Rimpal Report

Supply Chain Management of H.I.L.
SUMMER TRAINING PROJECT REPORT

ON
Supply Chain Management

Submitted in partial fulfilment of
MASTERS OF BUSINESS ADMINISTRATION PROGRAMME
Conducted by
U P TECHNICAL UNIVERSITY, LUCKNOW

Under the guidance of
Under the
guidance of
Mr. Manveer Ajaad
Mr. S.k Dubey
Sr. Manager
H.O.D
Submitted By
Rimpal Singh
MBA III Semester
Enrolment No. _
SESSION- 2015-16
ANSAL TECHNICAL CAMPUS

Pocket-C, Sector-9, Sushant Golf City, LUCKNOW
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Preface
In its broadest sense summer training project report is necessary to make the students of business
school familiar with the industrial environment prevailing in the world. To be competitive and work
aggressive, students need to know the policies, procedures and the trends going on in the present industrial
world.
The purpose and objective of this project report is to find out the
The report is hard intends to reflect some of the basic covered under the SUPPLY
CHAIN MANAGEMENT of HINDALCO IND. LTD. a first truly MNC of India.
The total aspects have been formulated and presented on the basis of ideas and
information gathered by this investigator during a shorter span of project training i.e. an important
portion of the MBA curriculum leading to an opportunity for the participant to have a practical
exposure of the contents under the topic beyond what has already been studies during the class-room
interaction.
This report has been written in response to a comprehensive study, conducted on the
SUPPLY CHAIN MANAGEMENT of HINDALCO INDUSTRIES LIMITED. The report
mentions and evaluates the various aspects, pertaining to the distribution channel of the company.
After a thorough analysis of the various facts stand figures, a set of recommendations has been given
at the end of the report.
Accuracy and precision has been given the prime consideration, while compiling the report, are
authoritative and authentic.
We are confident that anyone who goes through the report will learn how much we have
learnt & benefited during this period.
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Acknowledgement
I would like to take this opportunity to express my appreciation to Hindalco Management & all the
employees of HINDALCO INDUSTRIES LTD. Without whose help & support the fulfilment of this
report, as part of my curriculum would not have been completed.
My special vote of thank to Mr. S.K. Das ( G.M. Training & Development ) & Mr. Ajai
Jauhari (DGM logistic & sales co-ordination) who gave me the opportunity to work in the esteemed
organization . I would like to express my gratitude to Mr. Manvir Azad (Sr. officer- logistic), & Mr. S.K
Mourya for their valuable support, co-ordination & guidance at wherever I needed. The overall learning
process has helped me to develop an insight to think in a broader & practical perspective thus helping me
achieve the goal and purpose of my summer training.
RIMPAL SINGH
MBA (IIIrd SEM.)
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The wining organization will be those who regularly outperform

competition. They have a stable consistent strategy. A stable strategy does
not means a static strategy, rather it means following a broad philosophy
and continuous improvement in how strategy is manifested, incorporation
the expected market requirements and the consumer needs.
KUMAR MANGALAM BIRLA

(Chairman, Aditya Birla Group)
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Table of content
1. Origin To Aditya Birla group
2. Introduction to Aditya Birla Group
8-13
3. Hindalco Industries Overview
14-37
4. Supply Chain Management
38
Introduction
Channel objective
S.W.O.T. Analysis of S.C.M.
39-42
42-55
56
5. Marketing Strategy (Old)
57-58
6. Marketing Strategy (New)
58-65
7. Distribution Process of Hindalco
66-77
8. Major Domestic Market (Geographically)
73-75
9. Transportations
76-95
10. Objective of the study
96-97
11. Research Methodology
98
12. S.W.O.T. Analysis
99-100
13. Finding & Limitation of study
101-103
14. Recommendation/ Suggestion
104
15. Conclusion
105
16. Bibliography
107
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Origin to Aditya Birla Group
(L-R)Aditya
vikram birla,
kr.mangalam Birla ,G.D.birla,B.K.birla

