Académique Documents
Professionnel Documents
Culture Documents
REPORT
On
For
Faculty of PGDM
Babu Banarasi Das
National Institute of Technology &
Management
Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
CERTIFICATE
submitted by
With the great pleasure as well as great regard .I want to express hardly to
Mr.S.K.DAS (Manager Training &development center) who has given the chance for
doing summer training in sales department of “HINDALCO INDUSTRIES LIMITED”,
RENUKOOT.
I will always remember there contribution for leading me all possible co-
operation.
PREFACE
I am confident that any one who goes through the report will learn how much be
I learn & benefited during this summer training period.
Introduction
Company Profile
Aims & Objectives
Specific Information Of The Organization
Objectives Of The Study
Research Methodology
Problems & Limitations
Findings, Analysis & Interpretation
Swot Analysis
Suggestions / Recommendations
Conclusion
Questionnaire
Bibliography
INTRODUCTION OF HINDALCO
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 in excess of US$ 14 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.
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
Technology
Cast House technology at Hindalco-Almex Aerospace Limited (HAAL) is based on
Almex's proprietary CASTRIGHT IITM casting methodology and LARSTM, in-line
aluminium purification system.
CASTRIGHT IITM is a premium accuracy billet and ingot casting machine utilising PLC
programme operation, while LARSTM operation is based on the proven principle of high-
energy diffusion and chemically-driven mass transfer. LARSTM has over 75 per cent
degassing efficiency and over 99 per cent inclusion removal efficiency.
HAAL will also be equipped with a R&D cast house for alloy development work. Small
production runs of 1 tonne per casting will be undertaken at this facility. Aluminium
lithium alloys will also be cast here.
This facility will be a scaled down version of a full fledged cast house. Development
work for new chemical compositions for several aerospace applications will be
undertaken at this facility.
Financial information
The company has annual sales of $ 5 billion and employs 13,675 people and is listed on
Forbes 2000. A metals powerhouse with a turnover of US$ 14 billion, Hindalco is the
world's largest aluminium rolling company and one of the biggest producers of primary
aluminium in Asia. On February 11, 2007, the company entered into an agreement to
acquire the Canadian company Novelis for U$6 billion, making the combined entity the
world's largest rolled-aluminium producer. On May 15, 2007, the acquisition was
completed with Novelis shareholders receiving $44.93 per outstanding share of common
stock.
On February 11, 2007, the company entered into an agreement to acquire the Canadian
company Novelis for U$6 billion, making the combined entity the world's largest rolled-
aluminium producer. On May 15, 2007, the acquisition was completed with Novelis
shareholders receiving $44.93 per outstanding share of common stock.
Company capacity (lac tones) production (lac tones) capacity utilization (%)
Company Capacity Production Capacity utilization
(lac tones) (lac tones) (%)
BALCO 1.00 0.96 96
HINDALCO 2.42 2.49 103
INDAL 1.17 0.44 37.18
MALCO 0.25 0.02 0.06
NALCO 2.18 2.13 97.56
TOTAL 7.02 6.03 85.92
The per capita consumption of aluminium in India is only 0.5kg.as against 25kg in USA,
19kg in JAPAN and 10kg in EUROPE. Even the world’s average per capital
consumption about 10 times of that in India. One reason of low consumption in the
country could be that consumption pattern of aluminium in India is vastly different from
that of developed countries.
The demand of aluminium is expected to grow about 9% per annum from present
consumption levels. This sector is going through a consolidation phase and existing
producers are in process of enhancing their production capacity so that demand supply
gap expected in future is bridged. However, in India is a net exported of alumina and
aluminium metal at present.
B-FUEL USAGE;
Coal, Furnance oil and electricity are primary energy inputs in aluminium
production. Coal is primary used to generate steam. This is used in process while fuel oil
is mainly used in calcinations of aluminum and various furnance in fabrication plants.
Electricity is the major energy input in aluminium production and it considered to be
prime factor in determining economics of aluminium production. Hence all primary
metals producers have installed their own captive power plants to supply cheaper and
uninterrupted power for their use. Majority of electricity consumed in this industry is
supplied their own captive power plants.
C-TECHNOLOGY STATUS;
Invented over 100 years ago, Buyer-Half-Harold is the only available commercial
technology, even today for the production of aluminium metal through electrolytic
process. The production of alumina obtained from bauxite, a mineral containing up to
60% in the form of mono/cryohydrate is carried out through the buyer route, which is an
extractive hydro-metallurgical process.
GROUP OVERVIEW
A US $29.2 billion corporation, The Aditya Birla Group is in the league of fortune 500. It
is anchored by an extraordinary force of 1, 30,000 employees, belonging to 30 different
nationalities. In India the group has been adjudged “The best employed in India and
among the top 20 in Asia, “By the Hawitt-Economic Times and well street journal study
2007. Over 50% of its revenues flow from its overseas operations.
The group operates in 25 countries –INDIA, U.K, GERMANY, HUNGARY,
BRAZIL, ITALY, FRANCE, LUXEMBOURG, SWITZERLAND, AUSTRALIA,
U.S.A, CANADA, EGYPT, CHINA, THAILAND, LAOS, INDONESIA,
PHILIPPINES, DUBAI, SINGAPORE, MYAMMAR, BANGLADESH, VIETNAM,
MALAYSIA, and KOREA.
