainable solutions.Enhanced RecoveryIt design, develop and provide chemically enhanced oil recovery technologies that increase theeffectiveness of oil and gas field waterflooding and improve recovery. In 2008, Nalco and Stepanformed a joint venture to globally market custom-engineered chemical solutions for increasedproduction of crude oil and gas from existing fields. The joint venture centered on the technology andexperience of TIORCO which was acquired by Nalco in 2008.TIORCO processes have been successfully applied in oil and gas producing formations worldwide, fromNorth and South America to Russia, China and Asia. The result has been the production of more than100 million barrels of incremental oil from North American reservoirs alone.Choosing the right solutions for individual reservoirs and applying it at the right time is extremelyimportant in maximizing oil recovery. TIORCO’s project engineers and field technicians have extensiveexperience in improved oil recovery technologies gained from working with diverse reservoirsworldwide. This experience is supported by reservoir engineering capabilities, reservoir modeling andEOR design, in-house laboratory services and knowledgeable on-site field crews.Asphaltene Squeeze TechnologyNalco’s new asphaltene squeeze inhibitor is a unique polymeric chemistry developed for use inasphalteneic crude oils. Core flood studies suggest that this new asphaltene chemistry has an increasedsqueeze life when compared to incumbent Nalco chemistries. Benefits include: Enhance squeeze lifetime Potentially lower CAPEX and OPEX spends Faster application times Less downtime for operations Greater ROI for operators 43
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  • 46. OPERATIONAL STRATEGY OF BALCO Technology Overview BALCO has been closely associated with the Indian Aluminium Industry since its inception, playing a pivotal role in making Aluminium a leading metal with myriad uses. Alumina is also used in abrasive, ceramics and refractory industries. BALCO is a partially integrated operation with its own Captive Bauxite Mines, Refinery and Smelters, producing primary Aluminum and also has 810 MW captive power plants. The Metal The Processes Most smelting processes involve direct reduction of the ore by Carbon to metal and Carbon dioxide.The process of extracting a metal from its oxide is in general referred to as smelting. Some of the subsequent steps involved have been outlined below - The Aluminium produced by the electrolytic reduction of alumina (Al 2O3) dissolved in an electrolyte (bath) mainly containing cryolite (Na 3AlF6) sinks to the bottom of the Cell from where it is collected and sent to a melting or holding furnace, that is used to hold the hot metal and maintain desired temperature for casting. 2 Al2O3 (dissolved) + 3C(s) ------> 4Al(l) +3CO2(g) The molten Aluminium is then mixed with desired alloys to obtain specific characteristic and cast into Ingots for transport to fabricating shops. In the Fabrication Shops, the molten Aluminium or Aluminium alloys are re-melted and poured into casts and cooled. Molten Aluminium may be further heated to remove oxides, impurities and other active metals such as Sodium and Magnesium, before casting. Chlorine may also be bubbled through the Aluminium to further remove impurities. Mining BALCO has two captive Bauxite mines in Chhattisgarh state - one at Mainpat with capacity 7,50,000 TPA and another at Bodai Daldali (Kawardha) with capacity of 12,50,000 TPA. Both the mines are situated at an elevated plateau; the area is flat and covered with soil / lateritic boulders. The Bauxite ore is available as pocket deposit with 1.5 metre average thickness and is normally available below 3 - 5 metres from ground level. 46
  • 47. Operational Excellance Mining Method - Conventional Semi-mechanised Opencast Mining. Top Soil - Reused for backfilling and to retain fertility of land. Equipment Deployed - Drill, Excavator, Dumper, Rock Breaker, Dozer and Water Sprinkler. Winning of Bauxite - Drilling, Blasting and Manual Sorting/ Sizing. Only wet drilling is deployed. Reclamation - Mining and backfilling executed concurrently. Reclaimed area is afforested to cover the exposed land with greenery. Original topography is retained. Afforestation - Plantation of manifold local species has increased the green density in the surrounding landscape.Water Harvesting – Pre-determined mined out areas converted to ponds. Environment Conservation – Pre-defined and systematic design of Garland Drains, Check Dams, Parapet Walls, development of Green Belt.Wildlife Conservation in association with State Government.Zero accident record for last five years. All mining activities and pollution prevention mitigation measures undertaken as per the stipulated guidelines of various governing agencies. BALCO has its operations at Korba in the state of Chhattisgarh with a smelter capacity of 345 ktpa with capabilities to produce ingots, wire-rods, billets, busbars and rolled products. The Company is also setting up a new project with smelting capacity of 550 ktpa. SMELTING 47
