Summer Project

UnitedInstitute Of Management,Allahabad Page | 1
2015 – 2016
Hindalco Industries Limited
Summer INTERNSHIP Project
Financial Analysis

SUMMER INTERNSHIP PROJECT REPORT
ON
ANALYSIS OF FINANCIAL HEALTH
OF
By
Priyanka Chauhan
MBA (Finance)
Under the guidance of
Faculty Guide Company Guide
Mr. Gaurav Sonkar Mr. Vimal Raheja
Sr. Finance Manager
Hindalco Ind. Ltd.

PREFACE
A Summer Training Project is the integral requirement of our Academic Session and curriculum.
A project works requires a lot of hard works, labors, initiatives, practices and proper guidance and
direction. So it is quite necessary to take assistance from different quarters and departments.
During the training period a student learns the practical approach of their theoretical knowledge.
Actually a Project is the summarized from of seven activities.
They are-
 PLANNING
 RESOURCE ALLOCATION
 ORGANIZATION
 JOINT EFFORTS
 EFFICIENCY
 COMMUNICATION
 TRANSPARENCIES
The project emphasizes on the financing mix of the company. I have tried my best to make
good report. However, no one can claim perfection in it’s entirely. So, I apologize for the
discrepancy, if any, crept in.

DECLARATION
I hereby declare that the project study title “ANALYSIS OF FINANCIAL HEALTH OF
HINDALCO LTD.” is my original work carried out during the period from 15th June to 22th July
2016 under the guidance of Prof. Gaurav Sonkar and Mr. Vimal Raheja, Corporate Mentor (Senior
Manager Accounts) at Hindalco Ind. Ltd., Renukoot.
I also declare that this project has not been submitted nor shall it be submitted in future to any
other University or Institution for the award of any other degree or diploma.
Date of project submission: Priyanka Chauhan
22-July-2016 Sem-3rd
Roll No: 1501170054
Place:
Renukoot
Faculty Mentor’s Comments:

ACKNOWLEDGEMENT
I take this opportunity to thank the people who have helped me immensely in the successful
completion of my project on ANALYSIS OF FINANCIAL HEALTH OF HINDALCO LTD.
Firstly, I thank Mr. Ajay Joshi (Vice President) for giving me the opportunity to do my project at
Hindalco Industries Limited, Renukoot.
I also thank my project guide Mr. Vimal Raheja (Senior Manager Accounts) for his guidance,
encouragement, time and effort by sharing the knowledge and information and constant support
all throughout the project duration.
I would also like to thank Prof. Gaurav Sonkar , my faculty guide for his valuable guidance and
support toward the successful completion of my project.
Lastly, I would like to thank the entire team of Finance & control at Hindalco Ind. Ltd.,
Renukoot and my family members who have constantly motivated me throughout my life.
I’m grateful to all the people and staff of the organization who directly or indirectly contributed
to the successful completion of the project and working at HIL was a delight and a valuable
learning experience for me and I am glad to have completed my project successfully.
Thank you.
With best regards & wishes,
Priyanka Chauhan
MBA (Finance)

CONTENT
 Objective of study
 Literature review
 Introduction
 Company Profile
 Industry Profile
 SWOT analysis
 Financial Analysis
 ResearchStudy:
 Researchobjective and scope of the study
 ResearchMethodology
 Sample Design
 Sources of data collection
 Tools and techniques for analysis of data
 Limitations
 Fund Management at Hindalco Ind. Ltd.
 Data Analysis & Interpretation
 Findings and Conclusion
 Recommendations
 Conclusion
 Bibliography
 Annexure:
 Statement of Profit & Loss A/C
 Balance Sheet

OBJECTIVE OF THE STUDY
The basic purpose of carrying this study is to gain understanding about the ways in which company
manages its funds and employs it in various operational activities. Apart from these there are some
other related objectives which are also taken care of, like familiarizing oneself with the processes
adopted by the company for its daily operations.
Therefore, the main purpose of this study can be broadly categorized into the following –
 To understand the process of fund management at Hindalco Industries Limited.
 Also to understand the different ways in which company’s fund are managed and put to
various applications and operations and to suggest any better alternative

Literature Review
The purpose of this literature review is to describe financial analysis concept, to outline existing
financial performance measurement concepts and to identify value drivers that have been
identified, analyzed, and tested. It helps to measure the profitability of the business. It helps
management to know about the earning capacity of the business concern.
I choose this topic analysis of financial analysis of hindalco ltd because as I check the previous
project of hindalco ltd. There is no research is done which is related to analysis of financial health
of hindalco ltd.
It measures company’s ability to meet its short term obligations with its most liquid assets with
the help of quick ratio. The higher quick ratio shows the better position of the company. Financial
analysis is the key to success of a firm’s profitability. This thesis has been substantiated in
numerous empirical studies. Since the positive impact of financial analysis on firm profitability
has been substantiated in various empirical studies, several researchers have recently investigated
potential drivers of Financial Analysis performance that potentially boost firm performance. Based
on data available in the public sectors, a large quantity of drivers, including operational cash flow,
firm size and sales growth, have been identified and tested.

INTRODUCTION OF THE TOPIC
My internship project was done at Hindalco Ind. Ltd., the metal flagship company of the Aditya
Birla group, an industry leader in aluminum and copper located at Renukoot, Uttar Pradesh with
its operation spread all over the world.
During my internship, I had studied in detail the ANALYSIS OF FINANCIAL HEALTH OF
HINDALCO LTD, which is a mixture of both capital structure of the company and working capital
management.
FINANCIAL ANALYSIS consists of study done to find out the various requirements of funds,
arrangement of funds, receipt of fund and utilization of funds. During this study standard operating
activities performed by the banks such as credit limit etc. is also analyzed.

HISTORY OF THE COMPANY
Hindalco Industries:
The Hindalco story dates back to the young Indian democracy of the 1950s. Ready
to take a giant leap, India was geared to make it big, especially in terms ofinnovation
and industrialization.
Hindalco embarked on its journey in 1958. Its first real contribution to the vision of
an industrial India occurred four years later, when the visionary late Mr. GD Birla
set up India's first integrated aluminum facility at Renukoot, in the eastern fringe of
Uttar Pradesh, India. It was backed by a captive thermal power plant at Renusagar
in 1967. Hindalco attained its leadership position in the aluminum industry under
the dynamic leadership of the late Mr. Aditya Vikram Birla — a formidable force in
the Indian industry.
And it was through the vision and guidance of Mr. Kumar Mangalam Birla, the
Group Chairman that the business segments of aluminum and copper are
consolidated to make Hindalco the non-ferrous metals powerhouse it is today. This
was achieved in part byexpansion through mergers and acquisitions with companies
suchas Indal and Birla Copper. Hindalco also secured copperreserves and amplified
its operating base by acquiring Australian copper mines.

Over the years, Hindalco has grown into a major vertically integrated aluminum
company in the country and among the largest primary producers of aluminum in
Asia. Its coppersmelter is todayone of the world's largest customsmelter at a single
location.
In 2007, the landmark acquisition of Novelis Inc., the world's largest aluminum
rolling company, placed Hindalco's footprint across the globe, securing it a rank
amongst the top five global aluminum majors.
HINDALCO INDUSTRIES LIMITED
RENUKOOT; SONEBHADRA; U.P. COMPANY PROFILE
Hindalco Industries Ltd. is the Flagship Company of Aditya Birla Group. The Aditya Birla Group
is India’s second largest business house with a turnover of Rs. 280 billion, and Assets are valued
at over Rs. 265 billion. The group has nearly 72000 employees in 18 countries. Hindalco Industries
Limited was incorporated in 1958 and commercial production commenced in 1962. The Company
was set up in technical collaboration with Kaiser Aluminum & Chemicals Corporation, USA.
Hindalco is today one of India’s premium corporate, contributing significantly to economic
growth, generating employment and setting high standards in respect of fulfilling of obligations to
all stakeholders. The Company prizes its ‘Human Capital’, and employees have been reciprocating
by turning in a sterling performance for the Company, year after year. Hindalco has an enviable
record of harmonious Industrial Relations, with not a single man day lost since the past 30 years
on account of industrial strife. Company’s principal products comprise of Aluminum Ingots,
Aluminum Billets, Aluminum Wire Rods, Sheet Products, Extrusions, Aluminum Foils and
Aluminum Alloy Wheels. The Company’s by products include Gallium Metal, Vanadium Sludge
and Aluminum Dross.

Hindalco Industries Limited, one of the major producer of Aluminum metal audits semis in the
country as well as a premier flagship company of A.V. Birla grouping the biggest industrial
enterprise of Uttar Pradesh. It is a public limited company in the private sector having about 39000
shareholders. It is the largest integrated Aluminum plant in India with all its production facilities
viz. Alumina, Aluminum & Fabrication located at Renukoot near Rihand Dam in Sonebhadra
(Uttar Pradesh). Hindalco’s power division is situated at Renusagar about 35 km from Renukoot.
In September 1959, an industrial license was granted by the Government for setting up an
integrated Aluminum plant at Renukoot, with an initial installed capacity of 20000 MT. The
construction work was completed with 18 months, a record for a major job of this kind.
The dream of the great visionary Syt. G.D. Birla to locate an Aluminum plant near
Rihand power house came true.

VISION: “To be a premium metals major, global in size and reach, excelling in everything
we do and creating values for its stakeholders.”
MISSION: “To relentlessly pursue the creation of superior shareholder value by exceeding
customer expectationprofitably, unleashing employee potential and being a responsible corporate
citizen adhering to our values”
VALUES:
 Integrity:
– honesty in every action.

 Commitment
– doing whatever it takes to deliver, as promised.
 Passion:
– missionary zeal arising out of an emotional
engagement with work.

 Seamlessness:
– thinking and working together across functional
sales, hierarchy levels, business and geographies.
Speed:
– responding to stakeholders with a sense of
urgency

THE MARKET LEADER
Hindalco Industries Limited, metals flagship company of the Aditya Birla Group, is the industry
leader in aluminum and copper. With a consolidated turnover of US$17 billion, Hindalco is the
world’s largest aluminum rolling company and one of Asia’s biggest producers of primary
aluminum. Its state-of-art copper facility comprises a world-class copper smelter and a fertilizer
plant along with a captive jetty. The copper smelter is one of the world’s largest custom smelters
at a single location.
In India, the company’s aluminum units across the country encompass the gamut of operations
from bauxite mining, alumina refining, coal mining, captive power plants and aluminum smelting
to downstream rolling, extrusions and foils. Today, Hindalco ranks among the global aluminum
majors as an integrated producer and a footprint in 13 countries outside India.
The Birla Copper unit produces copper cathodes and continuous cast copper rods, along with other
by-products, including gold, silver, and DAP fertilizers. It is also India’s largest private producer
of gold.
Hindalco has been accorded Star Trading House status in India. Its aluminum is accepted for
delivery under the High Grade Aluminum Contract on the London Metal Exchange (LME), while
its copper quality is also registered on the LME with Grade A accreditation.

