PROJECT REPORT ON DITRIBUTION CHANNEL OF HINDALCO

A Comprehensive Study of HINDALCO INDUSTRIES LTD. RENUKOOT

IN THE PARTIAL FULFILLMENT OF REQUIRMENT FOR THE AWARD OF DEGREE IN MBA (MASTER OF BUSINESS & ADMINISTRATION)

Submitted By Prof-Mr Sandeep Sharma

Submitted TO Vibhav Tripathi

Roll no.1115270136

Faculty Of MIMT

MBA IVSEM

Mangalmay Institute Of Management and

Technology Grater Noida

ACKNOWLEDGEMENT
My heartfelt thanks to Hindalco Industries Ltd. of Aditya Birla Group, for giving me an opportunity to learn and complete dissertation work. I thank Hindalco Industries Ltd. from the bottom of my heart for giving me a valuable chance to be associated with it. I extend my sincere thanks to Mr. Sandeep Sharma, Faculty Guide, MIMT, Greater Noida for his valuable guidance and support at all time. I am thankful to Mr. Rahul Goel, Director, MIMT, Greater Noida for his able guidance and support at all time. I feel honored to have him as guide throughout my project & always be grateful for his affection and respect. I am very much indebted for his continuous support and guidance. I am thankful to for sparing time for me out of their hectic schedule &

giving me insights on various issues.

PREFACE
The report is hard intends to reflect some of the covered under the DISTRIBUTION CHANNEL OF HINDALCO, a first truly MNC of India. The total aspects have been formulated and Presented on basis of the ideas and information gathered by this investigation during a shorter span of project training i.e. an important portion of the MBA curriculum leading to an opportunity for the participant to have a practical exposure of the contents under the topic beyond what has already been studies during the class-room interaction. This report has been written in response to a comprehensive study, conducted the DISTRIBUTION CHANNEL OF HINDALCO INDUSTRIES LIMITED The report mentions and evaluates the various aspects, pertaining to the distribution channel of the company. After a through analysis of the various facts stand figures a set of recommendations has been given at the end of the report. Accuracy and precision has been given the prime consideration, while compiling the report, are the authoritative and authentic. We are confident that anyone who goes through the report will learn how much we have learn & benefited this period. At last I would like to thank my institute and hindalco for its full support in preparing this report.

CONTENTS
1- INTRODUCTION 1. 2. 3. 4. 5. 6. Companys Profile Vision And Mission Milestone Management Committee Imprints In Time Corporate Social Responsibility

2- ADITYA BIRLA GROUP PROFILE 3- GROUP COMPANIES 4- HINDALCO GROUP COMPANIES 5- PRODUCT OF HINDALCO 6- USE OF ALUMINIUM PRODUCTS 7- HINDALCO BUSINESS 8- DISTRIBUTION CHANNEL OF HINDALCO 9- RESEARCH METHODOLOGY 101112131415MARKETING STRATEGY MARKET SEGMENTATION OF HINDALCO DISTRIBUTION PROCESS OF HINDALCO FINDING & RECOMMENDATIONS CONCLUSION BIBLOGRAPhY

ADITYA BIRLA GROUP

A US$ 29 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of 130,000 employees, belonging to 30 different nationalities. In the year 2009, the Group was ranked among the top six great places for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates, RBL Group and Fortune magazine. In India, the Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 60 per cent of the Group's revenues flow from its overseas operations. The Group operates in 25 countries India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea.

GLOBALLY, THE ADITYA BIRLA GROUP IS:

The world's largest aluminium rolling company World leader in viscose staple fibre One of the biggest producers of primary aluminium in Asia Largest cement producer in India and tenth-largest in the world Fourth-largest producer of carbon black in the world Fourth-largest producer of insulators in the world World's fifth-largest producer of acrylic fibre

In India: :: Largest cement producer :: Largest premium, branded apparel company :: The second-largest producer of viscose filament yarn :: The second-largest in the chlor-alkali sector :: Among the top five cellular operators :: Among top 10 Indian BPO companies by revenue size :: Among the top five asset management and private sector life insurance companies :: Among the top three supermarket chains in the retail business Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting.

HINDALCO INDUSTRIES LTD.

AN INDUSTRY LEADER IN ALUMINUM AND COPPER: An industry leader in aluminum and copper, Hindalco Industries Limited, the metals flagshipcompany of the Aditya Birla Group is one of the world's largest aluminum rolling companies and one of the biggest producers of primary aluminium in Asia. Established in 1958, we commissioned our aluminium facility at Renukoot in eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our position in value-added alumina, aluminium and copper products. The acquisition of Novelis Inc. in 2007 positioned us among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India. Today we are a metals powerhouse with high-end rolling capabilities and a global footprint in 12 countries. Our consolidated turnover of USD 15 billion (Rs. 600,128 million) places us in the Fortune 500 league.

HINDALCO'S BUSINESSES CREATING SUPERIOR VALUE

Hindalco is one of the leading producers of aluminium and copper. Our aluminium units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines. Our copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers. Our copper smelter holds the unique distinction of being among the world's largest single-location custom smelters. Our units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. We have been accorded the Star Trading House status in India. Hindalco's aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the London Metal Exchange (LME). Our copper quality standards are also internationally recognised and registered on the LME with Grade A accreditation.

Aluminium Hindalco is Asia's largest integrated primary producer of aluminium and among the most cost-efficient producers globally. Our aluminium units across India encompass the entire gamut of operations, from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions and recycling. In India, we enjoy a leadership position in aluminium and downstream products. Our product range includes rolled products, extrusions, foils, primary aluminium ingots, billets, wire rods and aluminium slabs. Hindalco metal is accepted under the high-grade aluminium contract on the London Metal Exchange (LME) as a registered brand. We have also been accorded the Star Trading House status in India. Hindalcos integrated complex at Renukoot , in Uttar Pradesh, India, houses an alumina refinery, an aluminium smelter and facilities for the production of semi-fabricated products. Power is sourced from our Renusagar power plant, located about 45 km from Renukoot. The captive power plant located at Renusagar, Uttar Pradesh, with 10 powergenerating units, has a current generation capacity of 742 MW. Excellent operational standards have ensured a consistent plant load factor of over 90 per cent. The integrated complex at Renukoot also houses a co-generation plant with a capacity of 37.5 MW. A new co-generation plant with a capacity of 41 MW has just been commissioned to meet the requirements of the enhanced postexpansion capacities. Other facilities include an aluminium smelter at Hirakud (Odisha) with a captive power plant and coal mine, alumina refineries at Muri (Jharkhand), and Belgaum (Karnataka), and rolling mills at Belur (West Bengal), and Taloja, Mouda (Maharashtra), foil rolling at Kalwa (Maharashtra) and

Silvassa (Union Territory of Dadra and Nagar Haveli) and an extrusions plant at Alupuram (Kerala). A strong presence across the value chain and synergies in operations has given Hindalco a dominant share of the domestic value-added products market. In India, the company enjoys a leadership position in speciality aluminas and hydrates as well as in primary aluminium and downstream semi-fabricated products. As a step towards building the market for value-added products and services, we have launched several brands in recent years, namely, Freshwrapp aluminium foil, Everlast aluminium roofing sheets, Permashield aluminium waterproofing membrane sheeting, and Al Planet, an exhibition showcasing aluminium products for the construction industry. 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. Hindalco's major products include standard and speciality grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil. The integrated facility at Renukoot houses an alumina refinery and an aluminium smelter, along with facilities for the production of semifabricated products, namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation power unit and a captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations. A strong presence across the value chain and synergies between operations has given us a dominant share in the value-added products market. As a step towards expanding the market for value-added products and services, we have launched various brands in recent years Everlast roofing sheets, Freshwrapp kitchen foil and Freshpakk semi-rigid containers. Copper Hindalco's copper division, with its integrated facility at Dahej in the Bharuch district of Gujarat, enjoys a leadership position in India. The unit

has the unique distinction of being the largest copper smelter in the world at a single location with a 500,000 tpa capacity with multiple world class technologies. The facilities comprise copper smelters, captive power plants, utilities and a captive jetty. The company's copper product range includes copper cathodes and continuous cast copper rods. Birla Copper also produces precious metals, sulphuric acid, phosphoric acid, di-ammonium phospate (DAP) and other phosphoric fertilisers, and phospho gypsum Birla Copper, Hindalcos copper unit, is located at Dahej in Gujarat, India. The unit has the unique distinction of being one of the largest single-location copper smelters in the world. The smelter uses state-of-the-art technology and has a capacity of 500,000 tpa. Birla Copper also produces precious metals, fertilisers and sulphuric and phosphoric acid. The unit has captive power plants for continuous power generation and a captive jetty to facilitate logistics and transportation. Birla Copper upholds its longstanding reputation for quality copper cathodes and continuous cast copper rods by assuring its management processes meet the highest standards. It has acquired certifications such as ISO-9001:2000 (Quality Management Systems), ISO-14001:2004 (Environmental Management System) and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).