The origin of Aditya Birla Group can be traced back to the 19 th century, When Seth
Shiv Narian Birla started trading in cotton in the town of Pilani Rajasthan. In the early part of the
20th century group founding father, Late. Ghanshyam Das Birla expanded the group and setup
industries in critical sector such as Textiles, Fiber, Aluminium, Cement, and Chemicals. In 1969 Aditya
Vikram Birla the chairman of the group put the group on the global map. He setup 19 companies
outside India. In Thailand, Malasiya, Indonasiya, Philipins and Egypt etc.
Under Aditya Birla leadership the group attained new hights and it becomes worlds
largest producer of Viscose Staple Fiber. The largest refiner of palm oil. The third largest producer of
Insulator and the sixth largest producer of Carbon Black.
After Mr. Aditya Birlas demise his son Mr. Kumar Mangalam Birla took over the
charge of the group and under his leadership the group has sustained the numero position in the
sectors in which its operate.
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Introduction to Aditya Birla Group
Type
Industry
Founded
Founder
Headquarters
Area Served
Key people
Private
Conglomerate
1857
Ghanshyam Das Birla
Mumbai, India
Worldwide
Kumar Mangalam Birla (Chairman)
Metals, cements, textiles, chemicals, agribusiness, carbon black,
Products
mining, wind power, insulators, telecommunications, financial

services, information technology, retail, trading solutions
Revenue
Employees
US$ 45 billion (2014)

136,000 (2015)
A US $45 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored
by an extraordinary force of over 133,000 employees, belonging to 42 different nationalities. The Group has
been ranked Number 4 in the Global 'Top Companies for Leaders' survey and ranked Number 1 in Asia
Pacific for 2011. 'Top Companies For Leaders' is the most comprehensive study of organizational leadership
in the world conducted by Aon Hewitt, Fortune Magazine and RBL (a strategic HR and Leadership
Advisory firm).
Over 53 per cent of its revenues flow from its overseas operations. The Group operates in 36
countries Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India,
Indonesia, Italy, Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Poland,
Russia, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE,
UK, USA and Vietnam.
Globally, the Aditya Birla Group is:

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::
A metals powerhouse, among the worlds most cost-efficient aluminium and copper producers
Hindalco-Novelis 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 fiber
::
No.1 in carbon black
::
The fourth-largest producer of insulators
::
The fifth-largest producer of acrylic fiber
::
Among the top 10 cement producers
::
Among the best energy-efficient fertilizer plants
::
The largest Indian MNC with manufacturing operations in the USA
In India:
::
A top fashion (branded apparel) and lifestyle player
::
The second-largest player in viscose filament yarn
::
The largest producer in the chlor-alkali sector
::
Among the top three mobile telephony companies
::
A leading player in life insurance and asset management
::
Among the top two supermarket chains in the retail business
::
Among the top 10 BPO companies
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 Aditya Birla Group:

::
Works in 3,000 villages.
::
Reaches out to seven million people, annually through the Aditya Birla Centre for Community
Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla.
::
Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing social reform in
India, Asia, Egypt, Philippines, Thailand, Laos, Indonesia, Korea and Brazil.
In India:
::
Our Group runs 42 schools, which provide quality education to 45,000 children. Of these, over 18,000
children receive free education.
::
Its 18 hospitals tend to more than a million villagers.
::
In line with its commitment to sustainable development, has partnered with the Columbia University in
establishing the Columbia Global Centres Earth Institute in Mumbai.
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::
To embed CSR as a way of life in organisations has set up the FICCI Aditya Birla CSR Centre for
Excellence, in Delhi.
Transcending the conventional barriers of business because we believe it is our duty to facilitate inclusive
growth.
Fact File:
The world's largest aluminium rolling company
No.1 in viscose staple fiber
Biggest producer of primary aluminium in Asia
Among the top 10 cement producers globally
The No.1 producer of carbon black in the world

Fourth-largest producer of insulators in the world
Fifth-largest producer of acrylic fiber in the world
Among the best energy efficient fertilizer plants
Policy Highlights of Aditya Birla Group

Group Vision
To be a premium global conglomerate with a clear focus on each business.
Group Mission
To deliver superior value to our customers, shareholders, employees and society at large.
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Group Values
Integrity Honesty in every action.
Commitment Doing whatever it takes to deliver, as promised.
Passion Missionary zeal arising out of an emotional engagement with work.
Seamlessness Thinking and working together across functional silos, hierarchy
Levels,businesses and geographies.
Speed Responding to stakeholders with a sense of urgency.
Subsidiaries & Associates of Aditya Birla Group
Aditya Birla Nuvo

AV Cell, Canada
AV Nackawic, Canada
Grasim Industries Limited
Hindalco Industries Limited
UltraTech Cement Limited
Aditya Birla Minacs Worldwide Limited
Samruddhi Cement
Novelis Inc.
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Aditya Birla Minerals