  • 48. The Hall-Heroult process is the method by which Carbon Plant – Prebaked Technology Aluminium is produced industrially. The steps involved in the process are- In prebaked technology the anodes used are termed as prebaked anodes which are The process involves made from a mixture of electrolytic reduction of Alumina (Al2O3) dissolved petroleum coke aggregate, coal in electrolyte (bath) mainly tar pitch binder, buttsand green scraps containing Cryolite(Na3AlF6). moulded into blocks and baked in separate The mixture electrolysed causing the Oxygen ion of anode baking furnace at about 1100±20 the dissolved Alumina to discharge on positive °C. An Aluminium rod with iron studs is electrode where it reacts with Carbon anode to form then cast into grooves on the top of the gases like CO2 and CO. anode block as a support to the anode and The Al3+ ion deposited at the negatively which when positioned in the pot conducts charged cathodeconverts into liquid metal which the electric current to the anode. sinks to the top of cathode from where it is Prebaked anodes have to be removed at periodically collected and sent to casthouse or regular intervals, when they have reacted fabrication for further processing. down to one third or one fourth of their Electrical resistance within the bath provides original size. These remaining anodes are sufficient heat to keep the Cryolite molten. termed as butts and are usually cleaned at The pot is thermally insulated from side and bottom rodding shop. The cleaned butts are then to maintain the optimum heat balance and sufficient crushed and used as a raw material in the ledge (frozen electrolyte) on the side of the shell. manufacture of new anodes. A crust of bath and Alumina covers the anode to avoid anode oxidation. The technology employs -  Green Anode Plant  Bake-oven Plant  Rodding Plant Salient Features of Balco Plant II potline- BALCO, Plant II potline works on Prebaked technology A total of 288 electrolytic cells are installed with potline current of 320 kA. All 288 pots are connected in a series circuit. The name plate capacity of potline is 245 ktpa. 48
  • 49. FabricationTo stay ahead of competition BALCO has always adopted state-of-the-art technology in its processes.Catering to the needs of Defence and Space Research since 1980, the Company has firmly establisheditself as a front-runner among the producers of Aluminium sheets and plates.The molten metal (Aluminium) is fabricated into saleable products by adapting different processes.Fabrication SBU is broadly divided in three units operating as separate profit centres – Cast House,Foundry andSheet Rolling Shop.Aerospace Material DevelopmentBALCO in collaboration with VSSC-ISRO has installed Novelis Casting Station and set of HeatTreatment, Stretching & Polishing equipment to commercially produce different grades of alloy to beused as aerospace material. The alloys manufactured for VSSC by BALCO are - AA2014, AA2219,AA7075 and AA6063.SOLUTION TREATMENT FURNACEPowerAluminium is a power intensive industry. The electrolysis process used to produce Aluminium requireslarge quantities of electrical power, cost of which is almost one-third of the total cost involved inproduction of Aluminium. The Direct Current (DC) required depends on the total number of cells orpots installed and the potline current involved. For meeting this huge power requirement mostAluminium smelters are equipped with their own Captive Power Plants.BALCOs existing potline works on prebaked technology with a rated potline current of 320 kA which ispresently being ramped to 330 kA. Attempts are on to gradually increase this to 340 kA andsubsequently to 400 kA. 49