Copper cathodes
Hindalco's copper cathodes branded as Birla Copper and Birla Copper II are known for high purity and consistent quality. These are largely used in the manufacture of continuous copper rods for the wire, cable and transformer industries, and copper tubes for consumer durable goods, such as air conditioning and refrigeration, as also other applications in the form of alloys and sheets. Copper alloys such as brass, bronze, cupro-nickel, etc., find application in diverse areas such as defence, mint, construction and the electrical industry The Birla Copper laboratory has been accredited by NABL (National Accreditation Board for Testing and Calibration Laboratories) in accordance with the standard ISO/IEC 17025:1999.

Birla Copper Cathodes are square shaped, with 99.99 per cent copper purity levels, produced using the Mount ISA electro-refining process. They meet the international quality standards BS 6017 1981 (1989) and u-Cath-1 / ASTM B-115 (1999) and are registered as LME A Grade. They are high grade and boast the lowest levels of various group and individual impurities

Mines
Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003. The Birla Nifty copper mine consists of an open-pit mine, heap leach pads and a solvent extraction and electrowinning (SXEW) processing plant, which produces copper cathode. The Mt. Gordon copper operation consists of an underground mine and a copper concentrate plant. Until recently, the operation produced copper cathode through the ferric leach process. In 2004, a copper concentrator was commissioned to provide concentrate for use at Hindalco's operations in Dahej. During FY2008, Mt. Gordon produced 23,886 tonnes of copper in cathode/concentrate. Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement with Hindalco for supply of copper concentrate to the copper smelter at Dahej. Cornerstones of growth Our well-crafted growth and integration hinges on the three cornerstones of cost competitiveness, quality and global reach. We are also committed to the triple bottom line accountability of economic, environment and social factors. Care for the community around our operating units is best exemplified by our deep-rooted social commitment.

KEY COMPANYS:
Company Grasim :: UltraTech Cement Ltd* :: Samruddhi Cement Products / services cement, viscose staple fibre, rayon grade pulp, ready mix concrete, chemicals, textiles cement, ready mix concrete Cement

Hindalco :: Novelis Inc.* :: :: :: :: :: Aditya Birla Minerals Limited* Aditya Birla Chemicals (India) Limited* Hindalco-Almex Aerospace Limited** Utkal Alumina International Limited* Dahej Harbour & Infrastructure Limited*

:: Aditya Birla Science and Technology Company Limited :: Tubed Coal Mines Limited* :: Mahan Coal Limited** Aditya Birla Nuvo :: Birla Sun Life Insurance Company Limited ** :: Birla Sun Life Asset Management Company Limited. :: Aditya Birla Finance Limited * :: Aditya Birla Money Mart Limited.* :: Aditya Birla Money Limited * :: Birla Insurance Advisory & Broking Services Ltd :: Aditya Birla Capital Advisors Private Limited (ABCAP)* :: Idea Cellular Ltd. :: Aditya Birla Minacs Worldwide Limited* :: Madura Garments Life Style Retail Company Ltd * :: Peter England Fashions and Retail Ltd * Essel Mining & Industries Ltd Aditya Birla Retail Limited

aluminium, copper aluminium rolled products, cans, primary metal, recycling Australia - copper mines caustic soda aerospace alloy Alumina Handling of captive cargo (copper unit) and commercial cargo R&D Mining Mining branded garments, viscose filament yarn, carbon black, agribusiness, insulators, textiles life insurance asset management non banking financial services distribution and wealth management Broking general insurance advisory and broking private equity investment, advisory and management services cellular services IT-ITeS branded apparel retail apparel retail iron ore mining, noble ferro alloys, and wind power generation FMCG products, fruits, vegetables, groceries, frozen food, bakery, homecare and pharmacy

COMPANYS KEY PRODUCTS:

Company Companies in India Grasim Industries Limited UltraTech Cement Limited* Hindalco Industries Limited Novelis Inc.* Key products Cement, viscose staple fibre, rayon grade pulp, ready mix concrete, chemicals, textiles Cement, ready mix concrete Aluminium, copper Aluminium rolled products, cans, primary metal,

Aditya Birla Minerals Limited* Aditya Birla Chemicals (India) Limited* Hindalco-Almex Aerospace Limited** Utkal Alumina International Limited* Dahej Harbour & Infrastructure Limited* Aditya Birla Science and Technology Company Limited Tubed Coal Mines Limited* Mahan Coal Limited** Aditya Birla Nuvo Limited Birla Sun Life Insurance Company Limited** Birla Sun Life Asset Management Company Limited** Aditya Birla Finance Limited* Aditya Birla Money Mart Limited* Aditya Birla Money Limited* Birla Insurance Advisory and Broking Services Limited* Aditya Birla Capital Advisors Private Limited* Idea Cellular Limited** Aditya Birla Minacs Worldwide Limited* Madura Garments Life Style Retail Company Limited* Essel Mining Aditya Birla Retail Limited Joint ventures Birla Sun Life Joint Ventures Tanfac Industries Aditya Birla Grasun Chemicals (Fangchenggang) Limited Thai Peroxide Company Limited Hindalco Almex Aerospace Limited Mahan Coal Limited Hydromine Companies overseas Novelis Inc.

recycling Australia copper mines Caustic soda Aerospace alloy Alumina Handling of captive cargo (copper unit) and commercial cargo R&D Mining Mining Branded garments, viscose filament yarn, carbon black, agribusiness, insulators, textiles Life insurance Asset management Non-banking financial services Distribution and wealth management Broking General insurance advisory and broking Private equity investment, advisory and management services Cellular services IT-ITeS Branded apparel retailing Iron ore mining, noble ferro alloys and wind power generation FMCG products, fruits, vegetables, groceries, frozen food, bakery, homecare and pharmacy Financial services Fluorine chemicals Food grade phosphoric acid Hydrogen peroxide Aerospace alloys Mining Bauxite / alumina Aluminium flat rolled products (sheet and foil) and recycling. Also bauxite mining, power generation and

aluminium smelting Thai Rayon Indo Thai Synthetics Thai Acrylic Fibre Thai Carbon Black Aditya Birla Chemicals (Thailand) Limited Viscose staple fibre (VSF) Spun yarns of 100 per cent rayon, PES and blends Acrylic fibre Carbon black Chlor-alkali products, epichlorohydrin, epoxy resins, sodium phosphates, speciality phosphates, sodium sulphite, sodium metabisulphite Hydrogen peroxide Pulp wood plantations and dissolving pulp plant Yarns Yarns Yarns Fatty alcohols, fatty acids, glycerine VSF Yarns Yarns Yarns Carbon di-sulphide Trans-national bulk commodity trading solutions provider Carbon black Acrylic fibre Carbon black VSF Food grade phosphoric acid Softwood/hardwood dissolving grade pulp (for VSF manufacture) Hardwood dissolving grade pulp (for VSF manufacture) Copper mines

Thai Peroxide Birla Lao Pulp and Plantations Company Limited Indo Phil Textile Mills Indo Phil Cotton Mills Indo Phil Acrylic Mfg. Corp. Pan Century Surfactants PT Indo Bharat Rayon PT Elegant Textile Industry PT Sunrise Bumi Textiles PT Indo Liberty Textiles PT Indo Raya Kimia Swiss Singapore Overseas Enterprises Pte Limited Alexandria Carbon Black Alexandria Fiber Liaoning Birla Carbon Co. Limited Birla Jingwei Fibres Co. Limited Aditya Birla Grasun (Fangchenggang) Limited AV Cell Inc. AV Nackawic Inc. Aditya Birla Minerals Limited

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.60,000 crore (US$ 13 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 around US$ 13 billion, places it in the Fortune 500 league.
For further information, go to www.hindalco.com

Our vision
To be a premium metals major, global in size and reach, excelling in everything we do, and creating value for its stakeholders

Our mission
To relentlessly pursue the creation of superior shareholder value, by exceeding customer expectation profitably, unleashing employee potential, while being a responsible corporate citizen, adhering to our values.

Our values Path to excellence

Honesty in every action.

On the foundation of integrity, doing whatever it takes to deliver, as promised.

Missionary zeal arising out of an emotional engagement with work.

Thinking and working together across functional silos, hierarchy levels, businesses and geographies. Responding to

stakeholders with a sense of urgency.

CORE PRODUCT:

ALUMINIUM

Hindalco is Asia's largest integrated primary producer of aluminium and among the most cost-efficient producers globally. Our aluminium units across India encompass the entire gamut of operations, from bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions and recycling.

