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Term project-

Aluminum IndustryPresented By-:

Aabhas Rastogi 11DCP053

Abhishek Gupta 11DCP055

Nikhar Gupta 11DCP084

Paras Arora 11DCP086


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Background of Aluminium

Industry in India

The production of aluminium in India is currentlyoutpacing the domestic demand.

The production of aluminium started in India in1938 when the Aluminium Corporation of India's

plant was setup. The plant was set up with a financial and

technical collaboration with Alcan, Canada andhad a capacity of producing 2,500 ton perannum


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Contd.. During the 1970s, the government started regulating and

controlling the Indian aluminium industry.

Aluminium Control Order was implemented where thealuminium producers had to sell 50% of their products for

electrical usages In 1989, the order was removed as the government

decontrolling was revoked.

With de-licensing of industry in 1991, the liberal import oftechnologies and capital goods was started.

The liberalization resulted in a growth rate of 12% of theindustry, comparing to the growth rate of 6% during the 1980.


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Aluminium Productionin India

India is world's fifth largest aluminium producer withan aluminium production competence of around2.7 million tones

It accounts almost 5% of the total aluminiumproduction in the world

India lies at the eighth position in the list of leadingprimary aluminium producers in the world

The consumption of aluminium in India is dominatedby the industries like power, infrastructure, andtransportation etc


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NALCO

India National Aluminium Company Limited (Nalco)was incorporated in 1981, as a public sector enterprise ofthe Government of India.

Government of India has a stake of 87.15% in this

company.

It also has a smelter located at Angul, Orissa.

NALCO is concentrating on a capex programme toincrease its production from 345,000 tonnes to 460,000tonnes.


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Hindalco

Hindalco Industries Ltd is one of the world's largestAluminium manufacturing company and is asubsidiary of the Aditya Birla Group.

It is run by Mr. K.M. Birla and is headquartered inMumbai, Maharashtra .

It is the biggest player in the aluminium industry inIndia with around 39% of market share The total revenue of Hindalco from April 2010 to

march 2011 was $14.62 billion It has various aluminium products with a market

share of 42% in primary aluminium, 20% in extrusions63% in rolled products, 31% in wheels and 44% in foils.


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Analysis

0

5,000

10,000

15,000

20,000

25,000

30,000

Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10 Mar ' 11

Sales

Sales_HINDALCO Sales_NALCO


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Contribution Comparison

0%

20%

40%

60%

80%

100%


Contribution

Contriution_ HINDALCO Contribution_NALCO


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BEP Sales % comparison

0%

10%

20%

30%

40%

50%

60%

70%


BEP Sales

BEP_HINDALCO BEP_NALCO


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MOS comparison

0%

50%

100%

150%

200%

250%

300%


MOS

MOS_HINDALCO MOS_NALCO


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Profit Margin comparison


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Operating Leverage Comparison


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Return on Equity Comparison

103%

56%

31%

22% 20%

94%

43%

27%

15% 16%


Return on Equity

HINDALCO NALCO


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Return on Capital Comparison

0%

20%

40%

60%

80%

100%

120%

140%

160%


Return on Capital Employed

HINDALCO

NALCO


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Inferences The contribution from the sales of Aluminium has

been decreasing continuously.

The operating leverage remains fairly constant overthe past years indicating that the variations in thelevel of output has a direct impact on the incomefor the organization.

Return on capital employed has been decreasingover the 5 years.


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Thank You

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