About
Hindalco Industries Ltd
Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, is the world's largest aluminium rolling and recycling company, a major copper player, and one of Asia's largest producers of primary aluminium. In India, Hindalco's aluminium manufacturing units cover the complete value chain, from bauxite mining, alumina refining, coal mining, captive power generation and aluminium smelting, to downstream value-addition of aluminium rolling, extruding, and foil making. Hindalco's copper division in India comprises, among other facilities, a world-class custom copper smelter and captive jetty with capability to manufacture copper rods. Hindalco is one of the largest suppliers of copper to the Indian Railways and meets more than half of the country's copper requirements.
Hindalco Industries Limited was incorporated in December 15th, 1958. In year 1962, the Company commenced production with an initial capacity of 20,000 mtpa of aluminium metal and 40,000 mtpa of alumina at Renukoot (Uttar Pradesh). In the year 1965, they commissioned downstream capacities in Rolling and Extrusion Mills at Renukoot. In the year 1968, the Company commissioned Renusagar Power Plant.
In the year 1994, the Company made a huge expansion, modernisation and diversification programme in their working areas. In the year 1998, foil plant of the company came to existence at Silvassa. Also, the company attained ISO 14001 EMS certification during the year. In the year 1999, the company commenced aluminium alloy wheels production at Silvassa. Also, they expanded the metal capacity at Renukoot to 242,000 tpa.
In the year 2000, the company acquired the controlling stake in Indian Aluminium Company Ltd (Indal) with 74.6 per cent equity holding. The company entered 'The Asia Top 25' list of the CFO Asia Annual Report Survey, the only Indian company in 2001.
In the year 2002, the company commissioned the ninth potline at an outlay of Rs 1, 800 crore. They made a major corporate restructuring to create a non-ferrous metals powerhouse. During the year, Indo Gulf Corporation Ltd's copper business, Birla Copper, was amalgamated with the company with effect from April 1, 2002.
In the year 2003, the company through Aditya Birla Minerals Ltd (ABML) acquired Nifty Copper Mine. Also, in November 2003, ABML acquired the Mt Gordon copper mines. The company divested 8.6% holding in Indo Gulf Fertilizers Ltd. Also, they made brownfield expansion of aluminium smelter at Renukoot to 345,000 tpa.
In the year 2004, the company expanded the copper smelter to 250,000 tpa. In the year 2005, all business of Indal, expect for the Kollu Foil plant in Andhra Pradesh, merged with the company. They commissioned copper III expansion, taking total capacity to 500,000 tpa. Also, the company signed a MoU with state governments of Orissa and Jharkhand for setting up Greenfield alumina, refining, smelting and power plants.
In the year 2006, the company made a joint venture with Almex USA for manufacture of high strength aluminium alloys. The company singed an MoU with government of Madhya Pradesh for a Greenfield aluminium smelter in Siddhi. In March 2006, the company acquired an aluminium rolling mill and wire rods facility situated at Mauda (Nagpur), from Asset Reconstruction Company (India) Ltd (ARCIL), belonging to Pennar Aluminium Company Ltd. In May 2006, the company entered into a joint venture with Essar Power (M.P.) Ltd to develop and operate mines at Mahan, Madhya Pradesh.
In 2007, Hindalco created history in the Indian aluminium industry by acquiring Novelis Inc., a global leader in aluminium rolling and can recycling. In May 2007, Novelis became a subsidiary of Hindalco with the completion of acquisition process. The company acquired Alcon's 45% equity stake in Utkal Alumina project, makes the company, the 100% project owner. In the year 2008, the company expanded the alumina at Muri.
During the year 2009-10, the company completed the Muri Alumina Refinery from 110,000 tpa to 450,000 tpa. They completed the expansion Hirakud smelter from 143,000 tpa to 155,000 tpa. In October 5, 2009, the company incorporated a wholly-owned subsidiary by the name Mauda Energy Ltd for generation of power to be used captively. During the year 2010-11, the company completed the Smelter expansion at Hirakud from 155 KTPA to 161 KTPA. In March 4, 2011, the company dissolved the Indal Exports Ltd. Also, A V Aluminium in Canada was merged with Novelis Inc.
In 2011, Hindalco refinanced US$4 billion debt to finance its acquisition of Novelis to enable strategic flexibility for growth. Hindalco achieved financial closure of two projects through debt financing in 2011 viz. Utkal Alumina for Rs 4906 crore and Mahan aluminium for Rs 7875 crore.
On 10 April 2012, Hindalco's US subsidiary Novelis Inc announced that it had signed an agreement with the Changzhou National Hi-Tech district to build the company's first automotive sheet manufacturing facility in China.
On 17 September 2012, Hindalco Industries announced that it had achieved financial closure for its Rs 13195 crore greenfield aluminium smelter project at Lapanga in Odisha.
