Supply Chain Management

“SUPPLY CHAIN MANAGEMENT”
Submitted for the Partial fulfillment towards the award

of the degree in MASTER OF BUSINESS ADMINISTRATION
Of
U P Technical University, Lucknow
TABLE OF CONTENTS
Preface…………………………………………………………………………...
Acknowledgement………………………………………………………………
Student’s Declaration……………..…………………………………………….
Certificate …………………….…………………………………………………
1.0 Introduction to the Topic.………………………………………………….. 00

2.0 Introduction to the Organization/Industry………………………………… 00
3.0 Objectives of the Study……………………………………………………. 00

4.0 Scope of the Study………………………………………………………… 00
5.0 Literature Review………………………………………………………...... 00
6.0 Research Methodology…………………………………………………… 00
6.1 Universe of the study…………………………….…………………… 00
6.2 Sample Size…………………………………………….………........... 00
6.3 Sampling Method…………………………………………….……….. 00
6.4 Tools for Data Collection……………………………………..………. 00
7.0 Data Analysis & Interpretation……………………………………………. 00
8.0 Findings…………………………………………………………………….. 00
9.0 Recommendations & Suggestions………………………………………. 00
10.0 Conclusion…...…………………………………………………………… 00
10.1 Limitations of the Study……………………………………………..…… 00
10.2 Scope for further research………………………………………………. 00
Bibliography…………………………………………………………………...... i
Appendix [Questionnaire]……………………………………………………... ii
LIST OF TABLE
S. TABLE PAGE REFRENCE DETAILS

No. No. No.
LIST OF CHARTS
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No. No. No.
The Winning organizations will be those who regularly outperform competition. They have
a stable consistent strategy. A stable strategy does not mean a static strategy, rather it
means following a brand philosophy and continuous improvement in how strategy is
manifested, incorporating the expected market requirements and the customer needs.”
(…….KUMAR MANGALAM)
ABOUT
ADITYA BIRLA GROUP
CHAIRMAN: Shri Kumar Mangalam Birla
“People build company’s success; where people grow, profits grow.”
Group vision
“To become a premium conglomerate with clear business focus at each corporate level.”
Group mission
“To deliver value for our customer, shareholders, employees and society at large.”
Group Philosophy
Reset on four pillar
::Customize
:: People-size
::Strategize
::Institutionalize
Group values
::Integrity
::Speed
::Seamlessness
::Passion
INTRODUCTION TO GROUP
I.1 ADITYA BIRLA GROUP
A US $28 billion corporation with a market cap of US $31.5 billion and in the league of
Fortune 500, the Aditya Birla Group is anchored by an extraordinary force of 100,000
employees, belonging to 25 different nationalities. In India, the Group has been
adjudged "The Best Employer in India and among the top 20 in Asia" by the Hewitt-
Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues
flow from its overseas operations.
The Group operates in 20 countries: India, Thailand, Laos, Indonesia, Philippines,
Egypt, China, Canada, Australia, USA, UK, Germany, Hungary, Brazil, Italy, France,
Luxembourg, Switzerland, Malaysia and Korea.
Globally the Aditya Birla Group is:
:: A metals powerhouse, among the world's most cost-efficient Aluminium and Copper
producers. Hindalco-Novelis from its fold, is a Fortune 500 company. It is the largest
Aluminium rolling company. It is one of the three biggest producers of primary
Aluminium in Asia, with the largest single location copper smelter.
:: No.1 in viscose staple fibre
:: The fourth largest producer of insulators
:: The fourth largest producer of carbon black
:: The 11th largest cement producer globally
:: Among the world's top 15 BPO companies and among India's top three
:: Among the best energy efficient fertilizer plants
In India:
:: A premier branded garments player
:: The second largest player in viscose filament yarn
:: The second largest in the chlor-alkali sector
:: Among the top five mobile telephony companies
:: A leading player in life insurance and asset management
:: Among the top three supermarket chains in the retail business
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success
does not come in the way of the need to keep learning afresh, to keep experimenting.
Beyond business — the Adyta Birla Group is:
:: Working in 3,700 villages
:: Reaching out to seven million people annually through the Adyta Birla Centre
:: Focusing on: health care, education, sustainable livelihood, infrastructure and espousing social cau
:: Running 41 schools and 18 hospitals

Fact file
The world's largest aluminum rolling company
World leader in viscose staple fiber
One of the biggest producers of primary aluminum in Asia
Fastest-growing copper company in Asia
The Adyta Birla Group is the 11th largest cement producer in the world.
Fourth largest producer of carbon black in the world
One of the lowest-cost producers of aluminum in the world
ISO 9001:2000 and 14001 certified
ADITYA BIRLA GROUP

key products and brands Locations Capacities Country
Hindalco Industries Ltd.
Alumina Chemicals Renukoot (Uttar Pradesh), 1,160,000 tpa India

Muri (Jharkhand), Belgaum
(Karnataka)
Primary Aluminium Renukoot, Hirakud (Orissa), 489,000 tpa

*Taloja
Extrusions Renukoot, Alupuram 27,700 tpa
Rolled products Belur(West Bengal), 200,000 tpa

Taloja(Maharashtra),
Renukoot,
Mauda(Maharashtra)
Wire rods Renukoot, Alupuram(Kerala) 64,400 tpa
Aluminium foil Silvassa (Dadra & Nagar 11,000 tpa

Haveli), Kalwa(Maharashtra)
Aluminium Wheels Silvassa (Dadra & Nagar 300,000 pcs

Haveli)
*For Taloja recycling plant
Indal (subsidiary of Hindalco)
Foil Rolling Kollur (Andhra Pradesh) 4,000 tpa

key products and
Locations Capacities Country
brands
Birla Copper (Hindalco Industries Ltd.)
copper cathodes Dahej (Gujarat) 500,000 tpa India
continuous cast copper 97,200 tpa

rods
Sulphuric acid 1,670,000 tpa
phosphoric acid 180,000 tpa
gold (Birla Gold) 15 mt
silver (Birla Silver) 150 mt
DAP and complexes 400,000 tpa

(Birla Balwan)
Hindalco Industries Ltd. (Aditya Birla Minerals Resources Pty. Ltd.)
copper cathodes Nifty mines 25,000 tpa Australia
copper in concentrate Mt. Gordon mines 40,000 tpa Australia
Power Mt. Gordon mines 28mw Australia

Key products and brands Capacities Country
Grasim Industries Ltd.
white cement Birla White 475,000 tpa India
grey cement UltraTech 13.12 mtpa

Cement
(formerly Birla
Plus), Birla
Super
UltraTech Cement Ltd.
ordinary Portland cement, 17 mtpa

Portland blast furnace slag
cement, Portland pozzolana
cement and grey Portland
cement
key products and brands Capacities Country
Aditya Birla Nuvo Ltd (Hi-Tech Carbon)
carbon black Birla Carbon 230,000 mtpa India
Thai Carbon Black Co. Ltd.
carbon black Birla Carbon 220,000 mtpa Thailand
Alexandria Carbon Co. S.A.E
carbon black Birla Carbon 285,000 mtpa Egypt
Liaoning Birla Carbon Co. Ltd.

carbon black Birla Carbon 55,000 mtpa China
key products and brands Capacities Country
Pulp
rayon grade pulp 70,000 tpa India
AV Cell Inc.
softwood / hardwood pulp 122,500 tpa Canada
AV Nackawic Inc.
dissolving pulp 189,000 tpa Canada
Fibre
viscose staple fibre Birla Viscose 270,100 tpa India

(VSF)
Thai Rayon Public Company Ltd.
VSF Birla Viscose 110,000 tpa Thailand
PT Indo Bharat Rayon
VSF Birla Viscose 155,000 tpa Indonesia
Thai Acrylic Fibre
acrylic fibre Texlan 100,000 tpa Thailand
Alexandria Fiber Company, S.A.E

acrylic fibre 18,000 tpa Egypt
Yarn
Aditya Birla Nuvo Ltd.
viscose filament yarn Ray One 16,400 tpa India
Aditya Birla Nuvo Ltd. (Jaya Shree Textiles)
flax yarns 15,340 spindles India
worsted yarns 25,548 spindles
PT Indo Liberty Textiles
rayon yarn, polyester, 45,120 ring spindles Indonesia

blended yarn
PT Elegant Textile Industry
rayon, polyester, 168,088 spindles Indonesia

rayon-polyester
blended spun yarn
PT Sunrise Bumi Textiles
viscose rayon, polyester viscose, spun 89,376 spindles Indonesia

polyester, polyester combed cotton, anti pill
yarn, sewing thread, high twist yarn, reverse
twist yarn, flame retardant yarn, rayon cotton
blended yarn, micro denier polyester rayon
yarn, rayon silk yarn, slub yarn, lycra core
spun yarn
Indo Phil Acrylic Manufacturing Corporation
high bulk acrylic dyed yarn, non-bulk acrylic 3,700 mtpa Philippines
dyed yarn
Indo Phil Textiles Mills Inc

poly viscose blended yarn, poly cotton 13,500 mtpa Philippines
blended yarn, polyester yarn
Indo Phil Cotton Mills Inc
cotton yarn 10,000 mtpa Philippines
Indo Thai Synthetics Co. Ltd.
synthetic yarns 98,568 spindles Thailand
Fabrics
fabric - polyester, viscose, silk and wool 146 looms India

blends
Uncrushables, Ice Touch, Purista, and 18 million meters

CleanFab
Pure Linen and Linen Linen Club 107 looms India

Blends
Flame Retardent Pyroguard

Fabrics
Branded apparel
Aditya Birla Nuvo Ltd. (Madura Garments)
Ready-to-Wear Louis Philippe, India

Garments Allen Solly
Van Heusen, Peter
England
Key Products and Brands Capacities Country
Indo Gulf Fertilisers Ltd.
Urea Birla Shaktiman 864,600 mt India
Birla Copper (Hindalco Industries Ltd.)
DAP/NPK Birla Balwan 400,000 tpa India

complexes
Caustic Soda 258,000 tpa India

Caustic Soda 82,125 tpa India
Liquid Chlorine 50,340 tpa
Hydrochloric Acid 5,475 tpa
Tanfac Industries Ltd.
Aluminium Fluoride 17,000 tpa India
Hydrofluoric Acid 17,000 tpa
Bihar Caustic and Chemicals Ltd.
Caustic Soda Lye 92,750 mt India
Liquid Chlorine 65,785 mt
Hydrochloric Acid 29,040 mt
Sodium Hypochlorite 1,800 mt
Compressed Hydrogen 17,42,400 nm3
Aluminium chloride 12000 tpa
Captive Power Plant 30 mw
Aditya Birla Chemicals (Thailand) Ltd.
Sodium Triployphosphates, Polyphos® Thailand

