Hindustan
Aluminium Company Ltd (HINDALCO)
Background
Hindalco Industries limited, part of the Aditya Birla Group, was
established in 1958. It commenced operations in 1962 with an aluminium facility
at Renukoot and a power plant at Renusagar in 1967. Later acquisitions and
mergers with Indal, Birla Copper and the Nifty and Mt.Gordon copper mines in Australia
In 2007, Hindalco acquired Alcan's 45 per cent equity stake in the Utkal
Alumina project, thus taking its stake in the company to 100 per cent. Earlier
the company had entered into a joint venture with Alcan to form Utkal Alumina
International Limited to set up an alumina refinery in Orissa to produce
1.0-1.5 million tonnes per annum (mtpa) of alumina.
Hindalco Industries (Hindalco or the company), the metals flagship company of the Aditya Birla Group, is engaged in the production of aluminum and copper. The company has operations in 13 countries and serves customers in more than 50 countries. It is headquartered in Mumbai, India and
employs over 19,300 people. The company recorded net sales and operating revenues of INR720,778.7 million ($15,806.7 million) during the financial year ended March 2011 (FY2011), an increase of 18.7% over FY2010. The operating profit of the company was INR47,892.2 million ($1,050.3 million) during FY2011, a decrease of 14.2% compared to FY2010. The net profit was INR24,563.7 million ($538.7 million) in FY2011, a decrease of 37.4% compared to FY2010. Note: Operating profit has been calculated by deducting the following expenditures from the net sales and operating revenues as mentioned in the company’s “Consolidated Profit and Loss Account” for FY2011: trade purchases; manufacturing and other expenses; and depreciation and impairment.
employs over 19,300 people. The company recorded net sales and operating revenues of INR720,778.7 million ($15,806.7 million) during the financial year ended March 2011 (FY2011), an increase of 18.7% over FY2010. The operating profit of the company was INR47,892.2 million ($1,050.3 million) during FY2011, a decrease of 14.2% compared to FY2010. The net profit was INR24,563.7 million ($538.7 million) in FY2011, a decrease of 37.4% compared to FY2010. Note: Operating profit has been calculated by deducting the following expenditures from the net sales and operating revenues as mentioned in the company’s “Consolidated Profit and Loss Account” for FY2011: trade purchases; manufacturing and other expenses; and depreciation and impairment.
Plant location and capacity details
It is an integrated aluminium manufacturer, with a capacity to produce
471,000 tpa of aluminium and 1,160,000 tpa of alumina. Its bauxite mines are
located at Chandgad, Durgmanwadi and Lohardaga and generates power from its
plants at Hirakud and Renusagar. Its alumina refineries are located at Belgaun,
Muri and Renukoot while its smelters are located at Hirakud and Renukoot.
Business mix
Hindalco, the flagship company of the Aditya Birla group, derives its
business from two main segments -aluminium and copper. In 2008-09, the company
derived 60 per cent of its revenues from copper and 37 per cent from aluminium.
However, the contribution from the aluminium segment to the company's PBIT was
much higher than that of copper segments due to better realisation in the
segment. The company's aluminium division manufactures a gamut of products such
as alumina, primary metal, rolled products, extruded products, aluminium foils
and aluminium wheels.
Market position
Hindalco is a market leader in aluminium products and aluminium foils.
In 2008-09, the company's market share was 39.5 per cent in the domestic
primary aluminium market. The company also has a strong market position in the
downstream segment.