ALUMINIUM OVERVIEW:
One of the largest integrated primary producer of aluminum in Asia. With a Pan-Indian presence
that encompasses the entire gamut of operations, from bauxite mining, alumina refining, aluminum
smelting to downstream rolling, extrusions and recycling, Hindalco enjoys a leadership position
in aluminum and downstream value-added products in India.
Our Indian aluminum operations are integrated and consist of bauxite mining, alumina refining,
smelting and converting primary metal into value-added products. We have dedicated sources for
critical raw materials such as bauxite, power and coal. We also have committed supply sources for
auxiliary chemicals.
Our finished products include alumina, primary aluminum in the form of ingots, billets and wire
rods, value-added products such as rolled products, extrusions and foils. Metallurgical alumina is
used for our own captive needs. Chemical alumina and hydrates are used in range of industries
including water treatment, fillers in cables and plastics, refractories and ceramics, glass among
others.

Our facilities are in regions close to raw material sources, low cost and available labour and
demand markets. This helps in reducing costs and improving profit margins. The technology
upgrade has resulted in higher utilization rates at our plants and improved efficiency.
We believe implementation of superior technology not only reduces costs but also provides
superior and customized products, thus, improving our sales.
Hindalco’s integrated complex at Renukoot, in Uttar Pradesh, India, houses an alumina refinery,
an aluminum smelter and facilities for the production of semi-fabricated products. Power is
sourced from our Renusagar power plant, located about 45km from Renukoot. Our facilities also
include an aluminum smelter and an aluminums FRP facility (for rolled products, extrusions
products and wire rods) at Hirakud (Odisha) with a captive power plant and coal mine, and alumina
refinery at Muri (Jharkhand). Our Chemical grade alumina plant is located at Belagavi
(Karnataka), and rolling mills at Belur (West Bengal), Taloja near Mumbai and Mouda near
Nagpur (Maharashtra). Foil rolling facilities are situated at Mouda near Nagpur (Maharashtra) and
Kollur (Telangana) and our extrusion plant at Alupuram (Kerala).
Hindalco's new age smelters at Aditya (Odisha) and Mahan (Madhya Pradesh), operating on state-
of-the-art AP36 technology, have not only resulted in expansion of our capacities but also
improved cost-efficiency of our operations. These smelters have their own captive power plants
and source alumina from Utkal, our 100% subsidiary.
Utkal Alumina (Odisha) is a world class refinery with one of the lowest cost structure in the world.
The bauxite for Utkal is sourced from Baphlimali mines by a 18 kilometer long conveyor, one of
its kind in the world.

All our units are ISO 9001, 14001 and OHSAS 18001 certified. Furthermore, many of our units
have adopted the Integrated Management System (IMS) certification, reflecting a combined
business excellence model. Apart from being a dominant player in the domestic market, Hindalco's
products are well-accepted in the international markets.
Our strength in aluminum products differentiates us from our competition. A significant portion
of Hindalco’s sales come from value-added products. This is in line with our ‘market-grower’
philosophy. Hindalco has introduced numerous new products in the Indian market, including
branded roofing sheets, branded kitchen foils and input material for bicycles and railway wagons.
Hindalco’s Aluminum Gallery is a platform for its small customers to showcase their products to
their consumers.
Some of our popular brands like Eternia Windows, Maxloader and Hindalco Extrusions under the
extrusions segment, ever last roofing under the flat rolled products segment, Freshwrapp and Super
wrap under the aluminum foil products segment, as well as Birla Copper and Birla Bal wan under
the copper mainstream products and co-products segment have garnered strong customer
acceptance.
Aluminum Smelting

Hindalco Aluminum Smelting operations are located at Renukoot in Uttar Pradesh, Aditya
Aluminum in Odisha, Mahan Aluminum in Madhya Pradesh and Hirakud in Odisha. All these
facilities combined produce around 1.3 Million tons of primary aluminum in a year.
 Aditya Aluminum
 Mahan Aluminum
 Hirakud
 Renukoot
Aditya Aluminum:
Aditya Aluminum is a smelter-power plant complex at Lapanga in Sambalpur district of Orissa
with 360,000 tones smelter supported by a 6 x 150 MW coal based captive power. Like Mahan
this also employs AP 36 technology supplied by Aluminum Pechiney.
Alumina is primarily sourced from Utkal Alumina, a 100% subsidiary of Hindalco.

MahanAluminum:
Mahan smelter project comprises 360 KTPA Aluminum Smelter, along with 900 MW captive
power plant. Located in Bargawan, Madhya Pradesh, this state of the art facility has already started
production and is ramping up as per the schedule.
This smelter uses globally proven AP 36 technology with enhanced power efficiency and improved
manpower productivity. The CPP set up by BHEL, constitutes six units of 150 MW each, with one
of them acting as a stand by unit.
The alumina for the smelter is sourced from Utkal Alumina, our subsidiary, which is one of the
most efficient alumina refineries globally.

Hirakud Aluminum:
The Hirakud smelter and power complex is in Odisha, about 320km by road from the capital city
of Bhubaneswar. The Hirakud smelter, set up by Indal in 1959, was the country’s second
aluminum smelter operating on grid power sourced from the hydro power station of
Renukoot:

Hindalco’s Renukoot plant was commissioned in 1962 with one pot line and a smelter of 20,000tpa
capacity. Over the years the plant has increased its capacity through various brownfield expansions
and asset-sweating measures.
Today Hindalco, at Renukoot, operates across the aluminum value chain from bauxite mining,
alumina refining, aluminum smelting to downstream rolling and extrusions. The integrated facility
houses an alumina refinery and smelter along with facilities for production of semi-fabricated
products namely conductor redraw rods, sheet and extrusions.
In 1967 Hindalco established a captive power plant at Renusagar, the first captive power plant
(CPP) for aluminum industry in India. This along with a co-generation power unit ensures
continuous supply of power for the smelter and other operations.
Renukoot has earned the Integrated Management System (IMS) certification combining quality,
environment and occupational health and safety into one business excellence model. The unit has
been a recipient of several national and international awards in quality, environment management,
energy conservation, CSR, among others.
The sprawling 1056-acre Renukoot complex located near the Rihand Dam, 160 km from the city
of Varanasi, includes beautifully landscaped gardens, a residential colony cum mini township, a
full-fledged hospital for employees and the community around along with schools, clubhouses,
banks, sports facilities, cultural facilities, supermarkets and the Renukeshwar Mahadev Temple.
As a responsible corporate citizen Hindalco Renukoot’s Community Development Cell plays a
leading and exemplary role in social projects on health care, women’s empowerment, education
and sustainable livelihood schemes. Hindalco Renukoot's CSRcell has taken up various innovative
rural development projects in 385 neighboring villages in the states of Uttar Pradesh, Jharkhand

and Chhattisgarh. These social projects are carried out under the aegis of the Aditya Birla center
for Community Initiatives and Rural Development spearheaded by Mrs. Rajashree Birla.
the Hirakud Dam. After facing severe power scarcity, Hirakud captive coal-based power plant
came up in 1993. It was the first in India to adopt clean coal combustion technology that uses a
circulating fluidized bed, which is considered environmentally friendly. The metal from this
facility is processed to produce FRP.
Aluminum Products:
Hindalco’s aluminum rolled products is a prime source for all major brands and are used in a
multitude of industrial segments.
 Building sheets
 Closure stock
 Fin stock
 Hot rolled plates
 Pattern sheets
 Cable wrap stock
 Cold rolled coils
 Flooring sheets / tread plates
 Lamp cap stock
 PCB entry sheets / coils
 Circles

 Cold rolled sheets
 Foil stock
 Litho stock
 Spiral fin stock
Copper overview:
Hindalco’s Copper division operates one of the largest single location custom copper smelters in
the world. The Custom Smelter complex at Dahej in state of Gujarat in the west coast of India
houses copper smelters, refineries, rod plants, captive power plant, a jetty and other utilities.
Hindalco produces copper cathodes, continuous cast copper rods in various sizes and also precious
metals like Gold and Silver. The co-product Sulphuric acid is also utilized to produce Phosphoric
acid and fertilizers like di-ammonium phosphate (DAP). Hindalco is the only manufacturer in
India for 19.6mm diameter copper rod used for railway electrification.

Branded, Birla Copper and Birla Copper II, Hindalco’s copper cathodes are known for high purity
and consistent quality. Birla Copper is an ISO 9001, 14001 and OSHAS 18001 certified company,
registered on the London Metal Exchange as Grade-A copper brand and certified as a Star Trading
House having NABL accredited labs for chemical, mechanical and electrical testing.
Copper smelting:
Figure 1: DAHEJ
Birla Copper, Hindalco's copper unit, is located at Dahej in the Bharuch district of Gujarat. This is
one of the largest single-location copper smelters in the world with integrated port facilities.
Dahej Harbor and Infrastructure Limited (DHIL) is strategically located to cater to the logistics
and transportation needs of its customers.
The copper unit at Dahej comprises copper smelters, backed by a captive power plant, oxygen
plants, by-products plants, utilities and a captive jetty. There is also a precious metals recovery
plant at Dahej, which produces gold, silver and selenium.