Hindalco's products are well accepted in the domestic as well as international markets.
The company's metal is accepted for delivery under the High Grade Primary Aluminium
Contract on the London Metal Exchange. The Company's export efforts have led to
recognition as a 'Star Trading House'. Hindalco is an ISO 9002 Company and has also
received ISO 14001 Certification for its entire operations including Power Plant and
Mines. As a part of its diversification programme, a 5,000 MTPA Aluminium Foil Plant
and an Aluminium Alloy Wheel Plant of 300,000 w.p.a. capacity has been set up at
Silvassa.
BROWNFIELD EXPANSION
To further augment its presence in the aluminium sector, Hindalco has initiated work on a
brown field expansion at Renukoot. The expansion will increase Smelting capacity by
100,000 MTPA to 342,000 MTPA. Aluminium refining capacity will be raised by
210,000 MTPA to 660,000 MTPA. Power Generation capacity will augmented by 150
MW to 769 MW.
ACQUISITION OF INDAL
Hindalco has also acquired aluminium major - INDAL. Hindalco's holding in INDAL
now stands at 74.62%. India strength in Aluminium and downstream aluminium products
admirably dovetails Hindalco's unmatched presence in metal and collectively commands
the highest meal capacity in the entire South East region.
MISCELLANEOUS INFORMATION
In 1962 when production started, the Company had on its roll about 900 staff and
workmen and the present strength of employees is about 14000. The Principal Office and
Works is located at Renukoot and there are Zonal Sales Offices at Bangalore, Mumbai,
Delhi, and Calcutta. The Company is managed by a Board of Directors and other senior
executives.
Financial information
The company has annual sales of $ 5 billion and employs 13,675 people and is listed on
Forbes 2000. A metals powerhouse with a turnover of US$ 14 billion, Hindalco is the
world's largest aluminium rolling company and one of the biggest producers of primary
aluminium in Asia. On February 11, 2007, the company entered into an agreement to
acquire the Canadian company Novelis for U$6 billion, making the combined entity the
world's largest rolled-aluminium producer. On May 15, 2007, the acquisition was
completed with Novelis shareholders receiving $44.93 per outstanding share of common
stock.
On February 11, 2007, the company entered into an agreement to acquire the Canadian
company Novelis for U$6 billion, making the combined entity the world's largest rolled-
aluminium producer. On May 15, 2007, the acquisition was completed with Novelis
shareholders receiving $44.93 per outstanding share of common stock.
Company’s Mission
"TO PURSUE THE CREATION OF VALUE FOR OUR CUSTOMERS, SHARE
HOLDERS, EMPLOYEES AND SOCIETY AT LARGE"
Company’s Vision
"TO STRENGTHEN OUR POSITION AS A PREMIUM ALUMINUM COMPANY,
SUSTAINING DOMESTIC LEADERSHIP AND GLOBAL COMPETITIVENESS
THROUGH INNOVATION, QUALITY AND VALUE ADDED GROWTH"
Company’s Moto
To be a premium metals major, global in size and rich, with passion for excellence. To
relentlessly pursue creation of superior shareholder value by exceeding customer
expectation profitably, unleashing employee potential and being a responsible corporate
citizen adhering to our value.
Integrity- Honesty in every action
Commitment-Doing whatever it takes to deliver, as promised
Passion-Missionary zeal arising out of an emotional engagement with work
Seamlessness-Thinking &Working together across functional silos hierarchy
levels, business and geographies
Speed-Responding to stakeholders with a sense of urgency
FACTFILE
Dividend of 185 per cent ( i.e Rs. 1.85 per share) on the paid-up equity
share capital as of 31 March 2008
Transfer-cum-demat facility
Milestones
2007 Successful acquisition of Novelis, making Hindalco the largest in aluminium
rolling and among the global top five metals majors, with a presence in 11
countries outside India.
Acquisition of Alcan's 45 per cent equity stake in the Utkal Alumina project,
thereby making Hindalco the 100 per cent project owner.
2006 Hindalco announces 10:1 stock split. Each share with face value of Rs. 10 per
share split into 10 shares of Re 1 each.
Hindalco completes largest Rights issue in the history of Indian capital markets
with total size of Rs. 22,266 million.
Joint venture with Almex USA for manufacture of high strength aluminium
alloys for applications in aerospace, sporting goods and surface transport
industries.
2005 All businesses of Indal, except for the Kollur Foil Plant in Andhra Pradesh,
merged with Hindalco Industries Limited.
MoUs signed with state governments of Orissa and Jharkhand for setting up
greenfield alumina refining, smelting and power plants.
Equity stake in Indal increased to 96.5 per cent through an open offer.