In India, we enjoy a leadership position in aluminium and downstream products. Our product range includes rolled products, extrusions, foils, primary aluminium ingots, billets, wire rods and aluminium slabs. Hindalco metal is accepted under the high-grade aluminium contract on the London Metal Exchange (LME) as a registered brand. We have also been accorded the Star Trading House status in India. Hindalcos integrated complex at Renukoot , in Uttar Pradesh, India, houses an alumina refinery, an aluminium smelter and facilities for the production of semi-fabricated products. Power is sourced from our Renusagar power plant, located about 45 km from Renukoot. The captive power plant located at Renusagar, Uttar Pradesh, with 10 powergenerating units, has a current generation capacity of 742 MW. Excellent operational standards have ensured a consistent plant load factor of over 90 per cent. The integrated complex at Renukoot also houses a co-generation plant with a capacity of 37.5 MW. A new co-generation plant with a capacity of 41 MW has just been commissioned to meet the requirements of the enhanced postexpansion capacities. Other facilities include an aluminium smelter at Hirakud (Odisha) with a captive power plant and coal mine, alumina refineries at Muri (Jharkhand), and Belgaum (Karnataka), and rolling mills at Belur (West Bengal), and Taloja, Mouda (Maharashtra), foil rolling at Kalwa (Maharashtra) and Silvassa (Union Territory of Dadra and Nagar Haveli) and an extrusions plant at Alupuram (Kerala). A strong presence across the value chain and synergies in operations has given Hindalco a dominant share of the domestic value-added products market. In India, the company enjoys a leadership position in speciality aluminas and hydrates as well as in primary aluminium and downstream semi-fabricated products. As a step towards building the market for value-added products and services, we have launched several brands in recent years, namely, Freshwrapp aluminium foil, Everlast aluminium roofing sheets, Permashield aluminium

waterproofing membrane sheeting, and Al Planet, an exhibition showcasing aluminium products for the construction industry. 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. Hindalco's major products include standard and speciality grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil. The integrated facility at Renukoot houses an alumina refinery and an aluminium smelter, along with facilities for the production of semifabricated products, namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation power unit and a captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations. A strong presence across the value chain and synergies between operations has given us a dominant share in the value-added products market. As a step towards expanding the market for value-added products and services, we have launched various brands in recent years Everlast roofing sheets, Freshwrapp kitchen foil and Freshpakk semi-rigid containers.

COPPER

Hindalco's copper division, with its integrated facility at Dahej in the Bharuch district of Gujarat, enjoys a leadership position in India. The unit has the unique distinction of being the largest copper smelter in the world at a single location with a 500,000 tpa capacity with multiple world class technologies. The facilities comprise copper smelters, captive power plants, utilities and a captive jetty. The company's copper product range includes

copper cathodes and continuous cast copper rods. Birla Copper also produces precious metals, sulphuric acid, phosphoric acid, di-ammonium phospate (DAP) and other phosphoric fertilisers, and phospho gypsum Birla Copper, Hindalcos copper unit, is located at Dahej in Gujarat, India. The unit has the unique distinction of being one of the largest single-location copper smelters in the world. The smelter uses state-of-the-art technology and has a capacity of 500,000 tpa. Birla Copper also produces precious metals, fertilisers and sulphuric and phosphoric acid. The unit has captive power plants for continuous power generation and a captive jetty to facilitate logistics and transportation. Birla Copper upholds its longstanding reputation for quality copper cathodes and continuous cast copper rods by assuring its management processes meet the highest standards. It has acquired certifications such as ISO-9001:2000 (Quality Management Systems), ISO-14001:2004 (Environmental Management System) and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).

Copper cathodes
Hindalco's copper cathodes branded as Birla Copper and Birla Copper II are known for high purity and consistent quality. These are largely used in the manufacture of continuous copper rods for the wire, cable and transformer industries, and copper tubes for consumer durable goods, such as air conditioning and refrigeration, as also other applications in the form of alloys and sheets. Copper alloys such as brass, bronze, cupro-nickel, etc., find application in diverse areas such as defence, mint, construction and the electrical industry The Birla Copper laboratory has been accredited by NABL (National Accreditation Board for Testing and Calibration Laboratories) in accordance with the standard ISO/IEC 17025:1999.

Birla Copper Cathodes are square shaped, with 99.99 per cent copper purity levels, produced using the Mount ISA electro-refining process. They meet the international quality standards BS 6017 1981 (1989) and u-Cath-1 / ASTM B-115 (1999) and are registered as LME A Grade. They are high grade and boast the lowest levels of various group and individual impurities

MINES

Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003. The Birla Nifty copper mine consists of an open-pit mine, heap leach pads and a solvent extraction and electrowinning (SXEW) processing plant, which produces copper cathode. The Mt. Gordon copper operation consists of an underground mine and a copper concentrate plant. Until recently, the operation produced copper cathode through the ferric leach process. In 2004, a copper concentrator was commissioned to provide concentrate for use at Hindalco's operations in Dahej. During FY2008, Mt. Gordon produced 23,886 tonnes of copper in cathode/concentrate. Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement with Hindalco for supply of copper concentrate to the copper smelter at Dahej. Cornerstones of growth Our well-crafted growth and integration hinges on the three cornerstones of cost competitiveness, quality and global reach. We are also committed to the triple bottom line accountability of economic, environment and social factors. Care for the community around our operating units is best exemplified by our deep-rooted social commitment.

MILESTONE
Over the years, Hindalco has grown into the largest vertically integrated aluminium company in the country and among the largest primary producers of aluminium in Asia. Its copper smelter is today the worlds largest custom smelter at a single location. Hindalcos journey has been challenging at times, but truly exhilarating. In 2009:QIP-raised USD 600 million for projects, the largest straight QIP in India In 2008:Hindalco Almex Aerospace Limited (HAAL) facility became operational an produced largest aluminium billet of 42 diameter In 2007:-

In May 2007, Novelis became a Hindalco subsidiary with the completion of the acquisition process. The transaction makes Hindalco the worlds largest aluminium rolling company and one of the biggest producer of primary aluminium in Asia as well as being Indias Leading copper producer. In 2006:Joint venture with Almex USA for manufacturing of high strength aluminium alloys for applications in aerospace, sporting goods and surface transport Signed an MoU with the government of Madhya Pradesh for a Greenfield aluminium smelter in Siddhi. Hindalco completes the largest rights issues in the history of Indian Capital markets with a total size of Rs. 22,266 million. Hindalco announces 10:1 stock split. Each share with face value of Rs 10 split into 10 shares of Rs 1 each. In May 2006, enters into a joint venture with Essar Power (M.P.) Ltd. to develop and operate coal mines at Mahan, Madhya Pradesh. The JV will suplly coal to the proposed aluminium smelter and power complex in Madhya Pradesh. In May 2006, the companys copper mining subsidiary, Aditya Birla Minerals Ltd (formerly Birla Mineral Resources Pvt. Ltd.) came out with an equity offering and subsequent listing on the Australian Stock Exchange (ASX). In March 2006, acquired an aluminium rolling mill and wire rods facility situated at Mouda (Nagpur), from Asset Reconstruction Company (India) Ltd (ARCIL), belonging to Pennar Aluminium Company Ltd. In 2005:All business of Indal, except for the Kollur Foil Plant in Andhra Pradesh, merged with Hindalco Industries Ltd. In September 2005, the company split its shares in a ratio of 10:1 to enhance liquidity and encourage participation from retail investors.

Aditya Birla Group to set up a world-class aluminium project in Orissa at a project cost of about Rs 11,000 crore. MoUs signed with state government of Orissa and Jharkhand for setting up greenflied alumina refining, smelting and power plants. Commissioned Copper III expansion, taking total capacity to 500,000 tpa. In 2004:Scheme of arrangement announced to merge Indal with Hindalco. Copper smelter expansion to 250,000tpa. In 2001:Hindalco enters The Asia top 25 list of the CFO Asia Annual Report Survey, the only Indian company in 2001.

In 2000:Acquisition of controlling stake in Indian Aluminium Company Ltd. (Indal) with 74.6 per cent equity holding.

In 1999:Aluminium alloy wheels production commenced in Silvassa. Brownfield expansion of metal capacity at Renukoot to 242,000 tpa. In 1998:Mr. Kumar Mangalam Birla takes over as Chairman of Indal Board. In 1994:A huge expansion, modernization and diversification programme takes off. In 1991:-

Beginning of major expansion programme. In 1964:Commissioning of Renusagra Power Planta strategic and farsighted move. In 1965:Downstream capacity commissioned (Rolling and extrusion mills at Renukoot). In 1962:Commencement of production at Renukoot (Utter Pradesh, India) with an initial capacity of 20,000 mtpa of aluminium metal and 40,000 mtpa of alumina. In 1958:Incorporation of Hindalco Industries Ltd.

MANAGEMENT COMMITTEE
Hindalcos management team consists of experienced individuals with strong credentials. Board of Directors Mr. Kumar Mangalam 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. Agarwala Mr. N. J. Jhaveri Mr. Debu Bhattacharya, Managing Director

Group Executive President and Chief Financial Officer Mr. S. Talukdar Company Secretary Mr. Anil Malik Chief People Officer Mr. Vineet Kaul

Business / Unit Head Mr. Dilip Gaur, Group Executive President, Copper Mr. Shashi K. Maudgal, Chief Marketing Officer, Aluminium Mr. Satish M Bhatia, President, Foil and Wheel Mr. R. S. Dhulkhed, Senior President, Operations Mr. Vinod Sood, Joint President, Chemicals & Intl. Trade Mr. D. K. Kohly, Chief Officer Operations, Renukoot Unit

Aditya Aluminium Mr. S. N. Bontha, CEO Utkal Alumina International Ltd Mr. Suryakant Mishra, CEO Novelis Inc. Mr. Philip Martens, President and Chief Operating Officer Aditya Birla Minerals Limited Mr. D. Bhattacharya, Chairman Mr. Sunil Kulwal, CEO and MD Mr. Peter Torre, Company Secretary

IMPRINTS IN TIME
Emergence of metals major: The beginning of a chronicle 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 of innovation 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. G.D. 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 by expansion through mergers and acquisitions with companies such as Indal and Birla Copper. Hindalco also secured copper reserves and amplified its operating base by acquiring the Australian Nifty and Mt. Gordon copper mines. Over the years, Hindalco has grown into the largest vertically integrated aluminum company in the country and among the largest primary producers of aluminum in Asia. Its copper smelter is today the world's largest custom smelter at a single location.