Environment Analysis
Global Environment: The extraordinary financial crisis in the US has spread to Europe and
Japan and is likely to see most developed economies suffering a prolonged period of recession
that could extend beyond 2009 and according to some even beyond 2010. The financial crisis in
the US started in the latter half of 2007, with the so-called sub-prime housing mortgage crisis. As
is by now well established, the crisis had its real roots in hugely excessive leveraging by
investment and commercial banks, underpricing of risk and lack of necessary regulatory
oversight. The busting of some of the big financial institutions has created an atmosphere of lack
of confidence. This in turn has near completely clogged the flow of credit in the system. The
banker’s adage that ‘it’s not the speed that kills, it’s the sudden stop’ fits the present precarious
situation quite well. The impasse seen in the credit flow has had a direct impact on investment
and consumption and has taken a massive toll of the real economy. The morphing of the ‘Wall
Street crisis’ in to a historical ‘Main Street crisis’ has led to the majority of OECD economies
sliding into deep recession. And it is not yet clear as to when the bottom of this recessionary
slide will be reached. This causes a further loss of confidence. The enormity of the situation can
be sensed by looking at some numbers. The IMF has re-estimated that the losses for financial
institutions on account of US-based mortgage loans (the so called sub-prime loans) and securities
may raise up to US$ 2.2 trillion (last estimate in October 2008 was US $ 1.4 trillion). The total
funds made available by the US government and the Federal Reserve so far under the various
rescue programs have already amounted to a whopping US$ 7.5 trillion or more. In addition, the
loss of market capitalization can be gauged from the sharp fall in stock market prices both in
mature and emerging economies. The loss of wealth this represents is bound to adversely impact

global demand for a prolonged period. This year in the Forbes list of billionaires the total wealth
registered was 2.4 trillion U.S. dollars, down from 4.4 trillion last years, reducing more than 45
per cent and marking the worst reading since Forbes began compiling the list.
Aluminum Industry in India
Aluminum Industry in India is one of the leading industries in the Indian economy. The main
operations of the of the India aluminum industry is mining of ores, refining of the ore, casting,
alloying, sheet, and rolling into foils. At present, Hindalco and Nalco are one of the most
economical in the production of aluminum in the world. Aluminum industry, which is highly
capital intensive and scale sensitive, depends on two major variable cost components viz. alumina
and power. Bauxite from which alumina is obtained, being a bulk commodity, has forced
companies to be concentrated near bauxite deposits.
With over 7% growth per annum, one of the highest in the world, the Indian aluminum market is
booming. Even better, sectors that extensively use aluminum are themselves booming, ensuring
that this sector stays firmly on the growth path for times to come. Fortunately for India, it is perched
atop the 5th largest Bauxite reserves in the world with one of the world's lowest per capita
consumption rates that is set to explode. Together, these factors spell one clear outcome: that if
you're a player in the global aluminum sector, India is where the action and the future of your
business lie.
The India aluminum Metal Industries sector in the previous decade experienced substantial
success among the other industries. The India aluminum industry is developing fast and the

advancement in its technologies is boosting the growth even faster. The utilization of both
international and domestic resources was significant in the rapid development of the India
aluminum industry. This rapid development has made the India aluminum industry prominent
among the investors. The India aluminum industry has a bright future as it can become one of the
largest players in the global aluminum market as in India the consumption is fairly low, the
industry may use the surplus production to cater the international need for aluminum which is used
all over the world for several applications such as aircraft manufacturing, automobile
manufacturing, utensils, etc.
The Indian aluminum sector is characterized by large integrated players like Hindalco and
National Aluminum Company (Nalco). The other producers of primary aluminum include Indian
Aluminum (Indal), now merged with Hindalco, Bharat Aluminum (Balco) and Madras Aluminum
(Malco) the erstwhile PSUs, which have been acquired by Sterlite Industries. Consequently, there
are only three main primary metal producers in the sector.
Some Key points regarding this sector:
 The per capita consumption of aluminum in India continues to remain abysmally low at
under 1 kg as against nearly 25 to 30 kgs in the US and Europe, 15 kgs in Japan, 10 kgs in
Taiwan and 3 kgs in China. The key consumer industries in India are power, transportation,
consumer durables, packaging and construction. Of this, power is the biggest consumer
(about 44% of total) followed by infrastructure (17%) and transportation (about 10% to
12%). However, internationally, the pattern of consumption is in favor of transportation,
primarily due to large-scale aluminum consumption by the aviation space.
 In order to protect the domestic industry, the government has imposed up to 30% safeguard
duty on import of aluminum products from China. Imports of aluminum flat sheets used
by sectors like auto and construction are imposed a duty of 12% to 14% while import of

aluminum foils, mainly used by the packaging industry attracts around 25% to 30% duty.
This duty is imposed for a period of two years starting March 2009.
Aluminum: Through the lens of Michael Porter
Backed by abundant and good quality bauxite reserves and cheap labor costs, Indian aluminum
producers have emerged among the lowest cost aluminum producer in the world. India is home to
the sixth largest bauxite deposit in the world which makes its world’s 5th largest aluminum
producer. Aluminum industry in India registered a phenomenal growth during the past few years
on the back of robust growth in the economy. However, the current ongoing global crisis seems to
have created some medium term hiccups. We have analyzed the domestic aluminum industry
through Michael Porter’s five forces model so as to understand the competitiveness of the sector.
Barriers to entry: We believe that the barriers to entry are medium. Following are the
factors that vindicate our view.
 Economies of scale: As far as the sector forces go, scale of operation does matter.
Benefits of economies of scale are derived in the form of lower costs and better bargaining
power while sourcing raw materials. It may be noted that the minimum economic size of
a fully integrated Greenfield smelter is around 250,000 tonnes. The aluminum companies,
which are integrated, have their own mines for key raw materials such as bauxite and coal

and this protects them from the potential threat for new entrants to a significant extent.
They also have their own power plants as it is a major cost driver.
 Capital intensive: Aluminum industry is a highly capital intensive business. It is
estimated that a capital investment of around US$ 1.2 bn is required to setup an
economically viable Greenfield project.
 Higher gestationperiod: The gestation period for an economically viable green field
plant is over 4 years while for a Brownfield project, (modernization / capacity addition)
the gestation period is relatively lower between 1.5 years to 2 years.
 Government policies: The government has a favorable policy towards aluminum
manufacturers. In fact, to protect the domestic industry, recently, the government has
imposed duty on value added products like foils and rolled products from the Chinese
markets. However, similar to other sectors, there are certain discrepancies involved in
allocation of mines and land acquisitions. Furthermore, regulatory clearances and other
issues are some of the major problems for the new entrants.
Bargaining power of suppliers: The bargaining power of suppliers is low for fully
integrated aluminum smelters (upstream) as they have their own mines for key raw material like
bauxite. Examples here could be Nalco and Hindalco. However, those who are non-integrated or
semi integrated, (downstream) have to depend upon the upstream producers for alumina or primary
metal. While the bargaining power is limited in case of power purchase as it is highly regulated
sector and government is the sole supplier most of the times, increasing usage of captive power
plants are helping the companies to rationalize their costs to certain extent.

Bargaining Power of Customers: Being a commodity, customers enjoy relatively high
bargaining power as prices are determined on demand and supply.
Competition: Competition is primarily on quality and price, as being a commodity,
differentiation is difficult. However, the recent spate of consolidation has reduced the competitive
pressure in the industry. Further, increasing value addition to aluminum products has helped some
companies protect themselves from the high volatility witnessed in the industry.
Threat of substitutes: On one side, the usage of aluminum is rising continuously in the
automobile and construction sector but steel still remains a main substitute because of its relatively
lower cost. On the other side, copper has been slowly substituting aluminum’s usage in the power
sector due to its higher conductivity. However, with properties like higher strength-to-weight ratio,
durability, higher corrosion-resistance and relatively lower cost, aluminum is able to hold its own.
Thus the usage of aluminum is likely to increase over a long term period.
Global Aluminum Industry

Global production of primary aluminum rose continuously from 32 million tones’ (MT) in 2005
to 38 MT in 2007, registering a CAGR of 9%. However, during 2008 the production remained
flattish at around 38 MT (2007 levels) on account of significant fall in demand in the second half
of the year due to the global credit crisis. This created a large amount of demand supply gap, thus
making the inventory levels at LME reach their multi year highs. China accounted for around 30%
of the total global aluminum production. Asia, once again showed the largest annual increase in
consumption of primary aluminum, driven largely by increased industrial consumption in China,
which has emerged as the largest aluminum consuming nation, accounting for 35% of global
primary aluminum consumption in 2008. As far as the global consumption goes, it declined by
around 3%YoY to 37 MT in 2008.
The Indian aluminum industry registered a growth of around 9% in FY09. Strong growth in
industrial, infrastructure, automobile, transportation and power sectors during the first half of the
fiscal were the key drivers for the demand. However, realizations for the fiscal fell significantly
on account of fall in LME prices due to the global credit crisis, thus causing a dent in margins. On
the other hand, the steep depreciation of Indian rupee against the US dollar impacted the industry
positively. The total aluminum production in the country stood at around 1.35 m tones in FY09.
Prospects
Overseas DemandBoosting MetalPrices - Demand in emerging markets like China and
India, coupled with drastically reduced inventories and lower output, have boosted US metal
prices. US Steel raised its prices three times between June and July 2009, while Alcoa boosted
aluminum prices by 6 percent since the first quarter, according to BusinessWeek.com. Industry

observers differ over whether prices will continue to rise, however. Some say US auto production
is too weak to sustain higher prices, while Chinese consumption may slow. Output has furthermore
stagnated despite higher prices, leaving metal makers still in search of profits.
Climate Bill Could Impact Steel Costs - A Congressional climate-change bill could add
$1 billion to production costs for US steel producers by 2030. The Waxman- Markey bill calls for
the reduction of carbon emissions by 17 percent by 2020 and more than 80 percent by 2050. The
domestic steel industry accounts for about 9 percent of heavy emissions in the US heavy industry
sector. Steel earnings could drop by 2 to 5 percent as a result of the legislation, and could fall
further unless an offset penalty is imposed on imported steel, according to a recent Goldman Sachs
report.
SteelImports Drop - US steel imports in June 2009 dropped to their lowest levels since 1975,
according to the American Iron and Steel Institute. Steel import permit applications declined 23
percent compared to May, with Japan, India, South Korea, and China submitting the largest
finished steel applications. Despite the falling applications, some industry observers are still
concerned over unfairly traded imports: steel imports boast a 28 percent market share, while
domestic production has slowed to 49 percent of capability.
 Globally, the demand for aluminum is projected to fall by around 7% in 2009 on account
of subdued conditions in the key user industries. However, China is projected to maintain
the consumption levels of 2008 mainly due to the fiscal stimulus package that is likely to
support its ailing economic growth. The revival in the demand for the metal is expected to
start from 2010 globally. As per Alcoa, world’s largest aluminum producer, the demand
for aluminum is projected to grow at around 6% CAGR till 2018 on account of newer

packaging applications and increased usage in automobiles, consumer durables,
construction and defense.
 With key consuming industries forming part of the domestic core sector, the aluminum
industry is sensitive to fluctuations in performance of the economy. Power, infrastructure
and transportation account for almost 3/4th of domestic aluminum consumption. With the
government focusing towards bringing back GDP growth rates of above 8%, the key
consuming industries are likely to lead the way, which could positively impact aluminum
consumption. Domestic demand growth is likely to remain robust over a long term period.

