hindalco industries limited

16
HINDALCO INDUSTRIES LIMITED INTRODUCTION Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group, is an industry leader in aluminium and copper. A metals powerhouse with a consolidated turnover of Rs.600,128 million (US$ 15 billion), Hindalco is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world's largest custom smelter at a single location. Established in 1958, Hindalco commissioned its aluminium facility at Renukoot in Eastern U.P. in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt.Gordon copper mines in Australia, strengthened the company's position in value-added alumina, aluminium and copper products, with vertical integration through access to captive copper concentrates. In 2007, the acquisition of Novelis Inc. a world leader in aluminium rolling and can recycling, marked a significant milestone in the history of the aluminium industry in India. With Novelis under its fold Hindalco ranks among the global top five

Upload: jitendrasangle

Post on 11-Aug-2015

89 views

Category:

Business


2 download

TRANSCRIPT

HINDALCO INDUSTRIES LIMITED

INTRODUCTION

Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group, is an

industry leader in aluminium and copper. A metals powerhouse with a consolidated

turnover of Rs.600,128 million (US$ 15 billion), Hindalco is the world's largest aluminium

rolling company and one of the biggest producers of primary aluminium in Asia. Its copper

smelter is the world's largest custom smelter at a single location.

Established in 1958, Hindalco commissioned its aluminium facility at Renukoot in Eastern

U.P. in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and

Mt.Gordon copper mines in Australia, strengthened the company's position in value-added

alumina, aluminium and copper products, with vertical integration through access to captive

copper concentrates.

In 2007, the acquisition of Novelis Inc. a world leader in aluminium rolling and can

recycling, marked a significant milestone in the history of the aluminium industry in India.

With Novelis under its fold Hindalco ranks among the global top five aluminium majors, as

an integrated producer with low cost alumina and aluminium facilities combined with high-

end rolling capabilities and a global footprint in 12 countries outside India. Its combined

turnover of US$ 15 billion, places it in the Fortune 500 league.

13

HINDALCO INDUSTRIES LIMITED

BOARD OF DIRECTORS

DIRECTORS

Mr. Kumarmangalam Birla , Chairman.

Mrs. Rajashree Birla

Mr. C.M. Maniar

Mr. E.B. Desai

Mr. S.S. Kothari

Mr. M.M. Bhagat

Mr. K.N. Bhandari

Mr. A.K. Agarwal

Mr. N.J. Jhaveri

Mr. Debu Bhattacharya , Managing Director.

CHIEF FINANCIAL OFFICER

Mr. S. Talukdar , Group Executive President and Chief Financial Officer.

COMPANY SECRETARY

Mr. Anil Malik

14

HINDALCO INDUSTRIES LIMITED

Their Vision

To be a premium metals major, global in size and reach, with a passion for excellence.

Their Mission

To relentlessly pursue the creation of superior shareholder

By exceeding customer expectation profitably, unleashing

Employee potential and being a responsible corporate

Citizen adhering to the values.

Their Values

Integrity – honesty in every action.

Commitment – on the foundation of integrity, doing whatever you take to deliver, as

promised.

Passion – missionary zeal arising out of an emotional engagement with work.

Seamlessness – thinking and working together across

functional silos,hierarchy levels , businesses and geographies.

Speed – responding to stakeholders with a sense of urgency.

15

HINDALCO INDUSTRIES LIMITED

Hindalco's business

Hindalco in India enjoys a leadership position in aluminium and copper. The company's

aluminium units across the country encompass the entire gamut of operations from bauxite

mining, alumina refining, aluminium smelting to downstream rolling, extrusions, foils and

alloy wheels, along with captive

power plants and coal mines. The Birla Copper unit produces copper cathodes, continuous

cast copper rods along with other by-products, including gold, silver and DAP fertilisers.

Aluminium

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 speciality

aluminas, primary aluminium 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 speciality grade aluminas and hydrates,

aluminium 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,

16

HINDALCO INDUSTRIES LIMITED

precious metals, fertilisers, 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)

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 electrowinning (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 tonnes 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 stoping in

December 2005 and concentrate production in March 2006. During FY2008, Nifty produced

53,397 tonnes of copper in concentrate.

17

HINDALCO INDUSTRIES LIMITED

HINDALCO PRODUCES:

Hindalco produces high purity ingots through the smelting process. Alloy ingots of various

grades are also produced mainly used for production of castings in Auto Industry as well as

electrical applications. Both these products are re-melted and further processed into a large

number of products for various downstream applications.

Hindalco's metal is a registered brand at London Metal Exchange (LME).

Wire rods

Hindalco manufactures wire rods, in a continuous casting and rolling process.

