1
Excellence by design :y g
“The Hindalco Way”
2HINDALCO
• An Industry leader in Aluminium and Copper,
Hindalco Industries Ltd is the metals flagshipHindalco Industries Ltd. is the metals flagship
company of Aditya Birla Group.
• We are the world’s largest Aluminium rollingWe are the world s largest Aluminium rolling
company and one of the biggest primary Aluminium
producers in Asia.
• The Copper Smelter is amongst the largest single
location custom smelter globally.
• Hindalco operates 51 units in 11 countries and
includes a work force of 34000 representing 15
different nationalities.
3HINDALCO
• In India, Hindalco commissioned Renukoot plant in 1962.
Other units in india are located at Muri in Jharkhand, Belur in
West Bengal, Kollur in AP, Silvassa in D&H, Hirakud in Orissa,
Alupuram in Kerala, Taloja in Maharastra, Belgaum in
Karnataka and Dahej in Gujarat.Karnataka and ahej in Gujarat.
• Two R & D centers are located in Belgaum and Taloja.
• Novelis is headquartered in Atlanta, Georgia and operates 25
manufacturing facilities in nine countries on four continents,
with nearly 11000 employees. Novelis is the world’s largest
rolled aluminium producer in terms of volume shipped, androlled aluminium producer in terms of volume shipped, and
the largest purchaser of aluminium as well.
• Hindalco – Almex operates first of its kind facility in India for
f l ll l hHi‐performace Aluminium Alloys located at Shendra,
Aurangadab.
4HINDALCO
• Hindaclo – With our modest beginning in Renukoot to becoming the
biggest FRP producers globally and one of the biggest producers of
i l i i d fi d i A iprimary aluminium and refined copper in Asia.
• The methodology for excellence rest on four strong pillars :
It is powered by the values of The Aditya Birla Group.p y y p
It is driven by the fundamental tenets of behavior – our Code of
Conduct, Governing Principles and Guiding Policies.
It i d l d th h th E ti F k hi h iIt is deployed through the Execution Framework which comprises
essential processes and controls that will define every aspect of
our daily operating procedures.
It is reaffirmed continuously through measurement of all aspects
of our output, results and performance – thus ensuring total
compliance and continuous improvement.
5HINDALCO - ALUMINIUM
• India is endowed with huge high quality bauxite
reserves, making the 5th largest country in the world., g g y
• India’s per capita Aluminium consumption is one of the
lowest in the world i.e. 1.8 kg against 16.7 kg by China
& 38.2 kg by Germany, world avg. per capita
consumption of Aluminium is 8.0 kg.
d f l d l d• Present production of Aluminium and Alumina in india
is 2.01 & 4.78 Million Tonne per annum.
• It is hoped that with increase in country’s GDP avg 7 %• It is hoped that with increase in country’s GDP avg. 7 %
per annum in coming years, India’s Aluminium
consumption will grow by 5‐6 times of current level byp g y y
2022.
6HINDALCO - ALUMINIUM
• Hindalco’s Aluminium portfolio spread across the globe embodies
the entire value chain with operations ranging from Bauxite mining,
l i fi i d l i i lti t d talumina refining and aluminium smelting to downstream processes
and products including rolling, extrusions, foils, recycling along with
captive power plants and coal mines.
• Novelis is the largest manufacture of rolled aluminium products i.e.
14% of the world’s total.
• Resource sustainability in the minerals & metal sector is a keyResource sustainability in the minerals & metal sector is a key
challenge. We ensure that our holistic approach is sustainable and
tax into account stack holder’s interest.
• In India our bauxite mine in jharkhand Chhattisgarh Maharastra• In India, our bauxite mine in jharkhand, Chhattisgarh, Maharastra
and Odisha provide the raw material to our alumina refineries
located at Belgaum in Karnataka, Muri in Jharkhand, Utkal in Odisha
d R k t i UPand Renukoot in UP.
7HINDALCO - COPPER
• India is among top 10 major copper producers globally. It’s
present consumption is approx. 600 KT of refined copper.
• Typically over 30% demand from telecom sector and 26% from
electrical sector.