HINDALCO
Hindalco's businesses
Hindalco in India enjoys a leadership position in aluminum and copper. The company
aluminum unit across the country encompass the entire gamut of operations from bauxite
mining, aluminum smelting to downstream rolling, extrusions, foils and alloy wheels,
along with captive power plant and coal mines. The Birla copper cathodes, continuous cast
copper rods along with other by-products, including gold, silver and DAP fertilizers.
Brief History:
The Hindalco story unfolds with the establishment of the company in 1958, the
commissioning of the aluminum facility at Renukoot in 1962 and the Renusagar power
plant in 1967. Over the years, Hindalco has grown into the largest vertically integrated
aluminum company in the country and among into the largest primary producers of
aluminum in Asia. Its copper smelter is today the world’s largest custom smelter at a single
location. Hindalco’s journey has been challenging at times, but truly exhilarating
2007
 In May 2007, Novelis became a Hindalco subsidiary with the completion of the
acquisition process. The transaction makes Hindalco the world’s largest aluminum

rolling company and one of the biggest producers of primary aluminum in Asia, as well
as being India’s leading copper producer.
 Acquisition of Alcan’s 45 per cent equity stake in the Utkal Alumina project, thereby
making Hindalco the 100 per cent project owner
2006
 Joint Venture with Almex USA for manufacture of high strength aluminum alloys for
applications in aerospace, sporting goods and surface transport industries.
 Signed a MoU with the government of Madhya Pradesh for a Greenfield aluminum
smelter in the Siddhi district of the state
 Hindalco completes largest Rights Issues in the history of Indian capital markets with
total size of Rs. 22,266 million.
 Hindalco announces 10:1 stock split. Each shares with face value of Rs. 10 split into
10 shares of Re 1 each.
 In May 2006, the company entered into a JV with Essar Power (M.P.) Ltd. to develop
and operate coal mines at Mahan, Madhya Pradesh. The JV will supply coal to the
proposed aluminum smelter and power complex in Madhya Pradesh.
 In May 2006, company's copper mining subsidiary Aditya Birla Minerals Limited
(formerly Birla Mineral Resources Pty Ltd.) came out with an equity offering and
subsequent listing on the Australian Stock Exchange (ASX).
 In March 2006, the company acquired an aluminum rolling mill and wire rods facility
situated at Mouda (Nagpur), from Asset Reconstruction Company (India) Ltd
(ARCIL), belonging to Pennar Aluminum Company Ltd.

2005
 All businesses of Indal, except for the Kollur Foil Plant in Andhra Pradesh, merged
with Hindalco Industries Limited.
 In September 2005, the company split its shares in ratio of 10:1 in order to enhance
liquidity and to encourage participation from retail investors.
 Aditya Birla Group to set up a world-class aluminum project in Orissa at a project cost
of about Rs.11, 000 Crore.
 MoUs signed with state governments of Orissa and Jharkhand for setting up Greenfield
alumina refining, smelting and power plants.
 Commissioned Copper III expansion, taking total capacity to 500,000 tpa.
2004
 Scheme of arrangement announced to merge Indal with Hindalco.
 Copper smelter expansion to 250,000 tpa.
2003
 Hindalco acquires Nifty Copper Mine through Aditya Birla Minerals Ltd. (ABML,
formerly Birla Minerals Resources Pty. Ltd.).
 ABML acquires the Mount Gordon copper mines in November 2003.
 Hindalco becomes majority stakeholder in Utkal Alumina, a joint venture with Alcan.
 The amalgamation of Indo-Gulf's copper business with Hindalco becomes effective
from 12 February 2003.
 Equity stake in Indal increased to 96.5 per cent through an Open Offer.

 Divestment of 8.6 per cent holding in Indo Gulf Fertilizers Ltd. :: Brownfield expansion
of aluminum smelter at Renukoot to 345,000 tpa.
2002
 Brownfield expansion at an outlay of Rs.1, 800 Crore — ninth pot line commissioned.
 Buyback of equity shares to generate shareholder value and to utilize surplus cash.
 Major corporate restructuring to create a non-ferrous metals powerhouse:
 The amalgamation of Indo Gulf Corporation Ltd.'s copper business, Birla Copper, with
Hindalco with effect from 1 April 2002.
 Open offer to acquire additional equity to make Indal a wholly-owned subsidiary.
2001
 Hindalco enters 'The Asia Top 25' list of the CFO Asia Annual Report Survey, the
only Indian company in 2001.
2000
 Acquisition of controlling stake in Indian Aluminum Company, Limited (Indal) with
74.6 per cent equity holding.
1999
 Aluminum alloy wheels’ production commenced at Silvassa.
 Brownfield expansion of metal capacity at Renukoot to 242,000 tpa.

1998
 Foil plant at Silvassa goes on stream.
 Hindalco attains ISO 14001 EMS certification.
1995
 Mr. Kumar Mangalam Birla takes over as Chairman of Indal Board.
1994
 A huge expansion, modernization and diversification program takes off.
1991
 Beginning of major expansion program.
1967
 Commissioning of Renusagar Power Plant — a strategic and farsighted move.
1965
 Downstream capacities commissioned (Rolling and Extrusion Mills at Renukoot).

1962
 Commencement of production at Renukoot (Uttar Pradesh) with an initial capacity of
20,000 mtpa of aluminum metal and 40,000 mtpa of alumina.
1958
 Incorporation of Hindalco Industries Limited.

Recent accolades
Hindalco won the prestigious “D.L. Shah National Award for Economics of-
 Quality” given by Quality Council of India, presented by the President of India, H.E.
Dr. A.P.J. Abdul Kalam, on 9 February 2007.
 National Energy Conservation Award-2006 was presented by the Ministry of Power,
Government of India.
 Hindalco Hirakud Complex earned the Pollution Control Appreciation Award
presented by the Orissa State Pollution Control Board.
 The IT department of Hindalco received prestigious IT certificates BS15000 (IT
services), ISO 9001 Software development) and BS7799 (Information security).
Hindalco's Renukoot IT function is the first in the Group as well as in India to be
recommended for all these certifications in an integrated manner.
 The company's fabrication plant’s hot mill team won the prestigious Qualtech Award
for their project "Reduction of time in work role change time”.
 Hindalco Taloja became the second unit after Renukoot to achieve the Integrated
Management System Certificate, which combines ISO 9001, ISO 14001, OHSAS
18001 into one Business Excellence Model.
 Hindalco, Renukoot has won the National Award for Excellence in Water
Management 2006 organized by CII.

 Hindalco Hirakud Power Plant team bagged second prize at the state level CII Orissa
Award 2006 for Best Practices in Environment, Safety & Health.
 Hindalco Hirakud Quality Circle 'Jagruti' bagged national level honors at the 20th
National Convention of Quality Circles, organized by the Quality Circle Forum of
India.
 Hirakud Power Plant team received the State Safety Award 2006 for their act of
bravery in saving lives and preventing a disaster, by their proactive initiative to arrest
the chlorine leakage at the Railway Colony in Sambalpur.
 Engineering Export Promotion Council (EEPC, Eastern Region) Award for Export
Excellence in recognition of highest performance in export of engineering goods
(Primary Metal, Rolled Products) for 2003-04.
 "ICWAI National Award for Excellence in Cost Management-2005" presented by the
Institute of Cost and Works Accountants of India (ICWAI).
 Renukoot Complex named the winner of the National Safety Award 2005 for the
second consecutive year. Also awarded the Greentech Safety Silver Award for its
outstanding safety performance during 2005-2006.
 Hirakud Smelter received the State Safety Award for best performance in Safety,
Health & Environment Management-2004 as also the National Safety Award for
outstanding performance in industrial safety in achieving the longest accident free
period for the year — 2004 and Runners Up award for Lowest Accident Frequency
Rate — 2004 for the second consecutive year.
 Hirakud also won the Shreshtha Surakhya Puraskar — 2004 and Prashansa Patra —
2005 from the National Safety Council of India, Mumbai, for developing and
implementing effective occupational safety and health management systems and
procedures.

 Hirakud Smelter also received the second prize for excellence in energy conservation
in aluminum sector for 2005 from the Ministry of Power, GoI.
 The Muri Alumina Plant won the Greentech Safety Gold Award 2004-2005 and Silver
Award 2005-2006, as also the Greentech Environment Silver Award 2004- 2005.
 The Kalwa Foil Plant was the recipient of the Dhanukar Rotating Trophy 2005- :: 2006
presented by the Indian Association of Occupational Health, Mumbai.
 The Belur Sheet Plant was named the winner of the National Award for Excellence
in Water Management 2005 (Water Efficient Unit) and for Excellence in Energy
Management 2005 (Energy Efficient Unit), presented by the CII — Sohrabji Godrej
Green Business Centre. Belur also won the Greentech Environment Excellence Gold
Award 2005.
 The Alupuram Extrusions plant earned the Best Safety Performance Award presented
by the National Safety Council, Kerala Chapter, while Alupuram Smelter was
presented the Industrial Safety (Runners Up) Award for 2003-2005 for the lowest
average accident frequency.
 Alupuram Extrusions earned the first prize in the Kerala state level Quality Circle
Competition organized by CII.
 Alupuram Smelter ranked third in the Kerala state level Quality Circle :: Competition
organized by CII.
 Bauxite and coal mines, in all regions (Jharkhand, Maharashtra, Chhattisgarh and
Orissa) have won a host of awards in safety, environment, pollution control and overall
performance during the Mines Safety Week and Mines, Environment & :: Mineral
Conservation Week programs organized by the Indian Bureau of Mines and the
Directorate of Mines Safety.

Mergers and Acquisitions
Hindalco Industries Ltd. and Novelis Inc. announce an agreement for Hindalco's
acquisition of Novelis for nearly US$ 6 billion
Aditya Birla Group's Hindalco Industries Limited, India's largest non-ferrous metals
company, and Novelis Inc. (NYSE: NVL) (TSX: NVL), the world's leading producer of
aluminum rolled products, announced that they have entered into a definitive agreement
for Hindalco to acquire Novelis in an all-cash transaction which values Novelis at
approximately US$6 billion, including approximately US $2.40 billion of debt. Under the
terms of the agreement, Novelis shareholders will receive US $44.93 in cash for each
outstanding common share.
Based in Mumbai, India, Hindalco is a leader in Asia's aluminum and copper industries,
and is the flagship company of the Aditya Birla Group, a $12 billion multinational
conglomerate, with a market capitalization in excess of $20 billion. Following the
transaction Hindalco, with Novelis, will be the world's largest aluminum rolling company,
one of the biggest producers of primary aluminum in Asia, and India's leading copper
producer.
Mr. Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said, "The acquisition
of Novelis is a landmark transaction for Hindalco and our Group. It is in line with our long-
term strategies of expanding our global presence across our various businesses and is

consistent with our vision of taking India to the world. The combination of Hindalco and
Novelis will establish a global integrated aluminum producer with low-cost alumina and
aluminum production facilities combined with high-end aluminum rolled product
capabilities. The complementary expertise of both these companies will create and provide
a strong platform for sustainable growth and ongoing success."
Acting Chief Executive Officer of Novelis, Mr. Ed Blech Schmidt, said, "After careful
consideration, the Board has unanimously agreed that this transaction with Hindalco
delivers outstanding value to Novelis shareholders. Hindalco is a strong, dynamic
company. The combination of Novelis' world-class rolling assets with Hindalco's growing
primary aluminum operations and its downstream fabricating assets in the rapidly growing
Asian market is an exciting prospect. Hindalco's parent, the Aditya Birla Group, is one of
the largest and most respected business groups in India, with growing global activities and
a long-term business view."
Novelis was the global leader in aluminum rolled products and aluminum can be recycling,
with a global market share of about 19 per cent. Hindalco has a 60 per cent share in the
currently small but potentially high-growth Indian market for rolled products. Hindalco's
position as one of the lowest cost producers of primary aluminum in the world is leverage
able into becoming a globally strong player. The Novelis acquisition gave Hindalco
immediate scale and a global footprint.