Tetrasodium Epotec
Pyrophosphate, Birlasulf-SS,
Sodium Birlasulf-
Hexametaphosphate, SM,
Sodium Acid Birlasol 35
Pyrophosphate,
Monosodium Phosphate,
Disodium Phosphate,
Trisodium Phosphate,
Speciality Phosphates
Epoxy Resins (bis-a and
bis-f), Diluents, Curing
Agents
and Allied Products
Sodium Sulphite, Sodium

Metabisulphite,
Sodium Bisulphite
Epichlorohydrin
Caustic Soda
Chlorine
Thai Peroxide Co. Ltd.
Hydrogen Peroxide, Encare, 15,000 mtpa Thailand

Peracetic Acid, Calcium Ecare,
Peroxide Aqua-x,
Birlox 5,
Birlox 12,
Ocare
PT. Indo Raya Kimia
Carbon Disulfide 50,000 tpa Indonesia
Essel Mining & Industries Ltd

Iron and Manganese Ore 15 million tons India
Pan Century Surfactants Inc.
Fatty Acids 55000 mtpa Philippines
Fatty Alcohol 30000 mtpa
Glycerin 6500 mtpa
Aditya Birla Insulators
Insulators 38,800 tpa India

PSI Data Systems Ltd. (subsidiary of Aditya Birla Nuvo Ltd.)
IT solutions (banking, finance and India

insurance)
Aditya Birla Minacs Worldwide Limited (subsidiary of Aditya Birla Nuvo Ltd.)
BPO / ITES 9,089 seats India
Birla Global Finance Company Ltd.
Financial Services India
Birla Sun Life Insurance Company Ltd.
Insurance Solutions India
Birla Sun Life Asset Management Company Ltd.
Mutual Funds India
Birla Sun Life Distribution Company Ltd.
Investment Planning Services India
Birla Insurance Advisory Services Ltd.
Non-Life Insurance Advisory Services India

Idea Cellular
Cellular Services Idea 21 million subscriber base India
Aditya Birla Retail Limited
Multi-Format stores 170 retail outlets India

HINDALCO OVERVIEW
INTRODUCTION
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.
Established in 1958, Hindalco commissioned its Aluminium facility at Renukoot in

Eastern U.P. in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the
Nifty and Mt. Gordon copper mines in Australia, strengthened the company's position in
value-added Alumina,Aluminium and copper products, with vertical integration through
access to captive copper concentration.
In 2007, the acquisition of Novelis Inc. a world leader in Aluminium rolling and can
recycling marked a significant milestone in the history of the Aluminium industry in India.
With Novelis under its fold Hindalco ranks among the global top five Aluminium majors,
as an integrated producer with low-cost alumina and Aluminium facilities combined with
high-end rolling capabilities and a global footprint in 12 countries outside India. Its
combined turnover of US$ 14 billion, places it in the Fortune 500 league.
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 fertilizers.
All of Hindalco's units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified.
The Renukoot and Taloja units have gone a step further with an Integrated Management
System (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one Business
Excellence Model.
The company has been accorded the Star Trading House status in India. Its aluminium
metal is accepted for delivery under the High Grade Aluminium Contract on the LME
(London Metal Exchange), while its copper quality standards are also internationally
recognized and registered on the LME with Grade “A” accreditation.
Grade “A” accreditation.
Aluminium
Hindalco’s major products include Standard and Speciality Grade Aluminas & 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 742mw captive power plant at Renusagar to
ensure continuous and consistent supply of power for smelter and
other operations.
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.
A strong presence across the value chain and synergies in operations has given
Hindalco a major 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.
Hindalco's Aluminium Galleries in Mumbai and Gurgaon showcase the versatility of

aluminium through a wide range of applications.Apart from being a major 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.
Hindalco is a leading domestic player in two metals business segments — aluminium

and copper.
The aluminium division's product range includes alumina chemicals, primary aluminium
ingots, billets, wire rods, rolled products, extrusions, foils and alloy wheels.
The company has a significant market share in all the segments in which it operates. It
enjoys a domestic market share of 42 per cent in primary aluminium, 63 per cent in
rolled products, 20 per cent in extrusions, 44 per cent in foils and 31 per cent in wheels.
As a step towards expanding the market for value-added products and services,
Hindalco has launched several brands in recent years, which include Aura for alloy
wheels, Freshwrapp for kitchen foil and Everlast for roofing sheets. Our exclusive
showroom, The Aluminium Gallery, seeks to promote Hindalco products to its
customers. It is a platform for the company to showcase quality products to a quality
audience in an appropriate ambience. The exhibits include products like windows,
doors, furniture, ladder, roofing sheets and ceiling and cladding panels.
Hindalco's products are well received not only in the domestic market, but also in the
international market. The company's metal is accepted for delivery under the high grade
aluminium contract on the London Metal Exchange (LME). The company exports about
17 percent of its total sales volume of aluminium.
The company's alumina chemical business is a leader in manufacturing and marketing of speciality
alumina and alumina hydrate products in the country. It has a major market share in the country. These
speciality products find wide usage in diversified industries including water treatment chemicals,
refractories, ceramics, cryolite, glass, fillers and plastics, conveyor belts and cables, among others. The
company also exports these alumina chemicals to over 30 countries covering North America, Western
Europe and the Asian region.
Birla Copper, Hindalco's copper division at Dahej in Gujarat, enjoys a leadership

position in India, having built over 40 per cent of the domestic market share within three
years of its commissioning. It has also made successful forays into the export markets
of the Middle East, Southeast Asia, China, Korea and Taiwan.
The copper plant produces world-class copper cathodes, continuous cast copper rods
and precious metals. Sulphuric acid, phosphoric acid, di-ammonium phosphate, other
phosphatic fertilizers and phospho-gypsum are also produced at this plant.
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 a 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 MoUs 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
HINDALCO VISION
“To strengthen our position as a premium aluminium company sustaining

domestic leadership and global competitiveness through Innovation Quality and Value
added growth”
HINDALCO MISSION
“To pursue the creation of value for our customers, shareholders, employees and
society at large”
QUALITY POLICY
We, at Hindalco, shall aim to achieve and sustain excellence in all our activities.
We are committed to total customer satisfaction by providing products and services,
which meet or exceed the customer’s expectations.
Modernization of the manufacturing facilities, stress on technological innovation and
training of employees at all levels shall be a continuous process in Hindalco.
A motivated workforce with a sense of pride in the Organization shall lead us towards
total Quality.
HINDALCO PRODUCT RANGE
1. 2. 3.
Primary Aluminium Alloy ingots Billets
4. 5. 6.
Aluminium sheet Wire rods sheet Slab
7. 8.
Circle Alloy wheel
FLAT ROLLED PRODUCTS (FRPs)
Hindalco is the world's largest Aluminium rolling company

with the acquisition of Novelis, the global leader in value-
added high-end aluminium flat rolled products and
aluminium can recycling. The combined volume of sales of Hindalco is now world
flat rolled products in the world market is about 3 million No.1 in aluminium flat
tones and the market share is more than 20 per cent. rolled products
Hindalco is the largest manufacturer of the entire range of flat rolled products in India. It
enjoys nearly 60 per cent of market share and its rolled products are widely used in
various segments such as packaging, transportation, building and construction,
electrical, defense and general engineering applications.
The company's commitment to quality and service along with its extensive infrastructure
has made Hindalco a prime source for best-selling brands. Continuous improvements in
manufacturing, processes, practices and systems ensure that customers' needs and
expectations are fully met.
Efficiency and product quality are ensured by using state-of-the-art equipment and a
strong research and development set-up, supported by dedicated and motivated
employees and the Oracle ERP system. Wag staff Air Slip™ slab casting technology is
used to ensure consistent quality and surface finish of stock feed which in turn ensures
quality finished products. The company's capacity in flat rolled products at present is
2,00,000 tones per annum and new plans are being implemented to increase the
manufacturing capacity.
Of the total production of Hindalco's flat rolled products, around

40 per cent is exported and customers in more than 50
countries are using the products.
Everlast, a Hindalco brand for aluminium roofing sheets, offers

ideal and economical solutions for all roofing and cladding
needs. Colour-coated and tiled roofing profiles are also offered by Hindalco.
II.1 Basically, there are three kinds of Flat Rolled Products (FRPs) which is being
exported by Hindalco i.e.,
1. Cold rolled Coils

2. Cold rolled Sheets
3. Circle
Hindalco's cold rolled coils are precision-finished to match

international standards. They have good shape, high tolerance,
versatility and blemish-free surfaces. They are used in
commercial and general engineering applications such as bus
bodies, cladding and fan blades.
The company meets the demands of its ever-growing clientele
with continuous upgrades and process improvement.
Hindalco's cold rolled sheets are precision-finished to match international standards for
tight thickness, tolerance, flatness and dimensional accuracy. Sound metallurgical
properties for further fabrication, anodizing characteristics and a blemish-free surface
make it useful in both commercial and general engineering applications.
Hindalco offers circles, also known as flat circular sheets, in a variety of diameters and
thickness to meet specific needs. Extensively used in the
manufacture of pressure cookers, non-stick cookware, coated
cookware, cans, etc they have earned the trust of many leading
brands.
Continuous upgrades and improvement of processes enable the
company to keep pace with the demands of its ever-growing clientele.
ROLLED PRODUCT APPLICATIONS
Al-clad sheets / coils
:: Automobile radiators, inter-coolers, air conditioners
Building sheets
:: Cladding for roofs and walls
:: Industrial buildings, warehouses, aircraft hangers
:: Indoor and outdoor stadiums
:: Insulation and protection of fuel storage tanks and industrial

boilers
:: Wall panels for high-rise buildings
:: Residential roofing
:: Roof-on-roof roofing
:: Exhibition pavilions
:: Poultry farms
Cable wrap stock
:: Telecom cables
Circles
:: Pressure cookers, non-stick cookware and hard anodized

cookware
:: Milk cans
:: Medical cylinders
Closure stock
:: Pilfer-proof caps
:: Vial seals
:: Cream containers and caps
Cold rolled coils
:: Bus cabins and bodies
:: Insulation
:: Cladding in buildings, aluminium composite panels, false

ceilings and paneling (plain or colour-coated coils)
:: Electrical busbar ducting, flexible, transformer strips, etc
Cold rolled sheets
:: Defense
:: Industrial engineering
:: Transport — road, rail, air, marine