• India’s copper market has significant potential for growth Indian• India s copper market has significant potential for growth. Indian
economy is the 4th largest of the world after US, China & Japan.
• With growing urban population India’s expected to see increase
demand for copper from construction industry.
• Plans for heavy investment in Railways over next 5 yrs will result
into increased copper consumption.into increased copper consumption.
• Increase in Copper’s architectural use like interior and exterior
wall cladding, radio frequency shielding and anti‐microbial
i d d t h h d il b th fi t dindoor products such as handrails, bathroom fixtures and
counter tops.
8
Birla Copper, Dahej
•Located 350 Km, North of Mumbai in the state of 
Gujarat;  50 Km from NH8 Delhi‐Mumbai
•Land: 311 Hectares [106 Hect green belt]
Scale & Complexity : 
• 23 fully integrated & interdependent plants at one 
location.
• 5 industry segments & 15 technologies
• Logistics intensive, 5 Million TPA material handling;
• 350 trucks per day
• 150 ships per year
• Global Supply Chain
Dahej
• Exports to 15 countries
• Sources from 10 countries
•$2.5 Billion Business
O ti l t d i I di (S lt ) A t li•Operation located in India (Smelter), Australia
(Mines).
8
Supply Chain Encircling the Entire GLOBESupply Chain Encircling the Entire GLOBE
9
Capacity and Major Product Profile
Capacities:
Smelter : 5.0 Lac TPA (@31% Cu)
Refinery : 5.0 Lac TPA 
CCR : 1.65 Lac TPA
Cathode CC Rod Gold
SAP : 17.64 Lac TPA
PAP : 1.8 Lac TPA
DAP                 : 4.0 Lac TPA
DAPS lf i A id
PMR        : 15  TPA‐ Gold 
150 TPA‐ Silver  
CPP 135 MW
• LME –A Grade Copper Rods ( 99.99 % pure)
• LME- A Grade Copper Cathodes
Silver DAPSulfuric Acid
CPP : 135  MW
Oxygen         : 2200 TPD
Jetty              : 4.5  Million  MT 
pp
• Phosphoric Acid (Merchant Grade)
• Sulfuric Acid (98.5 %)
9
• Gold & Silver (99.9%), Selenium and Pt/Pd
• DAP & NPK Grade of Fertilizers and Phospogypsum
10
World Class Technological Tie-ups
No.No. PlantPlant TechnologyTechnology
1 Smelter – I OEC, Finland
2 Smelter – II Ausmelt, Australia
3 Smelter – III Mitsubishi – Japan
4 Oxygen – I to V Prax Air , Air Liquide, BOC .4 Oxygen I to V Prax Air , Air Liquide, BOC .
5 Refinery-I,II & III ISA, Australia
6 PMR OEC, Finland
7 CCR I and II Southwire – USA.
8 SAP-I,II & III Monsanto - USA
9 PAP DH from Prayon Belgium and SNC9 PAP DH from Prayon Belgium and SNC-
Lavlin
10 Fertilizer Incro, Spain
10
11 CPP Krupp, Germany
12 Jetty Howe, India.
11Flash Smelting & Converting @ Cu-I
FSF PSC Fire Refining & Anode Casting
Flash Smelting : Converting 27‐32% Cu conc. into Matte containing 62‐64% Cu
Converting : Liquid  Matte (62‐64%  Copper) is converted into Blister Copper 
FSF PSC Fire Refining & Anode Casting
(98‐99% copper) semi‐finished product.
Fire Refining  : oxidation and reduction process, Blister Copper (98.5 %)  99.6% 
purity Copper is produced 
Casting machine :(Cast Wheel) casts 99.6 % pure Copper from Anode Furnace into 
11
11
Anodes sent to Refinery for Electro Refining
12
SAP, PAP & DAP Complexes
P r o c e s s – D C D A
Sulfuric Acid is produced as a
by-product from the Sulphurous
off-gases emanating from the
• Phosphoric acid is
produced with reaction of
Rock Phosphate and
sulfuric acid.
• Rock Phosphate is
DAP & Complexes
Through Pipe-Reactor technology
using granulation process, Phosphoric
acid is mixed with Ammonia in
desired proportion to produce
12
12
g g
smelting and converting
furnaces.