Aditya Birla Chemicals (India) Limited
Utkal Alumina International Limited
Dahej Harbour & Infrastructure Limited
Aditya Birla Science and Technology Company Limited
Tubed Coal Mines Limited
Birla Sun Life Asset Management Company Limited
Aditya Birla Finance Limited
Aditya Birla Money Mart Limited
Aditya Birla Money Limited
Aditya Birla Insurance Brokers
Aditya Birla Capital Advisors Private Limited
Idea Cellular Limited
Madura Fashion & Lifestyle
Essel Mining and Industries
Aditya Birla Retail
Thai Rayon
Indo Thai Synthetics
Thai Acrylic Fiber
Thai Carbon Black
Aditya Birla Chemicals (Thailand) Limited
Birla Laos Pulp and Plantations Company Limited
Indo Phil Textile Mills
Indo Phil Cotton Mills
Indo Phil Acrylic Manufacturing Corporation
Pan Century Surfactants Inc.
PT Indo Bharat
PT Elegant Textile Industry
PT Sunrise Bumi Textiles
PT Indo Liberty Textiles
PT Indo Raya Kimia
Swiss Singapore Overseas Enterprises Pte Limited
Alexandria Carbon Black Company SAE
Alexandria Fiber Company SAE
Liaoning Birla Carbon Company Limited
Birla Jingwei Fibers Company Limited\
Sectors of Aditya Birla Group

Aluminium
Copper
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Cement
Carbon Black
Chemicals
Textile
Agribusiness
Mining
Wind Power
Insulators
Telecommunications
Financial Services
BPO
Retail
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Hindalco Industries Overview
Type
Industry
Founded
Headquarters
Area served
Key people
Products
Revenue
Operating Income
Net Income
Total assets
Employees
Parent
Website
Product
Metals
1958
Mumbai, India
Worldwide
Kumar Mangalam Birla (Chairman)
Aluminum and copper products
720.77 billion (US$14.38 billion) (2011)
28.79 billion (US$574.36 million) (2011)
19,341 (2011)
Aditya Birla Group
www.hindalco.com
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The Beginning of Hindalco

The Hindalco story dates back to the young Indian democracy of the 1950s. Ready to take a giant leap, India
was geared to make it big, especially in terms of innovation and industrialization.
Hindalco embarked on its journey in 1958. Its first real contribution to the vision of an industrial India
occurred four years later, when the visionary late Mr. G.D. Birla set up India's first integrated aluminium
facility at Renukoot, in the eastern fringe of Uttar Pradesh, India. It was backed by a captive thermal power
plant at Renusagar in 1967. Hindalco attained its leadership position in the aluminium industry under the
dynamic leadership of the late
Mr. Aditya Vikram Birla a formidable force in the Indian industry.
And it was through the vision and guidance of Mr. Kumar Mangalam Birla, the Group Chairman that the
business segments of aluminium and copper are consolidated to make Hindalco the non-ferrous metals
powerhouse it is today. This was achieved in part by expansion through mergers and acquisitions with
companies such as Indal and Birla Copper. Hindalco also secured copper reserves and amplified its
operating base by acquiring the Australian Nifty and Mt. Gordon copper mines.
Over the years, Hindalco has grown into the largest vertically integrated aluminium company in the country
and among the largest primary producers of aluminium in Asia. Its copper smelter is today the world's
largest custom smelter at a single location.
In 2007, the landmark acquisition of Novelis Inc., the world's largest aluminium rolling company, placed
Hindalco's footprint across the globe, securing it a rank amongst the top five global aluminium majors and
also placing it in the Fortune 500 league.
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Hindalco Today
An industry leader in aluminium and copper, Hindalco Industries Limited, the metals Flagship Company of
the Aditya Birla Group is the world's largest aluminium rolling company and one of the biggest producers of
primary aluminium in Asia. Its copper smelter is the worlds largest custom smelter at a single location.
Established in 1958, Hindalco commissioned its aluminium facility at Renukoot in eastern Uttar Pradesh,
India in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper
mines in Australia, strengthened the companys position in value-added alumina, aluminium and copper
products.
The acquisition of Novelis Inc. in 2007 positioned Hindalco among the top five aluminium majors
worldwide and the largest vertically integrated aluminium company in India. Today it is a metals
powerhouse with high-end rolling capabilities and a global footprint in 13 countries. Our consolidated
turnover of USD 15.85 billion (Rs. 72,078 crore) places us in the Fortune 500 league.
Hindalco is one of the leading producers of aluminium and copper. The companys aluminium units across
the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium
smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines.
The copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other byproducts, such as gold, silver and DAP fertilizers.
All of Hindalcos units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several 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. Hindalco's aluminium metal is accepted for delivery under the High Grade Aluminium
Contract on the London Metal Exchange (LME), while its copper quality standards are also internationally
recognized and registered on the LME with Grade- A accreditation.
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1. ALUMINIUM
Hindalco's major products include standard and speciality
grade aluminas and hydrates, aluminium ingots, billets,
wire rods, flat rolled products, extrusions and foil.
The integrated facility at Renukoot houses an alumina
refinery and an aluminium smelter, along with facilities
for the production of semi-fabricated products, namely,
redraw rods, flat rolled products and extrusions. The plant
is backed by a co-generation power unit and a 742 MW
captive power
plant at Renusagar to ensure the continuous supply of power for smelter and other operations.
A strong presence across the value chain and synergies between operations has given us a dominant share in
the value-added products market. As a step towards expanding the market for value-added products and
services, we have launched various brands in recent years Everlast roofing sheets, Freshwrapp kitchen
foil and Freshpakk semi-rigid containers.
2. COPPER
Birla Copper, Hindalcos copper unit, is located at Dahej
in Gujarat, India. The unit has the unique distinction of
being the largest single-location copper smelter in the
world. The smelter uses state-of-the-art technology and
has a capacity of 500,000 tpa. Birla Copper also
produces precious metals, fertilisers and sulphuric and
phosphoric acid.
The unit has captive power plants for continuous power
generation and a captive jetty to facilitate logistics and
transportation.
Birla Copper upholds its longstanding reputation for quality copper cathodes and continuous cast copper
rods by assuring its management processes meet the highest standards. It has acquired certifications such as
ISO-9001:2000 (Quality Management Systems), ISO-14001:2004 (Environmental Management System)
and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).
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Milestones of Hindalco
Year
Event
1958
Incorporation of Hindalco Industries Limited.
1962
1965
Commencement of production at Renukoot (Uttar Pradesh) with an initial