The transaction has been unanimously approved by the Boards of Directors of both
companies. The closing of the transaction is not conditional on Hindalco obtaining
financing.
The transaction will be completed by way of a plan of arrangement under applicable
Canadian law. It will require the approval of 66.66 per cent of the votes cast by shareholders
of Novelis Inc. at a special meeting to be called to consider the arrangement followed by
court approval. The closing of the transaction will also be subject to customary conditions
including regulatory approvals, and is expected to be completed during the second quarter
of 2007. Novelis is the global leader in aluminum rolled products and aluminum can be
recycling. The company operates in 11 countries, has approximately 12,500 employees and
reported $8.4 billion in 2005 revenue. Novelis has the unrivaled capability to provide its
customers with a regional supply of technologically sophisticated rolled aluminum
products throughout Asia, Europe, North America and South America. Through its
advanced production capabilities, the company supplies aluminum sheet and foil to the
automotive and transportation, beverage and food packaging, construction and industrial,
and printing markets.

ACHIVEMENTS
2016 – Mrs. Rajashree Birla honored with the Lifetime Achievement Award 2015-2016 by the
Ladies’ Wing of the Indian Merchants’ Chamber Mrs. Rajashree Birla honored with the Lifetime
Achievement Award 2015-2016 by the Ladies’ Wing of Indian Merchants’ Chamber
AV Cell and AV Nackawic (Pulp & Fiber business) have emerged among the top 25 employers.
Birla Carbon is credited for publishing ‘Asia’s Most Transparent Report’ and ‘Asia’s Best
Materiality Report’. Birla Carbon also received commendation certificates for ‘Asia’s Best Supply
Chain Reporting’, ‘Asia’s Best Community Reporting’ and ‘Asia’s Best Environment Reporting’
at the Asia Sustainability Reporting Awards, organized by CSRWorks Events, an arm of
CSRWorks International.
2015 – Under the aegis of Egypt’s Prime Minister, The Federation of Egyptian Industries -
Environmental Compliance Office and Sustainable Development (ECO FEI), conferred the
‘Pioneer Businesses to Achieve Sustainable Development 2015 Award’ upon Birla Carbon’s
Alexandria Carbon Black.
For being an exemplar in energy efficiency, Birla Carbon’s Tiszaújváros plant in Hungary was
accorded the Werner von Siemens Efficiency award.
The Minister of Industry of Thailand honors Thai Carbon Black with the 'National QC Promotion
Award 2015' in recognition of its outstanding commitment to quality.
Birla Carbon’s Korean plant was hailed by the Korean Employment and Labor Minister, Mr. Lee
Ki-Kweon as 'The Distinguished Contributor of Industrial Accident Prevention Award.'

Idea Cellular wins Silver and Bronze for Idea’s ‘No Ullu Banaoing’ campaign at the Asian
Marketing Effectiveness Awards 2015 in Singapore.
Idea wins ‘Mobile Data Service Provider of the Year and Most Innovative Telecom Service
Provider of the Year’ award at Frost & Sullivan Asia Pacific ICT Awards 2015.
Birla Sun Life Asset Management Company wins ‘Best Fund House – Debt category’ and ‘Best
Intermediate Bond Fund' award for 'Birla Sun Life Dynamic Bond Fund’ at the Morningstar
Awards 2015. Morningstar is a leading global investment research and investment management
firm.
Birla Sun Life Insurance Company’s ‘Khud Ko Kar Buland’ marketing campaign wins the ‘Best
Screenplay’ award at the 5th Dadasaheb Phalke Film Festival 2015.
Aditya Birla Nuvo Limited consolidates its Branded Apparels Businesses under listed subsidiary
— Pantaloons Fashion & Retail Limited (PFRL). The Board of PFRL approves PFRL to be
renamed as ‘Aditya Birla Fashion & Retail Limited’ (“ABFRL”).
Mr. Kumar Mangalam Birla is bestowed with 'Global Leadership Award' of the US India Business
Council (USIBC), at the 39th Anniversary Leadership Summit at Washington DC.
Mr. Kumar Mangalam Birla is conferred with 'Hello Hall of Fame Award – Business Leader of
the Year' by the World Wide Media Group (WWM), a joint venture between the Times Group and
BBC Worldwide.
Aditya Birla Group – Indonesia (Fibre and Spinning Business) is named one of the 'Best Employers
in Indonesia, 2015' in the 8th edition of Aon Hewitt’s Best Employers study in Asia.
Mr. Himanshu Kapania, Managing Director, Idea Cellular, is named 'Outstanding CEO of the
Year' in Master Category at CEO India Awards 2015.
UltraTech’s Vikram Cement (Madhya Pradesh) wins the prestigious IMC Ramkrishna Bajaj
National Quality Performance Excellence Trophy.

Aditya Birla Nuvo’s Indian Rayon wins Golden Peacock Award for HR Excellence and Golden
Peacock Environmental Management Award; GreenTech Silver Award for Outstanding
Achievement for Best Strategy in HR and GreenTech Silver Award for Outstanding Achievement
in Safety.
Idea Cellular wins three awards at the Effies — 2 gold and a silver — Gold in the Services category
(Telecom) for 'No Ullu Banaoing', Gold For Best Ongoing Campaign – 'An Idea can change your
life' and Silver in the category – Integrated Advertising Campaign (for a 360 approach on the
campaign across all media). It also won ET Telecom Award for the Best Marketing Campaign of
the year for “No Ullu Banaoing”.
Idea Cellular wins award in 'Analytics' category for the implementation of end-to-end Campaign
Management solution at Business Technology IT Awards.
Aditya Birla Financial Services wins CIO Impact Award 2015 from Frost & Sullivan USA and
Best in Class – Cloud Computing category for 2015; wins two Midas Awards 2014; Silver at
Emvies from the Advertising Club, India; three Bronze medals at Goafest Creative & Media Abby
Awards; two Bronze and one Silver at DMAi Award and Silver for its marketing campaign at
Effies.
Aditya Birla Money wins Best Performing National Financial Advisors award at the CNBC TV
18 Financial Advisor Award.
Birla Sun Life Insurance’s 'My Solutions' wins at the Celent Model Insurer Asia Awards in Digital
and Omni-channel category; Golden Peacock Award for Business Excellence.
Birla Sun Life Mutual Fund wins Morningstar Award 2015 for the ‘Best Fund House – Debt' and
'Best Intermediate Bond Fund'; the Asset Management – House of the Year at Money Today,
FPCIL Awards.
Mrs. Rajashree Birla conferred with the ‘Champion of Humanity’ award by the Hindustan
Chamber of Commerce

The Board of Directors of Grasim Industries Limited approves the proposed merger of Aditya
Birla Chemicals (India) Limited, an Aditya Birla Group company, with Grasim.
2014 – Mr. Phil Martens, President & CEO, Novelis, is named Automotive News Industry All-
Star (December 2014).
Idea Cellular wins ET Telecom award 2014 in Enterprise category for the second year in
succession for smart cab solution.
Birla Carbon (Brazil) is named 'Best Carbon Black Supplier Company', by virtue of which it was
awarded 'The Top Rubber 2014', title by Borracha Atual, a key trade magazine in the rubber
industry.
Novelis is honoured as the winner of the Minister of Environment Award at the 2014 Korea
Lifestyle of Health and Sustainability (LOHAS) Awards.
Novelis wins Edison Green Award Silver Trophy (April 2014); Aluminum Industry Leadership
Award at Platts Global Metals Awards (May 2014) and Clean Tech Innovation Award at Metro
Atlanta Chamber E3 Awards (May 2014).
The Board of Directors of UltraTech Cement, the largest cement company in India, approves the
acquisition of cement units of Jaiprakash Associates Limited in Madhya Pradesh in December.
The enterprise value of this acquisition was agreed at Rs. 5,400 crores.
Aditya Birla Chemicals (India) Limited (ABCIL) acquires the chlor-alkali division of Jayshree
Chemicals Limited in September.
Birla Sun Life Asset Management, joint venture between Aditya Birla Group and Sun Life
Financial Inc., acquires Mutual Fund Assets of ING Investment in May.
Aditya Birla Money Mart wins Best Financial Advisor (Retail) award at CNBC TV18 Financial
Advisor Award 2013-14.

Novelis, a leading producer of rolled aluminum, is honored with Industry Leadership award -
Aluminum at Plats Global Metals Awards 2014. The award recognizes Novelis' decisive action to
transform its business, demonstrated leadership as a first-mover and willingness to take risks by
making fundamental changes in the way it operates.
Aditya Birla Group is ranked number 1 in the Nielsen Corporate Image Monitor 2013-14, for the
second year in a row, across the six pillars of corporate performance – products and services, vision
and leadership, workplace environment, financial performance, operating style and social
responsibility.
Mrs. Rajashree Birla accorded the CSRLeader award — a Jury award — at the CEO India Awards
2014.
Dr. Santrupt Misra is awarded 'Global Leader of the Year' at the CEO India awards 2014.
The Fine Arts Society (FAS), Mumbai, confers the 'FAS Stree Ratna Award 2014' on Mrs.
Rajashree Birla.
Mrs. Rajashree Birla receives the 'Exceptional Leader – Social and Rural Development' award
from the ASSOCHAM Ladies League.
The American Chamber of Commerce in Thailand (AMCHAM) bestows the 'AMCHAM Award'
on the Aditya Birla Knowledge Centre, the first centre of its kind set up by the Group in South
East Asia to provide community service through vocational training.
The Corporate Social Responsibility (CSR) team at Grasim Industries Limited (Grasim), a global
leader in viscose staple fibre manufacturing, wins the first 'CSR Activist of the Year Award'
instituted by the Federation of Madhya Pradesh Chamber of Commerce & Industries for its work
in uplifting the marginalized.
Birla White (UltraTech), the largest cement company in India wins the 'Golden Peacock
Innovation Management Award 2013'.