:: Building and construction
:: Fan blades
:: Electrical engineering
Fin stock
:: Air conditioners
:: Car radiators
:: Automobile heat exchangers
Flooring sheets / tread plates
:: Flooring for buses, trucks and rail coaches
:: Floors for loading bays, kick plates, stair treads and catwalks
Foil stock
:: Parma / confectioneries / cigarette foils
:: Foils
:: Tetra packs
Lamp cap stock
:: GLS lamps and tube lights
Litho stock
:: Offset printing plates
Pattern sheets
:: Decorative applications like interior paneling for trucks, cabins,

etc
Printed Circuit Boards (PCB) entry sheets
:: Electronic circuit boards
Plates
:: Electrical bus bars and ducting
:: Tanks
:: Ships, boats (corrosion-resistant and wieldable plates)

:: Defense and industrial uses (strong alloy plates)
:: Aircrafts
Spiral Fin stock
:: Industrial heat exchangers
FOIL PACKAGING
Hindalco's foil business and packaging division delivers versatile solutions to meet the
multi-pronged needs of customers round-the-clock. Hindalco's packaging solutions and
impressive range of end products are well-accepted all over the world, thus ensuring
sustainable growth in today's intensely competitive and cost-sensitive market.
Applications
Pharmaceuticals
25/30/40-micron thick, soft foil either

laminated to low density polyethylene or
coated with heat seal lacquer (HSL) for
sealing as per customer need.
20/25/30-micron thick, hard foil coated

with heat seal lacquer of varied gram
mages. Compatible with PVC.
45-micron foil, laminated on one side to
25 micron OPA and 60 micron PVC film
on the other side to meet the fast
emerging Alu packaging needs.
Hindalco offers a maximum depth of
9mm.
7/9/12-micron thick, soft foil laminated

with paper, films like polyester (PET),
biaxially oriented polypropylene (BOPP),
polyethylene (poly) and their
combinations. Chiefly used for pouches
and sachets. Offered in both surface
and reverse printing.
Rolled to very fine tolerances for more

closures per ton of stock. Closure caps
have high formability, strength, low
earing and printable surfaces. Widely
used for pilfer-proof bottle caps and vial
seals. Offered in both coated and bare
form.
Dairy
9-micron thick, soft foil laminated to
grease-proof paper, used for butter
chiplets.
30/38/40-micron thick, soft foil coated

with heat seal laquers (HSL), compatible
with PS and PP containers. Used for
cheese spreads, yoghurts and mineral
water.
7/9-micron thick, soft foil laminated to

polyester and poly with reverse printing
on polyester.
House foil and semi rigid containers
Household foil is available in a range

from 10 micron upwards. Widths can
vary as per market requirements. Semi
rigid containers are available in a range
of sizes and shapes.
Processed food and beverages

9/12-micron thick, soft foil with printing
on one side and heat seal lacquer (HSL)
coating or polythene lamination on the
other. Also offered as a laminate of 9-
micron foil with paper and wax.
9-micron thick, soft foil with printing on

foil surface, laminated to paper and
further coated with wax. Also 7-micron
foil printing on foil surface, laminated to
paper and further coated with wax.
Polyester, foil and polythene laminates

for packing coffee.
7-micron foil with printing on foil surface

and poly laminated to paper.
Cigarette foil
Cigarette foil for inner packing of
cigarettes is offered in 7-micron thick
soft foil laminated to paper. Foil can be
silver or gold lacquered in matte of
bright finish as per customer
requirements.
Personal products
Flexible laminated tubes that utilize

12/20-micron thick soft aluminium foil
laminate. Extensively used in
toothpastes, cosmetics, ointments,
cream and foodstuffs.
7/9-micron thick, soft foil laminated to

board with adhesive or polythene as per
customer demand.
9-micron thick, soft foil or BOPP and

heat seal lacquer (HSL) coated or co-
polymer laminated as per customer
demand.
Surgical
The laminates have two components,
top — paper, 40 micron foil, co-polymer
structure and bottom — coated, 50
micron foil, co-polymer structure
Heating ventilation and air conditioning (HVAC)
80-160-micron thick foil, soft or partially

annealed temper, offered bare as well
as with hydrophilic and hydrophobic
coatings in blue or gold colour. The
coated foil enhances the life of the air
conditioner and improves cooling.
80-160-micron thick foil, soft or in

partially annealed temper, offered bare
as well as with hydrophilic and
hydrophobic coatings in blue or gold
colour. The coated foil enhances the life
of the radiator and improves cooling.
OBJECTIVE OF STUDY
This project was undertaken to have an insight into the supply chain management of
Hindalco. The study aims to investigate the minute details of the supply chain
management An analysis of the various facts and figures has been done to arrive at
logical recommendations. In short, at it can be said that this study has two-fold objective
of knowing, “what is the present supply chain management?” And “what should be the
future supply chain management?”
SIGNIFICANT AND SCOPE OF STUDY
The development in the field of transportation, communication and information on

account of globalization has found charging the expectations of the customers. It is
against this backdrop the marketing professionals need to assign due priority to the
application of modern marketing principles in particular.
An efficient “supply chain management” plays a vital role in the success of any
organization. A chain system has to be designed carefully, as it normally takes years to
build and is not easily changed. This study provides a bird’s eye view of distribution
channel of Hindalco. This report would do well to the entire person interested in learning
about distribution channel of Hindalco. A general idea about Hindalco’s presence in
aluminium market is also well given by this report. After a thorough analysis of various
facts and figures, a set of recommendations, with regard to the distribution channel, has
been given in the concluding part of the report. The company would find it useful to look
into the viability of the implementation of the recommendations, once implemented, and
are expected to fetch immense benefits to the company. It is thus clear that this report
would serve a variety of purposes and its scope is very wide and open.
RESEARCH METHODOLOGY
RESEARCH DESIGN:
Exploratory research design
SAMPLE DESIGN:
Sample size 71
50 employees
10 suppliers
4 distributors
7 visiting parties
Sample technique: Interview and questionnaire
SOURCE OF DATA:
PRIMARY SOURCE:
Personal interview
Employees
Mr. Rahul paliwal (asst. sales manager)
Mr.M.C.Mahapatra (sales manager)
Distributors
Mr. Baccha Singh
Questionnaire
Employees of hindalco
SECONDARY DATA:
 Annual report of HINDALCO Fy2006-07, 2007-08 and individual contra
sheets of aluminum and copper for the year 2006-07 and 2007-08.
 Internet.
 Induction guide.
Supply chain management:
Introduction:
Supply chain management is a process responsible for the development and

Management of a firm’s total supply system both the internal and external components.
At an operational level, it includes and expands the activities of purchasing function and
the procurement process. Its major focus however is strategic.
“Supply Chain is process from the initial raw materials’ to the ultimate consumption of
the finished product linking across supplier-user companies.”
“Value Chain is the functions within and outside a company that enables the value chain
to male products and provides services to the customer.”
Supply chain management (SCM) is the management of a network of interconnected

businesses involved in the ultimate provision of product and service packages required
by end customers (Harland, 1996). Supply Chain Management spans all movement and
storage of raw materials, work-in-process inventory, and finished goods from point-of-
origin to point-of-consumption (supply chain).
Supply chain management (SCM) is the oversight of materials, information, and
finances as they move in a process from supplier to manufacturer to wholesaler to
retailer to consumer. Supply chain management involves coordinating and integrating
these flows both within and among companies. It is said that the ultimate goal of any
effective supply chain management system is to reduce inventory (with the assumption
that products are available when needed). As a solution for successful supply chain
management, sophisticated software systems with Web interfaces are competing with
Web-based application service providers (ASP) who promise to provide part or all of the
SCM service for companies who rent their service.
Supply chain management flows can be divided into three main flos:
 The product flow

 The information flow
 The finances flow
The product flow includes the movement of goods from a supplier to a customer, as well
as any customer returns or service needs. The information flow involves transmitting
orders and updating the status of delivery. The financial flow consists of credit terms,
payment schedules, and consignment and title ownership arrangements.
There are two main types of SCM software: planning applications and execution
applications. Planning applications use advanced algorithms to determine the best way
to fill an order. Execution applications track the physical status of goods, the
management of materials, and financial information involving all parties.
Some SCM applications are based on open data models that support the sharing of
data both inside and outside the enterprise (this is called the extended enterprise, and
includes key suppliers, manufacturers, and end customers of a specific company). This
shared data may reside in diverse database systems, or data warehouses, at several
different sites and companies.
By sharing this data "upstream" (with a company's suppliers) and "downstream" (with a
company's clients), SCM applications have the potential to improve the time-to-market
of products, reduce costs, and allow all parties in the supply chain to better manage
current resources and plan for future needs.
Increasing numbers of companies are turning to Web sites and Web-based applications
as part of the SCM solution. A number of major Web sites offer e-procurement
marketplaces where manufacturers can trade and even make auction bids with
suppliers
CHANNEL OBJECTIVES:
 Making smooth availability of product to the target market.
 Achievement of the best possible coverage of the target market.
 Ensuring that the consumer incurs the minimum extenuation in procuring the
product.
 Safe in quality & accuracy in quantity.
 Quick services.
 Ensuring that the firm is able to carry on with its manufacturing activities,
confident that the channel will take care of the distribution job.
 Ensuring that the distribution is cost effective.