capacity of 20,000 mtpa of alumina.
Downstream capacities commissioned (Rolling and extrusion mills at
Renukoot).
1967
Commissioning of Renusagar power plant.
1995
Mr. Kumar Mangalam Birla takes over as Chairman of Indal Board.
1998
Hindalco attains ISO 1401 EMS certification.
1999
Brownfield expansion of metal capacity at Renukoot to 242,000 tpa.
2000
2001
2002
2003
2007
Acquisition of controlling stake in Indian Aluminium Company Limited (Indal)

with 74.6 percent holding.
Hindalco enters The Asia Top 25 list of the CFO Asia Annual Report Survey,
the only Indian company in 2001.
Amalgamation of Indo Gulf Corporation Ltd.s copper business, Birla Copper,
with Hindalco with effect from 1 April 2002.
Scheme of arrangement announced to merge Indal with Hindalco
Copper smelter expansion 250,000 tpa.
Novelis became a Hindalco subsidiary with the completion of the acquisition
process.
Refinance of Novelies debt US$4 billion to lend strategic flexibility to grow.
2011
Achieved financial closure of two projects through debt financing Utkal

Alumina for Rs. 4,906 crore and Mahan Aluminium for Rs. 7,875 crore.
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Hindalco Policy Highlights

Vision
To be a premium metals major, global in size and reach, excelling in everything we do, and creating
value for its stakeholders.
Mission
To relentlessly pursue the creation of superior shareholder value, by exceeding customer expectation
profitably, unleashing employee potential, while being a responsible corporate citizen, adhering to our
values.
Values
Integrity
Honesty in every action.
Commitment
On the foundation of integrity, doing whatever it takes to deliver, as promised.
Passion
Missionary zeal arising out of an emotional engagement with work.
Seamlessness
Thinking and working together across functional silos, hierarchy levels,
businesses and
geographies.
Speed
Responding to stakeholders with a sense of urgency.
Quality Policy
We at Hindalco shall aim to achieve and sustain excellence in all our activities.
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We are committed to Total customers satisfaction by providing products and services, which meet or
exceed the customers expectations.
Modernization of the manufacturing facilities, stress on technological innovation and training of

