Hindlaco Industries
Hindalco Industries Limited, a flagship company of the Aditya Birla Group, is structured into two strategic businesses — Aluminium and Copper — and is an industry leader in both. 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. Its copper smelter is today 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 and has today grown to become the country's largest integrated aluminium producer and ranks among the top quartile of low cost producers in the world.
With a strategic intent to achieve vertical integration in the copper business, Hindalco acquired two captive copper mines in Australia — Nifty and Mt. Gordon through Aditya Birla Minerals Limited.
Some recent milestones :: In May 2007, Novelis became a Hindalco subsidiary with the completion of the acquisition process. The transaction makes Hindalco the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia, as well as being India's leading copper producer.
:: In May 2006, the company signed an MoU with the Government of Madhya Pradesh for setting up a greenfield aluminium smelter and a captive power plant. The company also entered into a joint venture with Essar Power (M.P.) Ltd. to develop and operate coal mines at Mahan, Madhya Pradesh. The joint venture will supply coal to the proposed aluminium smelter and power complex in Madhya Pradesh
:: In May 2006, the company's copper mining subsidiary Aditya Birla Minerals Limited (formerly Birla Mineral Resources Pty Ltd.) came out with an equity offering and subsequent listing on the Australian Stock Exchange (ASX)
:: In March 2006, the company acquired an aluminium rolling mill and wire rods facility, from Asset Reconstruction Company (India) Limited (ARCIL), belonging to Pennar Aluminium Company Limited
:: In January 2006, the company concluded 4:1 rights issue of its shares on partly paid basis. It was the largest ever rights issue in the history of corporate India and first one to issue partly paid instruments
:: In September 2005, the company split its shares in ratio of 10:1 in order to enhance liquidity and to encourage participation from retail investors
:: In April 2005, the company signed an MoU to establish a world class integrated aluminium project in the state of Orissa
:: In April 2005, the company entered into MOUs with the Orissa and Jharkhand governments for setting up a greenfield alumina facility and aluminium facility respectively, in the states
:: In March 2005, the company entered into an MoU with the Government of Jharkhand to set up aluminium smelter and captive power plant in the state
:: In August 2004, the boards of Hindalco and Indal approved a scheme of arrangement in which all assets of Indal other than the foil unit at Kollur in Andhra Pradesh were to be de-merged into Hindalco. This came into effect from 1 April 2004
:: In FY 2002, Hindalco acquired the copper business of Indo Gulf Corporation Limited, a Group company. Over the last two years, with a strategic intent to achieve vertical integration, the copper business of Hindalco has acquired two captive copper mines in Australia — Nifty and Mt. Gordon
:: In FY 2000, Hindalco acquired a majority stake in Indian Aluminium Company Limited (Indal), an Alcan Canada Group Company, which had a major presence in downstream aluminium products and is a leader in speciality alumina chemicals
Aluminium
Hindalco is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. In India, Hindalco enjoys a leadership position in speciality alumina, primary aluminium and downstream products.
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.
The integrated facility at Renukoot (Uttar Pradesh) houses an alumina refinery and an aluminium smelter along with facilities for production of semi-fabricated products, namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation plant and a 742 mw captive power plant at Renusagar to ensure continuous and consistent supply of power for smelter and other operations.
Other facilities include an aluminium smelter at Hirakud (Orissa) with a captive power plant, alumina refineries at Muri (Jharkhand) and Belgaum (Karnataka) and rolling mills at Belur (West Bengal) and Taloja, Mouda (Maharashtra) foil rolling at Kalwa (Maharashta) and Silvassa (UT of Dadra and Nagar Haveli) and an extrusions plant at Alupuram (Kerala).The foil plant at Kollur, Andhra Pradesh is the only remaining entity with the erstwhile Indal after the merger of Indal with Hindalco.
The aluminium alloy wheels plant is located at Silvassa (Dadra and Nagar Haveli). 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. All Hindalco units are ISO 9001:2000 and 14001 certified, and several have attained the OHSAS 18001 — the occupational health and safety certification.
The company has two R&D centres: the Belgaum Research and Development Centre in Belgaum, Karnataka and Taloja Research and Development Centre in Taloja, Maharashtra. They have been recognised by the Government of India's Department of Scientific and Industrial Research (DSIR).
A strong presence across the value chain and synergies in operations have 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 expanding the market for value-added products and services, Hindalco has launched several brands in recent years. These include the Aura Aluminium Alloy Wheels for cars, Everlast Roofing Sheets and Freshwrapp and Freshpakk household foil for packaging.
Apart from being a dominant player in the domestic market, Hindalco's products are well accepted in international markets. Exports account for more than 20 per cent of total sales of aluminium products.
Utkal Alumina International Limited, Orissa
A Rs. 44 billion ($1 billion) greenfield joint venture with Alcan Inc, of Canada in which Hindalco holds 55 per cent equity. The proposed 1.5 million tonne alumina refinery is to be set up in Doragurha, Rayagada district of Orissa, sourcing bauxite from the rich reserves of Baphlimali in Rayagada.