 The primary objective of channel of the distribution is to bridge the gap by
resolving spatial (geographical distance) and temporal (relating to time)
discrepancies as to supply and demand.
 ROLE OF CHANNEL MEMBERS:
 Channel members are not play only the role of sales the products to the
customers but also play the role as they promote the products, gathering the
customer interest, complaints, suggestion, and information to the organizations –
they are work as the co-ordination between the targeted customers &
manufactures.
 Members of the marketing channel perform many key functions as follows:
 Gathering & distributing marketing research and intelligence information about

actors & forces in the marketing environment.
 Helpful in making marketing strategy.
 Developing & spreading the promotional offer of company and promote the sales
activity.
 Easily make a sales contact with the customers.
 Intermediaries are taking the title to goods, so they invest the fund.
 Through the intermediaries, manufactures are made physical distribution of

goods.
 Intermediaries are taking various type of risks, in the term of storing, dispatching
etc.
CONTRIBUTION OF CHANNEL:
 Make available on time.
 Reduce the cost of distribution

 Save the distribution time.
 Helpful in product design & developments.
 Flow of feedback from consumer.
 Flow of money consumers to manufacture.
VARIOUS TYPES OF CHANNEL LEVELS:
While a marketers wants to sell or marketing about the products or services,

requirement of design a distribution channel to make product & services available to
customers in different ways. In the process of distribution of products, each layer of
marketing intermediaries are performs some work in bringing the product and its
ownership closer to the final buyer is a channel level.
Generally two methods of distribution are in the practices.
1. DIRECT MARKETING CHANNEL

2. INDIRECT MARKETING CHANNEL
DIRECT MARKETING CHANNEL:
DMC is a marketing channel that has no intermediary levels. Manufacture or sellers are
advertise their product through the various method of advertising & make awareness
about the products, then contact to the needful customers through their salesmen,
internet, e-mail, telephone or by post.
MANUFACTURING
CONSUMER
INDIRECT MARKETING CHANNEL:
IMC is a channel containing one or more intermediary levels. Manufactures or sellers

are appointed various type of marketing intermediaries in the context of nature of the
products & segmentation of markets.
TYPES OF CHANNEL MEMBERS
C & F AGENTS:
It means clearing & forwarding agents. They are responsible for storage &
transportation of the company’s products and its distribution to the distributor and some
time retailers.
DISTRIBUTORS:
A distributor is usually appointed by the company and does not sell its competitor’s
products. He can also be a distributor of many products of the same company. A
distributor is responsible for ensuring that his company’s product is available at the retail
stores. The distributor is very much an extension of the company as he ensures that the
market is properly served. A company has direct control over the distributors.
Some of the following type of wholesalers:
 MERCHANT WHOLESALERS:
 Purchase and resell merchandise
 He has title to merchandise.
 He provides wide range of services.
 FULL SERVICE WHOLESALERS:
 Perform full range of distribution services.
 Provide trade credit; offer promotion assistance, personal sale force, and
communication of information.
 Provide installation and services.
 RACK JOBBER:
 Deals with highly promoted items.
 Furnishes rack and shelves, price the goods, keep them fresh, set up point of
purchase displays.
 Sell on consignment.
 Provide services as delivery, shelving, and inventories caring.
 LIMITED FUNCTIONS WHOLESALE

Not provide credit, marketing research information and merchandising
assistance.
 MERCANDISING AGENTS & BROKERS:
They usually perform fewer services than merchant wholesalers do.
Merchandising agents and brokers do not take title to product but negotiate
sales for manufacture, they represent.
 MANUFACTURER’S AGENTS
 They are free to work for several manufactures.
 They carry non-competitive, complementary products in exclusive

territories.
 They do not provide credit facility but at times store and deliver products.
 Also provide research aid and promotion support.
 BROKERS:
 To bring buyer and seller together
 To assist in negotiation.
 They have not title to goods.
 But they provide the facility of financing.
 COMMISSION MERCHANTS
 Received goods on consignment.
 They have not title to goods.
 To accumulate them from local markets & arrange for their sales.
 Offer credit & storage goods facility.
 To provide sales force & research aid.
 They do not normally promote the goods.
 MANUFACTURER’S SALES FACILITIES
 Established by manufacture.
 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 outlet.
 MANUFACTURER’S OFFICE (Regional Sales Office)
 It does not carry inventory
 Perform market research, demand forecasting, etc.
 Collect orders from customers.
 Make delivery to customers from manufacturing point
 Collection of payments.
 Dispose all the disputes or claims.Create better relationship.
MANUFACTURER
DEPOTS OR WARE HOUSES CLEARING &

FORWARDING AGENTS
MERCHANT MERCANDISING
WHOLESALERS Manufacturer’s AGENTS OR Commission
Brokers
BROKERS Merchants
Agents
DISTRIBUTERS OR WHOLE
SALERS
MANUFACTURER’S
SALES FACILITIES
Manufacturer’s Regional Sales

Sales Branch office
Full Service Limited Function
Wholesalers Wholesaler
Rack Jobbers
STEP-1
Identify Target Consumers
Determining Consumer Buying

Habits ForSTEP-2
The Types Of
Goods
Locate Potential Customers

STEP-3
Pinpoint Channel
STEP-4
Alternative
Evaluate Channel Alternative

STEP-5
Select Channel Members
CHANNEL SELECTION PROCESS
EVALUTION OF THE DISTRIBUTION ENVIRONMENT:
Selection of channel model has to be necessarily taking into account the distribution
environment obtaining in the country/ region and in the specific business in which the
firm is engaged.
A firm has to evaluate the vital features of the distribution environment and ensures that
the channel model to be adopted is compatible with them. Distribution environment in
the border sense includes the legal environment as well in so far as its implications and
distribution are concerned.
EVALUTION OF COMPETITOR’S CHANNEL PARTERNS
The firm should also study the competitors’ channel patterns before deciding its
channel. While the firm may not necessarily follow the competitors it will be worthwhile
for the firm to analyze in depth the plus and minus of the channel patterns adopted by
each of the major competitors.
EVALUTION OF COMPANY RESOURCES AND MATCHING THE CHANNEL TO THE

RESOURCES:
On the other hand firm with larger resources and large size marketing operation will be
in a position to go in for highly intensive distribution committing a good deal of resources
to the distribution task.
IDENTIFICATION OF ALTERNATIVES CHANNEL & SELECTION OF THE ONE THAT

SUITS THE FIRM BEST:
Two important considerations are cost and efficiency. Often though not necessarily they
are directly proportional. The channel
that its efficient but relatively less expensive has to be chosen. Two types of evaluations
an economic evaluation and a conceptual evaluation may be necessary. The firm should
also examine whether the channel member s in the desire alternatives would be willing
to work enthusiastically for the firm and the product.
ANALYSING THE PRODUCT CHARACTERSTICS AND LINKING CHANNEL TO THE

PRODUCT:
The firm should analyze the characteristics of the product and choose the channel
designee that is most suited to the product. Within each of these broad categories of
product channel choice can vary in relation to specific products/product types. The
products futures, after all changes in a graded manner as on move through the
spectrum from the simplest consumer soft to the most complex among industrial
equipment.
NOTES:
 Consumer products Vs Industrial products.

 The case of industrial products.
 The product must have a sizable customer base.
 It must be standardized to a reasonable extent.
 It must be stock able items.
 The unite value should not be too high.
 It should not be complex.
Need for specialized distributor must be appreciated; after considering all such factors,
if a given industrial product lends itself for marketing through distributors, it must still
remembered that;
 As a general rule industrial products require specialized distributor and entrusting

them with the general-purpose (consumer product) distributors does not produce
the best result.
 Different industrial products need different types of distributors.
 Establish relationship and use problem-solving techniques for prevention of crisis
and preventing customer dissatisfaction.
 Gather quality intelligence on customer dissatisfaction and provide this
information to management.
ON TIME DELIVERY
Consumer will be happy, if the material is delivered on time. OTD has come into
sharper focus, for it has become a competitive weapon in all most all industries.
For example Nissan offers a guaranteed ten-day delivery to its dealers, Caterpillar
deliver replacements parts within 72 hours.99.7% of time
OTD customer satisfaction gap has three components

 Calibration Gap
 Operations Gap
 Organization Gap
CALIBRATION GAP:
The customer may measure OTD in different manner as copier to the supplier. It may so
happen that the supplier may measure OTD by product category but the buyer may
measure it in terms of complete order. The customer may measure OTD in terms of the
initial order date whereas then supplier may measure it from a negotiated date.
OPERATION GAP:
Businesses that face variability from one manufacturing phase to another or from
operations to ware house normally have an operations gap. Operations gap can also
result from too many stages in production process, too many supplier or too many
people involved in order filling.
ORGANISATION GAP:
If people do not have incentives to improve OTD it will probably result into organization
gap. In other words organization gap result from the priority accorded to OTD.
Marketing Head office (Renukoot)
EAST WEST NORTH SOUTH
Vice-President Vice-President Vice-President Vice-

president
Extrusions Rolled Primary
Sales Manager (Territory Manager)

ADVANTAGES
 Cost effective
 Geographical area oriented.
 Focus on all products simultaneously.
DIS ADVANTAGES
 Product promotion scheme is not applicable.
 Lack of information about a particular product.
 Over work load.
 No more time & scope for a particular product.
 Consumer satisfaction is not appropriate.
The above old structure was not taking much advantage of the new global market.
Analysis of the advantage and disadvantage of the regional based marketing strategy, it
is not suitable in modern marketing specification era. So that, in 2003 company decided
to go for opting the new marketing strategy based on product specification. For this the
company transferred its marketing head office from Renukoot to Mumbai.
The new marketing strategy structure is as follows:-
ADVANTAGES
 It’s product based..

 Emphasis on more customer satisfactions.
 Helpful to increasing the sales performance of various products of product line.
 Helpful to production processes to deliver the products.
 Accumulation of small customers.
 Provide quick service to customers.
 Enhance the sales promotion.
DISADVANTAGES
 Cost ineffective.
 More men power required.
MARKET SEGMENTATION OF HINDALCO
The market for Aluminium products in India is very widespread
 Geographically
 By diversified of end user

Further, there are a large number of small and medium consumers and a select a few
large consumers. The smallest consumer would be consuming as little as 1MT/Month.
However, the largest numbers of Hindalco’s customers are in the consumption range of
5-50 Mts./Month.
Aluminium is being used in around 3000 products in developed countries like USA,
Japan, Canada, etc. Whereas India, only around 350 products find use in aluminium.
Moreover, the per capita consumption of aluminium in the country is very low (1.1
kg/year).
Hence there is large potential for introducing the new uses and the increasing the
consumption. As a strategy therefore, Hindalco decided to cater to as many consumers
as possible. Their distribution system therefore, is designed to the object.
Hindalco manufacture the products with very specification as desired by the various
customers. Hindalco’s market may be segmented in the following manner.
(A) MARKET SEGMENTATION BASED ON THE PRODUCT GROUP

On the basis of product groups, Hindalco market may be segmented in the following
manner
 PRIMARY PRODUCTS
 Ingots
 Wire rods
 Billets
 ROLLED PRODUCTS
 Sheets
 Chequered sheets
 Roofing sheets
 Coils
 Hot Rolling plates
 Circles
 EXTRUDED PRODUCTS
 General solid sections
 Tubings
 Structurals
 Architecturals
 Mouldings
 FOIL
 Cable wrap stock
 Light gauge Foil
 Bare & Coated Fin stock
 Collapsible Insulation Ducts.
 ALLOY WHEELS (“AURA”)
 12” to 18” diameters.