Hindalco's Utkal Alumina Refinery became operational in 2013. The company also commissioned Hirakud Flat Rolled Products plant in 2013.
On 11 August 2015, Hindalco Industries announced that credit rating agency CRISIL has downgraded Long-Term rating of the company's bank facilities and Non Convertible Debentures from AA/Negative to AA-/Stable.
Hindalco's Mahan Aluminium and Aditya Aluminium smelters and Utkal refinery became operational in 2015. The company acquired the Gare Palma Coal mines in Chhattisgarh and the Kathautia and Dumri Coal mines in Jharkhand through auction in 2015.
On 14 September 2016, Novelis Inc. announced the completion of the previously announced offering of $1.5 billion aggregate principal amount of 5.875% senior notes due 2026 by Novelis Corporation, an indirect wholly-owned subsidiary of Novelis.
Hindalco's greenfield projects - Mahan Aluminium, Aditya Aluminium and Utkal Alumina ramped up to full capacity in 2016.
Hindalco successfully raised USD 500 million through Qualified Institutional Placement (QIP) in March 2017. There was a strong participation from FIIs and long- only investors, generating demand in excess of USD 1.5 billion (3x subscription). The QIP was priced at zero discount to the previous day's closing share price. Accordingly the company Issued and allotted 17,68,27,659 equity shares of Re 1 each at the issue price of Rs 189.45 per equity share on 09th March, 2017 vide Qualified Institutional Placement.
Novelis entered into a joint venture agreement in May 2017 with Kobe Steel, Japan to sell 50 per cent of its ownership interest in its Ulsan, South Korea facility, for USD 315 million. Located in the industrial hub of Korea, Novelis' Ulsan facility focuses on the production of rolled aluminum sheet for a variety of markets in Asia.
In FY 2017, Hindalco divested Aditya Birla Minerals Limited, Australia for Rs 367 crore. With the new coal linkage in FY 2017, coal security improved to over 60 per cent of the annual requirement of Hindalco's domestic aluminium business. In FY 2017, Gare Palma IV/4 Coal Mines and Gare Palma IV/5 Coal Mines reached their peak capacity. The operations at Kathautia Mines commenced in February 2017.
During the fiscal year 2018, the company's subsidiary Novelis Inc completed JV to establish Ulsan Aluminium in South Korea, by selling approximately 50% its ownership to Kobe Steel for US$ 314 million which have helped to unlock the value. Novelis with its objective to invest in world class assets and technical capabilities to position itself to meet the increasing global demand for aluminium from the Automotive market, announced its plans to setup a 200 Kt automotive finishing facility in Guthrie, Kentucky, US which is expected to be commissioned in CY 2020. Novelis has agreed to acquire the operating facilities and manufacturing assets at its plant in Sierre, Switzerland, that has been historically leased.
Aditya Birla Nuvo Ltd. got amalgamated with Grasim Industries Ltd. Upon amalgamation, financial service business got de-merged from Grasim Industries Ltd. and transferred to Aditya Birla Financial Services Ltd. Pursuant to the scheme of amalgamation between Aditya Birla Nuvo Limited (ABNL) and Grasim Industries Limited (Grasim), having record date of 6th July, 2017, the Company received 12,975,618 shares of Grasim in exchange of 8,650,412 equity shares it held of ABNL as at record date, making total equity shares held in Grasim to 28,222,468. Further, pursuant to the scheme of demerger of Aditya Birla Capital Limited (ABCL) (formerly Aditya Birla Financial Services Limited) from Grasim, having record date of 20th July, 2017, the Company received 39,511,455 equity shares of ABCL for 28,222,468 equity shares it held of Grasim as at record date.
During the year 2017-18,the company spent towards capital expenditure relating to Aluminium and Copper segments amounting to Rs 1,388.07 crore and Rs 236.50 crore, respectively.
The company bagged India Manufacturing Excellence Awards 2017-18, Silver Certificate for Manufacturing Effectiveness-Mahan facility.
During the FY2019,the company spent capital expenditure relating to Aluminium and Copper segments amounting to Rs 911.75 Crore and Rs 205.98 Crore, respectively
The company's subsidiary Novelis signed a definitive agreement to purchase Aleris Corp for US $2.6 billion in July 2018. This will strengthen its leadership position in the fastest growing automotive segment, thereby enhancing its Asia operations with full metal chain integration in China, further diversifying its portfolio with its entry into the aerospace segment. This transaction is expected to close in FY20 post all the pending regulatory approvals.
The Board of Directors in their meeting on 09th August 2019, had approved the issuance of Commercial Papers for an amount not exceeding Rs 900 Crore. Further, on 22nd November 2019, the Company allotted 18,000 securities at Rs 900 Crore issue size, maturing on 20th February 2020 on Private Placement.