employees at all levels shall be a continuous process at Hindalco
A motivated work force with a sense of pride in the organization shall lead us towards total quality.
Environment Policy
Innovate and improve our processes, equipment, operations, maintenance and other practices
continuously for pollution prevention.
Adopt cleaner technologies wherever techno-economically viable.
Conserve key input resources such as bauxite, caustic, soda, coal, power, water, furnace oil and other
oils.
Keep exploring the feasibility of recycling and utilization of inevitable wastes especially of water; lube
oils, red mud, and fly ash.
Safety Policy
Use appropriate technology and other resource to upgrade safety standards.
To continuously improve the working condition leading to prevention of accidents.
Not only continue to comply with all the applicable laws and regulations but also strive to achieve
beyond and set new standards.
To continuously monitor and control work places hazard and protect employee and community from
them.
To create an awareness and concern for safety amongst employees through active involvement,
participation.
Management team
Hindalcos management team consists of experienced individuals with strong credentials.
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Board of Directors
Mr. Kumar Mangalam Birla, Chairman
Mrs. Rajashree Birla
Mr. C. M. Maniar
Mr. M. M. Bhagat
Mr. K. N. Bhandari
Mr. A. K. Agarwala
Mr. N. J. Jhaveri
Mr. Ram Charan
Mr. Jagdish Khattar
Mr. D. Bhattacharya, Managing Director
Mr. M. Damodaran
Chief Financial Officer
Mr. Praveen Maheshwari
Head Corporate Projects & Procurement Cell
Mr. B.B Jha
Company Secretary
Mr. Anil Malik
Company Secretary
Mr. Anil Malik
Business / Unit Head
Mr. Dilip Gaur, Group Executive President, Copper
Mr. Shashi K. Maudgal, Chief Marketing Officer, Aluminium
Mr. Satish M Bhatia, President, Foil and Packaging
Mr. R. S. Dhulkhed, Senior President, Operations
Mr. Sanjay Sehgal, President, Chemicals & Intl. Trade
Mr. D. K. Kohly, Chief Officer Operations, Renukoot Unit & Renusagar Units
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Supply Chain
Management of H.I.L.
Objective of the study

This project was undertaken to have an insight into the Supply Chain Management
and Logistics system 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 Logistics System? And what
should be the future Supply Chain Management and Logistics System?
Understand the entire organizational behavior of industries and its official attitude.
Understand the inter-connection of the different parts of the operation of organization.
Build the communication skill in the student by interacting to different department

officers at the job.
Appreciate the utility of the basic skills such as communication and computer usage.
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Supply Chain
Aluminium overview
Aluminium is the third most abundant element in the Earth s crust. In nature however
it only exists in very stable combinations with other materials. Aluminium is now one of the
most widely used metals, but one of the hardest to refine due to its reactivity with other
elements. Even as late as the turn of the century, Aluminium was considered very valuable
and in turn expensive, even more expensive than gold. In some cultures, when a function was
held (for example, a party) by wealthy people, only the most honored guests would be given
Aluminium cutlery, the others had to make do with gold or silver cutlery.
Aluminum had discovered in stating of 18th century when Sir Humphry Davy
(Britain) established the existence of aluminium and named it. And in mid of 18th centaury
Henri SainteClaire Deville (France) improves Wohlers method to create the first
commercial process. The metals price, initially higher than that of gold and platinum, drops
by 90% over the following 10 years. The price is still high enough to inhibit its widespread
adoption by industry.
Two unknown young scientists, Paul Louis Toussaint Hroult (France) and Charles
Martin Hall (USA), invent a new electrolytic process, the HallHroult process, On industrial
scale since 1886 when Hall and Hroult independently discovered how to produce aluminum
through electrolysis, which is the basis for all aluminium production today. In 1900 annual
output of aluminum was 1000 tonnes. By the end of the twentieth century the annual
production had reached 32 million tonnes comprising 24 million tonnes of primary aluminum
and 8 million tonnes from recycled metal. This makes aluminum the worlds second most
used metal.
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Supply Chain
Aluminium performance properties
Durability: Aluminium building products are made from alloys, which are weatherproof, corrosion-resistant and immune to the harmful effects of UV rays, ensuring
optimal performance over a very long serviceable lifetime.
Design flexibility:
The extrusion process offers an almost infinite range of forms
and sections, allowing designers to integrate numerous functions into one profile. Rolled
products may be manufactured flat, curved, shaped into cassettes, or sandwiched with
other materials. In addition, aluminium can be saved, drilled, riveted, screwed, bent,
welded and soldered in the workshop or on the building site.
High strength-to-weight ratio:
This unique property allows architects to
meet required performance specifications, while minimising the dead load on a