 MARKET SEGMENTATION ON THE BASIS OF PRODUCT WISE KEE
CONSUMERS.
 PRIMARY PRODUCTS:
 Consumers:
 Value added aluminium sheet producer industries.
 Foil Producer Industries.
 Extrusion Producer Industries.
 Electricals Equipment Automobile Industries
 Furrow allows
 Smelter pot lining.
 ROLLED PRODUCTS
 Consumers:
 Foil & Packing Industries: box, cop, and container.
 Electrical Industries: bulbs, tube lights, fan blade etc
 Transportation industries
 Building & construction sectors –roofing flooring etc.
 Defense & Marine sectors.
 Transportation sectors.
 Consumer durable: flooring & roofing
 General engineering:
 Piper-proof bottle cops
 Pressure cookers, non-stick cookware.
 EXTRUDED PRODUCT
 Consumers:
 Automobile Industries
 Building & construction Sector
 Mines & defense Sector
 Transportation sectors
 Electrical sectors
 Architectural sectors
 Furniture sectors
 Households consumer durable
 FOIL
 Consumers:
 Packing sectors (printed & multi-laminated)
 Pharmaceuticals
 Dairy products
 Processed food
 Con-fectionery
 Personal care products
 Cigarettes Box rapping
 Air conditioner
 Auto mobile radiator Collapsible Insulation Ducts.
 ALLOY WHEELS
 Consumers:
 Automobile sectors
 Maruti Suzuki
 TATA Motors
 FIAT India
 Hindustan Motors
 Telco Ford India
 Hyundai India
 GM India etc
(B) MARKET SEGMENTATION BASED ON THE DEMAND PATTERN.

Based on size & frequency of order, Hindalco market may be segmented as
follows:
 BULK CUSTOMERS
Bulk customers are those customers, whose demand is very high and
consistence. Some of the bulk customers are Howkin, TTK, Foil Division
Silwassa, Jugraj Tejraj, Bajaj Auto, etc.
 SMALL & MIDIUM

Small & medium customers may be bracketed as those customers, whose
demand is comparatively low and not so consistence, some of the small
customers of Hindalco included ITI Allahabad, Defense Organization, and
Dockyards etc.
(C) MARKET SEGMENTATION BASED ON THE PRIORTY:

On the basis of priority given to various orders Hindalco market may be
segmented in the following manner:
 ROUTINE CUSTOMERS
Routine customers are those customers, who are regularly sourcing the
company. Their orders are processed in the normal course of working.
 SPECIAL CUSTOMERS
Special customers are those customers, whose orders are for products under
developments. Since their demand is usually urgent in nature they are given
priority under routine customers. Examples: Export Customers, Government
organization like Defense, Establishment etc. continue this category.
(D) MARKET SEGMENTATION BASED ON CONSUMPTION SECTOR.

Uses of aluminium metal are everywhere. It is not easy to categorize in
some particular heads. However, we categorize in the following major
sectors.
 Electrical
 Transportation
 Building & constructions
 Industrial Machinery
 Packing
 Consumer Durable
 Other
(E) MARKET SEGMENTATION BASED ON GEOGRAPHICAL AREAS:
Aluminium consumers are spread all over the country. Different area has
different type of industries, whose are used aluminium in different quantity.
Here, segment the market in geographical areas based on consumption or
demand pattern.
TRANSPORTATION FACILITY
Smooth transportation facility is available all over the country all the time.
Some area is affected by flood. Some areas are block in the case of heavy
rain etc.
DISTRIBUTION PROCESS AT HINDALCO
There are different tasks involved in distribution process

These are as follows:
 Order processing
 Packing & Insurance, Banking, Bills,
 Ware housing
 Transportation
 Godown sales procedure..
ORDER BOOKING:
Every purchaser has to book his order giving details which aluminium rolled products
they want such as Plain sheet, Cold rolled coils, milk can sheet, circles, etc. Purchaser
should be fully disclose about the product such as, product name, quality, quantity,
technical data, mode of transportation, desire delivery time, payment mode etc.
Technical wing of Hindalco examines their application and if necessary also make
inspection of the facing and decided quality to be offered. Thereafter, terms of payment
finalized and his order is finally booked. This order is passed to the relevant personnel’s
officials with relevant details.
PRIORITY:
A priority list of all categories of consumers has been fixed in consultation with all
concerned. Consumer gets delivery in order to their priority, which is also followed by
transporting agents.
ORDER PROCESSING:
Hindalco procure order either directly from the customers or through the
agents/stockiest. The order contains the name of product, quality, size, clearance etc.
After the receipt of orders from the customers or agent Company scrutinizes the order. A
production planning programmed is prepared for rolled production monthly basis. This
monthly report is sent to the respective production department i.e. rolling mills by the
end of the preceding month. The produced material is sent to the inspection and
packing department.
WARE HOUSING:
Every has to store to goods while they wait to be sold. A strong function is necessary
because production and consumption cycles rarely match. Ware housing is the
responsibility of warehouse in charge in Hindalco. The work start when warehouse
officials receive finished goods from production. Hindalco warehousing in charge
dispatches the material to respective customers on advice of CSMO and follows the
guidelines given to them. The guidelines are:
At warehouse:
 While taking delivery from inspection & packing to ensure packages are
intact & dry.
 If packages are damaged or loose condition, get it repacked.
 If packages are wet, do not accept it.
During loading at warehouse :
 Truck’s floor should be clear and flat.

 There should not be any hole or damage in the floor of the Truck’s
 Floor should be covered with Tarpaulin.
 Packages being loaded should be intact and dry
 Proper stocking of packages should be done while loading.
 Heavy packages to be kept at bottom and lighter packages over heavy.
Packages:
No vertical stoking of packages. After loading truck should be covered with tarpaulin.
During Storage:
 Outdoors storage should be avoided.

 Do not store packages directly on the floor, use wooden pallets.
 Cheek condition of metal every few hours to ensure no water condensation.
DELIVERY OF MATERIAL:
They deliver the material as per the delivery order. Then they note down the delivered
material in the godown register. Then they send delivery report daily to zonal office.
BANKING INSURANCE BILLS & OTHER DOCUMENTS:
Hindalco enjoys the facilities of three public sector banks & private sector bank in its
town Renukoot.
 United Commercial Bank (UCO Bank).

 State Bank of India (SBI).
 Allahabad Bank.
 Industrial Development Bank of India (IDBI).
Banking services at Renukoot is punctual. Banks help the company in carrying the
documents to the party. It helps in quicker payments realization.
INSURANCE
Every material is dispatched duly insured. There are two types of insurance.
 Carrier Risk.
 Owner Risk.
Hindalco arranges insurance facilities for its customers. If there are any damages in
transportation they will issue a damage certificate & the customer can claim its
insurance company on the basis of damage certificate.
GODOWN SALES PROCEDURE
Godown sales procedure describes the sales procedure of Hindalco’s products through
its godown. The respective zonal head exercise control over all activities related to
godowns sales. This sales procedure is followed by all the godown of company situated
at Delhi, Faridabad, Chandigarh, Jaipur, Haryana, Bangalore, Hydrabad, Calcutta
Gohati, Mumbai, Silvasa, Taloja … There is a clearing agent in the godown, which is
appointed by Hindalco for the operation & maintenance of the godown.
VARIOUS MODES OF DISTRIBUTION IN HINDALCO

Hindalco emphasizes on , “Taking the product to the market” Distribution of products in
Hindalco is carried out through a network of zonal offices, Area offices, Agents,
Stockiest and company operated Depots, located through the country. A brief
description is given below
1. ZONAL AND AREA OFFICES:

Hindalco has established five zonal offices, in various part of country. There is a network
of area offices, functioning under various zonal offices. Zonal offices carried out various
Marketing Sales functions of company.
They provide following functions:
 Signed a contract between the zonal offices and customers, regarding to details of
products such as quality, packing, transportation, destination, etc.
 Clearly mentions about the mode of payments.
 Eliminating intermediaries.
Make a direct contact with the customers
 Help the company to cater to the need of customers.

 Helpful the company to earn additional profits
2. AGENTS
Agents are those persons/institutions, who provide orders to Hindalco, on behalf
of the customers. The company has appointed a number of agents, all around the
country to sell the products. They are paid commission on the generated sales. Agent
being a local person/ institution can use his contacts and influence, to generate sales in
a local market. Agents function as an important mode of distribution, as they enable the
company to minimize distribution costs.
3. STOCKIESTS
Hindalco appointed a number of stockiest in various geographical areas across
the country. Certain products of the company are sold through the network. Stockiest
are made conform sale for the company.
 Stockiest is free to make sell to any customer

 Free to charge any price from customers
 Helps the company to cover the wide geographical market.
 Helpful in minimizes extra distribution setup costs.
4. DEPOTS
HINDALCO operate 15 depots in various part of the country. Depots send the
various requirements at the work office and thud, maintain suitable inventory to cater to
the demand of the market. This is providing the following advantages to the company &
also the customers:
 TAX-SHIELD: In many states, state sales tax is less than the central sales tax. In
these states sales of products through depots, lead to tax saving.
 AT RANDOM DELEVERY: Emergency needs of customers full filled immediately by

the depots, at a premium price small off takes of the scattered customers can also
be provided easily by the depots.
 HELPFUL IN PRODUCTION: Depots provide a foundation to the production

department, by keeping inventory of the various products. For example, in the event
of surplus stock, products can be transferred to the various depots. Similarly,
Production –Schedules can be planned with greater accuracy, with the help of
estimated requirements, sent by depots.
HOW THE DEMAND IS BEEN GENRATED