On 14th April 2020, Novelis completed the acquisition of US-Based Aleris Corp. The integration process has commenced while driving synergies and unlock value. Divestment procedures for automotive assets in Lewisport in the US and Duffel in Europe is underway.
During the year ended 31/03/2020, capital expenditure relating to Novelis, Aluminium, Copper and All Other Segments are Rs 4,462 Crore, Rs 1,987 Crore, Rs 109 Crore and Rs 32 Crore, respectively.
The company recognised as Aluminium Industry Leader for its sustainability performance in the 2020 edition of the S&P Dow Jones.
In April 2020, Novelis availed short-term loan to the tune of Rs 8,363 Crore (USD1.1 billion) for the purpose of funding a portion of the consideration payable in connection with the acquisition of Aleris. This loan has been prepaid in full during the year ended 31 March 2021.
On 30 September 2020, the Group has completed the sale of its assets at Duffel, Belgium to ALVANCE, the international aluminum business of the GFG Alliance at a consideration of Rs 2,675 Crore (EURO 310 million as of 30 September 2020). Divestiture of Duffel was a precondition to the acquisition of Aleris as determined by the European Commission and Chinese State Administration for Market Regulation (SAMR). At the transaction date the Group has received Rs 1,812 Crore (EURO 210 million) in cash. Both the parties have agreed to a post-closing arbitration process on the remaining Rs 863 Crore (EURO 100 million as of 30 September 2020).
On November 8, 2020, the Group entered into a definitive agreement with American Industrial Partners (AIP) for the sale of Lewisport which got completed on 30 November 2020.
The Company commissioned 5,00,000 tonne Utkal's Alumina refinery brownfield capacity expansion project in FY 2022. It acquired two facilities, aluminium extrusions business in Kuppam, Andhra Pradesh, costing $79 million to enhance capabilities in extrusions and a fabricated solutions and Ryker's 2,25,000 tonne copper rod facility in Gujarat. It increased downstream capacities in the Flat Rolled Products, Extrusions and other flat rolled products. It got into two new segments, Cu-Mg Alloy rods for railways, and Inner Groove Tubes for ACs. In FY2021-22, the business diversified its product offering with multiple new high-tech products for applications into wire and cables, refractories and abrasives segments.
During the year 2023, the Company commissioned a new line to augment circle blanking capacity by ~8 KTPA and a new degreasing line of 24 KT capacity in Renukoot. It installed manufacturing facility having capacity of 5 KTPA, in manufacturing various copper alloy rods, including Copper Magnesium. It commissioned a biomass power plant at Belagavi, having a 4 MW extraction-cum-back pressure steam turbine, 33 TPH boiler, 67.0 kg/ cm2 working pressure, water tube, patented lambion grate technology with heat recovery systems and Electrostatic Precipitator (ESP). It commissioned a Circulating Fluid Bed Scrubber (CFBS) technology based Semi-Dry flue gas desulphurisation (FGD) system at CPP plants in Mahan and Aditya. It introduced the first aluminium rake in FY 2022-23 in Odisha.
Hindalco Industries Ltd
Chairman Speech
Dear Shareholders,
Our Group's foundation rests upon a trusteeship philosophy, which
imagines corporations as institutions that drive collective prosperity. This philosophy
has played an integral role in shaping our actions for generations, guiding our quest to
enrich lives. Over the years, this purpose, though unstated, has been our unwavering
anchor.
In FY2022-23, we formally put to words our Group's purpose statement.
At its heart is the commitment to enriching lives by building dynamic, responsible
businesses and institutions that inspire trust.
We strive to honour this commitment daily through our brands, products,
services, solutions, actions, relationships, and institutions. Our purpose statement
stands both timeless and fresh against the backdrop of our extensive history. In a world
of increasing opportunity and accelerating uncertainty, our purpose statement is meant to
act as a talisman and remain at the core of our business decisions. Our purpose offers us
a unique lens through which to view the world, bring perspective, and thrive in it. Guided
by this unique perspective, we navigate the evolving global landscape with resilience and
foresight.
As we turn our attention to the current state of the global economy, it
is evident that we are charting a course through a 'new normal'.
Global Economy: Finding a New Normal
The global economy continues to pull itself out of the
pandemic-triggered shock. It does so amid a complex environment marked by_the_ongoing
conflict in Ukraine, geo-economic fragmentation, soaring interest rates, and looming risks
of a banking contagion.
Reflecting these concerns, the International Monetary Fund (IMF)
expects global economic growth to dip from 3.4% in CY22 to 2.8% in CY23. Developed
countries are predicted to experience a more pronounced deceleration, their aggregate
growth stumbling to just 1.3% in CY23 – the slowest pace in a decade, excluding the
pandemic-impacted CY20.