• Rock Phosphate is
sourced mainly from
Jordan and South Africa.
desired proportion to produce
granules of DAP.
13HINDALCO - COPPER
• Copper Production 2013  ‐ 2019 projected
2013 2014 2015 2016 2017 2018 2019
CAGR 
2013 2014 2015 2016 2017 2018 2019
13‐19
India 619 761 768 768 768 768 768 3.70%
World's forecast 
production
20741 21671 22121 23168 23773 23953 24509 2.80%
* 000s tonnes of copper
2013 2014 2015 2016 2017 2018 2019
lBirla Copper ‐
Dahej
319 381 370 370 370 370 370
Sterlite Ind. ‐ 
Silvassa
110 144 150 150 150 150 150
Sterlite Ind. ‐ 
Tutocorin
173 219 200 200 200 200 200
World's forecast 
production
20741 21671 22121 23168 23773 23953 24509
p
* 000s tonnes of copper
14
WORLD REFINED COPPER: PRODUCTION Vs CONSUMPTION IN 2014
ASIA
NORTH AMERICA
P C B
EUROPE
P C B
All fig. In kt
RUSSIA
P C B
873 622 251
P C B
10888 14561 ‐3673
P C B
1809 2145 ‐336
P C B
3678 3893 ‐215
USA
CHINA JAPAN
P C B
P C B
MIDDLE EAST
P C B
AFRICA
SOUTH & CENTRAL SOUTH & CENTRAL 
P C B
6835 9529 ‐2694
P C B
1538 1036 502
INDIA
1087 1643 ‐556
P C B
215 734 ‐519
AFRICA
P C B
1432 288 1144
AMERICA
P C B
3403 580 2823
AUSTRALASIA
780 540 240
AUSTRALASIA
P C B
515 22 493
Bal (B)= Production (P) – Consumption (C)
Total Refined Production  21725
Total Refined Consumption 21489
Balance 236
Source: CRU
Surplus in South America , Africa , Japan & Australia  
Target  to service  deficit in other parts of world  ‐ China , Middle East  (Natural choice)
Balance 236
15
REFINED COPPER MARKET INDIA- FY15
Wire & 
CablesS &T
Cathode 
to Rods
10%
PRODUCT WISE ANALYSIS SECTOR-WISE ANALYSIS
44%
Others
13%
16%
Cathode
3%
Winding
Auto 
5%
CC Rods
87%
Winding 
wires
22%
SECTORS APPROX QTY (KT)
Estimated Market Size- 540 kt
Strips & Transform. 86 
Wire & Cables 238
Winding Wires 119
Auto 27
Trade & Others 70
16Segment wise Growth – India GDP
GDP by Segment (%YoY)
8
9.1
5.9
10.6
7.2
6.5
9.9
1.2
2.4
‐4.3
3.7
4.5
2.5
1.1
4.5
3.6
Agriculture Industry Construction Services
Fy'13 Fy'14 Fy'15 Fy'16 
• India’s GDP is expected to grow at > 7 % post FY’15. 
• Manufacturing/Industry sector to benefit from low commodity and oil 
Ref: City Research Feb’15
prices.
• As global growth is expected to increase, Indian manufacturing will 
f h b f i ifurther boost from rising exports.
17
Global copper consumption affected due to China
slowdown… but India has huge potential
Source: CRU Jan’15
Per capita consumption (KG)
India 0.4Global Cu consumption growth% 0.39
0.41
0.42
0.44Per capita Consumption, India (Kg)
China 5.4
USA 10
Japan 11
World 2.8
CY 2013 5.4
CY 2014 3.9
CY 2015 3.1
2013 2014 2015e 2016e
0.39
As a developing nation, India has a huge potential for copper consumption
18
DOMESTIC MARKET SHARE
Market Share‐LE FY'15
32%33% Birla Copper 
Sterlite
Hindustan Copper
31%
3%
1%
TDT
Imports 
19Our Pledge
• We are committed to working with our stakeholders to
realize social, environmental and economic benefits
for the communities around the worldfor the communities around the world.