Hindalco's businesses
Hindalco in India enjoys a leadership position in aluminium and copper. The company's
aluminium units across the country encompass the entire gamut of operations from
bauxite mining, alumina refining, aluminium smelting to downstream rolling, extrusions,
foils and alloy wheels, along with captive
power plants and coal mines. The Birla Copper unit produces copper cathodes,
continuous cast copper rods along with other by-products, including gold, silver and DAP
fertilisers. >>
Aluminium
Hindalco was among the first few alloy wheels companies to have obtained the ISO/TS
16949 certification to meet the stringent standard of the automobile industry. In India,
Hindalco enjoys a leadership position in speciality aluminas, primary aluminium and
downstream products. Apart from being a dominant player in the domestic market,
Hindalco's products are well accepted in international markets. Exports account for more
than 30 per cent of total sales.
Hindalco's major products include standard and speciality grade aluminas and hydrates,
aluminium ingots, billets, wire rods, flat rolled products, extrusions, foil and alloy wheels
>>
Copper
Birla Copper, a unit of Hindalco is located at Dahej in Gujarat. The unit has the unique
distinction of being the largest copper smelter in the world at a single location with
500,000 tpa capacity with multiple world class technologies. The facilities comprise
copper smelters, precious metals, fertilizers, sulfuric acid, captive power plants, utilities
and a captive jetty.
Hindalco's Birla Copper is a renowned producer of copper cathodes and continuous cast
copper rods since its inception, with ISO-9001:2000 (Quality Management systems),
ISO-14001:2004 (Environmental Management System) OHSAS-18001:2007
(Occupational Health and Safety Management Systems) accreditations
Production capacities
Division Capacity and location
Alumina 700,000 tpa (Renukoot)
350,000 tpa (Belgaum)
180,000 tpa (Muri)
Aluminium 375,000 tpa (Renukoot)
143,000 tpa (Hirakud)
Extrusions 33,000tpa (Renukoot)
13,000 tpa (Alupuram)
Flat rolled products 100,000 tpa (Renukoot)
57,000 tpa (Belur)
50,000 tpa (Taloja)
30,000 tpa (Mouda)
Redraw rods 75,000 tpa (Renukoot)
Foil and packing 30,000 tpa (Silvassa)
6,000 tpa (Kalwa)
4,000 tpa (Kollur)
Wheels 300,000 pcs (Silvassa)
Captive power 742 mw (Renusagar)
78 mw (Renukoot)
368 mw (Hirakud)
Copper cathodes 500,000 tpa (Dahej)
Continuous cast copper rods 120,000 tpa (Dahej)
Sulphuric acid 1,470,000 tpa (Dahej)
Phosphoric acid 180,000 tpa (Dahej)
DAP and complexes 400,000 tpa (Dahej)
Gold 26 mt (Dahej)
Silver 200 mt (Dahej)
Power 135 mw (Dahej)
Copper
India's leading copper producer
India's largest copper smelting and refining plant at Dahej, Gujarat,
with two copper mines in Australia
Smelting and refining capacity 500,000 tpa, the largest single location smelter in
the world
Captive jetty (Dahej Harbour & Infrastructure Limited, a wholly owned
subsidiary)
ISO 9001,14001 and OSHAS 18001 certified
Registered on London Metal Exchange as Grade A Copper Brand
AWARDS
Hindalco has been active on many fronts, and takes its role as a socially responsible
corporate house very seriously. The company has won a number of awards for
community welfare and environment protection, as well as for its quality and export
performance
Year
2008 | 2007
2008
:: Greentech Safety Gold Award 2008 for outstanding achievement in safety
management in coal based power eector.
:: Hindalco Hirakud Systems ranked runners up at the state level IT Competition 2008
organised by CII in association with the department of informational technology,
Government of Orissa.
:: Hirakud smelter was awarded the state level safety award for Best Occupational
Healthcare 2006 — presented in February 2008 at Bhubaneswar.
:: Talabira coal mines won a host of safety awards, namely, first in working face and
maintenance of Dozer & Payloader and second in dust suppression at the Annual Coal
Mines Safety Fortnight 2008 organised by Directorate of Mines Safety, Bhubaneswar
and Chaibasa region.
2007
:: The Golden Peacock Award 2007 by the World Environment Foundation for its
remarkable achievements in occupational health & safety.
:: The Safety Innovation Award 2007 for excellence in the field of occupational health,
presented by The Institute of Engineers India.
:: The National Energy Conservation Award 2007, second prize, awarded by the
Ministry of Power and Energy, Government of India.
:: Renukoot was selected for the Rajiv Gandhi National Quality Award 2007 – Silver
Trophy, presented by the Bureau of Indian Standards, in the large scale manufacturing
(metallurgy) category.
:: The CII National Award for Excellence in Water Management (Beyond the Fence)
2007, for its land and water management projects in neighbouring villages.
:: The IMC Ramkrishna Bajaj National Quality Award 2007 – special award for
excellent performance in the service category.
