An organizational study of “Jindal Aluminium Limited ”

Submitted by:
Navya.P
1SI17MBA30

Under the guidance of:

Internal guide: External guide:
Dr.M.Ajoy Kumar Mr.Sahoo
Associate Professor HR Manager
Siddaganga Institute of Technology Jindal Aluminium Limited
Tumkur Jindal Nagar, Bangalore
Industry profile
 Aluminium compounds make up 7.3%of the earth’s crust.
 Aluminium is the third most available element on the
earth.
 Currently aluminium is second most used metal in the
world
 Aluminium production in India commenced in 1938 with
the commissioning of Aluminium Corporation of India’s
plant in technical and financial collaboration with Alcan,
Canada having a capacity of 2,500 tonnes per annum.
 India is worlds 5th most Aluminium producing country in
the world.
Milestones
 In 1959, Hindustan Aluminium Corporation
(Hindalco) was set up at Renukoot in UP with an
initial capacity of 20,000 tonnes per annum.
 In 1965, Malco, a Public Sector Undertaking was
commissioned with a capacity of 10,000 tonnes per
annum.
 In 1975, Balco, a Public Sector Undertaking with a
capacity of 10,000 tonnes was set up.
 In 1987, National Aluminium Company (Nalco) with a
capacity of 0.218mn tonnes was commissioned in
technical collaboration with Pechiney of France.
 In 1970s, the government regulated and controlled
the aluminium industry through price distribution
controls and barriers to entry.
 The government decontrolled the industry in 1989
with the removal of the Aluminium Control Order.
 The industry was de-licensed in 1991 and was
allowed liberal import of capital goods and
technologies.
Market leaders
 Hindalco
 Sterlite
 Nalco
 Balco
 Malco
 INDAL
Market Share
 Imports increased from 878kt in FY-11 to 1750kt in
FY-17 (at 12% CAGR)(mainly from China and
Middle East)
 Domestic Aluminium Producer’s market share is
down from 60% to 47%.
Political factors
• Recommendations on captive mines.
• Increase in import duty.
• Increase export duty on bauxite ore.
• Reduction in basic custom duty on critical raw materials.
• GST compensation cess on coal to be eliminated.

Economic factors
• GDP growth rate.
• Reduction in custom duty.
• Recycling produces high-value economic impact.
• Jobs are increasing.

Social factors
• Rural urban divide.
• Higher disposable income.
• Demographics and skill level of the population.

Technological factors
• Automotive sector.
• Optimizing furnace insulation.
• Coating technology.
 Jindal aluminium limited (JAL) established in 1968 by
Dr.S.R.Jindal.
 JAL has 11 aluminium extrusion presses with an
installed capacity of 1,20,000 TPA.
 JAL is leader in the aluminium extrusions in India
having produced about 85490MT during 2017-18.
 JAL is largest aluminium manufacturer of aluminium
extrusions by meeting 30% of country’s total demand.
 The branch offices of JAL are located at Ahmedabad,
Chennai, Kochi, Mumbai, New Delhi, Pune.
Vision
To become a number one supplier of quality aluminium
sheets and rolled products in the years to come, not only
in the domestic market, but also in the global market.