buildings supporting structure. Thanks to the metals inherent sturdiness, aluminium
window and curtain wall frames can be very narrow, maximising solar gains for given
outer dimensions. Moreover, the materials light weight makes it easier to transport and
handle on site, reducing the risk of work-related injury.
Hundreds of surface finishes: Aluminium can be anodized or painted in any

color, to any optical effect, using any number of surface touches, in order to meet a
designers decorative needs. Such processes also serve to enhance the materials
durability and corrosion resistance, as well as providing an easy-to-clean surface.
High reflectivity:
This characteristic feature makes aluminium a very efficient
material for light management. Aluminium solar collectors can be installed to lower
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Supply Chain
energy consumption for artificial lighting and heating in winter, while aluminium
shading devices can be used to reduce the need for air conditioning in summer.
Heat conductivity:
Aluminium is a good conductor of heat, which may be a
disadvantage in some applications. However, this property can easily be overcome by the
profile design and the use of thermal breaks made of low conductivity materials.
Fire safety: Aluminium does not burn and is therefore classed as a non-combustible
construction material (European fire class A1). Aluminium alloys will nevertheless melt
at around 650C, but without releasing harmful gases. Industrial roofs and external walls
are increasingly made of thin aluminium cladding panels, intended to melt during a
major fire, allowing heat and smoke to escape and thereby minimizing damage.
Optimal security:
Where high security is required, specially designed,
strengthened aluminium frames can be used. While the glass for such applications may
well be heavy, the overall weight of the structure remains manageable thanks to the light
weight of the aluminium frame.
Low maintenance:
Besides routine cleaning for aesthetic reasons, neither bare
nor painted aluminium requires any maintenance, which translates into a major cost
advantage over the lifetime of a product.
CHARECTERISTICS OF ALUMINIUM
Aluminum has many characteristics that make it suitable for a variety of automotive
applications. It is:
Strong - the entire vehicle body can be aluminum
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Supply Chain
Durable - goods resistance to corrosion and fatigue Conductive - both thermal and
electrical for efficient engine and electrical components
Nonmagnetic - useful in electronics
Nontoxic - important in any material used in cars
Abundant - adequate supply worldwide
Recyclable - saves energy, benefits the environment
Workable - uses well understood metalworking processes
Available - aluminums many product forms offer design flexibility and above all, its low
density and high strength means that aluminum parts weigh much less than traditional
materials such as steel, copper, brass and automotive plastics.
Aluminium Recycle:
All aluminium products can be recycled after use. Scrap is generally taken by road to
the recycling plant where it is checked and sorted to determine composition and value. If the
scrap is of unknown quality the aluminium will first be passed through some large magnets to
remove any ferrous metal. Depending upon the type of contamination present, some scrap
must be processed further; beverage cans for example must have their lacquer removed prior
to remelting.
The scrap aluminium is then loaded into a furnace, which melts the aluminium
completely. This molten metal is then cast or processed using the same techniques as
primary processing. All Aluminium which is recycled is described as either new scrap or
old scrap. .
ADVANTAGE OF THE ALUMINIUM PRODUCTS:
Physically, chemically and mechanically aluminium is a metal like steel,
brass, copper,
zinc, lead or titanium. If it can be metal cost, formed and machined much like these metals
and it conducts electric current. In fact often the same equipment and fabrication method are
used as for steel.
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Supply Chain
1. LIGHT WEIGHT:
Aluminium is a very light metal with a specific weight of 2.7g/cm, about a third that of
steel. For example, the use of aluminium in vehicles reduces dead-weight and energy
consumption while increasing load capacity. Its strength can be adapted to the application
required by modifying the composition of its alloys.
2. CORROSION RESISTANCE:
Aluminium naturally generates a protective oxide coating and is highly corrosion
resistance. Different types of surface treatment such as anodizing, painting, or lacquering can
further improve this property. It is particularly useful for application where protection and
conservation are required.
3. ELECTRICAL & THERMAL CONDUCTIVITY:

Aluminium is an excellent heat and electricity conductor and in relation to its weight is
almost twice as good as conductor as copper. This has made aluminium most commonly used
material in major power transmission lines.
4. REFLECTIVITY:
Aluminium is good reflector of visible light as well as heat that together with its low
weight, makes its an ideal material for reflectors in. For example, light fittings or resources
blankets.
5. DUCTILITY:
Aluminium is ductile and has a low melting point and density. In a molten condition it
can be processed a number of ways. Its ductility allows products of aluminium to be basically
formed close to the end of this product design.
6. IMPERMEABLE AND ODOURLESS:

Aluminium foil, even when it is rolled to only 0.007mm thickness, Is steel completely
impermeable and lets neither light aroma nor taste substances out. Moreover, the metal itself
29 | P a g e
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is non-toxic and releases no aroma taste substances which make it ideal for packaging
sensitive products such as food or pharmaceuticals.
Consumption Pattern of Aluminium
7%
7%
26%
8%
8%
22%
22%
Figure: Industry usage of Aluminium
Aluminium is used extensively for the protection, storage and preparation for food and
drinks. Again its lightness, especially compared to glass, Heat conductivity, Strength,
Hygiene, Impermeability, Dead fold helps to reduce transportation costs and food
preservation. Aluminium foil is light, sealing, Nontoxic, corrosion resistant, flexible and also
it have barrier to air, light and microorganisms, which all help in food preservation. The
aluminium has all the above advantages and it is also easily recyclable, which makes it an
environmentally friendly packaging material. Aluminium is very popular for Electrical uses
in around the world. The metal is used in overhead and underground powerlines and power
cables.
Aluminium hydroxide is used as an antacid to combat gastric upsets, while aluminium
chloride and chlorohydrate is used widely in antiperspirants. In Water treatment, aluminium
sulphate is used for purify wastewater.
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Some of the many uses of aluminium are in:

Uses
Transport
For the above reasons, aluminium parts are found in cars, trucks,
buses, aircraft, ships, trams, Road ,Rail and Sea
Building
construction
and As aluminium is strong, light, easily shaped and resistant to

corrosion, it is used in cladding, doors, windows frames, awnings
and bridge rails.
Siding (cladding), windows, skylights, weatherproofing, doors,
screens, gutters, hardware.
Packaging
As aluminium can be rolled into very thin sheets and is non-toxic,

it is used for kitchen foil, packaging foil, cans and containers,
aluminium foils.
Electrical and
(Energy distribution and transport cables)
communications
Aluminiums ability to conduct electricity means it is used for

power
transmission
including
towers,
electrical
conduit,
machinery and equipment, telephone cables and capacitors.

Pharmaceutical
Antacid, Antiperspirants
Water treatment
Aluminium sulphate (alum)
Cooking Utensils
kettles and saucepans
Heating and
As aluminium is a good conductor of heat, it is used in heating and
ventilation
Appliances
cooling systems.
Also for the above reasons: fridges, washing machines, lawn
mowers etc.
Other
Utensils (cutlery, pans), industrial machinery, chemical industry,

production of steel, anti-perspirants, furniture, reflectors in
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telescopes, making high octane petrol, road signs, antacids, and

jewellery.
Production process
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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 buyers 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
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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.
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AVAILABILITY OF BAUXITE FROM MINES:

Bauxite Mines
Own Mines
Jharkhand
Shrengdag
to 3.0 lakh MT/Y
On Purchase
(Lease)
Chhattisgarh
Samari
Jharkhand
Madhya
Pradesh
[20/25 suppliers (small)-2.5
Gurdari
2/3 rakes/month
Kudag
[3/4 suppliers (big level) -
Pakhar
wagons)
Tarijhari
Jalin & Sanai

Load/wagon
(5.5-6.0 lakh MT/Y)
1 rake=3953MT (58
67MT
Orsapat
Chirokukud
Pakhar (M&M)
(Minerals & Minerals, Sister concern of Hindalco 100% own subsidy)
Supply-7/8 lakh MT/ Y
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Production capacity of Hindalco

Alumina
700,000 tpa (Renukoot)
350,000 tpa (Belgaum)
450,000 tpa (Muri)
Aluminium
161,400 tpa (Hirakud)
Extrusion
8,000 tpa (Alupuram)
Flat rolled products
45,000 tpa (Belur)
50,000 tpa (Taloja)
30,000 tpa (Mouda)
Redraw rods
Foil and packing
30,000 tpa (Silvassa)