Electrical Conductor (EC) wire rods are used for the production of cables, ACSR

and AAC conductors. Alloy wire rods are used to produce AAAC conductors.

Billets

Hindalco's aluminium billets are produced by a state-of-the-art Wagstaff casting

process using Airslip technology. These are top quality billets with a smooth

surface finish. Billets are used mainly for producing extrusions and forgings.

Rolled Coils

Hindalco's cold rolled coils are precision-finished to match international standards. They

have good shape, high tolerance, versatility and blemish-free surfaces. They are used in

commercial and general engineering applications such as bus bodies, cladding and fan

blades. The company meets the demands of its ever-growing clientele with continuous

upgrades and process improvement.

18

HINDALCO INDUSTRIES LIMITED

Hindalco's cold rolled coils are precision-finished to match

international standards. They have good shape, high tolerance,

versatility and blemish-free surfaces. They are used in commercial

and general engineering applications such as bus bodies, cladding

and fan blades.The company meets the demands of its ever-

growing clientele with continuous upgrades and process improvement.

Packing

The coils are packed in eye-to-sky or eye- to-wall

position, wrapped in HDPE and hardboard,

strapped with hoop iron and placed on wooden

pallets. Moisture protection is provided by silica gel packets.

19

HINDALCO INDUSTRIES LIMITED

TALOJA PLANT

Taluka : Panvel. M.I.D.C. Area.

The Taloja plant of Hindalco produces Aluminium

plates and aluminium steel. Melting of aluminium

scrap is also done here. Aluminium melts at 650°-700°C.

There are three different sections in which the plant is divided.

1) The recycling plant

2) The remelting plant

3) The main plant.

Production of aluminium plates and aluminum steel is done in these sections.

Hindalco is the largest recycler of aluminium.

Aluminium is used in making pressure cookers, checker plates ,roofing sheet, roll bond

sheet, fan blade, lamp shed etc.

The total area of the plant is 100 acres. The number of labourers in this plant are more than

600.

20

HINDALCO INDUSTRIES LIMITED

MANUFACTURING PROCESS

Aluminium scrap is melted in recycling plant. Aluminium

Melts at 650°-700°C. A furnace is used to melt the aluminium.

The capacity of the recycling plant is 30 tonnes. It is the

Largest recycler of aluminium. The machinery used for melting is

Imported from Japan and U.S.A.

After the melting process is over, the removal of Bauxite layer and Oxide layer is done

by a machine called scalper. Then the incut is heated at the temperature of 500° C in the

soaking pit. Rolling of the aluminium is done here. The cycle time taken in the soaking pit is

ten hours per sheet.

Later it is sent to Hot Mill. Aluminium foil is formed here. The minimum output of the

hot mill is 8 mm. 60 – 65 sheets are formed per day. The temperature of the aluminium foil

is 350°C. after manufacturing.

Soon after the foils are formed, they are bought in Cold Mill. The sheets are made thin

here.Fans and Spray are used in coolants.The sheets are made thin and then rolled.The

thickness then is 1mm.

Then the foils are sent to the Davy Mill.The output of Cold Mill is the input for Davy

mill . Minimum 0.16 mm. thick foils are formed here. The cycle time per foil is ten minutes.

21

HINDALCO INDUSTRIES LIMITED

The foils are then made flexible in a machine called as tension leveller. Litho products are

used in tension leveller to bring flexibility in the sheets. The cycle time in this machinery is

30 minutes. The output of tension leveller is the finished product.

The sheets are then cut as per customer requirements. The cycle time in this process is 45

minutes per foil.

22

HINDALCO INDUSTRIES LIMITED

CONCLUSION

Recognised as one of Asia's largest producers of primary aluminium , Hindalco's foil

packaging solutions strive to serve customers within and beyond the

national frontiers.

With the logistical advantage of being situated close to the

Mumbai port in Western India, the company with a Star Trading

House status has an overall export turnover of USD 595 million

(Rs.26,052 million) and foil products account for around 10 per cent

of total metal product sales.

A proactive and committed workforce, with a strong sales network, ensures

Hindalco's valuable contribution to the continuous improvement of products and

manufacturing processes.

Its high standards and comprehensive quality control measures assure safe and timely

delivery of products. Hindalco has expanded its customer base to more than 30 countries

including Australia, Bahrain, Bangladesh, Chile, Colombia, Egypt, France, Germany,

Ghana, Indonesia, Iran, Japan, Jordan Kenya, Lebanon, Myanmar, Nigeria, Pakistan, Peru,

Philippines, Russia, Saudi Arabia, Sri Lanka, Sudan, Syria, Thailand, Turkey, UAE, UK

and USA.

HINDALCO INDUSTRIES LIMITED

23