On the brighter side, China's economy marches towards normalisation
after lifting its Covid-related restrictions. Both China and India are set to
significantly contribute to global economic growth in CY23, providing a much-needed
stimulus as developed economies grapple with challenges. Meanwhile, global supply chain
pressures have largely normalised, helping ease commodity prices and peak inflation levels
in most economies. Central banks, led by the US Federal
Reserve, are nearing the end of their rate-hiking phase, signalling
cautious optimism for the global economy and financial markets.
However, vigilance remains crucial in the face of potential risk events
in this fragile environment.
India: The Shining Star
India's economic narrative paints a much_brighter picture. With a
government-led push to infrastructure investments and pragmatic policies such as the
production-linked incentives scheme, private capex has seen a surge. This rise triggers a
multi-year boom, providing valuable support to economic growth in the face of softening
global demand.
A decadal reshaping of supply chains is underway. As global
corporations start to look at countries across Asia as part of their China + 1 strategies,
India is well-positioned to benefit. The dynamism of its tech-based 'new economy'
enterprises and the expanding digitisation across sectors supports India's growth
momentum.
The Reserve Bank of India (RBI) projects India's economy to grow 6.5%
in FY24, demonstrating the nation's resilience amidst subdued global economic conditions.
Inflation has peaked globally and in India. Easing inflation, robust foreign exchange
reserves, and improving bank assets' quality provide a_cushion against potential
destabilising events in global markets.
A vital component of the rise of any industrial ecosystem is the
presence of a confident and skilled workforce. This year, India surpassed China in
population and already has the largest and youngest working-age population globally. The
lessons learnt from the transformations of other economies through the last few decades
point to the importance of this demographic dividend.
In the grand theatre of global economic evolution, India is not a mere
spectator but a charismatic lead.
Aditya Birla Group in Perspective
As India takes centre stage in this grand narrative, the Aditya Birla
Group finds itself in a unique position to contribute to this monumental journey. Our
enduring success amidst global uncertainties stems from our unyielding commitment to
purpose, anchored in principles that are much more than words. And therefore, the
articulation of our Purpose was just the first step. We cultivated a deep understanding of
our Purpose across the depth and breadth of the Group, including the last mile.
To_transform Purpose from a concept to an embodied experience, approximately
600 of our senior leaders and managers took the initiative to receive
training and facilitate introspective dialogues on Purpose. This strategy enabled their
teams to internalise, personalise, and actualise our Purpose in a manner that was both
unique and authentically representative of their roles within our dynamic Group.
Driven by purpose, the fiscal year 2022-23 represents the breadth and
scope of entrepreneurial ventures we have embarked upon.
We are exploring uncharted territories, backing our conviction with
capital and talent. Our robust platform is a launch pad for new initiatives, allowing us
to tap into opportunities across traditional and sunrise sectors.
This year, we've emphasised the implementation of our 3-year HR
Strategy, guided by our Purpose Principles. This approach has enabled us to build enduring
bonds with our stakeholders, including crucial_employee segments like early professionals,
and attract high-quality talent across traditional and digital businesses.
As we continue to expand, our employer_brand has empowered us to
attract over 11,000 employees in FY2022-23 – a diverse pool of new skills and
capabilities.
Furthermore, our commitment to diversity is evident in the increasing
representation of women in our workforce. Culture champions have fostered an inclusive and
collaborative environment where every employee feels heard, valued, and respected. Amidst
shifting market dynamics, Learning and Leadership Development remains a key pillar,
helping us equip over 35,000 employees with the skills necessary to drive business
outcomes. Over 400 senior leaders, including CEOs, CXOs, and Unit heads, have bolstered
their capabilities in geopolitical analysis, interpretation of complex megatrends,
inspirational leadership, and agile leadership methodologies. Our adaptability was made
apparent in our diverse learning approaches, both in terms of design and implementation.
Beyond the traditional classroom environment, we provided learning in various accessible
forms – including bite-sized modules, self-paced curricula, and certification courses
– thereby benefiting 87% of our management cadre employees.
With two-thirds of our workforce under 35, we focus on equipping
early-career employees to fulfil their evolving aspirations and needs. Through a unique
program titled 'CareerAbility', these employees have engaged in self-guided learning
bytes, self-assessments, psychometric evaluations, and leadership-led career guidance
sessions. This diverse range of resources has been utilised more than 40,000 times. Our
commitment to the identification and cultivation of talent has remained resolute. We have
recognised over 900 pivotal roles within our Group for which a robust succession pipeline
is firmly in place.
We have undertaken an avant-garde learning journey to equip our future
C-suite leaders, encompassing roles such as CFOs, CMOs, CIOs, and CHROs, with the skills
and insights required for leadership in a rapidly evolving business landscape. This focus
has significantly enhanced our internal versus external hiring ratio for leadership
positions. Our integrated approach to talent identification, development, and internal
mobility facilitates this shift. Over the past three years, 14% of our employees and 27%
of our talent pool members have transitioned into new roles, bringing our vision of 'A
World of Opportunities' to life and fostering enduring bonds within our organisation. This
approach represents our steadfast commitment to talent growth and mobility, which is
crucial for building a_resilient and adaptive organisation.