  • 50. Captive power plant Capacity: 270 MW Location: Jamnipali, Korba, 9 kms from Balconagar Source of Coal: Gevra & Kusmunda mines of South Eastern Coalfields Ltd. (SECL) in Korba area Source of Water: Hasdeo River Operation & Maintenance: BALCO’s own operation from 01.07.02 onwards Salient Features Type of Boiler (GEC) - Single Drum, Natural Circulation, Balanced Draft, Outdoor Primary Fuel - Thermal Coal Start-up Fuel - HFO Water Source - DM water Coal Pulverising System - Ball & Race Type Mills 50
  • 51. FUTURE PLANSHINDALCO Industries ltd.: Hindalco plans to raise Rs25,000 crore for expansionHindalco Industries Ltd, the flagship of the Aditya Birla Group, which revealed a $1.8 billion third quarter loss atits Novellis unit, is reported to be planning to raise$5 billion (Rs25,000 crore) by pledging assets and futureearnings of its units.Lenders will be repaid from cash receivables from sales, on which they will have the first claim, according to thereport quoting its chief financial officer S Talukdar. The fund raising will be completed by 2012 and the moneywill be used for future expansion, the report said.Individual companies will borrow money without recourse to Hindalco. We will securitise cash flows and assetswith the lender to raise money," Talukdar told the paper.Earlier this week, the company said its board had approved a proposal to use US$1.8 billion in its share premiumreserve to write off costs relating to its foreign acquisition and domestic expansion.Hindalco had acquired Canadian aluminium product maker Novelis in 2007 for $5.9 billion and has alsoannounced investment of $4 billion (Rs19800 crore) over three years to expand capacity in India.Novelis has reported a net loss of $1.8 billion in the third quarter ended 31 December 2008 owing largely to agoodwill loss of $1.5 billion, a fallout of the ongoing global meltdown.The impact of the loss posted by Novelis on Hindalco Industries would be felt at the end of the current fiscalwhen Hindalco consolidates its earnings. The impact should, however, be limited as Hindalco has initiated stepsto offset the $1.5-billion loss of the total $1.8-billion loss incurred by Novelis. The remaining $300-million losswould impact Hindalcos profitability, the company said in an earlier release.Hindalcos net sales and revenues at Rs4,117 crore in third quarter of FY 09 were lower as compared to Rs4,539crore for the corresponding period in FY 08. The steep reduction in aluminium and copper LME led to fall in theoverall sales revenue; this was mitigated by the rupee depreciation against the US dollar. Despite lower salesrealisations and higher export sales due to lower domestic demand, the net profit at Rs545 crore was marginallyhigher than Rs543 crore in the corresponding years comparable quarter. Higher metal production consequent tothe Hirakud brownfield expansion, profit improvement measures and higher other income have been the drivers.The revenue in aluminium business rose by 14 per cent to Rs1,980 crore vis-à-vis Rs1,736 crore in thecorresponding period in the previous year on the back of the highest ever metal volumes. However the 51
  • 52. unprecedented 25 per cent fall in LME and spiraling input cost squeezed the margin, despite gains from weakerrupee. The shrinkage in domestic demand for downstream products resulted in an adverse product mix.In the copper business, revenues stood at Rs2,139 crore lower by 24 per cent vis-à-vis Rs2,806 crore in Q3FY08as a result of the 46 per cent lower LME. The profit before interest and tax rose by 23 per cent to Rs. 116 crorefrom Rs. 94 crore in the corresponding quarter last year despite a 33 per cent fall in TcRc, mainly due to betterby-product realisation, operational efficiencies and forex translation impact.Meanwhile, Hindalco has incorporated a joint venture company, Hydromine Global Minerals GMBH Limited, inBritish Virgin Island for development and operation of bauxite mines in the Minim Martap and Ngaoundalregions of the Adamaoua province in Cameroon (Africa). Hindalco and Dubai aluminium holds 45 per cent equityeach and the balance 10 per cent is with Hydomine, USA.The expansion of the Muri alumina refinery from 110,000 tpa to 450,000 tpa has been completed and productionis being ramped up in a phased manner.Phase II of the expansion of the smelting capacity at Hiracud from 100,000 tpa to 143,000 tpa was completed ontime. Work on expansion to 155 ktpa is in progress and is expected to be completed by August 2009. The powergeneration capacity has been raised from 267.5 mw to 367.5 mw and all the units have been commissioned.The allotment of the lease for bauxite mines for expanding the alumina refinery capacity at Belgaum, Karnatakafrom 