Customer to competitor
HINDALCO
PRIMARY PRODUCT
CUSTOMER
SELF
EXTRUSION
EXTRUSION ROLLED ROLLED
customer
FLOW OF LOGISTICS PROCESS
Logistics is the management of the flow of goods, information and other resources,
including energy and people, between the point of origin and the point of consumption in
order to meet the requirements of consumers (frequently, and originally, military
organizations). Logistics involve the integration of information, transportation, and
inventory, warehousing, material-handling, and packaging.
Logistics management
Logistics management is that part of the supply chain which plans, implements and
controls the efficient, effective forward and reverse flow and storage of goods, services
and related information between the point of origin and the point of consumption in
order to meet customers' requirements. A professional working in the field of logistics
management is called a logistician.
Logistics Management Software

Software is used for logistics automation which helps the supply chain industry in
automating the work flow as well as management of the system. There is very few
generalized software available in the new market in the said topology. This is because
there is no rule to generalize the system as well as work flow even though the practice
is more or less the same. Most of the commercial companies do use one or the other
custom solution.
But there is various software that is being used within the departments of logistics. Few
department in Logistics are namely, Conventional Department, Container department,
Warehouse, Marine Engineering, Heavy haulage, Etc.
The software that is used in these departments is:
Conventional department: CVT software / CTMS software
Container Trucking: CTMS software
Warehouse: WMS
In Hindalco, all the departments are interconnected with computer network
system and the software on which these department works is on the Oracle 11i
platform. This software is connected with Internet and the working in any
department in any region of Hindalco will make effect in all over India.
Business logistics
Logistics as a business concept evolved only in the 1950s. This was mainly due to the
increasing complexity of supplying one's business with materials and shipping out
products in an increasingly globalized supply chain, calling for experts in the field who
are called Supply Chain Logisticians. This can be defined as having the right item in the
right quantity at the right time at the right place for the right price and is the science of
process and incorporates all industry sectors. The goal of logistics work is to manage
the fruition of project life cycles, supply chains and resultant efficiencies.
In business, logistics may have either internal focus (inbound logistics), or external
focus (outbound logistics) covering the flow and storage of materials from point of origin
to point of consumption (see supply chain management). The main functions of a
qualified logistician include inventory management, purchasing, transportation,
warehousing, consultation and the organizing and planning of these activities.
Logisticians combine a professional knowledge of each of these functions so that there
is a coordination of resources in an organization. There are two fundamentally different
forms of logistics. One optimizes a steady flow of material through a network of
transport links and storage nodes. The other coordinates a sequence of resources to
carry out some project.
Production logistics
The term is used for describing logistic processes within an industry. The purpose of
production logistics is to ensure that each machine and workstation is being fed with the
right product in the right quantity and quality at the right point in time.
The issue is not the transportation itself, but to streamline and control the flow through
the value adding processes and eliminates non-value adding ones. Production logistics
can be applied in existing as well as new plants. Manufacturing in an existing plant is a
constantly changing process. Machines are exchanged and new ones added, which
gives the opportunity to improve the production logistics system accordingly. Production
logistics provides the means to achieve customer response and capital efficiency.
Production logistics is getting more and more important with the decreasing batch sizes.
In many industries (e.g. mobile phone) batch size one is the short term aim. This way
even a single customer demand can be fulfilled in an efficient way. Track and tracing,
which is an essential part of production logistics - due to product safety and product
reliability issues - is also gaining importance especially in the automotive and the
medical industry.
Logistics Structure
Order procurement and allocation
ORGANIZATION CHART OF LOGISTICS DEVELOPMENT AT HINDALCO:
Head Outbound Logistics
In charge (finished good warehouse) In charge
Bill Processing Transport Complaint Administration
Field
Office
Area In charge
Supporting WCM Product In charge
QEHS
Rolled Extrusion Wire Rods Ingots
Shift In charge
Clearance Section Group Section Contractor Bill Processing & office

work
Process overview : Loading & dispatch
FINANCIAL HEALTH OF THE COMPANY
The Chairman’s letter to shareholders and the Management’s Discussion &

Analysis, which form a part of this Annual Report, provide the
strategic direction and a more detailed analysis on the performance of
individual businesses and their outlook.
Rs. in Million
Financial Results
for the year ended Standalone Consolidated
31.03.08 31.03.07 31.03.08 31.03.07
Net Sales & Operating

Revenue 192,010 183,130 600,128 193,161
Profit Before Tax 30,256 35,046 29,855 36,616
Provision for Current Tax 6,063 9,841 9,713 9,942
Provision for Deferred Tax 876 (551) (738) (478)
Provision for Fringe

Benefits Tax 114 113 123 121
Tax Adjustment for earlier

years (Net) (5,407) - (5,481) -
Profit before Minority

Interest 28,609 25,643 26,238 27,031
Minority Interest - - 2,206 161
Share in (Profit)/ Loss

of Associates - - 159 12
Net profit 28,609 25,643 23,873 26,858
Appropriations
Debenture Redemption Reserve 50 187 50 187
Special Reserve - - 9 13
Dividend on Preference Shares

(Current Year Rs. 0.24 Mio,
Previous Year Nil)
Dividend Tax on Preference Shares

(Current Year Rs. 0.04 Mio,
Previous Year Nil)
Interim Dividend on Equity Shares - 1,773 - 1,773
Tax on Interim Dividend - 249 - 249
Proposed Dividend on Equity

Shares 2,269 - 2,285 16
Tax on Proposed Dividend 386 - 392 6
Transfer to General Reserve 25,611 24,434 25,629 25,496

COMPANY GROWTH VS INDUSTRY GROWTH
Growth Sales (%) Profit (%)
Company 16.35 24.54
Industry 15.18 15.65
PRODUCTION PROCESS
The aluminum production process can be categorized into upstream and downstream
activities. The upstream process involves meaning and refining bauxite to alumina while
the downstream process involves smelting and casting and fabricating.
Hindalco refines bauxite primarily obtained from captive mines, to extract alumina,
which is smelted into alumina ingots or billets. Hindalco smelts its entire production of
alumina into aluminum and does not engage in alumina trade.
Production of aluminum can be categories in two stages, namely
 From bauxite to alumina
 From alumina to aluminum
 EXTRACTION OF ALUMINA FROM BAUXITE
Alumina is manufactured by conventional buyer’s process i.e. treating bauxite with

caustic soda. Bauxite is brought to the site from mines by means of railways wagon
tippler. Primary crushing is done in cone crusher where bauxite size is reduced form 8”-
12” to 3” - 4” and then stockpiled. Secondary crushing is done by means of hammer
mills
where process liquor known as a spent liquor and 600 psig. Steam is mixed together.
This solution of alumina from bauxite into caustic solution in the form of sodium
aluminates is carried out of digesters at 240 degrees centigrade temperature and 36-
kg/sq.cm pressures. The digested slurry is placed flashed and brought to atmosphere
pressure; flashed vapors are utilized for pre heating the spent liquor and condensed
returned to boiler hose for generation of steam. Digested flashed slurry is pumped to
clarification area for removal of solid Impurities (red mud). Red mud is separated out, in
solid liquid hydrocyclon and stellar. Separated mud slurry is washed in counter current
and washing Circuit without using water. Washed mud slurry is cauterized by treating
with lime slurry to recover soda. Cauterized mud slurry is filtered on drum filters. Filtrate
liquor is taken back into the system and red mud cake is disposed of by means of
dumpers Settler overflow pregnant liquor is filtered in Kelly presses to remove fine mud
particles. Clear pregnant liquor is pumped to precipitators through plate heat exchanges
after exchanging heat with the spent liquor where it is seeded with alumina trihydrate.
Alumina trihydrate is separated out in thickness and pan filter. Alumina trihydrate cake
thus obtained is fed into the gas suspension claimer where furnace oil is burnt for
claiming alumina. The reduction grade alumina thus produced is transported to smelter
plant.
Spent liquor generated and separated from precipitation circuit is fed to the evaporation
unit for increasing caustic concentration to the desired level and recalculated to
digesters through heaters for further processing of bauxite and thus the process goes
on.
ALUMINA MANUFACTURING PROCESS FLOW CHART:

Bauxite from mines Compress Air
Seeding PRECIPITATIONN
CRUSHING
SEED FILTRATION
&WASHING
Liquor Spent Liquor

WET
HYDRATE
GRINDING
EVAPORATION CLASSIFICATION
Filtrate to Process
DESILICATION
Liquor
PAN FILTER
Hot Water for
DESILICATED
SWEETENINGWashing
SLURRY
Washing
DIGESTION
Fuel Oil
CALCINATION
CLARIFICATION
Red Mud
ALUMINA TO SMELTER
Flocculants, Filter Cloth, Lime, Hot Water, Starch

 EXTRACTION OF ALUMINUM FROM ALUMINA
Alumina from alumina plant is conveyed to the reduction plant. The reduction plant has
11 prebaked pot – lines which have 1278 pot cells. Each pot has 24/26 carbon anodes
and it is lined with carbon cathode. Alumina is converted to metallic aluminum is these
pot cells by the standard “hall herald” process. The pot cells work at an average 4.3-volt
D. C. current of 5800/6300 amperes. Electrolysis of the alumina takes place in molten
bath of coyote at a temperature of 955 to 960 degrees centigrade. The molten
aluminum that collects at the cathodes is siphoned into crucibles periodically. The entire
process is controlled by microprocessor system.
FULLY INTEGRATED OPERATIONS: A SIGNIFICANT STRATEGIC ADVANTAGE
Bauxite Mines
Co-Generation Alumina Refinery Caustic Soda from JV
Renusagar Powder Aluminium Smelter Aluminium fluoride

Plant from
Semi Fabrication Plant
Redraw Rod Mills
Rolling Mills Extrusion Process
Foils Al. Wheel Plant

AVAILABILITY OF BAUXITE FROM MINES:
Bauxite Mines
Own Mines On Purchase (Lease)
Jharkhand Chhattisgarh Jharkhand Madhya Pradesh
Shrengdag Samari [20/25 suppliers (small)-2.5 to 3.0 lakh

MT/Y]
Gurdari Kudag [3/4 suppliers (big level) - 2/3

rakes/month
Pakhar Tarijhari 1 rake=3953MT (58

wagons)
Jalin & Sanai (5.5-6.0 lakh MT/Y) 67MT

Load/wagon
Orsapat
Chirokukud
Pakhar (M&M)
(Minerals & Minerals, Sister concern of Hindalco 100% own subsidy)
Supply-7/8 lakh MT/ Y