:: The CII Human Resource Excellence Award 2007 for strong commitment and
significant achievement in the field of HR.
:: The “Greentech Environment Excellence Silver Award 2007” by the Greentech
Foundation.
:: Renusagar’s quality circle teams “VAYUDOOT” and “NAVODAYA” achieved the
Par Excellence Quality Circle Award at the National Level Convention NCQC 2007.
:: Hirakud smelter - National Energy Conservation Award — first prize 2007.
:: Hirakud smelter - National Safety Award for performance year 2005 (presented in
Oct 07) by Ministry of Labour and Employment, Government of India.
:: Hirakud power - CII - Orissa Award for Best Practices in Environment, Safety,
Health for the year 2007.
:: Hirakud power plant’s ‘Jeevan Jyoti’ and ‘Aryan’ quality circles won the
Distinguished Award at the National Convention of Quality Circles – 2007. Other
Hirakud power teams, bagged awards at the regional and state level QC competitions.
:: Hirakud power plant’s “Shakti” and “Prerana” quality circles also bagged third prize
in the operations & production category and repair & maintenance category
respectively during the seventh Supervisor Skills Competition organised by CII in
December 2007.
:: Muri alumina plant selected for CII’s National Award for Excellence in Water
Management 2007 for both Within and Beyond the Fence 2007.
:: Belur was selected for the National Safety Award for outstanding performance in
industrial safety as runners up for the performance year 2005 in achieving the lowest
average frequency rate (presented in October 2007), by the Ministry for Labour and
Employment, Government of India .
:: Winner of the GreenTech Environmental Gold Award in the metals and mining sector
for its outstanding achievement in environment management during 2007 - 2008.
:: Earned the National award as an "Energy Efficient Unit", presented by CII.
:: Belur sheet plant was adjudged the winner of the "CII – Eastern Region Energy
Conservation Award for 2007 – 2008".
:: Alupuram complex awarded the Outstanding Safety Performance Award 2007 in the
small scale engineering industrial category, presented by the National Safety Council,
Kerala chapter.
:: Taloja sheet plant was presented the Metallics Systems USA — Maintenance Award
for best operation & maintenance of molten metal pump at its recycling plant.
:: Hindalco awarded the CII-Sorabji Green Business Centre "National Award for
Excellence in Water Management 2007".
:: Hindalco won the prestigious “D.L. Shah National Award for Economics of Quality”
given by quality council of India. Chief manufacturing officer, Mr. R. P. Shah and
Mr. Arun Kumar received the award from the President of India, H.E. Dr. A.P.J.
Abdul Kalam on 9 February 2007 at New Delhi.
DISTRIBUTION CHANNEL
CONCEPTUAL FRAMEWORK;
A set of interdependent organizations involved in the process of making a product
available, or reached the target market or consumers.
Smooth a 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. Organizations are spending a huge amount about
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 names.
Thus, “A channel of distribution for a product may be define as a route taken by the
title to the goods as they move ultimate customers or industrial users.”
Definition According to A.W. Shaw, “Application of motion to materials as they
move from the times, places, forms and conditions where they have value.”
Definition According to Philip Kotler, “Marketing channels can be viewed as sets
of interdependent organizations involved in the process of making product or services
available for views or consumption.
The role and emergence of distribution channel may be explained in the following
terms;
1- PRINCIPLE OF MINIMUM TOTAL
TRANSACTION;
Distribution channel and the intermediaries comprising them arise in the process
of exchange because they increase efficiency of the process. This thesis is based on the
premise that a decentralized system of exchange with manufacturers directly interact with
consumers isles efficient relative to centralized network employing intermediaries. It is so
because in order to involve transaction each contact between the manufacturers and the
consumers adds to the total cost of distribution.
3-ROUTINISATION;
The cost of transaction can also be minimized if the transaction are routines, made
a matter of routine, in respect of product valuation, mode of timing of payment, other
wise every transaction could be subject matter of bargaining with resultant loss of
efficiency.
4-SEACHING;
In market, both sellers & buyers respectively look for appropriate buyers and sellers
with products approximately to the buyers needs. Thus, both are engaged in search
process. But it also involves uncertainty. Distribution channels greatly facilitate this
search process, when intermediaries specialize in terms of products and services by
bringing both the parties at one point.
The importance of these functions varies depending upon the nature of the goods them
selves. For example, transportation and storage tend to predominate in the case of bulky
raw material such as coal, petroleum products and iron ore, where price and specification
are standardized and the market comprises a limited number of buyers and sellers. As the
complexity of the product increase, the provision of information and product service
becomes predominate;
For example, computer, automobiles, etc. therefore it is necessary the prices nature of the
product and the seller-buyer relation ship to determine their relative importance.
Choice of distribution channel is very important decision due to the following reasons;
1) Distribution channel is an important element of the marketing mix of a
firm; other elements are closely interrelated with and interdependent on
the channel of distribution. There fore choice influences other marketing
decision like pricing, promotion and physical distribution. A mistake in
the choice of channel may affect adversely the whole marketing mix of
the firms.