350 ktpa to 650 ktpa is still awaited.Aditya Aluminium, the integrated aluminium project, encompassing 1 to 1.5 million tpa alumina refinery,260,000 to 359,000 tpa aluminium smelter and 750 to 900 mw captive power plant is progressing as planned. TheMahan aluminium project with a smelter capacity of 359 ktpa and CPP of 900 mw is also on track.Plant location of the proposed Jharkhand aluminium smelter with a capacity of 359 ktpa and a CPP of 900 MWhas been shifted from Latehar to Sonahatu block which is 20 km from Muri and 55 km from Ranchi.The construction of Utkal alumina refinery with a proposed capacity of 1.5 mtpa is currently underway, it said.Hindalcos joint venture, Hindalco Almex Aerospace Limited, for the manufacture of high-strength aluminiumalloys for applications in the aerospace, sporting goods and surface transport industries has been commissioned inNovember 2008 and production has started.The transport sector remained the largest consumer for aluminium products in 2008, the company said in arelease. With the downturn expected in transport, building and construction sectors, producers have announcedproduction cutbacks up to 5.05 million tonnes per annum. 52
  • 53. Global refined copper consumption during 2008 grew by about 0.6 per cent. The forecast is that the demandwould either remain flat or decline during 2009 until the economic environment improves. Over all concentratemarket is expected to be steady or slightly surplus during FY 2011. Upcoming Project At present the total number of employees working here are 610 including 6 trainees. Muri Aluminaplant embarked its journey in 1948 and till today it is continuously in progress .It manufactures two types of alumunium – Standard alumunium and Hydrate alumunium Standard alumunium powder is better than hydrate alumunium. It is situated at Muri 65 km away from Ranchi. The company is situated in such area where there is facility of roadways and railways. The raw material (Bauxite) is brought through railways and roadways both at the same time the finished product (alumunium powder) is sent to Renukoot to make alumunium sheets so that different materials can be made from alumunium sheetsThe upcoming project of Hindalco is Located at Sonahatu, fifty-five kilometers from Ranchi, JharkhandAluminium project is a smelter–power plant complex with a capacity of 359 ktpa powered by a 900-MW captive thermal power plant.In a joint venture, with Tata Power, we own a Coal Mine (Tubed) in the Auranga coal fields atJharkhand. The coal mine has a capacity of 6 million ton per annum. 53
  • 54. Land acquisition process has already commenced. Activities for getting the environmental clearancehave also started. Water allocation clearance for 55 mcm of water from the Subarnarekha basin has beenobtained. Technology agreement with Pechiney has also been inked for the aluminium smelter.The project is expected to be commissioned in mid 2015.Promoters to hike stake in the company in the current fiscalAditya Birla Group flagship company Hindalco has drawn-up a Rs.21,000-crore capital expenditure plan forthe next two years even as its promoters are looking at increasing their stake in the company in the currentfiscal, company Chairman Kumar Mangalam Birla said here on Friday.“We plan to invest Rs.10,000-crore in 2010-11 and Rs.11,000-crore in 2011-12 on account of our ongoingexpansion programme, which should be commissioned between 2012 and 2014,” Hindalco Chairman Mr.Birla told shareholders at the companys annual general meeting here.The promoters now hold a 36 per cent stake in the company. “We as promoters are constantly looking toincrease our holding in this fiscal,” Mr. Birla said, without divulging the percentage of the stake hike.Elaborating on the expansion plans of its greenfield projects, Mr. Birla said the company planned to investRs.9,200 crore in its Mahan aluminium project in Madhya Pradesh, which would have a capacity of 3.60lakh tonnes annually of aluminium metal, along with a 900-MW captive power plant.Hindalco is also setting up the Rs.9,200-crore Aditya aluminium project with a capacity of 3.60 lakh tonnesannually of aluminium metal. Its Utkal alumina project, costing Rs.7,000-crore, would produce 1.5-millionalumina to start with, which could be increased to 3 million tonnes in the future. The equity requirement forthe Utkal project had been tied-up as well, he said.“The timely execution of greenfield projects would enhance our cost competitiveness and give Hindalco adistinct global competitive edge, he added.Commenting on the performance of Novelis, Mr. Birla said, the company had witnessed a remarkableturnaround in the midst of extremely challenging circumstances.Its liquidity surpassed the $1-billion mark on the back of a strong operational cash flow, the bond issuanceand increased gross borrowing. 54