Madhya Pradesh
A Rs.77 billion ($1.7 billion) project for a smelter-power complex in the Siddhi district of Madhya Pradesh. Aluminium smelter capacity of 325,000 tpa supported by a 750 mw coal based captive power plant. The coal for the power plant will be sourced from Mahan Coal Company Ltd., a joint venture between Hindalco and Essar Group for mining of coal from the Mahan coal block.
Jharkhand
A Rs.78 billion ($1.7 billion) project for a smelter-power complex in the Latehar district. Aluminium smelter capacity of 325,000 tpa supported by captive thermal power of 750 mw.
Copper
Hindalco's Birla Copper unit at Dahej in Gujarat is the world's largest single location custom copper smelter with 500,000 tpa capacity. The plant is backed by captive power plants, oxygen plants, as also by product facilities for fertilisers and precious metals. A captive jetty with cargo handling capacity of over four million tpa, facilitates easy input of copper concentrate and other imported raw materials.
In 2005, the Dahej copper plant was accredited with OHSAS-18001 certification by KPMG, Netherlands.
Unlike aluminium, India has limited proven copper reserves. Hence, Birla Copper sources copper concentrate from various countries, including Australia, Indonesia and South America. The division also owns two copper mines in Australia — Birla Nifty Pty. Ltd. in western Australia and Birla Mount Gordon Pty. Ltd. in Queensland through its 51 per cent subsidiary — Aditya Birla Minerals Ltd. Copper concentrates are imported through a captive jetty at Dahej.
The copper business segment comprises primarily production (through copper smelting, converting and refining) and sale of copper, in the form of cathodes and continuous cast rods and by-products, precious metals (gold, silver, selenium and platinum group mix) and DAP and NPK complexes, as well as operating jetty services and other logistical activities related to sales and distribution of products. Power is generated for in-house use. Revenues are derived primarily from the sale of copper, DAP and NPK complexes and precious metals.
Hindalco's Birla Copper Cathode is a trusted brand. Known for high purity (99.99 per cent) and consistent quality, these are largely used in the manufacture of copper rods for the wire and cable industry, and copper tubes for consumer durable goods. Effective 30 January 2003, the London Metal Exchange had listed Birla Copper as a Grade A copper brand. Birla Copper is an ISO 9001 company and has also received the ISO 14001 and OSHAS 18001 certification.
The Precious Metals Refinery at Dahej produces gold, silver and selenium. The residue after extraction of these precious metals contains traces of platinum and palladium that are sold as Platinum Group Metal mix, commonly known as PGM.
Mines
The two copper mines in Australia were acquired in 2003. Birla Nifty mine consists of an open-pit mine, heap leach pads and a solvent extraction and electrowinning (SXEW) processing plant, which produces copper cathode. Birla Nifty's copper cathode capacity is 25,000 tpa.
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 ore from this deposit. The Nifty sulphide operation commenced ore production from stoping in December 2005 and concentrate production in March 2006. With the start-up of the Nifty sulphide operation and its progressive ramp up during FY2007, Aditya Birla Minerals (ABML) is entering a period of rapid growth.
Birla Mt.Gordon operation consists of Mammoth underground and Esperanza open pit mines. It has ability to produce both copper in concentrate through a standard floatation plant and copper cathodes through a ferric leach plant. Cathode operations were suspended in January 2006 following the exhaustion of Esperanza open pit mine. The copper concentrator was commissioned to provide concentrate for use at the operations at Dahej.
Mt Gordon operation hosts a large mineral resource of approximately 500 kt of copper within the Mammoth and Esperanza ore systems which provide a significant opportunity for mine life extension going forward.
The Birla Mt.Gordon mine has existing reserves for only one more year of operation. New reserves are expected to be proved on an annual basis as drilling advances ahead of mining.
Aditya Birla Minerals Limited (ABML) also has exploration rights in the Patterson province of Western Australia, famed for its rich copper ore deposits.
Production capacities Division Capacity Location
Alumina chemicals 1,160,000 tpa 700,000 tpa (Renukoot)
110,000 tpa (Muri)
350,000 tpa (Belgaum)
Primary aluminium 445,000 tpa 345,000 tpa (Renukoot)
2,000 tpa (Belgaum)1
1,00,000 tpa (Hirakud)
14,000 tpa (Alupuram)1
25,000 tpa (Taloja)2
Extrusions 42,000 tpa 30,000 tpa (Renukoot)
12,000 tpa (Alupuram)
Rolled products 200,000 tpa 80,000 tpa (Renukoot)
45,000 tpa (Belur)
45,000 tpa (Taloja)
30,000 tpa (Mouda)
Wire rods 64,400 tpa 40,000 tpa (Renukoot)
10,000 tpa (Alupuram)
14,400 tpa (Mouda)
Aluminium foil 11,000 tpa 5,000 tpa (Silvassa)**
6,000 tpa (Kalwa)
Aluminium wheels 300,000 pcs Silvassa
Power 1087.2 mw 741.7mw (Renusagar)
78 mw (Renukoot)
267.5 mw (Hirakud)
Copper cathodes 500,000 tpa Dahej
** Additional 17,000 tpa thick gauge foil capacity at Silvassa
1 Belgaum and Alupuram capacities have been de-energised and are not included in working capacity
2 For Taloja recycling plant