2) The cost involved in the use of distribution channels enter the price of the
products that the ultimate consumer has to pay. Due a wrong decision
regarding, channel, distribution cost may be very high and sales might be
very limited. On the other hand, sound channel decisions enable the firm
to cut down costs and maximize sales revenue. Thus, channel influences
sales volume and profits.
CONTRIBUTION OF CHANNEL
• Make available on time.
• Reduce the cost of distribution.
• Save the distribution time.
• Helpful in product design & development.
• Flow of feedback from customer.
• Flow of money consumers to manufacturer.
MANUFACTURERS
CUSTOMERS
• 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 some company, Retail
stores. The distributor is very much an extension of the company as he ensures that the
market is property served. A company has direct control over the distributors.
• WHOLESALERS;
Some of the following type of wholesalers;
MERCHANT WHOLESALERS;
RACK JOBBER;
MANUFACTURER’S AGENTS;
BROKERS;
• COMMISSION MERCHANTS;
Received goods on consignment.
They have not title to goods.
To accumulate them from local markets and arrange for their sales.
Offer credit and storage goods facility.
To provide sales force and research aid.
They do not normally promote the goods.
SALES FACILITIES;
MANUFACTURER’S SALES FACILITIS;
Established by manufacturer.
It is separate from manufacturing operations.
It’s performing the wholesaling function himself.
Generally used in industrial customers.
TYPES OF MANUFACTURER’S SALES
FACILITIES;
MANUFACTURER’S SALES BRANCHES;
Carry inventory.
Promote the sales activities.
Sell to retail outlets.
The firm should also study the competitors channel patterns before
deciding its channel while the firm may not necessary follow the competitors
it will be worthwhile for the firm to analyse in depth the plus and minus of the
channel patterns adopted by each of the major competitors.
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 the distribution task.
The primary objective of channel of distribution to bridge the gap by resolving spatial
(geographical distance) and temporal (relating to time) discrepancies as to supply and
demand.
PRIMARY PRODUCTS’
• Ingots
• Wire Rods
• Billets
R0LLED PRODUCTS;
• Sheet
• Chequered Sheet
• Roofing Sheet
• Coil
• Hot Rolling Plates
• Circles
EXTRUDED PRODUCTS
• General solid Section
• Tubings
• Structure Of
• Architecture Of
• Mouldings
FOIL
• Cable Wrap Stock
• Light Gauge Foil
• Bare And Coated Fine Stock
• Collapsible Insulation Duets
FOIL; [CONSUMERS]
• Packing sector (Printed multi laminated)
• Pharmaceuticals
• Diary products
• Processed food
• Personal care products
• Cigarettes
• Con-Factionary
• Box ropping
• Air conditioner
• Automobile radiator
• Collapsible insulation duets
ALLOY WHEELS; [CONSUMERS]
• Automobile sectors
• Maruti Suzuki
• Tata motors
• FLAT India
• Hindustan motors
• Telco
• Ford India
• Hyundai India
• GM India etc
• BULK CUSTOMER;
Bulk customer are those customer whose demand is very high and consistence some
of the bulk customers are Howkins, TTK, Foil division Silwassa, Jugraj, Tagraj,
Bajaj, Auto, etc.
Small and medium customers may be bracketed as those customers whose demand is
comparatively low and not so consistence, some of the small customers of Hindalco
included ITI Allahabad Defence Organization, Dockyard etc.
• ROUTINE CUSTOMER;
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
development. Since their demand is usually regent in nature they are given priority
under routine customers,
G-TRANSPORTATION FACILITY;
Smooth transportation facility is available all over the country all the time. Some
areas are affected by flood; some areas are block in the case of heavy rain etc.
DISTRIBUTION PROCESS AT
HINDALCO
ORDER PROCESSING;
Every purchaser has to book his order giving details such as plain sheet, cold rolled coil,
milk can sheet, and circle etc. Purchaser should be fully disclosed such as product name,
quality, quantity, technical data, mode of transportation, desire delivery time, payment
mode etc.
Technical wing of Hindalco examines there applications and if necessary also make
inspection of the facing and decided quality to be offered. There after, a term of payment
is finalized and the order is finally booked. This order is then passed to the relevant
personnel’s officials with relevant details.
PRIORITY;
A priority list of all categories consumers has to be fixed in consultation with the
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 customer or through the agent/stockiest.
The order contains the name of product, quality, size, clearance etc.
After the receipt of order from the customers or agents, the company scrutinizes the
order. A production planning program is prepared for rolled product on monthly basis.
This monthly report is sent to the respective production department. The produced
materials are then sent to the inspection and packing department.
WAREHOUSING;
Every people have to store the goods while they wait to be sold. A strong function is
necessary production and consumption cycles rarely match. Warehousing is the
responsibility of warehouse incharge in Hindalco the work start when warehouse
officially receive finished goods from production. Hindalco warehousing incharge
dispatch the materials to respective customers on advice of CSMO and follows the
guidelines given to them.