In 2007, the landmark acquisition of Novelis Inc., the world's largest aluminium rolling company, placed Hindalco's footprint across the globe, securing it a rank amongst the top five global aluminium majors and also placing it in the Fortune 500 league.

CORPORATE SOCIAL RESPONSIBILITY

Winning smilestouching hearts

Long before corporate social responsibility found a place in the corporate lexicon, it was already textured into the Group's value system. As early as the 1940s, the late Mr. G.D. Birla espoused the trusteeship concept of management investing a portion of the company's profits for the larger good of society. The late Mr. Aditya Birla went beyond chequebook philanthropy when he brought in the concept of 'sustainable livelihood'. For over 50 years, Hindalco has worked in the hinterlands of India to better the quality of life of the underprivileged sections of society. Today, we reach out to millions of people in the villages, of whom more than 60 per cent live below the poverty line. Their needs include: access to water, agriculture and sustainable livelihood, healthcare, and education. These four areas form the focus of our efforts. The company also works to bring about social reform through widow remarriage and dowerless marriages. We work in partnership with government agencies and the beneficiaries to provide these necessities and encourage social reform.

Focus areas
Health care Medical camps: Taking mobile medical units and providing ambulance service to remote areas. Health facilities: Setting up well-equipped and professionally manned health centres at several locations. Regular health camps: Providing family planning, mother and child care and specialised camps for eye care and for cataract; coordinating regular pulse polio immunisation drives; and promoting the awareness, prevention and treatment of malaria, water-borne diseases, TB, HIV/AIDS, and others diseases. Education Balwadis: Providing for the primary education of underprivileged children. Adult literacy: Providing formal and informal classes and active support to the government's mission to improve rural literacy levels. Merit scholarships / Schemes: Support female students for educational endeavours. Educational support: Contributing uniforms, textbooks and classroom equipment and undertaking school building construction and maintenance. Skills training / capacity building The Aditya Birla Rural Technology Park (Muirpur, Uttar Pradesh, India): Runs over 70 training programmes in diesel / hand pump repair / maintenance, electrical repair/maintenance, bee-keeping, tailoring, knitting and agriculture-related programmes and encouraging self-employment through income-generating projects. The Yashogami Skills Training Centre (Radhanagari, Tarale,

Maharashtra, India): Trains women in skills such as rexine handicraft, fashion design, tailoring, food processing, pottery, lamination, electronics assembly, zardozi, jewellery design, papier mache, rangolli, and fabric design.

Women's empowerment Self-Help Groups (SHG): These programmes involve over 11,000 women from rural communities around Hindalco units. SHG activities: Micro credit and micro finance schemes, entrepreneurship building, oil-processing units, tailoring centres, horticulture and nutrition gardens, diesel and hand pump repair, vermi compost production, mushroom cultivation, food processing, etc. Awareness building: Health and sanitation, family planning, literacy drives and microfinance; facilitating government loans for small-scale enterprise and rural insurance schemes, etc. Social causes: Promoting dowerless marriages and widow re-marriages.

Agricultural support Irrigation schemes: Land brought under irrigation with better yield and multi-cropping methods. Watershed development: Hydel towers, drainage canals, wells, checkdams, pedal pumps and harvest tanks. Training: Field schools train local farmers in modern agricultural techniques for higher crop yield; introducing lac cultivation, post-harvest technology with safe grain storage through an integrated pest-management system, floriculture, horticulture and kitchen gardens; shifting from mono to multi cropping patterns and distribution of high-yield seeds.

HINDALCO GROUP COMPANIES

NOVELIS Novelis Inc. is the worlds leading aluminium rolled products producer based on shipment volume. The company produces an estimated 19 per cent of the worlds flat-rolled aluminium products and is the number one producer in Europe and South America, and the second largest in North America and Asia. In its 2009 fiscal year, the company shipped 2.9 million tonnes of aluminium products and reported net sales of approximately US$10.2 billion. Novelis is also the world leader in the recycling of used aluminium beverage cans. In 2008, the company recycled nearly 39 billion cans back into new can sheet to be manufactured into beverage cans by its customers. Novelis has a large global footprint across 12 countries, employing 12,000 people in 31 manufacturing plants and associated activities worldwide. With its industry-leading assets and expertise, Novelis is the only company able to produce premium aluminium rolled products in all four continents where it operates. End-use applications for its sheet and light-gauge products include beverage and food cans, foil and packaging, transportation, electronics, construction and industrial products. In addition to its aluminium rolling activities, Novelis operates bauxite mining, primary aluminium smelting and power generation facilities in Brazil that are integrated with its rolling plants there.
Novelis is a Canadian corporation formed in January 2005 as a spin-off from Alcan Inc. In 2007, Novelis was acquired by Hindalco Industries Limited and became part of the Aditya Birla Group.

ADITYA BIRLA MINERALS

Hindalco Industries Ltd, owns 51 per cent of Aditya Birla Minerals Ltd., (ABML) a company having 100 per cent holding in Birla Nifty Pty Limited and Birla Mt. Gordon Pty Limited located in Western Australia and Queensland, respectively. ABML, an S&P ASX 300 Index company, is the largest pure copper company listed on the Australian Stock Exchange. ABML has mining and exploration activities focused at the Nifty copper operation in the Pilbara region, northwest Australia, and the Mt Gordon copper operation in northwest Queensland, Australia.

Birla Nifty Pty Limited

The Nifty copper operation consists of an underground mine, heap leach pads and a solvent extraction and electro winning (SXEW) processing plant and a copper concentrator plant. 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 2.3 mtpa ore from this deposit. The Nifty sulphide operation commenced ore production from stoping in December 2005 and concentrate production in March 2006. During FY2009, Nifty produced 49,600 tonnes of copper in concentrate. Birla Niftys copper cathode capacity is 25 ktpa. Open pit mining was completed in 2006. During FY 2009, Nifty produced 2,996 tonnes of copper cathode.

Birla Mt. Gordon Pty Limited

Mt. Gordon operations include underground mining operations and a concentrator plant with a milling capacity to process up to 1.5 mtpa of ore to produce copper in concentrate. The Mt Gordon copper operation consists of an underground and open pit mine, a copper concentrate plant and ferric leach plant. Until recently, the operation produced copper cathode through the ferric leach process. In 2004, a copper concentrator was commissioned to provide concentrate for use at Hindalcos operations in Dahej. During FY2009, Mt. Gordon produced 17,815 tonnes of copper in concentrate, before it was put under care and maintenance in January 2009. Both Nifty and Mt. Gordon have a long term life of mine off-take agreement with Hindalco for supply of copper concentrate to the copper smelter at Dahej, Gujarat

HINDALCO-ALMEX AEROSPACE LIMITED (HAAL) Hindalco-Almex Aerospace Limited (HAAL) is a joint venture between Hindalco Industries Limited and Almex USA Incorporated. The company manufactures high-strength aluminium alloys for applications in the aerospace, sporting goods and surface transport industries. Hindalco holds 70 per cent equity while the balance 30 per cent is held by Almex. HAAL is located at Shendra, Aurangabad in western India, around 350 km from Mumbai. The project, coming up on 20 acres of land, is the first of its kind facility, exclusively devoted to high-performance aluminium alloys. The plant was commissioned in September 2008. The installed capacity has been targeted to reach 46,000 tonnes. Thus far, HAAL has successfully cast billets in various 2xxx, 6xxx and 7xxxx series alloys in the entire set of tooling ranges present. All material has passed the required quality parameters for input raw materials in the forging and extrusion process. With state-of-the-art technologies in casting, homogenising, machining and ultrasonic testing, HAAL is a futuristic plant. Emphasis has been laid on use of clean fuel and efficient technologies reflecting our concern for the health of our community, our people and the environment. HAAL is committed to adhere to all stringent requirements of the aerospace industry. HAAL is an AS 9100, ISO 140001 and OHSAS 18001 compliant company. It is one of the few companies in India holding all three prestigious certifications.

PRIMARY ALUMINIUM

Hindalco is a major player in primary aluminium, with around 40 percent market share. Its product range including: INGOTS 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. 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 Wag staff casting process using Air slip technology. These are top quality billets with a smooth surface finish. Billets are used mainly for producing extrusions and forgings.