• We achieve this by using our technological skills in
product design and innovation as well as through long‐p g g g
term partnerships to integrate sustainability into all
aspects of our business
20
Thank You

Excellence by Design : The HINDALCO Way

  • 1.
    1 Excellence by design:y g “The Hindalco Way”
  • 2.
    2HINDALCO • An Industryleader in Aluminium and Copper, Hindalco Industries Ltd is the metals flagshipHindalco Industries Ltd. is the metals flagship company of Aditya Birla Group. • We are the world’s largest Aluminium rollingWe are the world s largest Aluminium rolling company and one of the biggest primary Aluminium producers in Asia. • The Copper Smelter is amongst the largest single location custom smelter globally. • Hindalco operates 51 units in 11 countries and includes a work force of 34000 representing 15 different nationalities.
  • 3.
    3HINDALCO • In India,Hindalco commissioned Renukoot plant in 1962. Other units in india are located at Muri in Jharkhand, Belur in West Bengal, Kollur in AP, Silvassa in D&H, Hirakud in Orissa, Alupuram in Kerala, Taloja in Maharastra, Belgaum in Karnataka and Dahej in Gujarat.Karnataka and ahej in Gujarat. • Two R & D centers are located in Belgaum and Taloja. • Novelis is headquartered in Atlanta, Georgia and operates 25 manufacturing facilities in nine countries on four continents, with nearly 11000 employees. Novelis is the world’s largest rolled aluminium producer in terms of volume shipped, androlled aluminium producer in terms of volume shipped, and the largest purchaser of aluminium as well. • Hindalco – Almex operates first of its kind facility in India for f l ll l hHi‐performace Aluminium Alloys located at Shendra, Aurangadab.
  • 4.
    4HINDALCO • Hindaclo –With our modest beginning in Renukoot to becoming the biggest FRP producers globally and one of the biggest producers of i l i i d fi d i A iprimary aluminium and refined copper in Asia. • The methodology for excellence rest on four strong pillars : It is powered by the values of The Aditya Birla Group.p y y p It is driven by the fundamental tenets of behavior – our Code of Conduct, Governing Principles and Guiding Policies. It i d l d th h th E ti F k hi h iIt is deployed through the Execution Framework which comprises essential processes and controls that will define every aspect of our daily operating procedures. It is reaffirmed continuously through measurement of all aspects of our output, results and performance – thus ensuring total compliance and continuous improvement.
  • 5.
    5HINDALCO - ALUMINIUM •India is endowed with huge high quality bauxite reserves, making the 5th largest country in the world., g g y • India’s per capita Aluminium consumption is one of the lowest in the world i.e. 1.8 kg against 16.7 kg by China & 38.2 kg by Germany, world avg. per capita consumption of Aluminium is 8.0 kg. d f l d l d• Present production of Aluminium and Alumina in india is 2.01 & 4.78 Million Tonne per annum. • It is hoped that with increase in country’s GDP avg 7 %• It is hoped that with increase in country’s GDP avg. 7 % per annum in coming years, India’s Aluminium consumption will grow by 5‐6 times of current level byp g y y 2022.
  • 6.
    6HINDALCO - ALUMINIUM •Hindalco’s Aluminium portfolio spread across the globe embodies the entire value chain with operations ranging from Bauxite mining, l i fi i d l i i lti t d talumina refining and aluminium smelting to downstream processes and products including rolling, extrusions, foils, recycling along with captive power plants and coal mines. • Novelis is the largest manufacture of rolled aluminium products i.e. 14% of the world’s total. • Resource sustainability in the minerals & metal sector is a keyResource sustainability in the minerals & metal sector is a key challenge. We ensure that our holistic approach is sustainable and tax into account stack holder’s interest. • In India our bauxite mine in jharkhand Chhattisgarh Maharastra• In India, our bauxite mine in jharkhand, Chhattisgarh, Maharastra and Odisha provide the raw material to our alumina refineries located at Belgaum in Karnataka, Muri in Jharkhand, Utkal in Odisha d R k t i UPand Renukoot in UP.
  • 7.