Your Company's Performance
Your Company delivered a resilient financial and operational
performance in FY2022-23 in a challenging business environment.
This performance was driven by record results by the copper business,
the highest-ever EBITDA by India's aluminium downstream business, and steady performance
by Novelis.
Despite headwinds, your Company registered a consolidated EBITDA of
J24,131 Crore on a turnover of J2,23,202 Crore in FY2022-23.
Your Company's aluminium business in India and Novelis delivered a
resilient financial performance in the face of tough market conditions arising from
inflationary challenges and higher input costs. All the plants operated at their
designated capacities during the year in the aluminium and copper businesses. Your
Company's copper business delivered an exemplary performance backed by the
highest-ever copper rod production and sales. Cathode production was 407 Kt in FY2022-23
versus 359 Kt in the previous year, and Continuous Cast Rod production was 347 Kt versus
259 Kt. Copper metal sales stood at a record 439 Kt in FY2022-23 versus 405 Kt, while CCR
sales were also at a record 347 Kt this year versus 262 Kt in the previous year. Novelis
reported shipments of 3,790 Kt, an adjusted EBITDA of $1.8 Billion, and an adjusted
EBITDA/tonne of $478 in the reporting year.
Novelis continued to improve its product mix with the share of beverage
can sheets at 58%, automotive body sheets at 19%, specialities at 20% and aerospace at 3%
in FY2022-23. Novelis retained its position as the world's largest aluminium
recycler, reporting a 61% share of recycled content.
Since announcing its capital allocation plan in 2021, your Company has
demonstrated financial prudence, allocating free cash flow towards growth projects,
deleveraging, and dividend distribution.
As part of the capital allocation strategy, we have deleveraged
significantly, with consolidated Net Debt-to-EBITDA lower than 2x at the end of the
financial year 2022-23.
Enabled by a strong balance sheet, your Company has embarked on a
transformational growth phase at Novelis and our India business. Your Company has
announced a total capital expenditure of $4.43 Billion for India and Novelis to be spent
over the next five years. All these investments are directed at organic growth through
expansion in the downstream businesses. Novelis is pacing its growth capex spends,
prioritising $3.3 Billion of growth projects already underway.
Your Company is on a path to advance from a manufacturing company to a
manufacturing solutions provider by moving further down the value chain and co-creating
solutions with customers. In the India business, your Company has announced organic growth
investments of around $1.13 Billion that shall primarily be allocated to high-growth
downstream projects in EVs, e-mobility, packaging, batteries, building and construction,
consumer durables, and resource securitisation through the acquisition of captive coal
mines. An unwavering dedication to responsible_business practices matches_your Company's
commitment to value-enhancing growth.
Your Company has, for the third year in a row, achieved the highest ESG
Score in the aluminium industry in the S&P Global Corporate Sustainability Assessment
(ESG Score of 83/100 in_2022).
These affirmations propel your Company to devise more ground-breaking
solutions that would pave the way to achieve carbon neutrality by 2050.
Conclusion
In conclusion, our Purpose broadens our perspective, enabling us to
pursue even greater horizons. The bedrock propels us towards the future, emboldening us to
venture into more significant commitments and pursuits.
As we grow, we expand our capacity to receive by enhancing our
absorption of talent, technology, and capital. Indeed, with each stride in growth, we
deftly weave in more threads of insights and capabilities, enriching the tapestry of our
collective endeavour. This philosophy, in turn, enables us to increase our ability to give
back, create impact, and improve lives. This virtuous cycle is at the heart of being a
successful purpose-driven organisation.
Your Company doesn't just pride itself on being a purpose-driven
entity— it embodies it, living out this ethos in every endeavour, every relationship,
and every venture. This commitment to purpose continues to steer us towards an even
brighter, more impactful future.
Kumar Mangalam Birla
Chairman
  Â
Hindalco Industries Ltd
Company History
Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, is the world's largest aluminium rolling and recycling company, a major copper player, and one of Asia's largest producers of primary aluminium. In India, Hindalco's aluminium manufacturing units cover the complete value chain, from bauxite mining, alumina refining, coal mining, captive power generation and aluminium smelting, to downstream value-addition of aluminium rolling, extruding, and foil making. Hindalco's copper division in India comprises, among other facilities, a world-class custom copper smelter and captive jetty with capability to manufacture copper rods. Hindalco is one of the largest suppliers of copper to the Indian Railways and meets more than half of the country's copper requirements.
Hindalco Industries Limited was incorporated in December 15th, 1958. In year 1962, the Company commenced production with an initial capacity of 20,000 mtpa of aluminium metal and 40,000 mtpa of alumina at Renukoot (Uttar Pradesh). In the year 1965, they commissioned downstream capacities in Rolling and Extrusion Mills at Renukoot. In the year 1968, the Company commissioned Renusagar Power Plant.