ALUMINIUM EXTRUSIONS
Hindalco has two extrusion plants in India, one at Renukoot, Uttar Pradesh, and the other at Alupuram, Kerala. Both plants have well-established manufacturing processes. A leading player in the extrusions industry in the country, Hindalco offers a wide range of alloys, including hard alloys and some special alloys for the defence and space sector. Hindalco Extrusions are manufactured from high-quality billets made out of virgin in-house metal. They have found applications in a wide spectrum of segments, such as, architectural, electrical, industrial, transport, and defence and consumer durables among others. Hindalco extrusions Quality accreditations capacity 42,000tpa

ISO 9001:2000 Quality Management System ISO 14001 Environment Management System OHSAS 18001:1999 Occupational Health and Safety Assessment Series

Section weight range

Standards Other profiles 0.058 kg/m to 117 kg/m 0.08 kg/m to 100 kg/m

Alloys
6005, 6060, 6061, 6063, 6066, 6082, 6101, 6351 1050, 1060, 1070, 2014, 2017, 2014 5052, 5083, 5086, 7018, 7039, 7075 3003, 4043, 4047 plus customised alloys for special applications

Length range
94 mm to 13,500 mm

Standards: Typical range available

Rods from 6.35mm to 289mm diameter

Flats from 8.00mm to 330mm width

Squares from 6.35mm to 206mm

Equal leg angles from 12.00mm to 153mm

Channels from 6.00mm to 260mm width

Round tubes from 9.50mm to 225mm O. D.

Rectangular tubes from 20mm to 165mm width

Square tubes from 12.70mm to 127mm

ROLLED PRODUCT

H Hindalco is the world's largest aluminium rolling company with the acquisition of Novelis, the global leader in value-added high-end aluminium flat rolled products and aluminium can recycling. The combined volume of sales of flat rolled products in the world market is about 3 million tones and the market share is more than 20percent. Hindalco is the largest manufacturer of the entire range of flat rolled products in India. It enjoys nearly 60 per cent of market share and its rolled products are widely used in various segments such as packaging, transportation, building and construction, electrical, defense and general engineering applications. The company's commitment to quality and service along with its extensive infrastructure has made Hindalco a prime source for best-selling brands. Continuous improvements in manufacturing, processes, practices and systems ensure that customers' needs and expectations are fully met.

Efficiency and product quality are ensured by using state-of-the-art equipment and a strong research and development set-up, supported by dedicated and motivated employees and the Oracle ERP system. Wag staff Air Slip slab casting technology is used to ensure consistent quality and surface finish of stock feed, which in turn ensures quality, finished products. The company's capacity in flat rolled products at present is 2,00,000 tones per annum and new plans are being implemented to increase the manufacturing capacity

of the total production of Hindalco's flat rolled products, around 40 per cent is exported and customers in more than 50 countries are using the products. Ever last, a Hindalco brand for aluminium roofing sheets, offers ideal and economical solutions for all roofing and cladding needs. Colour coated and tiled roofing profiles are also offered by Hindalco

COLD ROLLED SHEETS

Hindalco's cold rolled sheets are precisionfinished to match international standards for tight thickness, tolerance, flatness and dimensional accuracy. Sound metallurgical properties for further fabrication, anodising characteristics and a blemish-free surface make it useful in both commercial and general engineering applications.

PRODUCT a) Aluminium Ingots b) Aluminium Billets

MAJOR END USES Remelted and used in the form of Castings, Consumer Durables, Powders and Chemicals, Redraw Rods etc. Supplied to Secondary Extruders for the production of Extruded Profiles. Drawn to smaller Diameter for applications - largely in Conductors and Cables Transport, Electrical and Electronics, Consumer

c) Aluminium Wire rods d) Aluminium Sheet Products e) Aluminium Extrusions f) Aluminium Foils

Durables, Architectural Applications. Major consumption in Architectural applications. Others include Transport, Computer Hardware, Textile Machinery, and Strategic Application. Packing of Food and Pharmaceuticals.

g) Aluminium Alloy Wheels Cars

FOIL AND PACKAGING

Delivering 'never-before-tried' solutions to customers in India and across the globe, Hindalco has the distinction of being India's premier supplier of foil and foil laminates plain, lacquered and printed. Our foil and packaging division operates out of three modern, well-equipped plants located at Kalwa in Maharashtra, Silvassa in Dadra and Nagar Haveli and Kollur in Andhra Pradesh, India. These wellequipped foil rolling and converting facilities provide a veritable 'one-stop-shop' for packaging solutions. The plants also employ high-end technology and professional expertise to develop visually appealing and functionally useful packaging. The Kalwa Foil Plant's advanced ERP-based bar code-operated material tracking system is the first of its kind in the packaging industry, ensuring full traceability from input to final product. An impressive range of foil rolling and converting equipment is backed by strong QC systems. Adherence to the company's standard operating practices ensures that the final product conforms to the committed specifications. Our complete backward integration, right down to the raw material stage from bauxite ore to primary metal, guarantees full control over the quality of the final foil output. With over four decades of experience and expertise, we enjoy a domestic market share of more than 40 per cent in the foil and packaging business. Fostering this incredible growth is the combined effort of our plants, competently operated by a young and energetic workforce and a strong technical team.

We offer packaging solutions to well-known brands in the pharmaceuticals, healthcare, dairy, confectionery, processed foods, personal products, tobacco industries and also serve the HVAC (heat, ventilation and air conditioning) segments with radiator and AC finstock. Some of our clients are GlaxoSmithKline, Aventis, Merck, Pfizer, Johnson & Johnson, Nestle, Cadbury, Amul, Britannia, Hindustan Lever, Perfetti Van Melle, ITC, Golden Tobacco, Godfrey Philips, LG, Hitachi and Voltas. Our house foil brands include Superwrap, Freshwrapp and Freshpakk semi-rigid containers, which are convenient and popular with consumers.

POWER
Hindalco's integrated complex at Renukoot in India houses an alumina refinery, aluminium smelter and facilities for production of semi-fabricated products. Power is sourced from our Renusagar power plant, located at a distance of about 40 km from Renukoot. The captive power plant located at Renusagar in Uttar Pradesh has 10 power generating units and has a current generation capacity of 742 MW. Excellent operational standards have ensured a consistent plant load factor of over 90 per cent. The integrated complex at Renukoot also houses a co-generation plant of 37.5 MW capacity. A new co-generation plant of 41 MW capacity has been commissioned to meet the requirements of the enhanced capacities, post the expansion. Hindalco has two smelters, one located at Hirakud in Orissa, India with a captive power plant and coal mines, and the other at Alupuram in Kerala, India. We also have two sheet plants at Belur, West Bengal, and Taloja, Maharashtra, India and an extrusions unit at Alupuram. Hindalco's two DSIR recognised R&D centres are located at Belgaum and Taloja, India. Project activities are in the full swing to increase the smelter capacity at Hirakud to 100,000 tonnes, with a doubling of captive power generation, as well as an additional 100 MW power plant.

THE MARKET LEADER

Hindalco is a leading domestic player in two metals business segments ALUMINIUM: The aluminum division's product range includes alumina chemicals, primary aluminum ingots, billets, wire rods, rolled products, extrusions, foils and alloy wheels. The company has a significant market

share the segments in which it operates. It enjoys a domestic market share of 42 per cent in primary aluminum, 63 per cent in rolled products, 20 per cent in extrusions, 44 per cent in foils and 31 per cent in wheels.

HINDALCO 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. All of Hindalco's units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several units have gone a step further with an Integrated Management System (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one Business Excellence Model.

The company has been accorded the Star Trading House status in India. Its aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the LME (London Metal Exchange), while its copper quality standards are also internationally recognised and registered on the LME with Grade A accreditation.

In Aluminum Market:
o World's largest aluminium rolling company o One of the biggest products of primary aluminium in Asia. o Market share of 48 per cent. o One of the lowest-cost producers of aluminium in the world. o Over 58 per cent of sales in value-added products. o Fully integrated aluminium plant at Renukoot, UP. o Aluminium wheels plant at Silvassa, in Dadra & Nagar Haveli. o .Foil plants at Silvassa and Kalwa. o Foil unit of Indal at Kollur. o Alumina refining capacity of 1,160,000 TPA going up to 1,500,000 TPA. o Aluminum metal producing capacity of 445,000 TPA. o Captive power generation of 1087.2 mw.

DEFINITION In marketing, distribution is the process of moving a product from its manufacturing source to its customers. In computer software, distribution is the phase that follows packaging. The package will be on some distribution medium, such as compact disc, or may be simply located on a server where customers can download it electronically.

DISTRIBUTION CHANNEL
Definition

Path or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor). A distribution channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution or marketing channel.

A CONCEPTUAL FRAME WORK

A set of interdependent organization involved in the process of making a product available, or reached the target market or consumers. Smooth availability of our products to the right customers, at a right place, at a right time with safe & secured quality and quantity is an important task for the customers satisfaction or goals of an organization. Organization are spending a huge amount 25 to 35% of the cost of products. Most producers do not sell their goods directly to the final users stands a marketing channel, a host of marketing intermediaries performing a variety of functions and bearing a variety of names. Thus, A channel of distribution for a product may be define as a route taken by the title to the good as they move from the producer to ultimate customers or industrial users. The primary objective of channel of distribution is to bridge the gap by resolving spatial (geographical distance) and temporal (relating to time) discrepancies as to supply and demand. CHANNEL OBJECTIVE Making smooth availability of product to the target market. Achievement of the best possible coverage of the target market. Ensuring that the consumer incurs the minimum extenuation in procuring the product. Safe in quality & accuracy in quantity. Quick services. Ensuring that the firm is able to carry on with its manufacturing activities, confident that channel will take care of the distribution job. Ensuring that the distribution is cost effective. The primary objective of channel of the distribution is to bring the gap by resolving spatial (geographical distance) and temporal (relating to time)discrepancies as to supply and demand.