PACKAGING;
No vertical stocking of package. After loading truck, it should be covered with tarpaulin
during storage;
• Out doors storage should be avoided.
• Do not store packages directly on the floor, use wooden pallets?
• Check condition of metal every few hours to ensure no water condensation.
• If possible, forced hot air circulation inside godown desired.
MODE OF LOADING;
Mode of loading is the part of distribution system. There are two types of loading;
• Manual loading.
• Automated loading
Now a days every where the automated loading system is used because it is time
arising and also very economical than manual loading. In Hindalco, there is good
system of loading i.e., automated loading system. They also used some manual
labours for small products.
TRANSPORTATION;
In distribution system without proper mode of transportation, the product can not be
reached to the market at times as a result of which the in company faces failure. In
Hindalco the products are transported only by road. The rail mode is only used to
bring the raw materials, which is used to produce aluminium in the industry. By
observing the mode it can be said that 100% of the products of Hindalco industries
are transported by road.
SALE OF MATERIAL;
They make a contract with a potential customer for sell of product. After receiving the
order they prepare an invoice of the material sold. They obtain payment from
customer/negotiation the documents as pre mutually agreed tern on the basis of
payment/negotiation of documents. They deliver order in favour of the party.
DELIVERY OF MATERIAL;
They deliver the material as per the delivery order. Then they note down the delivered
materials in the godown resister. Then they send the delivery report daily to zonal office.
INSURANCE;
Every material is dispatched duly insured. They are two types of insurance;
1-CARRIER RISK
2-OWNER RISK
Hindalco arrange insurance facility for the customers. If are any danger in transportation
they will issue damage certificate and the customer can claim its insurance on the basis of
damage certificate.
GODOWN SALIS PROCEDURE;
Godown sales procedure describes the sales procedure of Hindalco product
through its godown. The respective zonal head exercise control over all activities related
to the godown sales. This procedure is followed by all the godown of company situated at
Delhi, Faridabad, Chandigarh, Jaipur, Haryana, Banglore, Hyderabad and Kolkata.
LIGHT WEIGHT;
Aluminium is a very light metal with a specific weight of 2.7g/cm, about a third that of
steel. For example, the use of aluminium in vehicles reduces dead-weight and energy
consumption while increasing load capacity. Its strength can be adopted to the application
required by modifying the composition of its alloys.
CORROSION RESISTANCE;
Aluminium naturally generates a protective oxide coating and is highly corrosion
resistance. Different types of surface treatment such as anodizing, painting, or lacquering
can further improve this property. It is particularly useful for application where protection
and conservation are required.
ELECTRICAL & THERMAL CONDUCTIVITY;
Aluminium is an excellent heat and electricity conductor and in relation to its weight is
almost twice as good as conductor as copper. This has made aluminium most commonly
used material in major power transmission lines.
REFLECTIVITY;
Aluminium is good reflector of visible light as well as heat that together with its low
weight, makes its an ideal material for reflectors in. For example, light fittings or
resources blankets.
DUCTILITY;
Aluminium is ductile and has a low melting point and density. In a molten condition it
can be processed a number of ways. Its ductility allows products of aluminium to be
basically formed close to the end of this product design.
RECYCLABILITY;
Aluminium is 100% recyclable with no down grindings of its qualities. The re-melting of
aluminium requires little energy, only about 5% of energy required to produce the
primary metal initially is related in the recycling process.
BRIEF HISTORY OF
ALUMINIUM;
Earth contains about 8% aluminium metal compared to 5% FE clay having greater
aluminium compounds provides better longer serving utencils made from clay.
ALLUMINIUM PROPERTIES
The major advantages of using aluminium are tide directly to its remarkable properties.
Some of these properties are outlines in the following sections.
• CORROSION RESISTANCE;
When the surface of aluminum metal is exposed to air, a protective oxide coating forms
almost instantaneously. This oxide layer is corrosion, resistant and can be further
enhanced with surface treatment such as anodizing.
• WEIGHT CONSIDERATION;
It means that a large property of overhead, high voltage power lines now used aluminium
rather than copper.
• TOXICITY;
Aluminium is not only non-toxic but also does not release any odors or taint
Product with which it is in contact. This makes aluminium suitable for use in packing for
sensitive products such as food or pharmaceutical where aluminium foil is used.
• RECYCLABILITY;
The recyclability of aluminium is unparalleled. When recycled, there is no digression in
properties when recycled aluminium is compared to virgin aluminium. Further more,
recycline of aluminium only required around 5% of the input energy required to product
virgin aluminium metal.
APPLICATION OF ALUMINIUM;
1- IN CONSUMER DURABLES;
Consumer durable good include kitchen utensils domestic electrical application. One of
the earliest applications of aluminium was in the manufacturing of kitchen utensils,
notably saucepans.