  • 55. NALCO: NALCO to invest Rs 900 cr in nuclear power business by 2012-13Nuclear Power Corporation|NEW DELHI: State-owned aluminium major NALCO plans to spend Rs 900 crore by next fiscal onnuclear power ventures, for which it had signed a joint-venture agreement with Nuclear PowerCorporation of India Ltd (NPCIL) in November.As per the plan, the investments will be made on unit 3 and 4 of Kakarapar Atomic Power Station(KAPS) in Gujarat, a senior company official said, adding that both the units are of 700 MW each.The official further said that "NALCO would be investing Rs 300 crore in the current quarter on theproject, in lieu of its 26 per cent stake, while rest of the money will be invested in next fiscal".Both the units of KAPS entail a total investment of Rs 7,000 crore and are planned to be commissionedby 2015.The company, which currently has the permission of having only 26 per cent stake in nuclear powerventures, is talking to the government for increasing the limit to 49 per cent, the official added.In case of increase in its stake, the aluminium major would invest more money on the developments ofboth the units of KAPS, the official said,Venturing into the nuclear power sector is part of NALCOsfuture growth plans, under which it aims become a diversified metals, mining and power producingcompany, with an estimated turnover of over Rs 25,000 crore by 2020.As per the plan, the company would venture into power sector as an independent producer and once thegeneration capacity goes up substantially, the business will be hived off into a wholly-owned subsidiary.The aluminium major produces about 1,200 MW for captive uses and has been planning to bid forupcoming ultra mega power projects.The company had also announced to set up a 50 MW wind mill in Andhra Pradesh for about Rs 274crore. Besides, it is also looking to diversify into other metal segments like copper and uranium.Last year, the company completed second phase of its expansion at an investment of Rs 4,402 crore.Post expansion, NALCO has an alumina refinery capacity of 2.1 million tonnes per annum (MTPA) andan aluminium smelter of 4.6 MTPA. It also has bauxite mining capacity of 6.3 MT.BALCO Vedanta ups the ante for Balco, Hindustan ZincBillionaire Anil Agarwal’s Vedanta Group has offered Rs 17,000 crore ($3.4 billion) to buy thegovernment’s remaining stakes in Hindustan Zinc Ltd and Bharat Aluminium Co, a ministry officialsaid.A panel of bureaucrats from ministries, including law, corporate affairs, finance and mining, metyesterday and decided to seek the advice of a group of ministers on the proposal, Vishwapati Trivedi,secretary at the ministry of mines, told reporters in New Delhi. 55
  • 56. Buying the stakes will give Vedanta’s Mumbai-based unit Sterlite Industries (India) Ltd. control over acombined 964,000 tonnes of annual zinc and lead-producing capacity and full ownership of a twomillion tonne-a-year bauxite mine. The government is seeking to narrow fiscal deficit through stepsincluding asset sales and capping of expenses. “This will be positive for Sterlite,” Rakesh Arora, head ofresearch at Macquarie Capital Securities (India) Pvt, said in Mumbai. He has an outperformrecommendation on Sterlite and expects the shares to rally 59 percent in 12 months. “The cash thatSterlite will spend will come back in the form of surplus from Hindustan Zinc.”The zinc maker has cash and equivalents of $3.35 billion, according to data compiled by Bloomberg.Pavan Kaushik, spokesman at Hindustan Zinc, declined to comment. Senjam Raj Sekhar, a spokesmanat Vedanta Resources Plc, didn’t respond to two calls made to his mobile phone and a text messageseeking comments.Government stakeVedanta offered Rs 15,000 crore for one company and Rs 2,000 crore for the other, Trivedi said, withoutidentifying them. The government’s 29.5 per cent stake in Hindustan Zinc is valued at Rs 16,200 croreat the current share price. Hindustan Zinc fell 0.2 per cent to Rs 130 at 9.19 am in Mumbai trading,giving it a market value of $10.8 billion. Sterlite gained 0.3 per cent to Rs 115.80.Sterlite, the nation’s biggest copper producer, owns 64.9 per