ROLE OF CHANNEL MEMBERS Channel members are not play only the role of sales the products to the customers but also play the role as promote the products, gathering the customer interest, complaints, suggestion, and information to the organizations they are work as the co-ordination between the targeted customers & manufactures. Members of the marketing channel perform many key function as follows: Gathering & distributing marketing research and intelligence information about actors & forces in the marketing environment. Helpful in making marketing strategy. Developing & spreading the promotional offer of company and promote the sales activity. Easily make a sales contact with the customers. Intermediaries are taking the title to goods, so they invest the fund. Through the intermediaries, manufactures are made physical distribution of goods. Intermediaries are taking various type of risks, in the term of storing, dispatching etc. CONTRIBUTION OF CHANNEL Make available on time. Reduce the cost of distribution. Save the distribution time. Helpful in product design & developments. Flow of feedback from consumer. Flow of money consumers to manufacture.

VARIOUS TYPES OF CHANEL LEVELS

While a marketers wants to sell or marketing about the product or services, requirement of design a distribution channel to make product & services available to customers in different ways. In the process of distribution of products. Each layer of marketing intermediaries are performs some work in bringing the product and its ownership closer to the final buyer is a channel level. Generally two methods of distribution are in the practices. 1. DIRECT MARKETING CHANNEL 2. INDIRECT MARKETING CHANNEL DIRECT MARKETING CHANNEL DMC is a marketing channel that has no intermediary levels. Manufacture or sellers are advertise their product through the various method of advertising & make awareness about the product, then contact to the needful customers through their salesmen, internet, e-mail, telephone or by post.

MANUFACTURES

CUSTOMERS

IMC is a channel containing one or more intermediary levels. Manufactures or sellers are appointed various type of marketing intermediaries is the context of nature of the product & segmentation of markets. CONSUMER DURABLE PRODUCTS

Manufacturer

Manufacture

Manufacture

DEPOTS,C&F AGENTS DEPOTS, C&F AGENTS MANUFACTORS OR MEMBERS SALES REPRESENTIVE

DISTRIBUTORES

RETAILERS

DISTRIBUTORS

SUPER STOCKIEST POINT

RETAILERS

EXCLUSIVE SHOW ROOM

RETAILERS CUNSUMERS CONSUMERS CONSUMERS

INDUSTRIAL PRODUCTSs

MANUFACTURER

MANUFACTURER

DEPOTS, WAREHOUSES

BUSINESS DISTRIBUTORS

RESIONAL SALES OFFICES, AREA SALES EXCUTIVES

CUSTOMERS

CUSTOMERS

TYPES OF CHANNEL MEMBERS

C & F AGENTS: It means clearing & forwarding agents. They are responsible for storage & transportation of the companys products and its distribution to the distributor and some time retailers. DISTRIBUTORS: A distributor is usually appointed by the company and does not sell its competitors products. He can also be a distributor of many products of the same company. A distributor is responsible for ensuring that his companys product is available at the retail stores. The distributor is very much an extension of the company as he ensures that the market is properly served. A company has direct control over the distributors. Some of the following type of wholesalers: MERCHANT WHOLESALERS: Purchase and resell merchandise. He has title to merchandise. He provides wide range of services. FULL SERVICE WHOLESALERS: Perform full range of distribution services. Provide trade credit offer promotion assistance, personal sale force, and communication of information. Provide installation and services. RACK JOBBER: Deals with high promoted items.

 Furnishes rack and shelves, price the goods, keep them fresh, set up point of purchase displays. Sell on consignment. Provide services as delivery, shelving, and inventories caring.

LIMITED FUNCTION WHOLESALE Not provide credit, marketing research information and merchandising assistance. MERCANDISING AGENTS & BROKERS: They usually perform fewer services than merchant wholesalers do. Merchandising agents and brokers do not take title to product but negotiate sales for manufacture, they represent,

MANUFACTURES AGENTS They are free to work for several manufactures. They carry non- competitive, complementary products in exclusive territories. They do not provide credit facility but at times store and deliver products. Also provide research aid and promotion support. BROKERS To bring buyer and seller together To assist in negotiation. They have not title to goods.

 But they provide the facility of financing. COMMISSION MERCHANTS Received goods on consignments. They have not title to goods. To accumulate them from local markets & arrange for their sales. Offer credit & storage goods facility. To provide sales force & research aid. They do not normally promote the goods.

MANUFACTURERS SALES FACILITIES Established by manufacture. It is separate from manufacturing operations. Its performing the wholesaling function himself. Generally used in industrial customers.

Types of manufacturers sales facilities. MANUFACTURERS SALES BRANCHES Carry inventory . Promote the sales activities. Sell to outlet. MANUFACTURERS OFFICE ( Regional Sales Office) It does not carry inventory. Perform market research, demand forecasting, etc. Collect orders from customers. Make delivery to customers from manufacturing point. Collection of payments. Dispose all the disputes or claims.

 Create better relationship.

Manufacturer

Depots or warehouses

Clearing and forwarding agents

Distributors or whole sellers

Merchant

Merchandising agents or brokers

Manufacturers sales Executive Full service wholesalers Limited function Manufacturing agents Commission

Rock jobbers Brokers

Manufacturers sales Branch THE CHANNEL SELECTION PROCESS

Regional sales office

Identify Target Consumers

STEP- 1

STEP-2

Determining Consumer Buying Habits for the Types of Goods

STEP-3

Locate Potential

STEP-4

Pinpoint Channel

STEP-5

Evaluate Channel

STEP-6

Select Channel

CHANNEL SELECTION PROCESS

EVALUTION OF THE DISTRIBUTION ENVIRONMENT:

Selection of channel model has to be necessarily take in to account the distribution environment obtaining in the country region and in the specific business in which the firm is engaged. A firm has to evaluate the vital features of the distribution environment and ensures that the channel model to be adopted is compatible with them. Distribution environment in the border sense includes the legal environment as well in so far as its implication and distribution are concerned. EVALUTION OF COMPETITORS CHANNEL PARTERNS The firm should also study the competitors channel patterns deciding its channel. While the firm may not necessarily follow the competitors it will be worthwhile for the firm to analyze in the plus and minus of the channel patterns adopted by each of major competitors. EVALUTION OF COMPANY RESOURCES AND MATCHING THE CHANNEL TO THE RESOURCES: On the other hand firm with larger resources and large size marketing operation will be in a position to go in for highly intensive distribution committing a good deal of resources to distribution task. IDENTIFICATION OF ALTERNATIVES CHANNEL & SELECTION OF THE ONE THAT SUITS THE FIRM BEST:

Two important considerations are cost and efficiency. Often though not necessarily they are directly proportional. The channel that its efficient but relatively less expensive has to be chosen. Two type of evaluations an economic evaluation and a conceptual evaluation may be necessary. The firm should also

examine whether the channel member in the desire alternative would be willing to work enthusiastically for the and the product.

ANALYSING THE PRODUCT CHARACTERSTICS AND LINKING CHANNEL TO THE PRODUCT:

The firm should analyze the characteristics of the product and choose the channel designee that is most suited to the product. Within each of these broad categories of product channel choice can very in relation to specific products/product types. The product futures, after all changes in a graded manner as on move through the spectrum from the simplest consumer soft to the most complex among industrial equipment. NOTS: Consumer products Vs Industrial products. The case of industrial products. The products must have a sizable customer base. It must be standardized to a reasonable extent. It must be stock able items. The unite value should not be too high. It should not be complex.

Need for specialized distributor must be appreciated after considering all such factors, if a given industrial product lends itself for marketing through distribution. It must still remembered that.

As a general rule industrial product products require specialized distributor and entrusting them with the general-purpose ( consumer product) distributors does not produce the best result.

 Different industrial product need different type of distributors. Establish relationship and use problem-solving techniques for prevention of crisis and preventing customer dissatisfaction. Gather quality intelligence on customer dissatisfaction and provide this information to management. ON TIME DELIVERY: Consumer will be happy, if the material is delivered on time. OTD has come in to sharper focus, for it has become a competitive weapon in all most all industries. For example Nissan offers a guaranteed ten-day delivery to its dealers. Caterpillar deliver replacements parts within 72hours.99.7% of time. OTD customer satisfaction gap has three components: Calibration Gap Operations Gap Organization Gap CALIBRATION GAP: The customer may measure OTD in different manner as copier to the supplier. It may so happen that the supplier may measure OTD by product category but the buyer may measure it in terms of complete order. The customer may measure OTD in terms of the initial order date where as then supplier may measure it from a negotiated date.