The properties which makes aluminium suitable for use in consumer durable product
include its good thermal conductivity, its lightness of weight, its resistance to corrosion,
the brightness of its appearance and the case of fabricating it, aluminium is use in
components for many domestic electrical application such as cookers, refrigerators etc.
Major applications are also in following fields;
Cookers
Refrigerators
Freezers
Vacuum cleaners
Washing machines
Ice tray & grid
Paddles
Stove tops
Water filters
Furniture
Hangers
Letters plates
Solar channel
Watch case etc.
2- IN ELECTRICAL INDUSTRY;
Annealed commercial grade Aluminium with purity of 99.7% aluminium has an electrical
conductivity 63.5% that of cooper, but it has must lower density than copper.
Aluminium has been used for overhead transmission of high voltage electricity,
aluminium is resistant to corrosion. It is almost universally used for high voltage bare
overhead conductors and in some instance it is also used for the transmission tower they.
Aluminium is almost suitable where space is not restricted and insulation is n0t
required high voltage overhead transmission lines are usually not insulated so the higher
cost of insulating larger conductor avoided.
Because of cheaper than copper aluminium is widely used in bare overhead
conductors.
Major applications are also in following electrical fields;
Electrical components
Accessories
Motor body
Cable core
Telephone parts
Transmission tower.
The main use are roofing and cladding and in window & doorframes, but there are many
other uses, some are as follows;-
Solar panels
Cladding roofing
Window door & general application
Architectural hardware furniture
Grills
Ventilation blind
Foil insulating
Capping strip rain water guttering
Shower boxes
Mosquito nets
Casemate window
Ceiling system
Roller shutter
Pharmaceutical packing
Cigarettes foil
Tea industries
Tagged lids
Aluminium cans for milk
Dairy product packing
Multiply laminates
Electrical power application
Decorative laminates
Collapsible tube
Powder and chemicals
Colors
Aseptic packing
Beverage cans
Flexible food packing
Semi-rigid containers
5- IN RAILWAYS;
The high strength to weight ratio of aluminium alloys makes them highly suitable for use
in Railway rolling stock, in which they reduce the tare weight to permit fuel saving and
the carriage of increase the payloads. Aluminium alloys are also resistant to corrosion,
which leads to saving in maintenance, and increase the service life of railway vehicles.
The types of railways vehicles for which aluminium alloys are suitable include mainline,
locomotives passenger carriages and freight wagons.
Aluminium alloys are also being considered for use in the magnetically levied trains,
which have been introduced in some cities in recent years. ALCON, ALCO,
ALUSUISSE, KAISER and REYNOLDS have all developed lightweight aluminium coal
cars. These advantages of fuel economy an increased speed on return journey when the
train runs empty.
Aluminium alloys are widely used in rolling stock for this type of railway operation,
because their lightness of weight permits faster acceleration and reduces breaking both of
which are important in trains, which are required to provide the shortest possible journey
time despite the need to make many intermediate stops. Sometimes at intervals of only a
few hundred meters.
Aluminium car is 30% more expansive, but one third lighter than its steel counters
part. Its payload is around 10% higher and fuel consumption is significantly reduced.
Aluminium is widely used in the best known higher speed passenger trains are used in
FRANCE; the TGV makes extensive use of aluminium.
6- IN TRANSPORT INDUSTRY;
Aluminium alloys are used in the construction of almost all type of transport
equipment. The most widely publicized application for aluminium is in aircraft, through
this in one of the smelter application in term of the tonnage consume. the largest end use
in the road vehicle, both passenger’s can & commercial
vehicle, and it is also used in railway rolling stock and in the construction of naval and
merchant ships and small boats.
The largest outlet for aluminium amongst road vehicle is in passenger cars,
which though smaller than commercial vehicle are built in very large numbers such as:
• Aeroplane
• Commercial aircraft
• Passenger cars
• Bus and bus shelter
• Railway
• Bicycles & bikes
• Trucks
• Light motor vehicles.
7- IN AUTOMOTIVE INDUSTRY;
The use of aluminium in construction of passenger cars is new. In the UK the
ROVER Company has made intensive of aluminium in body work for over 40 years,
starting with the LAD ROVER 1948 than notably in the
ROVE 75 and ROVER 90 series (1949-1964) and ROVER 2000. All the models of
vehicle concerned, where by the standards of the times during which they were build, low
volume models. Aluminium is still more widely used in low volume, high performance,
highly prices models of automobiles then in the high volume production models, which
account for most of the passenger or produce.
The consumption of aluminium, light weight materials in the manufacturers of
passenger can is governed by consideration of safety of fuel efficiency, in emission
control and cost.
Aluminium is used for a wide range of components. A variety of examples are
available to show the range of components, which have been produced from aluminium.
Currently the European cars consume 70 Kg of aluminium compared to 120 Kg use in the
US markets. In India, the use of aluminium in passenger’s cars stands on an average at 20
Kg in comparison to 35-35 Kg witnessed in other developing countries.