In the year 1994, the Company made a huge expansion, modernisation and diversification programme in their working areas. In the year 1998, foil plant of the company came to existence at Silvassa. Also, the company attained ISO 14001 EMS certification during the year. In the year 1999, the company commenced aluminium alloy wheels production at Silvassa. Also, they expanded the metal capacity at Renukoot to 242,000 tpa.
In the year 2000, the company acquired the controlling stake in Indian Aluminium Company Ltd (Indal) with 74.6 per cent equity holding. The company entered 'The Asia Top 25' list of the CFO Asia Annual Report Survey, the only Indian company in 2001.
In the year 2002, the company commissioned the ninth potline at an outlay of Rs 1, 800 crore. They made a major corporate restructuring to create a non-ferrous metals powerhouse. During the year, Indo Gulf Corporation Ltd's copper business, Birla Copper, was amalgamated with the company with effect from April 1, 2002.
In the year 2003, the company through Aditya Birla Minerals Ltd (ABML) acquired Nifty Copper Mine. Also, in November 2003, ABML acquired the Mt Gordon copper mines. The company divested 8.6% holding in Indo Gulf Fertilizers Ltd. Also, they made brownfield expansion of aluminium smelter at Renukoot to 345,000 tpa.
In the year 2004, the company expanded the copper smelter to 250,000 tpa. In the year 2005, all business of Indal, expect for the Kollu Foil plant in Andhra Pradesh, merged with the company. They commissioned copper III expansion, taking total capacity to 500,000 tpa. Also, the company signed a MoU with state governments of Orissa and Jharkhand for setting up Greenfield alumina, refining, smelting and power plants.
In the year 2006, the company made a joint venture with Almex USA for manufacture of high strength aluminium alloys. The company singed an MoU with government of Madhya Pradesh for a Greenfield aluminium smelter in Siddhi. In March 2006, the company acquired an aluminium rolling mill and wire rods facility situated at Mauda (Nagpur), from Asset Reconstruction Company (India) Ltd (ARCIL), belonging to Pennar Aluminium Company Ltd. In May 2006, the company entered into a joint venture with Essar Power (M.P.) Ltd to develop and operate mines at Mahan, Madhya Pradesh.
In 2007, Hindalco created history in the Indian aluminium industry by acquiring Novelis Inc., a global leader in aluminium rolling and can recycling. In May 2007, Novelis became a subsidiary of Hindalco with the completion of acquisition process. The company acquired Alcon's 45% equity stake in Utkal Alumina project, makes the company, the 100% project owner. In the year 2008, the company expanded the alumina at Muri.
During the year 2009-10, the company completed the Muri Alumina Refinery from 110,000 tpa to 450,000 tpa. They completed the expansion Hirakud smelter from 143,000 tpa to 155,000 tpa. In October 5, 2009, the company incorporated a wholly-owned subsidiary by the name Mauda Energy Ltd for generation of power to be used captively. During the year 2010-11, the company completed the Smelter expansion at Hirakud from 155 KTPA to 161 KTPA. In March 4, 2011, the company dissolved the Indal Exports Ltd. Also, A V Aluminium in Canada was merged with Novelis Inc.
In 2011, Hindalco refinanced US$4 billion debt to finance its acquisition of Novelis to enable strategic flexibility for growth. Hindalco achieved financial closure of two projects through debt financing in 2011 viz. Utkal Alumina for Rs 4906 crore and Mahan aluminium for Rs 7875 crore.
On 10 April 2012, Hindalco's US subsidiary Novelis Inc announced that it had signed an agreement with the Changzhou National Hi-Tech district to build the company's first automotive sheet manufacturing facility in China.
On 17 September 2012, Hindalco Industries announced that it had achieved financial closure for its Rs 13195 crore greenfield aluminium smelter project at Lapanga in Odisha.
Hindalco's Utkal Alumina Refinery became operational in 2013. The company also commissioned Hirakud Flat Rolled Products plant in 2013.
On 11 August 2015, Hindalco Industries announced that credit rating agency CRISIL has downgraded Long-Term rating of the company's bank facilities and Non Convertible Debentures from AA/Negative to AA-/Stable.
Hindalco's Mahan Aluminium and Aditya Aluminium smelters and Utkal refinery became operational in 2015. The company acquired the Gare Palma Coal mines in Chhattisgarh and the Kathautia and Dumri Coal mines in Jharkhand through auction in 2015.
On 14 September 2016, Novelis Inc. announced the completion of the previously announced offering of $1.5 billion aggregate principal amount of 5.875% senior notes due 2026 by Novelis Corporation, an indirect wholly-owned subsidiary of Novelis.