cent of Hindustan Zinc. The company maycomplete the transaction this year, Agarwal said on February 25. It bought 51 per cent of BharatAluminium, which owns the bauxite mine, in 2001 and a majority stake in Hindustan Zinc a year later.Lack of full control at Hindustan Zinc has undermined decision-making at Vedanta. In 2010, Vedanta’splan to buy Anglo American Plc’s Skorpion zinc mine in Namibia through Hindustan Zinc failed afterthe Indian government didn’t ratify the deal. Vedanta completed the purchase through Sterlite.Combining UnitsAgarwal is combining the group’s publicly traded Indian units into a new company after an $8.67 billionpurchase of oil producer Cairn India Ltd, Vedanta said February 25. Sesa Goa Ltd, India’s largest iron-ore exporter, will absorb Sterlite in an all-share deal.Vedanta Aluminium Ltd and Madras Aluminium Co will also be merged into the new company, SesaSterlite.Vedanta plans to transfer debt of $5.9 billion to Sesa Sterlite, reducing outstanding loans by 61 percentto $3.8 billion and cutting debt-service costs by $300 million for the year ending March 31, 2013, thecompany said.India’s budget deficit may widen to 5.9 per cent of gross domestic product in the year ending March,compared with a target of 4.6 per cent. Finance minister Pranab Mukherjee aims to cut the shortfall to5.1 per cent of GDP in the next financial year. 56
  • 57. LEARNINGWhile making this project work I come to know that Aluminium is playing an important role in the lifeof each individual directly or indirectly.To excel in aluminium manufacturing, it must have:  Captive Power Plant.  Alloy Rods for conductors used in power transmission industry.  largest Billet of diameter – 800 mm, length - 6 meter.  widest Hot Rolling Mill.  These industries are leaders in aluminium, Hindalco Industries Limited, the metals Flagship Company of the Aditya Birla Group is the worlds largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a single location.  Established in 1958, we commissioned its aluminium facility at Renukoot in eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our position in value-added alumina, aluminium and copper products.  The acquisition of Novelis Inc. in 2007 positioned us among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India. Today it is a metals powerhouse with high-end rolling capabilities and a global footprint in 13 countries. Its consolidated turnover of USD 15.85 billion (Rs. 72,078 crore) places us in the Fortune 500 league.  Hindalco is one of the leading producers of aluminium and copper. Its aluminium units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines.  It is the first public sector enterprise in India which started producing aluminium in 1974. Till 2001, BALCO was a public sector enterprise owned 100% by Government of India. In the year 2001, Government of India divested 51% equity and management control in favour of Sterlite Industries India Limited. 57
  • 58. CONCLUSIONAnalysis of all the facts & figures, the observations and the experience during making this sector projectthat Aluminium is the need of each individual the comparative study is made of top 3 aluminiummanufacturing companies in India. Hindalco industries ltd, National Aluminium company ltd.and BharatAluminium Company ltd. In today’s world aluminium plays an important role in the life of eachindividual. The Hindalco Industries performing its role up to the mark and providing best qualityof Aluminium to its customers. NALCO provides standard quality of aluminium to its customers atcheaper rate.While making this project I come to know that Waste product of aluminium like fly ash silica and redmud which is acidic in nature is also reused.It becomes quite clear that there is no other alternative or short cut to satisfy the need of the customers.If we have to meet the challenges of technology, social and economy we have to train the employeesirrespective to their category at which they work in the organization and we need to upgrade ourtechnology.HINDALCO and NALCO follows Bayer’s process to extract aluminium from bauxite while BALCOfollows Charles’s process. Both the processes are technologically advanced.As it is recognized fact that we cannot survive in tomorrow business‘s world with yesterdays method.And hence the continuous development of technology is prime need of today’s organization. 58
  • 59. operation and responsible Growth; O.P. BhattyacharyaAnnual report of BALCO 2010-12Annual report of NALCO 2010-12 59