Today the per capita consumption of aluminium in automotive sectors accounts for
22% of total per capita consumption of aluminium in India. Globally the sector holds
25% of the total consumption; Examples of parts being converted from other traditional
materials to aluminium include, but are not limited to the following:
• Wheels
• Hoods
• Deck lids
• Bumper beams
• Suspension parts
• Break discs
• Break drum and other break components
• Radiators
• Cylinder heads & blocks
• Steering housing
• Chryner design engines
Doorframes, sills, steps, roof bows, ride parts
SAMPLING PLAN;
There is no sampling plan as such as the study involved in understanding the various
processes and analyzing them. The study involved in the detailed analysis of secondary
data calculated from sources and there fore no sample size and plan has been considered.
RESEARCH DESIGN;
This project is based on two researches-
Exploratory research design
Conclusive research design
SOURCES OF DATA;
Data has been collected through literature survey and expert opinion. The part of data is
collected from various primary sources and secondary sources.
PRIMARY SOURCES;
Information’s gathered through interview and discussing with departmental member.
PERSONEL INTERVIEW;
EMPLOYEES;
DISTRIBUTORS;
SECONDARY DATA;
Through its study, many points related to the Indian aluminium industry and aluminium
extrusion came forward. These points are as follows;
SWOT ANALYSIS
STRENGTH
WEAKNESS;
Present production capacity is not adequate to meet the rising high demand.
Technology is not upgraded compare to global giants in aluminum industry.
OPPORTUNITY;
THREATS;
SUGGESTION/RECOMMENDATION/CON
CLUSION
Certain recommendations with regard to distribution channel of HIL are as under;
A; Northern zone offers the most lucatative in last financial year. In the last of such high
sales driven by the factors such as heavy investment in infrastructure and related
industries-machinery, transportation etc. In this zone our more than 65% sales depend on
direct sales. So that our focus should convert indirect sales to direct sales. Our effort
should be here increase the depots in proportionate way, and also made appointment
TM’s and RM’s.
B; Southern zone is also the fast growing market for the company. The zone offers bright
prospects to company in terms of future demand driven by rapid industrial expansion. In
this zone our more than 60% sales depends on direct sales and also we face cutthroat
competition. In maintain the sales need of continuous market research in regard to
distribution channel and appoint stockiest instead of consignment agents.
C; Western zone is the key market of the company. This zone is the most advanced zone
in industrialization in the country. In this zone our 65% (approx) sales is through direct
sales.
Analysis of sales data, present depots, stockiest & consignment agents, 35% of
sales in this zone is indirectly depend upon consignment agents and stockiest. The
demand of this zone is very high. To optimize in this key zone, the company should
established additional depots in that areas. Ahmedabad and Nagpur for enhancing direct
sales.
D; In eastern zone company’s indirect sales is approx 70% such a heavy indirect sales
reflects that the company is not in direct
contact of its customers and their worries and feedback and these are most essential
factors for improving level of sales.
In direct sales is not helpful to create, grow and retain the customers, so making the sales
customers oriented and to improve the sales the company can take the following
initiatives.
1. Assign sales representative to contact all prospects in this area.
2. Design a sales promotion complains focusing on brand awareness.
3. Appoint a regular sales representative with each stockiest.
4. Shift to retail format of business by owning aluminium galleries in malls.
CONCLUSION
The above study makes it clear that HINDALCO has a well-established market for its
products. The company is making a reaped progress in the various spheres of its business
activities besides the company adopts a favorable attitude towards safety environments
and quality consideration. The company has also been undertaking various community
developments programs. In the nearby located areas.
It has been a learning a exercise to complete this project, working on this project I
found the practical knowledge about the industrial organization. It has been an enjoyable
and fruitful experience to me. I certainly gained a lot of practical knowledge while on
training.
The study is intended to be concluded with the help “Strength, Weakness,
Opportuinity, Threats” Analysis of Distribution Channel of the Hindalco Industries
Limited which will presents a summarized view of the whole study.
QUESTIONNAIRE
Would you like to know about the ingots, wire-rods, foil etc?
Yes / No If yes then why and when
Phone no…………………………………
Contact Person…………………………
Product you manufacture
ANALYSIS OF QUESTIONNER
From the use of the questionnair we got the actual view of the distribution of the products
in market –
In first stage , using the questionnaire we asked about the quantity of the product
that the customers are use and of which brad name .
In second stage , we give some questions to the customers regarding the
performance , price structure after sale service and the availability of the spare parts and
what are the facility that are given by service team and we asked the requirement of the
customers for satisfy them and know about the knowledge about the product they have or
not and the preference of the customers because we can give the shape to the procut
according to the needs of the customers that product are like ignots , wire rods and foils
etc.
At last we find from the analysis of questionnaire that the products of highly used
in the sector of Electric, Railways, Shipping and Aluminium made consumer goods
BIBLIOGRAPHY
MAGIZINES;
Impex time
Aluminium times
Aluminium now
Aluminium international today
Annual report (07-08), HIL
Induction guide
INTERNET;
Hindalco.com
Aditya Birla.com
Google.co.in
Wikipedia.com