Hindalco's greenfield projects - Mahan Aluminium, Aditya Aluminium and Utkal Alumina ramped up to full capacity in 2016.
Hindalco successfully raised USD 500 million through Qualified Institutional Placement (QIP) in March 2017. There was a strong participation from FIIs and long- only investors, generating demand in excess of USD 1.5 billion (3x subscription). The QIP was priced at zero discount to the previous day's closing share price. Accordingly the company Issued and allotted 17,68,27,659 equity shares of Re 1 each at the issue price of Rs 189.45 per equity share on 09th March, 2017 vide Qualified Institutional Placement.
Novelis entered into a joint venture agreement in May 2017 with Kobe Steel, Japan to sell 50 per cent of its ownership interest in its Ulsan, South Korea facility, for USD 315 million. Located in the industrial hub of Korea, Novelis' Ulsan facility focuses on the production of rolled aluminum sheet for a variety of markets in Asia.
In FY 2017, Hindalco divested Aditya Birla Minerals Limited, Australia for Rs 367 crore. With the new coal linkage in FY 2017, coal security improved to over 60 per cent of the annual requirement of Hindalco's domestic aluminium business. In FY 2017, Gare Palma IV/4 Coal Mines and Gare Palma IV/5 Coal Mines reached their peak capacity. The operations at Kathautia Mines commenced in February 2017.
During the fiscal year 2018, the company's subsidiary Novelis Inc completed JV to establish Ulsan Aluminium in South Korea, by selling approximately 50% its ownership to Kobe Steel for US$ 314 million which have helped to unlock the value. Novelis with its objective to invest in world class assets and technical capabilities to position itself to meet the increasing global demand for aluminium from the Automotive market, announced its plans to setup a 200 Kt automotive finishing facility in Guthrie, Kentucky, US which is expected to be commissioned in CY 2020. Novelis has agreed to acquire the operating facilities and manufacturing assets at its plant in Sierre, Switzerland, that has been historically leased.
Aditya Birla Nuvo Ltd. got amalgamated with Grasim Industries Ltd. Upon amalgamation, financial service business got de-merged from Grasim Industries Ltd. and transferred to Aditya Birla Financial Services Ltd. Pursuant to the scheme of amalgamation between Aditya Birla Nuvo Limited (ABNL) and Grasim Industries Limited (Grasim), having record date of 6th July, 2017, the Company received 12,975,618 shares of Grasim in exchange of 8,650,412 equity shares it held of ABNL as at record date, making total equity shares held in Grasim to 28,222,468. Further, pursuant to the scheme of demerger of Aditya Birla Capital Limited (ABCL) (formerly Aditya Birla Financial Services Limited) from Grasim, having record date of 20th July, 2017, the Company received 39,511,455 equity shares of ABCL for 28,222,468 equity shares it held of Grasim as at record date.
During the year 2017-18,the company spent towards capital expenditure relating to Aluminium and Copper segments amounting to Rs 1,388.07 crore and Rs 236.50 crore, respectively.
The company bagged India Manufacturing Excellence Awards 2017-18, Silver Certificate for Manufacturing Effectiveness-Mahan facility.
During the FY2019,the company spent capital expenditure relating to Aluminium and Copper segments amounting to Rs 911.75 Crore and Rs 205.98 Crore, respectively
The company's subsidiary Novelis signed a definitive agreement to purchase Aleris Corp for US $2.6 billion in July 2018. This will strengthen its leadership position in the fastest growing automotive segment, thereby enhancing its Asia operations with full metal chain integration in China, further diversifying its portfolio with its entry into the aerospace segment. This transaction is expected to close in FY20 post all the pending regulatory approvals.
The Board of Directors in their meeting on 09th August 2019, had approved the issuance of Commercial Papers for an amount not exceeding Rs 900 Crore. Further, on 22nd November 2019, the Company allotted 18,000 securities at Rs 900 Crore issue size, maturing on 20th February 2020 on Private Placement.
On 14th April 2020, Novelis completed the acquisition of US-Based Aleris Corp. The integration process has commenced while driving synergies and unlock value. Divestment procedures for automotive assets in Lewisport in the US and Duffel in Europe is underway.
During the year ended 31/03/2020, capital expenditure relating to Novelis, Aluminium, Copper and All Other Segments are Rs 4,462 Crore, Rs 1,987 Crore, Rs 109 Crore and Rs 32 Crore, respectively.
The company recognised as Aluminium Industry Leader for its sustainability performance in the 2020 edition of the S&P Dow Jones.
In April 2020, Novelis availed short-term loan to the tune of Rs 8,363 Crore (USD1.1 billion) for the purpose of funding a portion of the consideration payable in connection with the acquisition of Aleris. This loan has been prepaid in full during the year ended 31 March 2021.
