1. HINDALCO
Financial Analysis
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2. “To be successful and to be
happy, the golden rule that I
can think is the fact that you
must follow your passion and
do something that’s close to
your heart.”
- Mr. Kumar Mangalam Birla
Chairman
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4. Aluminum Industry is one of the leading industries in the
Indian economy. Its main operations are mining of ores,
refining of the ore, casting, alloying, making into sheet, and
rolling into foils.
At present, Hindalco is the major producer of aluminum in
the world. Aluminum industry, which is highly capital
intensive and scale sensitive, depends on two major cost
components viz. alumina and power.
The manufacturing of 1 MT aluminium requires twice as
much alumina & alumina requires 2-3MT bauxite. Thus all
the companies are situated near bauxite concentrated area
as its most essential component.
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5. Hindalco Industries has a number of products to offer in
categories like alumina chemicals, aluminium foil and
packaging, primary aluminium, aluminium alloy
wheels, aluminium extrusions, copper products, aluminum
rolled products.
Hindalco was among the first few alloy wheels companies
to have obtained the ISO certification to meet the
stringent standard of the automobile industry.
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.
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6. Hindalco enjoyed monopoly over aluminium markets in
India for more than three decades before Indian markets
were opened up.
Even though this liberalisation exposed the company to
competition at global level, Hindalco Limited 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 pillars of Hindalco's strategy.
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7. Locations where Hindalco is
operational
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8. Foreign Acquisitions
In May 2007, Novelis became a Hindalco subsidiary
with the completion of the acquisition process for $6
billion. The transaction made Hindalco the world’s largest
aluminium rolling company and one of the biggest
producers of primary aluminium in Asia, as well as being
India’s leading copper producer.
Novelis is the world’s largest producer of rolled
aluminium sheet, with operations spanning 11 countries
and with nearly 11,000 employees.
The company serves customers in sectors including
beverage cans, automotive, consumer
electronics, construction, foil and packaging. Some of its
clients are Coca-Cola, Audi, BMW, GM, etc.
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9. Financial Performance
The FY 13 was one of the toughest years for non-ferrous
metal industry. Globally Aluminum prices continued to
remain depressed, plagued with overcapacity, inventory
overhang to add to the weak sentiments for the
commodities.
In the Indian context, slowdown in manufacturing sector
and power sector impacted demand in a low pricing (LME)
scenario, the cost continued to remain high, primarily
driven by high crude prices.
While the prices of crude and its derivatives continued to
remain globally high, depreciating rupee resulted in an
additional burden. The coal prices continued to increase in
India, even as the Global coal prices cooled off.
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10. Dividends
For the year ended 31st March, 2013, the Board of
Directors of the Company have recommended
dividend of ₹ 1.40 per
share to equity shareholders
aggregating to ₹ 313.60
crore including Dividend
Distribution Tax of ₹ 45.56
crore.
For the year ended 31st March, 2012 Company
declared ₹1.55 per share to equity shareholders
aggregating to ₹344.89
crore including Dividend
Distribution Tax of ₹ 48.18
crores.
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11. Board of Directors
Non Executive Directors
• Mr. Kumar Mangalam
Birla, Chairman
• Mrs. Rajashree Birla
• Mr. Chaitan Manbhai
Maniars
• Mr. Madhukar Manilal
Bhagat
• Mr. Kailash Nath
Bhandari
• Mr. Askaran Agarwala
• Mr. Narendra Jamnadas
Jhaveri
• Mr. Ram Charan
• Mr. Jagdish Khattar
• Mr. Meleveetil
Damodaran
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12. Board of Directors
EXECUTIVE & MANAGING
DIRECTOR
• Mr. Debnarayan
Bhattacharya
CHIEF FINANCIAL OFFICER
• Mr. Praveen Kumar
Maheshwari
COMPANY SECRETARY
• Mr. Anil Malik
AUDITORS
• Singhi & Co., Kolkata
COST AUDITOR
• R.Nanabhoy & Co.,Mumbai
NOVELIS Inc.
• Mr. Debnarayan
Bhattacharya, Vice
Chairman
• Mr. Philip
Martens, President & CEO
CORPORATE
• Mr. Bharat Bhushan Jha
Senior President
(Corporate Projects &
Procurement)
• Mr. Vineet Kaul,
(Chief People Officer)
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13. Changes in Board of Directors
In accordance with Article 146 of the Articles of
Association of the Company, Mr. Kumar Mangalam
Birla, Mr. Askaran Agarwala retire from office by rotation
and are eligible for reappointment.
Mr. Jagdish Khattar was appointed as a Director in casual
vacancy caused due to demise of Mr. E.B. Desai and holds
office upto the forthcoming Annual General Meeting, and
is eligible for reappointment.
The term of appointment of Mr. D. Bhattacharya as
Managing Director expired on 30th September, 2013. This
as well will be discussed in ensuing Annual General
Meeting.
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14. Coal Allocation Scam or Coalgate
• It is a political scandal concerning government’s
allocation of nation’s coal deposit and private
companies.
• The CAG ‘s argument is that the government had the
authority to allocate coal blocks by a process
competitive bidding but chose not to which resulted
into loss ₹ 185591
crores.
• This was tabled in Parliament on 27th August 2012.
• Mr K. M. Birla has been charged with conspiracy and
cheating to land two coal blocks in Orissa for Hindalco.
• P. C. Parekh, then coal secretary, has been accused of
corruption in distribution of coal license.
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15. Awards and Recognition
• Renukoot Complex wins Greentech Safety Gold Award2012 in the Mining & Metals category, for exemplary
efforts towards Occupational Health and Safety,
presented by Greentech Foundation, New Delhi.
• 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.
• Hirakud Quality Circle won the Best Analysis & Process
Award at the 17th All Odisha Quality Circle Convention.
• The Quality Circles from Renukoot earned Six Gold
Medals and one Silver Medal at the Kanpur Chapter
Convention.
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16. Aditya Birla Minerals Limited
• The Company’s copper production extended by 16%
mainly on account of restart of Mt Gordon mine. Sales
volume is up by 14% compared to the previous year.
The revenue in value terms was sustained. Profitability
was adversely affected given lower realisation of
copper compared to the previous year and higher
average unit cost of production, because of higher
volume from Mt Gordon operations at higher cost.
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