OPERATION GAP:

Businesses that face variability from one manufacturing phase to another or from operations to ware house normally have an operations gap. Operations gap can also result from too many stages in production process, too many supplier or too many people involved in order filling. ORGANISATION GAP: If people do not have incentive to improve OTD it will probably result in to organization gap. In other words organization gap result from the priority. Accorded to OTD.

Developing the study plan:

Data collection method : Primary data sources Secondary data sources

1. Primary data sources:

1)Information from the company employees. 2)Interview with company executives

2.Secondary data sources :

1)internet 2)In companys library

Contact methods:
Under contact method personal interview were used to collect the Information. For the interview purpose the question to be asked were Predefined and structured. Personal interview are arranged and used:

Arranged interview:
We took appointments in advance and then met the concerned Person for collecting the information.

Competitor of Hindalco :
Main competitor of Hindalco are:

Alcoa
(Primary aluminium capacity 420,000 TPA) Founded in 1886 in Pittsburgh, Pennsylvania CEO and Chairman Alain Belda Products- building products fastening, casting, aluminium foils, automobile Parts, rolled aluminium, miled aluminium, ingots. Revenue USD 30.4 Bn Net income USD 2.24 Bn Employees 129000

Alcan Inc.
(Primary aluminium capacity 348000 TPA) Founded in 1902 in Canada CEO and President Richard Evans Products - anodes, automotive parts, foils, ingots. Revenue 23.6Bn Employees 68000

Russian aluminium (Rusal)

(Primary aluminium capacity 2,700,000 TPA) Founded on 20th march 2000 Headquarter Moscow CEO Alexander bulygin Product primary aluminium, alloys, powder metallurgy, alumina and bauxite. Revenue USD 6.5 Bn Employees 50000

MARKETING STRATEGY

OLD STRATEGY Marketing Head Office (Renukoot)

EAST

WEST

NORTH

SOUTH

Vice-President

Vice-President

Vice-President

Vice-President

Extrusion

Rolled

Primary

Sales Manager (Territory Manager)

ADVANTAGES: Cost effective. Geographical area oriented. Focus on all products simultaneously. DISADVANTAGES: Product promotion scheme is not applicable. Lack of information about a particular product. Over work load. No more time & scope for a particular product. Consumer satisfaction is not appropriate.

The above old structure was not taking much advantage of the new global market. Analysis of the advantage and disadvantage of the regional based marketing strategy. It is not suitable in modern marketing specification era. So that in 2003 company decided to go for opting the new marketing strategy based on product specification. For this the company transferred its marketing head office from Renukoot to Mumbai.

The new marketing strategy structure is as follows:-

MARKETING HEAD OFFICE (MUMBAI) CMO ( CHIEF MARKETING OFFICER)

EXTRUSIONS

ROLLED

PRIMARY

Vice- President

EAST

WEST

NORTH

SOUTH

Regional Manager

T.M.

T.M.

T.M. (Territory Manager)

ADVANTAGES: It product based. Emphasis on more customer satisfactions. Helpful to increasing the sales performance of various products line. Helpful to production processes to delivery the products. Accumulation of small customers. Provide quick service to customers. Enhance the sales promotion.

DISADVANTAGES: Cost ineffective. More men power required. MARKET SEGMENTATION OF HINDALCO The market for Aluminium products in India is very widespread Geographically By diversified of end user

Further there are a large number of small and medium consumers and a select a few large consumers. The smallest consumer would be consuming as little as IMT/MONTH. However, the largest numbers of Hindalcos customers are in the consumption range of 5-50 Mts./ Month.

MARKET SEGMENTATION OF HINDALCO

The market for Aluminium products in India is very widespread Geographically By diversified of end user Further there are a large number of small and medium consumers and a select a few large consumers. The smallest consumer would be consuming as little as 1MT/ Month. However the largest of Hindalcos customers are in the consumption range of 5-50 Mts./ Month.

Aluminium is being used in around 3000 products in developed countries like USA, Japan, Canada, etc. Where as India only around 350 products find use in Aluminium. Moreover, the per capita consumption of aluminum in the country is very low (1.1 kg./year).

Hence there is large potential for introducing the new uses and the increasing the consumption. As a strategy therefore, Hindalco decided to cater to as many consumers as possible. Their distribution system therefore, is designed to the object.

Hindalco manufacture the products with very specification as desired by the various customers. Hindalcos market may be segmented in the following manner.

(A) MARKET SEGMENTATION BASED ON THE PRODUCT GROUP On the basis of product groups, Hindalco market many be segmented in the following manner. PRIMARY PRODUCTS Ingots Wire rods Billets ROLLED PRODUCTS Sheets Chequered sheets Roofing sheets Coils Hot Rolling plates Circles EXTRUDED PRODUCTS General solid sections Tubings Structural Architectural Mouldings

 FOIL Cable wrap stock Light gauge foil Bare & Coated Finstock Collapsible Insulation Ducts. ALLOY WHEELS (AURA) 12 to 18 diameters.

(B) MARKET SEGMENTATION ON THE BASIS OF PRODUCT WISE KEE CONSUMERS. PRIMARY PRODUCTS: Consumers: Value added aluminum sheet producer industries. Foil Producer Industries. Extrusion Producer Industries. Electrical Equipment. Automobile Industries Ferrow allows Smelter pot lining ROLLED PRODUCTS Consumers: Foil & Packing Industries: box, cop, and container. Electrical Industries: bulbs, tube lights, fan blade etc.

 Transportation Industries. Building & construction sectors roofing flooring etc. Defense & Marine sectors. Transportation sectors. Consumer durable : Flooring & Roofing General Engineering: Pilper-proof bottle cops Pressure cookers, non-stick cookware. EXTRUDED PRODUCT

Consumers: Automobile Industries Building & Construction Sectors Mines & Defense Sector Transportation sector Electrical sector Architectural sector Furniture sector House holds consumer durable

FOIL: Consumer: Packing sector (printed & multi-laminated)

 Pharmaceuticals Dairy products Processed food Con-factionary Personal Care Products Cigarettes Box rapping Air conditioner Auto mobile radiator Collapsible Industries Ducts

ALLOY WHEELS: Consumers: Automobile sectors Maruti Suzuki TATA Motors FIAT India Hindustan Motors Telco Ford India Hundai India GM India etc.

(C) MARKET SEGMENTATION BASED ON THE DEMAND PATTERN

Based on size & frequency of order, Hindalco market may be segmented as follow:

BULK CUSTOMERS: Bulk customers are those customers, whose demand is very high and consistence. Some of the bulk customers are Howkin, TTK, Foil Division Silwassa, Jugraj Tejraj, Bajaj Auto,etc. SMALL & MIDIUM: Small & medium customers may be bracketed as those customers, whose demand is comparatively low and not so consistence, some of the small customer of Hindalco included ITI Allahabad, Defense Organization, Dockyards etc. (D) MARKET SEGMENTATION BASED ON THE PRIORTY: On the basis of priority given to various orders Hindalco market may be segmented in the following manner.

ROUTINE CUSTOMERS Routine customers are those customers, who are regularly sourcing the company. Their orders are processed in the normal course of working .

SPECIAL CUSTOMERS: Special customers are those customers, whose orders are for products under developments. Since their demand is usually urgent in nature they are

given priority under routine customers. Examples: Export Customers, Government organization like Defense, Establishment etc. continue this category.

(E) MARKET SECTOR.

SEGMENTTATION

BASED

ON

CONSUMPTION

Uses of Aluminium metal are every where. It is not easy to categorize in some particular heads. However, we categorize in the following major sectors. Electrical Transportation Building & Constructions Industrial Machinery Packing Consumer Durable Other

(F) MARKET SEGMENTATION BASED ON GEOGRAPHICAL AREAS. Aluminium consumers are spread all over the country. Different area have different type of industries, whose are used aluminum in different quantity. Here segment the market in geographical areas based on consumption or demand pattern. (G) TRANSPORTATION FACILITY Smooth transportation facility is available all over the country all the time. Some area are affected by flood. Some areas are block in the case of heavy rain etc.

DISTRIBUTION PROCESS AT HINDALCO There are different tasks involved in distribution process These are as follows: Order processing

Packing & Insurance, Banking, Bills Ware housing Transportation Godown sales procedure

ORDER BOOKING: Every purchaser has to book his order giving details which aluminium rolled products they want such as plain sheet, cold rolled coils, milk can sheet, circles, etc. purchaser should be fully disclose about the product such as, product name, quality, quantity, technical data, mode of transportation, desire delivery time, payment mode etc.

Technical wing of Hindalco examines their application and if necessary also make inspection of the facing and decided quality to be offered. Thereafter, terms of payment finalized and his order is finally booked. This order is passed to the relevant personnels officials with relevant details.

PRIORITY: A priority list of all categories of consumers has been fixed in consultation with all concerned. Consumer gets delivery in order to their priority, which is also followed by transporting agents. ORDER PROCESSING:

Hindalco procure order either directly from the customers or through the agents/stockiest. The order contains the name of product, quality, size, clearance, etc. After the receipt of order from the customer or agent company scrutinizes the order. A production planning programmed is prepared for rolled production monthly basis. This monthly report is sent to the respective production department i.e. rolling mills by the end of the proceeding month. The produced material is sent to the inspection and packing department.