Vikram Woollens, a unit of Grasim Industries Limited, is named the overall winner at the 'Amity
CSR Conclave 2013'.
Novelis is honored with 'Best Report' award in PR Daily's 2013 CSR Awards.
The CSR team at Indian Rayon, Veraval is awarded the 'Greentech CSR Award' for a sustainable
development project empowering 400 marginalized women through extensive training in tailoring.
Novelis is awarded the 'Climate Leadership Award' by the US Environmental Protection Agency
for exemplary leadership in reducing carbon pollution and addressing climate change.
Aditya Birla Financial Services (ABFS), one of India’s reputed non-banking financial companies,
is given the 'Excellence Award' by the Institute of Internal Auditors India – Bombay Chapter, for
use of the most innovative processes in conducting branch internal audit.
Birla Sun Life Asset Management Company is recognized as the 'Most Admired AMC of the Year'
in the BFSI Category by Star of India Awards.
ABFS wins the 'Best Marketing Campaign Birla Sun Life Insurance' at the Effie’s, the Indian
chapter of Effie’s International, which recognizes marketing campaigns for their effectiveness in
the market.
ABFS wins four Gold Midas awards between Birla Sun Life Insurance, Birla Sun Life Mutual
Fund and Aditya Birla Money at the Midas Awards, New York, the only international platform
that recognizes excellence in financial advertising and marketing. The company's insurance
business bags the Grand Midas at the event.
more. Megastore is chosen as the winner under the 'Food & Grocery Retailer' category - 'Images
Most Admired Food & Grocery Retailer of the Year, Large Format' at the 7th edition of the Coca
Cola Golden Spoon Awards 2014.
2013 – Aditya Birla Chemicals (Thailand) Limited acquires 100 per cent equity stake in two epoxy
companies based in Germany, i.e., Chemicals & Technologies for Polymers (CTP GmbH) and 50

per cent equity stake in Chemicals & Technologies for Polymers Advanced Materials (CTP AM
GmbH) in Germany through its 100 per cent owned German subsidiary Aditya Birla Chemicals
(Europe) GmbH.
UltraTech Cement acquires the Gujarat Cement Unit of Jaypee Cement Corporation.
Aditya Birla Chemicals (India) Limited acquires the chlor-alkali and phosphoric acid divisions of
Solaris Chemtech Industries through ABCIL for Rs.153 crores in May.
Madura Clothing wins the 2013 Golden Peacock Award for Corporate Social Responsibility
Mr. Kumar Mangalam Birla is chosen 'Business Leader of the Year' at the Economic Times
Awards for Corporate Excellence 2012-13, becoming, in the process, the first corporate leader to
win the award twice in 10 years. His previous win was in 2003.
UltraTech wins the Intel-AIM Corporate Responsibility Award — Governance and Society: Asian
CSR Awards 2013, for its work among the underprivileged and highest standards of governance.
The chlor-alkali and phosphoric acid divisions of Solaris Chemtech Industries are acquired by the
Aditya Birla Group through ABCIL in May. The acquisition makes ABCIL the largest producer
of chlor-alkali in India.
Mr. Kumar Mangalam Birla, Aditya Birla Group Chairman, is conferred with the "Most Inspiring
Leader Award 2012" by NDTV.
The Government of India releases a commemorative postage stamp honoring the visionary Mr.
Aditya Vikram Birla as India's 'First Global Industrialist'. The special stamp is released by the
President of India, Mr. Pranav Mukherjee, at Rashtrapati Bhavan in New Delhi on 14th January.
Aditya Birla Group tops Nielsen's Corporate Image Monitor 2012-13 that measures the reputation
of 40 leading corporates in the country across sectors. The Group emerged 'Best in Class' across
the six pillars of corporate image comprising product and service quality, vision and leadership,
workplace management, financial performance, operating style and social responsibility.

Mrs. Rajashree Birla is conferred with the Godfrey Phillips 'Social Lifetime Achievement Award'
in April.
Mrs. Rajashree Birla is conferred with the Giants International 'Lifetime Achievement Award' in
April.
Birla White cement, an UltraTech brand, completes 25 years of operations.
UltraTech's Birla White (Jodhpur) receives the IMC Ramakrishna Bajaj National Quality Award
– Performance Excellence Trophy 2012.
Aditya Birla Nuvo's Indo Gulf wins the Platinum Award for Excellence in Manufacturing
Processes in the Medium Business Sector at the Economic Times India Manufacturing Excellence
Awards (IMEA).
UltraTech Cement wins three awards at the Economic Times India Manufacturing Excellence
Awards (IMEA) — Vikram Cement Works (Khor) won the Gold award; Rawan Cement Works
(Raipur) bagged the Gold Certificate of Merit; and Awarpur Cement Works (Maharashtra)
received the Silver Certificate of Merit.
Hindalco Industries (Hindalco), the world’s largest aluminum rolling company, receives the
Golden Peacock National Quality Award for 2012.
ABFS receives the Bronze award at the International ECHO Awards 2012 in Las Vegas –
equivalent to the Oscars of Direct Marketing – and a Gold, Silver and Merit certificate at the Midas
Awards 2012, New York. The Midas Awards honors the world's best financial marketing and
advertising campaigns. The company also wins a Bronze at Effie 2012 for its effective marketing
campaign.
ABFS wins the Silver award at the Emvies 2012. The Emvies honor measurable and significant
contributions in the field of Indian media.

For the second year in a row, Idea wins the 'The Best Brand Campaign' award at the World
Communications Awards 2012 in London for its 'Population Control' (3G pe busy) campaign. The
same campaign wins Gold at APPIES 2012 in Singapore.
The mobile number portability campaign - No Idea, Get Idea - wins the award for 'Excellence in
Marketing' at the Economic Times Telecom Awards 2012.
Aditya Birla Minacs wins Bronze in the 'Most Customer Friendly Company of the Year' category
at the Best in Biz awards from among more than 400 companies from nearly every major industry.
For the second time in a row, Aditya Birla Minacs' finance and accounting team wins the Asian
Leadership Award for 'Quality and Operations Excellence' for its innovative Q-Score Model.
The NDTV Profit Business Leadership Award jury rates Idea Cellular as the 'Best in Class' telecom
company.
'Asian Centre Awards 2012 – Awards for Corporate Governance, Sustainability & Leadership'
commends the Aditya Birla Group as the 'Company with Best CSR and Sustainability Practices'.
2012 – Aditya Birla Group [Company name] makes a financial investment of 27.5 per cent in
Living Media India Limited (India Today Group) through a private investment company in May.
Aditya Birla Group acquires Terrace Bay Pulp Mill in North Western Ontario in July 2012. Terrace
Bay is considered an anchor mill due to its location and its significant consumption of residual
chips produced by regional sawmills.
Aditya Birla Nuvo Limited (ABNL), largest manufacturer of linen fabric in India, acquires Future
Group's Pantaloons format, a part of Pantaloons Retail (India) Limited (PRIL). The acquisition is
in line with the Group's strategic intent to create the largest integrated branded fashion player in
the country.
Aditya Birla Group Chairman, Mr. Kumar Mangalam Birla conferred with Forbes India
Leadership Awards' flagship award – 'Entrepreneur of the Year' in October.

Aditya Birla Group Chairman, Mr. Kumar Mangalam Birla is honored with the 'NASSCOM
Global Business Leader Award, 2012' at the NASSCOM India-Global Leadership Forum held in
Mumbai.
The Asian Centre for Corporate Governance and Sustainability conferred the 'Transformational
Leader Award' on Aditya Birla Group Chairman, Mr. Kumar Mangalam Birla in recognition of
his extraordinary contribution towards setting up corporate governance standards in India, for
authoring the first ever SEBI-initiated Corporate Governance Report in India and for benchmark
able governance standards in the Aditya Birla Group companies.
Aditya Birla Group wins the Economic Times Corporate Citizen Award — 2011-12. The award
honors the contribution to public good through commitment to critical social causes that influence
the lives of thousands of needy Indians. The Group had won this coveted award for the first time
in 2002.
Aditya Birla Group is at the top of the league among 'most loved companies' at the 11th edition of
Business Today's Best Companies survey. The survey, conducted online by Indicus Analytics from
6 September to 14 November, 2011, drew 6,176 responses from 323 cities. More than 80 per cent
of the respondents were between 24 and 35 years of age.
Novelis is conferred with the American Metal Market Environmental Responsibility and
Stewardship Award 2012; three European Aluminum Awards for Innovation at the world's biggest
Aluminum Trade Show; a Jury Prize for the Titanic Belfast aluminum facade panels; and a Special
Prize, Surface Treatment for its anti-graffiti aluminum surface – Clearly 105.
The Novelis Global Automotive team receives a Special Prize, rolling, for its three-piece tailored
welded blank for Mercedes SL.

The Aditya Birla Memorial Hospital is awarded the 'Performance/Excellence Trophy for its
Compassionate Quality Healthcare' by the Indian Merchant Chambers' Ramakrishna Bajaj
National Quality Awards Committee in Mumbai, India.
Birla White, a division of UltraTech Cement – the largest cement company in India, is conferred
with the ASSOCHAM CSR Excellence Award.
CNBC TV18, one of the top business TV Channels in India, chooses the deal between the Aditya
Birla Group and Columbian Chemicals as the 'Best deal in the M&A category'.
AWARDS AND RECOGNITION:
2015
 Aditya Aluminum wins Kalinga Safety Award for Best Practices in Safety & CSR, presented at
the Odisha State Safety Conclave.
 Utkal Alumina International Limited wins the Think Media Best CSR Case Study Award 2014 on
the theme of “Access to Quality Health Care Services”.
 Hirakud wins Greentech CSR Silver Award 2014 for its initiatives in Sustainable Livelihood in
and around the unit location.
 Hirakud Smelter wins CII Easter Region Quality Award 2014-15 (Certificate of Appreciation) in
the large scale category.
 Birla Copper Dahej wins Greentech CSR Silver Award 2014 for Education Upliftment in 85
surrounding Government schools.
2013
 Renukoot Aluminum Complex wins Greentech HR Platinum Award, in the Best Strategy category,
the highest in this segment.

 Renusagar Power Division wins the Safety Innovation Award-2013 in Power Plant category,
presented by the Institute of Engineers (India) for its outstanding innovative achievements in the
field of Occupational Health and Safety.
 Renusagar Power Division Hospital wins the FICCI Healthcare Excellence Award 2013’.
 Birla Copper, bagged the 3rd Annual Green Tech CSR Award in the silver category for the year
2013 for their “Education for All” Project. Hindalco Lohardaga.
 CSR activities won recognition from the Indian Bureau of Mines during 21st Mines Environment
and Mineral Conservation Week held in March, 2014, at R& D Centre, SAIL-Ranchi.
2012
 Renukoot Complex is conferred the Golden Peacock National Quality Award- 2012, in the Mining
& Metals sector, presented by the Institute of Directors, for its efforts towards “Quality”, meeting
international parameters.
 Renusagar Power Division wins the Safety Innovation Award-2012, in the Power Sector category,
for outstanding achievement in safety management, presented by Institute of Directors.
 Dahej Copper Complex wins the Greentech Gold Environment Award- 2012, for its outstanding
achievement in Environment Management.
 Hirakud Power Plant wins CII Odisha Award- 2012 (2nd Runners Up), for Best Practices in
Environment, Safety and Health.
 Taloja Rolling Plant wins the overall title for “Maharashtra Safety Awards-2011”, competition
organised by the National Safety Council - Maharashtra Chapter, in the Heavy Engineering
category for its commendable safety performance, Scheme-I, Lowest Average Accident Frequency
Rate.