MODES OF SALES IN HINDALCO:
Hindalco has quite a good network for distribution of its products. Finished goods is sold and
distributed to the costumers by following means.
 DIRECT SALES FROM MANUFACTURING UNITS:
MANUFACTURER CUSTOMERS
 SALES THROUGH STOCKISTS:
MANUFACTURE STOCKISTS CUSTOMERS
 SALES THROUGH AGENTS:
MANUFACTURE CONSIGNMENT CUSTOMERS

AGENT
 SALES THROUGH DEPOTS:
MANUFACTURE DEPOTS CUSTOMERS

ACTIVITY FOLW CHART OF HINDALCO-MINES DIVISION, JHARKHAND & CHHATTISGARH
PRODUCTION CAPACITY
ALUMINA
CAPACITY 1.15 MTPA
 RENUKOOT 685,000TPA
 BELGAUM 350,000TPA
 MURI 110,000TPA
 SMELTER (PRIMARY ALUMINIUM)

o CAPACITY 424,000MTP
 HIRAKUND 65,000TPA
 ALPURAM 14,000TPA
 ROLLED PRODUCTS
o CAPACITY 2,00,000TPA
 BELUR 45,000TPA
 TALOJA 45,000TPA
 NAGPUR 30,000TPA
 FOIL
o CAPACITY 14,000TPA
 SILVASA 5,000TPA
 KALWA 6,000TPA
 KOLLAR 3,000TPA
 EXTRUSIONS
o CAPACITY 27,700TPA
 RENUKOOT 19700TPA
 ALPURAM 8000TPA

ALLOY WHEELS
o CAPACITY 3,00,000 Nos. PA
 SILVASA 3,00,000 nos.
MARKET STRUCTURE:
Aluminum production is expensive and requires heavy capital investment. Most of the key
producers are major corporations and the business is concentrated, not fragmented. As indicated
above, a recent trend is for major firms to invest in smelting operations which are closer to power
sources. As direct results, older aluminum operational facilities are closing down as the older
sites are no longer cost effective. Norse Hydro, for example has terminated approximately a
quarter million tons of capacity in Northern Europe in favor of cheaper Middle East based
operations. Alco has made similar moves. Industry experts estimate that up to 4 million tons of
annual aluminum capacity from older facilities could be shut down in the next 3 to 4 years. How
aluminum is used.
SEGMENT WISE USEGE OF ALUMINIUM
CAPTIVE POWER
FULLY INTEGRATED OPERATION: SIGNIFICANCE

STRATEGIC ADVANTAGE
CAUSTIC SODA FROM AL. FLUORIDE FROM

JV JV
ACTIVITY FLOW CHART FOR ROLLED PRODUCT:
Unloading of lots from Trucks/Trolley in warehouse receiving area by EOT crane
If any lot found in damage condition then

it returns to inspection & packaging deptt.
On nil duty
Party wise & Destination wise coding of allocated lots as per production list generated by product in charge
Sorting & Segregation of coded lots in warehouse receiving area.
Pack wise, Party wise storage of lots in respective storage area.
Grouping of allocated lots for

hiring of trucks.
Export Lots: Segregate lots as per Grouping Domestic Lots: On placement of trucks
Seal the lots & put shipping mark as per generate loading slip & send a copy to
export order requirement loading point
Call the container/Trucks for loading on receipt of loading slip
Check the lots as per loading
Load the container with the help of fork lift Load the truck with the help of EOT crane
After loading of lots get lashing and damaging of sheets done and the container selected
After loading the truck/container get the loading register signed by loader & verified by shift in charge
Ensure proper covering of lots with tarpaulin in case of truck/trailer
Send the truck/container to weigh bridge for weighment

If the products have to be loaded on the same If variations in function gross weight of loading slip, send
truck, send the truck to respective loading point the truck back to loading point for correction
Send the truck/container to weigh bridge for If gross weigh tallies, generate factory gate pass & send it
weighment to invoice PROCESS:
EXTRUSION PRODUCTION section for clearance
AGING FURNACE
FINISHED
EXTRUSION
PRODUCT
ACTIVITY FLOW CHART FOR EXTRUSION PRODUCT
Unloading of racks containing lots from shifting Trucks/Trolley in warehouse receiving area by EOT crane
If any lot found in damage condition then

it returns to inspection & packaging deptt.
On nil duty
Zone wise coding of allocated lots as per production list generated by product in charge
Sorting & Segregation of coded lots in warehouse receiving area.
Zone wise & party wise storage of lots in fixed racks in respective storage area .
Grouping of allocated lots for

Placement of truck as per grouped list hiring of trucks.
Generate loading slip send one copy of loading copy to loading point
Call the truck on receipt of loading slip
Check the lots as per loading slip & load in truck with the help of EOT crane
After loading the truck/container get the loading register signed by loader & verified by shift in charge
Ensure proper covering of lots with tarpaulin in case of truck/trailer
Send the truck/container to weigh bridge for weighment
If the products have to be loaded on the same If variations in function gross weight of loading slip, then
truck, send the truck to respective loading point send the truck back to loading point for correction
Send the truck/container to weigh bridge for If gross weigh tallies, generate factory gate pass & send it
weighment to invoice section for clearance
ACTIVITY FLOW CHART FOR PROPERZI-WIRE RODS
Physical checking of each coil by warehouse operator such as poor cooling cut marks
If not OK return coil on nil duty
Tally each coil no. with production sheet by warehouse

In case of missing coils report to shift in
operator. Total counting of coils received should match
charge informs to production
with production sheet.
Packing of each coil as per requirement
Check the entries of all the coils in the system and tally with production register by warehouse shift in charge
Check the composition & UTS from PT lab analysis reports against each coil & ensure every coil is acceptable range
Take party wise dispatch schedule from sales, If not inform to remelt shop by warehouse shift
Co-operation by warehouse shift in charge in charge then return the same on nil duty to
remelt shop.
Allocate each coil as per dispatch schedule on system by W/H Shift In charge
Group the coils party wise for hiring of trucks
Call the trucks for loading in receipt of loading slip
Check the load coils in truck as per loading list with the help of EOT crane by W/H operator under
supervision of W/H shift in charge.
Ensure proper covering by coils with tarpaulin
Send the truck to weighbridge for weighment
If gross weight tallies, then generate factory gate pass & If variations are found in gross weight of loading slip &
send it to invoice section for clearance weighment slip then send the truck back to loading point
for correction
THE SWOT ANALYSIS OF HIL.
STRENGTH
 Global brand image.

 Cost effective producer.
 Sound financial position.
 A high degree quality consciousness is the core competence of the company, ISO 9001 and
ISO 14001 have added more prestige to the company.
 Integrated production facility at Renusagar power plant.
 Company has a well-established distribution network, covering a geographically wide and
scattered market.
 A number of Brownfield & Greenfield projects.
 Industrial peace as, there has been no major strike in last 22 year.
 A well focused human resources development.
 Serve maximum customer satisfaction.
WEAKNESS
 Present production capacity is not adequate to meet the rising high demand.
 Technology is not upgraded to mark as compare to global giants in aluminium industry.
OPPORTUNITY
 R & D collabratation with universities and another research organization.

 More emphasis on downstream production of value added products.
 Recycling should be adopted as routine production.
 Raising more finance from marketing for more acquisition and merger for consolidating
position in the global market.
 Aluminium, continuous to be strong with a growth in transportation sector 16%,
construction15%, passenger car 25%, two wheeler segments 14% respectively during FY07.
THREATS
 Strong domestic and global competitors, such as TATA, POSCO, MITTLE, ESSAR .
 Innovative revolution in plastic and steel industry.
 Reduce in Exide duty.
 Fall in price of Al. In neighbor country.
OPPORTUNITY
STRENGTH
DISTRIBUTIO
SOLUTION
N CHANNEL
THREATS
WEAKNESS
SWOT ANALYSIS OF SUPPLY CHAIN
STRENGTH
 Product based marketing channel.

 Strong dist. channel based on geographically wide & scattered market of India..
 Flexible distribution process for customers via direct sales and indirect sales.
 Company made more than 50% direct sales.
 Convenient road transportation.
WEAKNESS
 Not tapped all the potential areas especially in eastern and southern zone.
 A 50-40% sale depends on indirect marketing.
 The present distribution system is not adequate to meet the demand of aluminium in the
coming years. It is in this light, that the present dist. system needs to be updated. Certain
recommendations, with regard to the same have been suggested ahead.
OPPORTUNITY
 The demand of the company’s products is rapidly increasing. Thus, there is a necessity to
expand the dist. network to avail the benefits of the fast growing market.
 Indirect sales should be converting in direct sales through TM sales force.
THREAT
 The major threat is from the competitors like BALCO, NALCO etc. because the company
may lose its market leader position , if it does not take timely steps to modify its present
distribution system in the wake of fast growing demand
SUGGESTIONS/RECOMMENDATIONS/CONCLUSIONS
Certain recommendations with regard to distribution channel of HIL are as under:
(A) Northern zone offers the most lucrative sales in last financial year.. In the light of such high
sales driven by the factors such as heavy investments in infrastructures and related industries
– machinery, transportation etc. In this zone our more than 65% sales depends on indirect
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 & 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 are through direct sales.
Analysis of sales data, present depots, stockiest & consignment agents, 35% of the sales in
this zone is indirectly depending upon consignment agents & stockiest. The demand of this
zone is very high. To optimize in this key zone, the company should established additional
depots in that areas- Ahmadabad & 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 indirect 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 & retain the customers. So making the sales
customer oriented and to improve the sales, the company can take the following initiatives-
 Assign sales representatives to contact all prospects in this

area.
 Design a sale promotion complains focusing on brand
awareness.
 Appoint a regular sales representative with each stockiest.
 Shift to retail format of business by owning aluminium
galleries in malls.
 LIMITATIONS OF STUDY
 The duration of practical training was just of four weeks. It was not sufficient.
 Due to heavy engagement of the top management people and other personnel,
many other information could not be collected within the limited span of time.
 To maintain secrecy, the company people do not provide various types of

information, such as actual sales to various customers, zone wise sales, depot
setup cost, depot handling cost etc.
 Their recommendations are the outcome of an analysis made individually.
 Another analysis may arrive at certain other recommendations after using same
data.
 So, that it is advisable for the company to examine the various

recommendations, before going ahead with any of their
implementations.
BIBLIOGRAPHY
MAGAZINES:
 Impex Times
 FIEO News
 Aluminium International Today
 Aluminium Times
 Aluminium Now
 Incale 2
 Incale 3
 Annual report (07-08), Hil
 Induction guide , (training centre )
 Principles of marketing, “kotler & Armstrong”.
 INTERNET:
 http://www.algomtl.com
 http://www.go4worldbusiness.com
 http://www.unzco.com/basicguide
 http://dgftcom.nic.in
 http://www.fieo.org
 http://www.airportsindia.org.in
 http://www.indiandata.com/trade_policy/export_procedures
 http://www.wikipedia.com/logistics
 http://www.google.co.in/
 http://www.hindalco.com/products/rolled_products
 http://www.hindalco.com
 http://www.novelis.com
 http://www.adityabirla.com
ANNEXURE
APPLICATION OF ALUMINIUM IN TRANSPORT
SECTOR
Country % of consumption
Europe 29%
Japan 30%
US 28%
Canada 28%
Australia 25%
India 16%
Global Aluminium Production Growth forecast (mln tpa)
Year Actual Forecast