On 30 September 2020, the Group has completed the sale of its assets at Duffel, Belgium to ALVANCE, the international aluminum business of the GFG Alliance at a consideration of Rs 2,675 Crore (EURO 310 million as of 30 September 2020). Divestiture of Duffel was a precondition to the acquisition of Aleris as determined by the European Commission and Chinese State Administration for Market Regulation (SAMR). At the transaction date the Group has received Rs 1,812 Crore (EURO 210 million) in cash. Both the parties have agreed to a post-closing arbitration process on the remaining Rs 863 Crore (EURO 100 million as of 30 September 2020).
On November 8, 2020, the Group entered into a definitive agreement with American Industrial Partners (AIP) for the sale of Lewisport which got completed on 30 November 2020.
The Company commissioned 5,00,000 tonne Utkal's Alumina refinery brownfield capacity expansion project in FY 2022. It acquired two facilities, aluminium extrusions business in Kuppam, Andhra Pradesh, costing $79 million to enhance capabilities in extrusions and a fabricated solutions and Ryker's 2,25,000 tonne copper rod facility in Gujarat. It increased downstream capacities in the Flat Rolled Products, Extrusions and other flat rolled products. It got into two new segments, Cu-Mg Alloy rods for railways, and Inner Groove Tubes for ACs. In FY2021-22, the business diversified its product offering with multiple new high-tech products for applications into wire and cables, refractories and abrasives segments.
During the year 2023, the Company commissioned a new line to augment circle blanking capacity by ~8 KTPA and a new degreasing line of 24 KT capacity in Renukoot. It installed manufacturing facility having capacity of 5 KTPA, in manufacturing various copper alloy rods, including Copper Magnesium. It commissioned a biomass power plant at Belagavi, having a 4 MW extraction-cum-back pressure steam turbine, 33 TPH boiler, 67.0 kg/ cm2 working pressure, water tube, patented lambion grate technology with heat recovery systems and Electrostatic Precipitator (ESP). It commissioned a Circulating Fluid Bed Scrubber (CFBS) technology based Semi-Dry flue gas desulphurisation (FGD) system at CPP plants in Mahan and Aditya. It introduced the first aluminium rake in FY 2022-23 in Odisha.
Hindalco Industries Ltd
Directors Reports
Hindalco Industries Ltd
Company Background
| Incorporation Year | 1958 |
| Registered Office | Ahura Centre 1st Floor B Wing,Mahakali Caves Road Andheri(E)
Mumbai,Maharashtra-400093 |
| Telephone | 91-22-66917000,Managing Director |
| Fax | 91-22-24227586 |
Kumar Mangalam BirlaSatish Pai| Company Secretary | Geetika Anand |
| Auditor | Price Waterhouse Chartered Accountants LLP |
| Face Value | 1 |
| Market Lot | 1 |
| Listing | BSE,Luxembourg,MSEI ,NSE, |
| Registrar | Hindalco Industries Ltd
Ahura Centre 1st Flr,Mahakali Caves Road,Andheri (East),Mumbai - 400 093 |
Hindalco Industries Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| Kumar Mangalam Birla | Chairman (Non-Executive) | 2023 |
| Rajashree Birla | Non Executive Director | 2023 |
| Alka Bharucha | Independent Non Exe. Director | 2023 |
| Anant Maheshwari | Independent Non Exe. Director | 2023 |
| A K Agarwala | Non Executive Director | 2023 |
| K N Bhandari | Independent Non Exe. Director | 2023 |
| Praveen Kumar Mahehswari | Executive Director / Whole Time Director / CFO | 2023 |
| Satish Pai | Executive Director & MD | 2023 |
| Sudhir Mital | Independent Non Exe. Director | 2023 |
| VIKAS BALIA | Independent Non Exe. Director | 2023 |
| Y P Dandiwala | Independent Non Exe. Director | 2023 |
| Anant Maheshwari | Independent Director | 2023 |
| Geetika Anand | Company Sec. & Compli. Officer | 2023 |
Hindalco Industries Ltd
Listing Information
| Listing Information |
|---|
| NIFTY |
| BSE_500 |
| BSE_100 |
| BSE_200 |
| BSEDOLLEX |
| CNX500 |
| BSEMETAL |
| CNX100 |
| CNXMETAL |
| CNX200 |
| CNXCOMMODI |
| BSEGREENEX |
| BSECARBONE |
| NIFTY50V20 |
| NFT100EQWT |
| BSEALLCAP |
| BSELARGECA |
| BSEMETERIA |
| BSEMANUFAC |
| SENSEX50 |
| ESG100 |
| LMI250 |
| BSEDSI |
| BSEEVI |
| NFT50EQWT |
| BSE100LTMC |
| NFTYLM250 |
| NFTY100ESG |
| NF500M5025 |
| NFTYINDMFG |
| NFTYTOTMKT |
| NMIM503020 |
Hindalco Industries Ltd
Finished Product
No Data Found