    7HINDALCO - COPPER •India is among top 10 major copper producers globally. It’s present consumption is approx. 600 KT of refined copper. • Typically over 30% demand from telecom sector and 26% from electrical sector. • India’s copper market has significant potential for growth Indian• India s copper market has significant potential for growth. Indian economy is the 4th largest of the world after US, China & Japan. • With growing urban population India’s expected to see increase demand for copper from construction industry. • Plans for heavy investment in Railways over next 5 yrs will result into increased copper consumption.into increased copper consumption. • Increase in Copper’s architectural use like interior and exterior wall cladding, radio frequency shielding and anti‐microbial i d d t h h d il b th fi t dindoor products such as handrails, bathroom fixtures and counter tops.
  • 8.
    8 Birla Copper, Dahej •Located 350 Km, North of Mumbai in the state of  Gujarat;  50 Km from NH8 Delhi‐Mumbai •Land: 311 Hectares [106 Hect green belt] Scale & Complexity :  •23 fully integrated & interdependent plants at one  location. • 5 industry segments & 15 technologies • Logistics intensive, 5 Million TPA material handling; • 350 trucks per day • 150 ships per year • Global Supply Chain Dahej • Exports to 15 countries • Sources from 10 countries •$2.5 Billion Business O ti l t d i I di (S lt ) A t li•Operation located in India (Smelter), Australia (Mines). 8 Supply Chain Encircling the Entire GLOBESupply Chain Encircling the Entire GLOBE
  • 9.
    9 Capacity and MajorProduct Profile Capacities: Smelter : 5.0 Lac TPA (@31% Cu) Refinery : 5.0 Lac TPA  CCR : 1.65 Lac TPA Cathode CC Rod Gold SAP : 17.64 Lac TPA PAP : 1.8 Lac TPA DAP                 : 4.0 Lac TPA DAPS lf i A id PMR        : 15  TPA‐ Gold  150 TPA‐ Silver   CPP 135 MW • LME –A Grade Copper Rods ( 99.99 % pure) • LME- A Grade Copper Cathodes Silver DAPSulfuric Acid CPP : 135  MW Oxygen         : 2200 TPD Jetty              : 4.5  Million  MT  pp • Phosphoric Acid (Merchant Grade) • Sulfuric Acid (98.5 %) 9 • Gold & Silver (99.9%), Selenium and Pt/Pd • DAP & NPK Grade of Fertilizers and Phospogypsum
  • 10.
    10 World Class TechnologicalTie-ups No.No. PlantPlant TechnologyTechnology 1 Smelter – I OEC, Finland 2 Smelter – II Ausmelt, Australia 3 Smelter – III Mitsubishi – Japan 4 Oxygen – I to V Prax Air , Air Liquide, BOC .4 Oxygen I to V Prax Air , Air Liquide, BOC . 5 Refinery-I,II & III ISA, Australia 6 PMR OEC, Finland 7 CCR I and II Southwire – USA. 8 SAP-I,II & III Monsanto - USA 9 PAP DH from Prayon Belgium and SNC9 PAP DH from Prayon Belgium and SNC- Lavlin 10 Fertilizer Incro, Spain 10 11 CPP Krupp, Germany 12 Jetty Howe, India.
  • 11.
    11Flash Smelting &Converting @ Cu-I FSF PSC Fire Refining & Anode Casting Flash Smelting : Converting 27‐32% Cu conc. into Matte containing 62‐64% Cu Converting : Liquid  Matte (62‐64%  Copper) is converted into Blister Copper  FSF PSC Fire Refining & Anode Casting (98‐99% copper) semi‐finished product. Fire Refining  : oxidation and reduction process, Blister Copper (98.5 %)  99.6%  purity Copper is produced  Casting machine :(Cast Wheel) casts 99.6 % pure Copper from Anode Furnace into  11 11 Anodes sent to Refinery for Electro Refining
  • 12.
    12 SAP, PAP &DAP Complexes P r o c e s s – D C D A Sulfuric Acid is produced as a by-product from the Sulphurous off-gases emanating from the • Phosphoric acid is produced with reaction of Rock Phosphate and sulfuric acid. • Rock Phosphate is DAP & Complexes Through Pipe-Reactor technology using granulation process, Phosphoric acid is mixed with Ammonia in desired proportion to produce 12 12 g g smelting and converting furnaces. • Rock Phosphate is sourced mainly from Jordan and South Africa. desired proportion to produce granules of DAP.