1985 15.5
1995 19.7
2005 31.4
2010 41.3
2015 50.2
PRIMARY ALUMINIUM PRODUCTION & CONSUMPTION BY MAJOR

COUNTRIES IN 2005
Country Production CONSUMPTION(KT)

(KT)
Norway 1376 246
Brazil 1499 759
Australia 1903 380
Canada 2894 803
USA 2480 6143
Russia 3647 946
Chain 7806 7119
PER CAPITA CONSUMPTION OF ALUMINIUM
COUNTRY CONSUMPTION
(kg/person)
JAPAN 32.0
USA 31.9
GERMANY 31.6
CANADA 31.2
ITLY 29.5
FRANCE 21.4
AUSTRALIA 21.2
UK 15.0
CHAINA 6.5
BRAZIL 4.1
INDIA 1.1
INDIA-User Segment’s Growth FY07 over FY06

User Segment FY05 FY06 Change
%
Electrical 398 490 23
Transport 234 308 32
Built. & Const. 135 165 22
Consumer Durable 46 53 15
Packing 47 51 9
Indus. Machinery 37 41 11
Others 37 41 11
Total 934 1149 23
Major Aluminium Producer Industries in India.
Company Owner Location Capacity

ship
Hindalco AB Renukoot 345,000

Group
Alpuram 14,000
Hirakud 65,000
Belgaum 31,000
NALCO Public Angul 345,000

Sect.
BALCO Sterlight Korba 350,000
MALCO Sterlig Mettur 40,000

ht
EXTRUSIONS CAPACITY, PRODUCTION & DEMAND 1991-2020(MT)
Particulars 91-92 99-00 03-04 2010 2020
Capacity 122000 190000 202000 202000 400000
Production 61000 109000 132000 188000 370000
Domestic 60000 105000 117000 166000 325000

Demand
Export Nil 4000 15000 22000 45000
Excess 62000 81000 70000 14000 30000

Capacity
CONSIGNMENT AGENTS & STOCKIEST
ZONE WAREHOUSES No of No of
CONSIGNMENT STOCKIEST
AGENTS
EASTERN 2 6 8
NORTHERN 5 - 32
SOUTHERN 3 12 20
WESTERN 3 26 24
Primary metal customer of Hindalco:-
Primary metal customer are always competitor for Hindalco Industry Because after purchasing of
Primary metal they manufacture Rolled product or Extrusion product. So these company are
competitor for Hindalco in Extrusion product and Rolled product.
Warehouse problems
Major problem
 Dependence on other department

 Transpotation
 Space
Dependence on other department: it is the nature of the warehouse department and it

cannot do any thing for this as any delay in related department can add to problem in
warehouse.
Transpotation: it arises due to following factors
Space constrane: due to above factors space arise as a big problem

Minor problem
 Slowdown
 Defence delay
 Natural calamity
WAREHOUSE ACTIVITES NO ADVANCE PLANNING
After packing feed the product
Marketing dept. DISTRIBUTION ACCORDING TO ORDER
Grouping MAIN PROBLEMATIC AREA
HIRING SLIP
Transportation section LOADING SLIP
Loading at godown
Factory gate pass

PACKING
To contain To protect to preserve to present to dispense
The product the product the product the product the product
MAJOR PROBLEMS:
NO coordination with the store department.
NO forecasting
Supply chain of hindalco
Mines
Production
Hold
Marketing coordination Release
Warehouse
Dispatch
Logistics
Godown
FINDINGS & RECOMMENDATIONS
Findings
1. Hindalco is the leading exporter of Aluminum Semi-Finished products in India.
2. FIEO (Federation of Indian Export Organization) has awarded Hindalco as a Five Star
Trading Houses on their export achievements.
3. Hindalco is following all the norms as per Central Excise & Customs and other
government rules & regulations in the export process.
4. Hindalco is following positive and proactive approach towards export.
5. Hindalco is exporting all over the world, from underdeveloped countries to advance
countries.
6. There are approx. 10,000 employees in Hindalco from top to bottom level, then also
company’s main focus is about safety, security and value as well as proper rules and
regulations
7. Having huge network.
8. Easy availability of raw materials.
9. The manufacturing cost is very high because of high utilization of energy. Energy
(Oil, Coal, Electricity) used at Renukoot is 47% of total manufacturing cost, while
only electricity is used as 77.67% of total energy consumption.
Present distribution system and production capacity is not adequate to meet the present and
near future demand.
10. Approximately 50% employees at operational level as well as middle are not satisfied by
their job but they do not tell the reason.
11. Findings at Warehouse:
 Minor Problems- Nature Calamity
 Employee’s health problems
 Defense Delay (Inspection)
 Customer Denied
 Volumetric Problems
 Delay Packaging
 Changes in Market Scenario
 Dependency on other Departments
 (Production, Packaging, Transportation)
Major Problems: 1. Space
2. Transportation
Recommendations/Suggestions:
Hindalco is a reputed Aluminum industry in the world and its products are well accepted
in the market but as we know that there is always a scope of improvement.
Following are the recommendations in all areas:
Sometimes order has been delayed due to rejection of partial quantity of the product due
to quality problems and manufacturing defects. So, it is recommended that Hindalco
should have to keep advance stock or backup products in their warehouse to overcome
this problem and to execute the order on time.
 Some of the Caster product order is being delayed due to limited capacity of the Caster
Plant. So, it is recommended that Hindalco should have to increase the capacity of their
Caster Plant.
 Hindalco is using Oracle & IVL software system for making export documents. The
working of this software is from Order management to Shipment. This process is time
taking due to partly adoption of the software system. So, it is recommended that this
software should have been start from Enquiry management to Shipment. It would ease in
making documents in faster way manual interruption will be minimized.
 Sometimes there is unavailability of containers for any particular destination occurs. This
problem have been overcome by helding a meeting and making a successful negotiation
process from the shipping line companies for the arrangement of empty containers.
 Due to no advance planning there is a lot of problems in each department, mainly in

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

Supply Chain Management

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Supply Chain Management

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“SUPPLY CHAIN MANAGEMENT”

Submitted for the Partial fulfillment towards the award

1.0 Introduction to the Topic.………………………………………………….. 00

3.0 Objectives of the Study……………………………………………………. 00

6.0 Research Methodology…………………………………………………… 00

6.1 Universe of the study…………………………….…………………… 00

6.2 Sample Size…………………………………………….………........... 00

6.3 Sampling Method…………………………………………….……….. 00

6.4 Tools for Data Collection……………………………………..………. 00

7.0 Data Analysis & Interpretation……………………………………………. 00

9.0 Recommendations & Suggestions………………………………………. 00

10.1 Limitations of the Study……………………………………………..…… 00

10.2 Scope for further research………………………………………………. 00

S. TABLE PAGE REFRENCE DETAILS

S. TABLE PAGE REFRENCE DETAILS

ADITYA BIRLA GROUP

CHAIRMAN: Shri Kumar Mangalam Birla

“People build company’s success; where people grow, profits grow.”

Reset on four pillar

I.1 ADITYA BIRLA GROUP

:: No.1 in viscose staple fibre

:: The fourth largest producer of insulators

:: The fourth largest producer of carbon black

:: The 11th largest cement producer globally

:: Among the best energy efficient fertilizer plants

:: A premier branded garments player

:: The second largest player in viscose filament yarn

:: The second largest in the chlor-alkali sector

:: Among the top five mobile telephony companies

:: A leading player in life insurance and asset management

:: Among the top three supermarket chains in the retail business

:: Working in 3,700 villages

:: Running 41 schools and 18 hospitals

The world's largest aluminum rolling company

World leader in viscose staple fiber

One of the biggest producers of primary aluminum in Asia

Fastest-growing copper company in Asia

Fourth largest producer of carbon black in the world

One of the lowest-cost producers of aluminum in the world

ISO 9001:2000 and 14001 certified

ADITYA BIRLA GROUP

Hindalco Industries Ltd.

Alumina Chemicals Renukoot (Uttar Pradesh), 1,160,000 tpa India

Primary Aluminium Renukoot, Hirakud (Orissa), 489,000 tpa

Extrusions Renukoot, Alupuram 27,700 tpa

Rolled products Belur(West Bengal), 200,000 tpa

Wire rods Renukoot, Alupuram(Kerala) 64,400 tpa

Aluminium foil Silvassa (Dadra & Nagar 11,000 tpa

Aluminium Wheels Silvassa (Dadra & Nagar 300,000 pcs

*For Taloja recycling plant

Indal (subsidiary of Hindalco)

Foil Rolling Kollur (Andhra Pradesh) 4,000 tpa

Birla Copper (Hindalco Industries Ltd.)

copper cathodes Dahej (Gujarat) 500,000 tpa India

continuous cast copper 97,200 tpa

Sulphuric acid 1,670,000 tpa

phosphoric acid 180,000 tpa

gold (Birla Gold) 15 mt

silver (Birla Silver) 150 mt

DAP and complexes 400,000 tpa

Hindalco Industries Ltd. (Aditya Birla Minerals Resources Pty. Ltd.)

copper cathodes Nifty mines 25,000 tpa Australia

copper in concentrate Mt. Gordon mines 40,000 tpa Australia

Power Mt. Gordon mines 28mw Australia