Mission
To cater to the customers both in domestic market as well
as global market with what they need at a price, which to
them represents value and delivered in a manner that
exceeds their expectations.
 The products of JAL are Plain sheet and coil, Pattern sheet,
Closure sheet, Aluminium composites panel, Aluminium
roofing sheet, Fin strip, Litho coil, Bare foils, House foil,
Slugs and circles.
 JAL products are well accepted all over the globe in diverse
alloy combinations for segments such as Aviation,
Architectural, transport, Electronics, Defence, Solar etc.
 JAL products are well known for its quality and it is
considered best among more than 100 aluminium
extrusion manufacturers in the country.
 JAL exports around 700 TPM of aluminium rolled products
to various countries, mainly to UK, US, Canada, Australia
and Middle East.
 JAL have an array of satisfied customers. Some of satisfied
customers are NTPC, BHEL, MICO Bosch, Daimler, Essar
Power, Reliance, TATA, Vedanta, JSW Steel, Hindustan
Zinc, BGR Energy, ACGL etc.
 First Indian company in entire Aluminium Extrusion
fraternity to win IS/ISO 9001:2008, American Bureau of
Shipping (ABS) and Hartford Steam Boiler (HSB)
Certifications.
 Diversified itself in producing Aluminium rolled products
in 2012 by commissioning a new plant with capacity to
produce 3000 MT of various rolled products per month.
 Technology is imported from Germany and Japan with
latest automation facility.
• Integrated aluminium strip casting, cold rolling, foil
rolling facility in one location.
• Contribution in development of Nation by various CSR
activities like Charitable institutions, Schools, Colleges
Vocational training institutions, Hospitals, Old age
homes, Orphanages etc.
• Production and turnover of JAL
McKinsey’s 7S Model
Structure
It represents the way business divisions and units
are organized and includes information of who is
accountable to whom.
MD

Executive Vice
Director chairman

Packaging Corporate Vice General

HR Finance Materials affairs
and Shipping President Manager

Quality
Production Development Maintaince Tool shop CSR
assurance

Functional Authority organizational Structure

Strategy
• The company has a long term vision for its presence in global
market and to achieve this, it has full fledged marketing
department with a team of dedicated professionals who have
been trained to serve customers efficiently.
• To ensure quick and timely response to all their customers
enquires/ queries.
• To meet the specific requirement of all segments of customers
like Industrial users, builders , wind and solar etc. against
their specific orders with mutually acceptable techno-
commercial terms.

System
• It is basically based on core management.
• Computerized system
• Technical system
Staff
The employees and their general capabilities
Total number of employees =1000
Staff = 200, Workers= 500, Contract labors= 300
The company is providing continuous training program to their
workers to improve their performance.

Skills
• The actual skills and competencies of the employees working
for the company.
• JAL workers have a good practical skills and they have ability
to work quickly and methodically and they are very well in
operating the extrusion machines.
• The engineers in JAL are highly qualified and experienced in
consultation with German and American technical experts.
Designation Skills needed
Top level employees They need to empowering
employees to take ownership of
projects and creating an energetic
and highly motivated workplace.

Middle level employees They should have problem solving

skills, practical skills and ability to
make calculations.

Low level employees They need welding skills and the

ability to work with metal and they
have ability to operate extrusion
machines.
Style
The style of leadership adopted by the company is Autocratic
leadership style but it has been successful in preserving an
unblemished repute of having excellent employer-employee
relationship.

Shared value
• JAL belief is “people” are the most valued resource of the
organization .
• While recruiting the human resource the company will not
discriminate in respect of sex, religion, caste or region.
• The company also as a policy, will not violate any statutory
norms as applicable in respect of employment of HR in the
organization.
Strength
• Highest presses in the factory with high capacity of
production.
• A most modern tool shop having sophisticated CNC
machines to manufacture dies through AutoCAD drawing.
• A strong financial background.
• A strong quality control facility with computerised lab
having spectrometer.
• It has a huge library of approximately 15000 readymade dies
to meet the requirements of the customers.
Weakness
• Non availability of skill manpower.
• High turnover of skill manpower.
• Old industry needs to upgrade technology.
• Lack of trained manpower.

Opportunity
• High increase of demand in usage of aluminium extrusion in
modern world.
• Currently available technologies will continue to generate
new opportunities for JAL capable of delivering responsive
and quality service
Threat
• Vulnerable industrial relations.
• Climate in and around the city and interference of different
political parties.
• Competition is increasing in the market with existence of
many unorganised extrusion industry producing sub-
standard materials.
• With increase in population in extension of city area, the
industry may have to be shifted to a designated industrial
area.
Proposed topic for Part B