  • 13.
    13HINDALCO - COPPER •Copper Production 2013  ‐ 2019 projected 2013 2014 2015 2016 2017 2018 2019 CAGR  2013 2014 2015 2016 2017 2018 2019 13‐19 India 619 761 768 768 768 768 768 3.70% World's forecast  production 20741 21671 22121 23168 23773 23953 24509 2.80% * 000s tonnes of copper 2013 2014 2015 2016 2017 2018 2019 lBirla Copper ‐ Dahej 319 381 370 370 370 370 370 Sterlite Ind. ‐  Silvassa 110 144 150 150 150 150 150 Sterlite Ind. ‐  Tutocorin 173 219 200 200 200 200 200 World's forecast  production 20741 21671 22121 23168 23773 23953 24509 p * 000s tonnes of copper
  • 14.
    14 WORLD REFINED COPPER: PRODUCTION Vs CONSUMPTION IN 2014 ASIA NORTH AMERICA P C B EUROPE PC B All fig. In kt RUSSIA P C B 873 622 251 P C B 10888 14561 ‐3673 P C B 1809 2145 ‐336 P C B 3678 3893 ‐215 USA CHINA JAPAN P C B P C B MIDDLE EAST P C B AFRICA SOUTH & CENTRAL SOUTH & CENTRAL  P C B 6835 9529 ‐2694 P C B 1538 1036 502 INDIA 1087 1643 ‐556 P C B 215 734 ‐519 AFRICA P C B 1432 288 1144 AMERICA P C B 3403 580 2823 AUSTRALASIA 780 540 240 AUSTRALASIA P C B 515 22 493 Bal (B)= Production (P) – Consumption (C) Total Refined Production  21725 Total Refined Consumption 21489 Balance 236 Source: CRU Surplus in South America , Africa , Japan & Australia   Target  to service  deficit in other parts of world  ‐ China , Middle East  (Natural choice) Balance 236
  • 15.
    15 REFINED COPPER MARKETINDIA- FY15 Wire &  CablesS &T Cathode  to Rods 10% PRODUCT WISE ANALYSIS SECTOR-WISE ANALYSIS 44% Others 13% 16% Cathode 3% Winding Auto  5% CC Rods 87% Winding  wires 22% SECTORS APPROX QTY (KT) Estimated Market Size- 540 kt Strips & Transform. 86  Wire & Cables 238 Winding Wires 119 Auto 27 Trade & Others 70
  • 16.
    16Segment wise Growth– India GDP GDP by Segment (%YoY) 8 9.1 5.9 10.6 7.2 6.5 9.9 1.2 2.4 ‐4.3 3.7 4.5 2.5 1.1 4.5 3.6 Agriculture Industry Construction Services Fy'13 Fy'14 Fy'15 Fy'16  • India’s GDP is expected to grow at > 7 % post FY’15.  • Manufacturing/Industry sector to benefit from low commodity and oil  Ref: City Research Feb’15 prices. • As global growth is expected to increase, Indian manufacturing will  f h b f i ifurther boost from rising exports.
  • 17.
    17 Global copper consumptionaffected due to China slowdown… but India has huge potential Source: CRU Jan’15 Per capita consumption (KG) India 0.4Global Cu consumption growth% 0.39 0.41 0.42 0.44Per capita Consumption, India (Kg) China 5.4 USA 10 Japan 11 World 2.8 CY 2013 5.4 CY 2014 3.9 CY 2015 3.1 2013 2014 2015e 2016e 0.39 As a developing nation, India has a huge potential for copper consumption
  • 18.
    18 DOMESTIC MARKET SHARE Market Share‐LE FY'15 32%33%Birla Copper  Sterlite Hindustan Copper 31% 3% 1% TDT Imports 
  • 19.
    19Our Pledge • We arecommitted to working with our stakeholders to realize social, environmental and economic benefits for the communities around the worldfor the communities around the world. • We achieve this by using our technological skills in product design and innovation as well as through long‐p g g g term partnerships to integrate sustainability into all aspects of our business
  • 20.