WARE HOUSING: Every has to store to goods while they wait to be sold. A strong function is necessary because production and consumption cycles rarely match. Ware housing is the responsibility of warehouse in charge in Hindalco. The work start when warehouse officials receive finished good from production. Hindalco warehousing incharge dispatches the material to respective customers on advice of CSMO and follows the guidelines given to them. The guidelines are: At warehouse: While taking delivery from inspection & packing to ensure packages are intact & dry. If packages are damaged or loose condition, get it repacked. If packages are wet, do not accept it. During loading at warehouse: Trucks floor should be clear and flat.

There should not be any hole or damage in the floor of the trucks Floor should be covered with tarpaulin. Packages being loaded should be intact and dry. Proper stocking of packages should be done while loading. Heavy packages to be kept at bottom and lighter packages over heavy.

Packages: No vertical stoking of packages. After loading truck should be covered with tarpaulin. During Storage Out doors storage should be avoided. Do not store packages directly on the floor, use wooden pallets. Cheek condition of metal every few hours to ensure no water condensation. DELIVERY OF MATERIAL: They deliver the material as per the delivery order. Then they note down the delivered material in the godown register. Then they send delivery report daily to zonal office.

BANKING INSURANCE BILLS & OTHER DOCUMENTS: Hindalco enjoys the facilities of three public sector banks & private sector bank in its town Renukoot. United Commercial Bank (UCO Bank) State Bank of India (SBI) Allahabad Bank Industrial Development Bank of India (IDBI)

Banking services at Renukoot is punctual. Bank help the company in carrying the documents to the party. It helps in quicker payments realization.

INSURANCE: Every material is dispatched duly insured. There are two types of insurance. Carrier Risk. Owner Risk. Hindalco arranges insurance facilities for its customers. If there are any damages in transportation they will issue a damage certificate & the customer can claim its insurance company on the basis of damage certificate. GODOWN SALES PROCEDURE: Godown sales procedure describes the sales procedure of Hindalcos products through its godown. The respective zonal exercise control over all activities related to godown sales. This sales procedure is followed by all the godown of company situated at Delhi, Faridabad, Chandugarh, Jaipur, Haryana, Bangalore, Hydrabad, Calcutta, Gohati, Mumbai, Silvasa, Taloja There is a clearing agent in the godown, which is appointed by Hindalco for the operation & maintenance of the godown.

VARIOUS MODES OF DISTRIBUTION IN HINDALCO: Hindalco emphasizes on, Taking the product to the market Distribution of products in Hindalco is carried out through a network of zonal office, Area offices. Agents stockiest and company operated depots, located through the country. A brief description is given below. (a) ZONAL AND AREA OFFICES:

Hindalco has established five zonal offices, in various part of country. There is a network of area offices, functioning under various zonal offices. Zonal offices carried out various marketing sales functions of company. They provide following functions: Signed a contract between the zonal offices and customers, regarding to details of products such as quality, packing, transportation, destination, etc. Clearly mentions about the mode of payments. Eliminating intermediaries. Make a direct contact with the customers: Help the company to cater to the need of customers. Helpful the company to earn additional profits. (b) AGENTS: Agents are those persons/institution, who provide orders to Hindalco on behalf of the customers. The company has appointed a number of agents, all around the country to sell the products. They are paid commission on the generated sales. Agent being a local person/institution can use his contacts and influence, to generate sales in a local market. Agents function as an important mode of distribution., as they enable the company to minimize distribution costs.

(c) STOCKIESTS: Hindalco appointed a number of stockiest in various geographical areas across the country. Certain products of the company are sold through the network. Stockiest are made conform sale for the company.

Stockiest is free to make sell to any customer. Free to charge any price from customers. Helps the company to cover the wide geographical market. Helpful in minimizes extra distribution setup costs.

(d) DEPOTS: Hindalco operate 15 depots in various part of the country. Depots send the various requirements at the work office and thud, maintain suitable inventory to cater to the demand of the market. This is provide the following advantages to the company & also the customers: TAX-SHIELD: In many states, state sales tax is less then the central sales tax. In these states sales of products through depots, lead to tax saving. AT RANDOM DELEVERY: Emergency needs of customers full filled immediately by the depots, at a premium price small offtakes of the scattered customers can also be provided easily by the depots. HELPFUL IN PRODUCTION: Depots provide a foundation to the production department, by keeping inventory of the various products. For example in the even of surplus stock, products can be transferred to the various depots. Similarly, Production Schedules can be planned with greater accuracy, with the help of estimated requirements, sent by depots.

ZONAL OFFICE

CUSTOMER

HINDALCO

AGENT / STOCKIST

PLANT

PRODUCTION

INSPECTION & PACKAGING WAREHOUSE GODOWN

CUSTOMER

DESPATCH

AGENT / STOCKIST

MAJOR DOMESTIC MARKETS ( GEOGRAOHYCALLY) In order to cater the demand of geographically scattered market, Hindalco has broadly divided its domestic market into following five zones:ZONE EAST WEAT NORTH SOUTH ZONAL SALES & MARKETING OFFICE KOLKATTA MUMBAI DELHI BANGALORE

REGISTERED OFFICE Hindalco Industries Ltd. Century bhavan 3rd floor Dr. Annie Besant Road Worli, Mumbai- 400030 Tel: 91-22-6662 6666 Fax: 91-22-2436 2516 / 2422 7586

CORPORATE OFFICE Aditya Birla Center S.K. Ahire Marg Worli Mumbai 400030 Tel: 91-22-6652 500/24995000 Fax: 91-22-6652 5841/24995841

Marketing head office: Century Bhavan, 3rd floor Dr. Annie Besant Road Worli, Mumbai 400 030

FINDINGS & RECOMMENDATIONS: Findings 1. Hindalco is the leading exporter of Aluminium Semi-Finished products India. 2. FIEO (Federation of Indian Export Organization) has awarded Hindalco as a Five Star Trading Houses on their export achievements. 3. Hindalco is following all the norms as per Central Excise & Customs and other government rules & regulations in the export process. 4. Hindalco is following positive and proactive approach towards export. 5. Hindalco is exporting all over the world, from underdeveloped countries to advance countries. 6. There are approx, 10,000 employees in Hindalco from top to bottom level, then also companys main focus is about safety, security and value as well as proper rules and regulations. 7. Having huge network. 8. Easy availability of raw materials. 9. The manufacturing cost is very high because of high utilization of energy. Energy ( Oil, Coal, Electricity) used at Renukoot is 47% of total manufacturing cost, while only electricity is used as 77.67% of total energy consumption. Present distribution system and production capacity is not adequate to meet the present and near future demand. 10.Approximately 50% employees at operational level as well as middle Level staff are not satisfied by their job but they do not tell the reason.

Recommendations: Hindalco is a reputed Aluminium industry in the world and its products are well accepted in the market but as know that there is always a scope of improvement. Following are the recommendations in all the three areas, Export Process, Export Documentations and Export Logistics. Sometimes 3-4% execution of export order has been delayed due to rejection of partial quantity of the product due to quality problems and manufacturing defects. So, it recommended that Hindalco should have to keep advance stock or backup products in their warehouse to overcome this problem and to execute the order on time. Some of the caster product order is being delayed due to limited capacity of the Caster Plant. So, it is recommended that Hindalco should have to increase the capacity of their Caster Plant. Hindalco is using Oracle &IVL software system for making export documents. The working of this software is from Order management to shipment. This process is time taking due to partly adoption of the software system. So, it is recommended that this software should have been start from Enquiry management to Shipment. It would ease in making documents in faster way manual interruption will be minimized. Hindalco is exporting from Kolkata and Mumbai port both. Sometimes delay in movement of export consignment occurs due to logistics problems. The problems and their recommendations are as follows: Sometimes there is unavailability of containers for any particular destination occurs. This problem have been overcome by helping a meeting and making a successful negotiation process from the shipping line companies for the arrangement of empty containers.

Speed of the boss is the speed of the team as well as speed of the organization.

CONCLUSION:

Business is undergoing a strategic transformation companies require clear vision and an attunement to balance the need sustainable in doing sum. It is a pointer to the direction in which corporate strategies would need to change in order to make organization function a truly responsible. In other words future belongs to only those organizations that undertake and imbibe well defined SCM. The globalization of SCM with goal of increasing competitive advantage, creating more value-added and reducing costs through global sourcing. In a highly competitive business environment a well established supply chain strategy absolutely essential for ensuring competitive edge in the market place. SCM is the most powerful tool for bringing innovations and maintaining price competitions which is a door step for transferring companies into a power house.

BIBLIOGRAPHY

www.aditya birla.com www.hindalco.com www.aluminium India.com www.google.co.in

Employees of the Hindalco Company Basics of Supply Chain Management (By Lawrence D. Fredendall ED Hill) Hindalco Induction Manual (Training Center) Purchasing and Supply Management (By Donald W. Dobler) (Colorado State University, Emeritus) Aditya Birla Group Hand Book ( Magazine) Material Management Review (Magazine) (www.iimm.org) By IIMM, New Delhi.