2011
 Hindalco bagged the prestigious CII – EXIM Bank Business Excellence Award 2011 for its "strong
commitment to excel on the journey towards business excellence".
 Birla Copper, a division of Hindalco, won the IMC Ramakrishna Bajaj Quality Award
Commendation Certificate.
 Hindalco Renusagar won the Greentech Safety Gold Award 2011 in power sector for outstanding
achievement in safety management by Greentech Foundation, New Delhi.
2010
Renukoot
 NIPM Gold Award for Best HR Practices for the year 2010 by National Institute of Personal
Management (NIPM).
 Greentech Gold Safety Award 2010 for Occupational Health and Safety Management in the
mining and metals sector by Greentech Foundation, New Delhi.

 Greentech Environment Excellence Gold Award 2010 in the metals sector for its efforts towards
environment management by Greentech Foundation, New Delhi.
 The Golden Peacock Award for Corporate Social Responsibility for the year 2010.
 Greentech HR Excellence Silver Award for 2010 for excellence in training.
 Best Exporter Award for 2010 by the Container Corporation of India for contributing to India's
economic progress through significant volume of exports.
 National Energy Conservation Award (Second Prize) 2010, in the metals sector presented by the
Ministry of Energy, Government of India.
 Silver Certificate of Indian Manufacturing Excellence Award — 2010 by Economic Times and
Frost & Sullivan.
Birla Copper Dahej
 Greentech Environment Excellence Gold Award — 2010 in the mining and metals sector for its
efforts towards environment management by Greentech Foundation, New Delhi.
 Greentech Silver Safety Award 2010 for Occupational Health and Safety Management in the
mining and metals sector by Greentech Foundation, New Delhi.
Renusagar
 Greentech Gold Award 2010 in thermal power sector for outstanding achievement in environment
management by Greentech Foundation, New Delhi.
 Commendation for Safety Innovation Award 2010 by the Institution of Engineers (India).
 Special Commendation for the Golden Peacock Environment Management Award 2010 by the
Institute of Directors, New Delhi.

Hirakud
 Hirakud Power Plant awarded third prize in the state-level CII Odisha Award for Best Practices in
Environment, Safety and Health 2010.
 Hirakud Power awarded the Greentech Environment Excellence Gold Award 2010 in the thermal
power sector category.
Muri
 National Award for Excellence in Water Management 2010 "Beyond the Fence" category, for the
indigenous work being done by the unit outside the fence as a corporate citizen and for fulfilling
its corporate responsibilities.
Quality Circle Awards
 Gold Awards to four Hindalco Renukoot Quality Circle Teams — Kushal, Vaibhav, Pragati and
Nirantar — at the International Quality Circle Competition (IQCC 2010) held at Hyderabad.
 Silver and Bronze Awards to Hindalco Hirakud Power Quality Circle Teams — Aryan and Power
— respectively at the International Convention on Quality Concept Circle (ICQCC 2010) held at
Hyderabad.

 Quality Circle teams from Renukoot, Hirakud and Birla Copper Dahej units excelled at the
National QC Convention (NCQC 2010), winning Par Excellence, Excellence, Distinguished and
Runners-Up Awards.
2009
 Hindalco Renusagar's power division bagged the Golden Peacock Environment Management
Award during the Global Convention on Climate Security. The convention was held at Palampur,
Himachal Pradesh from 12 to 14 June 2009. Dr. Madhav Mehra, President, World Council for
Corporate Governance honored Renusagar’s power division with the award in the services
category.
2008
 Greentech Safety Gold Award 2008 for outstanding achievement in safety management in coal-
based power sector.
 Hindalco Hirakud Systems ranked runners-up at the state-level IT Competition 2008 organized by
CII in association with the department of information technology, Government of Odisha.
 Hirakud smelter was awarded the state-level safety award for Best Occupational Healthcare 2006
— presented in February 2008 at Bhubaneswar.
 Talabira coal mines won a host of safety awards, namely, first in working face and maintenance
of Dozer and Pay loader and second in dust suppression at the Annual Coal Mines Safety Fortnight
2008 organized by Directorate of Mines Safety, Bhubaneswar and Chaibasa region.

POWER PLANT:
 Renusagar Power Plant. A 801.57 MW (10 generating units of various capacities) captive
power plant which is about 40 km from Renukoot, Sonebhadra district, Uttar Pradesh.
 Hirakud Captive Power Plant. A 467.5 MW captive power plant located at Hirakud, Sambalpur
District Odisha. This plant supplies power to Hirakud smelter of Hindalco Industries.[10]
 Utkal Alumina Captive Power Plant. A 90 MW captive power plant located
at Doraguda, Rayagada District Odisha. This plant supplies power to Utkal Refinery of
Hindalco Industries.[10]
 Aditya Captive Power Plant. A 900 MW captive power plant located at Lapanga, Sambalpur
District Odisha. This plant supplies power to Aditya smelter of Hindalco Industries.[10]
 Mahan Hindalco industries ltd. a 900 MW captive power plant located and alumina smelter in
Bargawa 20 km from singrauli.
RENUSAGAR POWER PLANT:
Renusagar Power Plant is a coal based captive thermal power plant located
near Renukoot in Sonebhadra district in the Indian state of Uttar Pradesh. The power plant is
operated by the Hindalco Industries and gives power to the smelter (integrated plant), Renukoot
for production of aluminum.

HIRAKUD CAPTIVE POWER PLANT:
Hirakud Power Plant is a coal based captive thermal power plant located
near Hirakud in Sambalpur district in the Indian state of Odisha. The power plant is operated by
the Hindalco Industries. The plant supplies power to Hirakud smelter of Hindalco Industries. The
coal for the plant is sourced from Talabira captive coal mines.

Hindalco & Market in India
After functioning for over 3 decades in an era of the protective license raj, being exposed
to a market where competition exists at a global level would probably make most India
companies weak in the knees. But Hindalco Limited has lived through both environments
of protection and cutthroat competition and has emerged unscathed.
Low cost production, incremental capacity additions, continuous modernization and
efficient asset utilization have been the underpinnings of Hindalco's strategy. The company
is vertically integrated right from the mining of bauxite till the production of value-added
products like extruded products, rolled products, rods and foils.
Aluminum has remained the sole focus of the company. The management of the company
has been responsive to the changes in the environment and has taken steps accordingly to
ensure efficient running of its business. Envisaging a power-deficit scenario, Hindalco
installed a 100 percent captive power unit as early as 1967. The power plant (612 MW) has
been run at peak load factors, and has today, made Hindalco completely self-sufficient in
its power requirements. The net result is that its efficiency norms are better than most of
its peers.
This backward integration strategy of Hindalco has paid it rich dividends. The captive
sources for bauxite and power and proximity from coal mines to its power plant and smelter
give Hindalco an unmatched competitive advantage. In fact, it is rated amongst the

cheapest producers of aluminum in the world. Besides, being an integrated producer, it has
more flexibility in pricing as compared to its competitors in the local market who convert
from scrap or metal, especially in situations when prices are rising. The company is seen,
more often than not, as the leader in setting prices for the domestic industry.
The fortunes of aluminum companies in India are dependent on several key factors and
Hindalco is no exception to any of these. With a fall in import duties on aluminum, Indian
companies today, no longer enjoy the protection available to other sectors. Besides
domestic competition, Indian aluminum companies also have to compete with relatively
cheaper imports. This makes the profitability of these companies very vulnerable to
changes in the international prices of aluminum and the value of the Indian rupee. In recent
times, aluminum companies in India have had a mixed run. Though the prices of aluminum
declined (leading to a squeeze in margins), the value of the rupee also fell. This made
aluminum cheaper to export from India, and that much more expensive to import. With its
fundamentals in place, Hindalco has been able to face the challenges of weak demand and
prices, both in international and domestic markets.
In order to increase value addition, Hindalco has now added and modernized downstream
facilities (rolling, extrusion, foils). It is now focused on increasing its downstream sales to
improve margins and drive bottom-line growth. It is pricing its products aggressively to
penetrate the market. During the first quarter of the current financial year, Hindalco's
turnover growth of 14.5 percent was lead by an improvement in sales mix. The company
sold more of higher value rolled products and foils. Thus while metal production increased
by 5.6 percent and average prices were up 3.5 percent, the product mix changes lead to a
further 4.7 percent improvement in turnover.

The recent run up in aluminum demand and prices have made analysts look up and take
notice. The stock has been a star performer at the bourses raking in impressive gains of
over 100 percent over just the past 6 months. But that is not the only reason. The market
has appreciated the recent shift in the perspective of the Birla Group, which was recently
spelt out by Chairman, Kumar Birla. It espouses a clear focus for each group company,
within its ambit of businesses, and efforts to unwind the investments made by the
companies in unrelated businesses. In line with its new credo, Hindalco shelved its
proposed Greenfield aluminum project and is instead considering a Brownfield expansion.
It also made a bid for Balco, an integrated aluminum company, for which the government
has announced a strategic sale of its stake. With the overhang of a fresh plant now out of
the way, industry observers are seeing Hindalco in a new light. The new focus may also
see Hindalco reduce in large investments (Rs 4.8 bn in financial year 99) in group
companies.

COMPETITORS
Domestic:
Textiles Copper/Aluminum Cement Telecommunication
Reliance Vedant Group Ambuja Bharti Airtel
Raymond ESSAR Unitech Reliance
Mayur Sail Vodafone
TATA Nano BSNL
Interpretation:
 ALCOA Inc.
 ALCAN Inc.
 Russian Aluminum
 NORSK HYDRO

SWOT ANALYSIS OF HINDALCO INDUSTRIES LIMITED
STRENGTHS:
 Strong brand recognition Internet sales
 Growing international sales
 Superior research and development department
 Strong financial returns
 Strong sense of culture in the working environment
 Successful experience being competitive
 Effective leadership
 Cost leadership
WEAKNESS:
 Complexity of operation
 Lengthy processing chain
OPPORTUNITIES:
 Growth of core sector industries
 Rapid integration with global economy
 Booming construction business in asia
 Growing e-commerce’s business

 Increasing urbanization
THREATS:
 Entry of global players
 Take over possibilities
 Political threats
 The impact of foreign currency fluctuation and interest rates
 Loss of sales to substitutes

Hindalco brands:
Hindalco’s brands are well-known for their reliability and superior quality. Hindalco’s brands
have evolved into very successful products over the years and represent the technological
excellence of the company.
Aluminum Extrusions Brands
 Hindalco extrusions
 Maxloader
 Eternia
Aluminum FRP Brands
 Ever last
Aluminum Foil Brands
 Freshwrapp
 Super wrap
CopperProductBrands
 Birla Bal wan

MILESTONES:
2011 – the company successfully achieved financial closure of the Mahan Project with the signing
of Common Rupee Loan Agreement for 7875 crores.
2009 – QIP raised $600 million for projects, the largest straight QIP in India.
2008 – alumina expansion at Muri right issue- raised total of 4426 crs. for re-financing bridge loan
taken for Novelis acquisition. Hindalco Almex Aerospace Ltd. Facility became operational and
produced largest aluminum billet of 42” diameter.
2007 – successful acquisition of Novelis, making Hindalco the largest in aluminum rolling and
among the global top five metal majors, with a presence in 11 countries outside India. Acquisition
Alcan’s 45% equity stake in the Utkal Alumina project, thereby making Hindalco the 100% project
owner.
2006 – Hindalco announces 10:1 stock split. Each share with face value of Rs.10 per share split
into 10 shares of Rs.1 each.
Hindalco completes largest Rights Issue in the history of Indian capital market with total size of
Rs. 22266 million
Equity offering and subsequent listing of Aditya Birla Minerals Ltd. on Australian Stock
Exchange.
Signed an MoU with the Government of Madhya Pradesh for a green field aluminum smelter in
the Siddhi district of the state.
Joint venture with Almex USA for manufacture of high strength aluminum alloy for application
in aerospace, sporting goods and surface transport industries.
2005 – all business of Indal, except for the Kolar Foil Plant in Andhra Pradesh, merged with
Hindalco Industries Ltd.

MoUs signed with state government of Orissa and Jharkhand for setting up of greenfield alumina
refining, smelting and power plants.
2004 – copper smelter expansion to 250000 tpa.
2003 – Hindalco acquires Nifty Copper Mine in March through Aditya Birla Minerals Ltd.
(ABML, formerly Birla Minerals Resources Pvt. Ltd.)
ABML acquires the Mount Gordon copper mines in Nov.
Equity stake in Indal increased to 96.5% through an open offer.
Brownfield expansion of aluminum smelter at Renukoot to345000 tpa.
2002 – the amalgamation of Indo Gulf Corporation Ltd. (Indal) with 74.5% equity holding.
1999 – aluminum alloy wheels commenced at Silvassa.
Brownfield expansion of metal capacity of Renukoot to 242000 tpa.
1998 – Foil plant at Silvassa goes on stream, Hindalco attains ISO 14001 EMS certification.
1995 – Mr. Kumar Mangalam Birla takes over as Chairman of Indal Board.
1991 – beginning of major expansion program.
1967 – commissioning of Renusagar Power Plant.
1965 – downstream capacities commissioned (rolling and extrusion mills at Renukoot).
1962 – commencement of production at Renukoot, U.P. with an initial capacity of 20000 mtpa of
aluminum metal and 40000 mtpa of alumina.
1958 – incorporation of Hindalco Industries Ltd.

Products and services
Hindalco Industries has a number of products to offer in categories like alumina
chemicals, aluminum foil and packaging, primary aluminum, aluminum alloy wheels,
aluminum extrusions, copper products, aluminum rolled products and DAP/NPK
complexes.
In alumina chemicals section Hindalco Industries produces alumina and hydrates. In
primary aluminum section its main offerings are ingots, billets and wire rods. In aluminum
extrusions section major products are rods, channels, flats, round tubes, squares,
rectangular tubes, equal leg angles and square tubes.
In aluminum rolled products section main offerings of Hindalco Industries are building
sheets, foil stock, cable wrap stock, hot rolled plates, circles, lamp cap stock, closure stock,
litho stock, cold rolled coils, pattern sheets, cold rolled sheets, PCB entry sheets and coils,
fin stock, spiral fin stock and flooring sheets and tread plates. There are other products in
this section as well.
Aluminum
Hindalco was among the first few alloy wheels’ companies to have obtained the ISO/TS
16949 certification to meet the stringent standard of the automobile industry. In India,
Hindalco enjoys a leadership position in specialty alumina, primary aluminum and

downstream products. Apart from being a dominant player in the domestic market,
Hindalco's products are well accepted in international markets. Exports account for more
than 30 per cent of total sales.
Hindalco's major products include standard and specialty grade alumina and hydrates,
aluminum ingots, billets, wire rods, flat rolled products, extrusions, foil and alloy wheels
Copper
Birla Copper, a unit of Hindalco is located at Dahej in Gujarat. The unit has the unique
distinction of being the largest copper smelter in the world at a single location with 500,000
TPA capacity with multiple world class technologies. The facilities comprise copper
smelters, precious metals, fertilizers, sulfuric acid, captive power plants, utilities and a
captive jetty.
Hindalco's Birla Copper is a renowned producer of copper cathodes and continuous cast
copper rods since its inception, with ISO-9001:2000 (Quality Management systems), ISO-
14001:2004 (Environmental Management System) OHSAS- 18001:2007 (Occupational
Health and Safety Management Systems) accreditations.
Mines
The two copper mines in Australia were acquired in 2003. Birla Nifty mine consists of an
open-pit mine, heap leach pads and a solvent extraction and electro winning (SXEW)
processing plant, which produces copper cathode. Birla Nifty's copper cathode capacity is

25,000 TPA. Open pit mining was completed in 2006. During FY2008, Nifty produced
5,112 tons of copper cathode.
A copper sulphide deposit is located at the lower levels of the Nifty open pit mine and an
underground mine and concentrator have been developed to mine and process ore from this
deposit. The Nifty Sulphide Operation, commenced ore production from stopping in
December 2005 and concentrate production in March 2006. During FY2008, Nifty
produced 53,397 tons of copper in concentrate.

PRODUCTS IN COMPANY’S PRODUCT LINE
o Alumina Chemicals
Alumina and Hydrates
Minerals.
o Primary Aluminum
Ingots
Wire rods
Billets.
o Aluminum Extrusions
o Aluminum Rolled products
o Aluminum Foil and Packaging
o Aluminum Alloy Wheels
o Copper products
Copper Cathodes
Continuous cast copper rods.
o DAP/NPK Complexes

COMPANIES OF HINDALCO
Novelis Inc:
Acquired by Hindalco in 2007, Novelis is the world leader in rolled aluminum products, delivering
unique solutions for the most demanding global applications, such as beverage cans, automobiles,
architecture and consumer electronics. Our unique material advantage, customer-focused
innovation and unparalleled commitment to sustainability define the Novelis brand.

Aditya Birla Minerals
Aditya Birla Minerals is an Australian mining company with a focus on copper production and
exploration. Based in Perth, West Australia, the company conducts its activities at the Birla Nifty
Copper Operation in the Great Sandy Desert, WA. Aditya Birla Minerals is part of the Aditya Birla
Group and is part owned by Hindalco.

Hindalco-Almex Aerospace:
Hindalco-Almex Aerospace Limited manufactures high-strength aluminum alloys for applications
in the aerospace, sporting goods and surface transport industries. A joint venture between Hindalco
and Almex Aerospace, Hindalco-Almex operates a first-of-its-kind facility in India, which is
exclusively devoted to high-performance aluminum alloys.

BOARD OF DIRECTORS:
S.No Name Designation
1. Mr. Satish Pai Addl. Director & WTD
2. Mr. Kumar Mangalam Birla Chairman
3. Mr. Debnarayan Bhattacharya Managing Director
4. Mr. Rajshree Birla Non-Executive Director
5. Mr. Madhulkar Manilal Bhagat Non-Executive Director
6. Mr. Kailash Nath Bhandari Non-Executive Director
7. Mr. Askaran Agarwala Non-Executive Director
8. Mr. Narendra Jamnadas Jhaveri Non-Executive Director
9. Mr. Ram Charan Non-Executive Director
10. Mr. Jagdish Khattar Non-Executive Director
Key Executives:
S.No. Auditor’s Name Designation
1. Mr. Praveen Kumar Chief financial Officer
2. Mr. Sachin Satpute Chief Managing Officer
3. Mr. Dinesh Kumar Kohly Chief Operating Officer
4. Mr. Vineet Kaul Chief People Officer
5. Mr. Anil Malik Co. Secretary & Compl. Officer
6. Mr. Dilip Kumar Group Executive President
7. Mr. Satish Mohan Bhatia President
8. Mr. Sanjay Sehgal President
9. Mr. Bharat Bhusan Jha Senior President

COMPOSITION OF COMMITEES:
Name of Committee
Name of Committee
members
Category
(Chairperson/Executive/Non-
Executive/Independent/Nominee)
1. Audit Committee
1. Mr. M.M Bhagat
2. Mr. K.N Bhandari
3. Mr. Y.P.
Dandiwala
1. Chairman-Independent- Non Executive
2. Member-Independent- Non Executive
3. Member-Independent- Non Executive
2. Nomination &
Remuneration Committee
1. Mr. M.M Bhagat
2. Mr. Kumar
Mangalam Birla
3. Mr. K.N Bhandari
1. Chairman-Independent- Non Executive
2. Member- Non Executive
3. Member-Independent
3. Risk Management
Committee
1. Mr. A.K Agarwala
2. Mr. Satish Pai
3. Mr. R.K Kasliwal
4. Mr. Anil Mathew
5. Mr. D.
Bhattacharya
1. Chairman-Non Executive
2. Member-Executive
3. Member
4. Member
5. Member-Executive
4. Stakeholders
Relationship Committee
1. Mr. K.N Bhandari
2. Mr. M.M Bhagat
3. Mr. A.K Agarwala
1. Chairman-Independent-Non Executive
2. Member-Independent – Non Executive
3. Member- Non Executive

FINANCIAL ANALYSIS
 Financial Statement Analysis will help business owners and other interested people to
analyze the data in financial statements to provide them with better information about such
key factors for decision making and ultimate business survival.
 Financial Statement Analysis is the collective name for the tools and techniques that are
intended to provide relevant information to the decision makers. The purpose of the FSA
is to assess the financial health and performance of the company. FSA consist of the
comparisons for the same company over the period of time and comparisons of different
companies either in the same industry or in different industries.
 Financial Statement Analysis Purpose:
 To use financial statements to evaluate an organization’s – Financial performance –
Financial position – Prediction of future performance
 To have a means of comparative analysis across time in terms of: – Intracompany basis
(within the company itself) – Intercompany basis (between companies) – Industry
Averages (against that particular industry’s averages).
 To apply analytical tools and techniques to financial statements to obtain useful
information to aid decision making.

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