4,000 tpa (Koll
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Introduction
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Supply Chain
Supply chain management is a process responsible for the development and Management
of a firms 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
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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
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Supply Chain
This chart shows that logistics is the part of supply chain marketing. It is including the
swarehousing, Co-ordination, transportation, bill processing, transit damage and customers
complains.
Fig: Supply Chain Chart
Channel Objectives
They are as follows:
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.
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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
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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.
CONSUMER DURABLE PRODUCTS:

MANUFACTURER
MANUFACTURER
DEPOTS, C&F
AGENTS
MANUFACTORS OR
MEMBERS SALES
REPRESENTIVE
MANUFACTURER
DEPOTS, C&F
AGENTS
DISTRIBUTORS
SUPER STOCKIEST
POINT
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RETAILERS
DISTRIBUTORS
RETAILERS
EXCLUSIVE SHOW
RETAILERS
ROOM
Supply Chain
CONSUMERS
CONSUMERS
CONSUMERS
INDUSTRIAL PRODUCTS:
MANUFACTURE
R
MANUFACTURE
R
DEPOTS,
WAREHOUSES
RESIONAL SALES
OFFICES, AREA SALES
EXECUTIVES
BUSINESS
DISTRIBUTORS
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CUSTOMERS
CUSTOMERS
Supply Chain
These channels of distribution are broadly divided into four

types:
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Types of Channel Members

C & F Agents:
It means clearing & forwarding agents. They are responsible for storage & transportation of
the companys products and its distribution to the distributor and sometime retailers.
Distributors:
A distributor is usually appointed by the company and does not sell its competitors products.
He can also be a distributor of many products of the same company. A distributor is
responsible for ensuring that his companys 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.
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Provide services as delivery, shelving, and inventories caring.

Limited Functions Wholesale
Not provide credit, marketing research information and merchandising assistance.
Merchandising 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.
Manufacturers 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.
Manufacturers Sales Facilities:
Established by manufacture
It is separate from manufacturing operations.

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Its performing the wholesaling function himself.
Generally used in industrial customers.
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Types of Manufacturers Sales facilities

Manufacturers Sales Branches:
Carry inventory
Promote the sales activities
Sell to retail outlet.
Manufacturers 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 Warehouses
Clearing & Forwarding Agents
Distributors or Wholesalers
Merchant
Wholesalers
Full Service
Rack
Jobbers
Manufacturers
Sales Facilities
Manufacturer
s Sales
Brokers
Merchandising
Agents or Brokers
Manufacturer
s Agent
Commission
Merchants
Limited
Function
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The Channel Selection Process
Step - 1
Identify Target Consumers
Step - 2
Step - 3
Step - 4
Step - 5
Determining Consumer Buying Habits

For The Types Of Goods
Locate Potential Customers
Pinpoint Channel Alternative
Evaluate Channel Alternative
Step - 6
Select Channel Members
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Channel Selection Process:

Evaluation 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.
Evaluation of Competitors Channel Patterns:
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.
Evaluation 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 members in the
desire alternatives would be willing to work enthusiastically for the firm and the product.
Analyzing The Product Characteristics And Linking Channel To The Product:
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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.
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OTD customer satisfaction gap has three components. They are:

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.
Organization 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.
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S.W.O.T. ANALYSIS OF S.C.M

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 companys 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
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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
Marketing Strategy (Old)

Marketing Head Office
(Renukoot)
East
Extrusions
West
North
Rolled
Primary
South
Sales Manager
(Territory Manager)
Advantages:
Cost effective
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Geographical area oriented.

Focus on all products simultaneously.
Disadvantages:
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.
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Marketing Strategy (New)

CMO (Chief Marketing Officer)
Primary
Rolled
Territory
Managers
Territory
Managers
Customer
Support
Staff
Customer
Support
Staff
Extrusions
Territory
Managers
Customer
Support
Staff
Territory
Managers
Customer
Support
Staff
Note: Organizational structure of primary metal and rolled products are similar to Extrusions.
Advantages:
It is product based.
Helpful to market research.
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.
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Disadvantages:
Cost ineffective.
More man 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 Hindalcos 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. Hindalcos 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:
a) Primary Products:
Ingots
Wire rods
Billets
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b) Rolled Products:
Al-clad sheets / coils
Cable wrap stock
Closure stock
Cold rolled sheets
Flooring sheets / tread plates
Lamp cap stock
Pattern sheets
Building sheets
Circles
Cold rolled coils
Finstock
Foil stock
Litho stock
PCB entry sheets / coils
Plates
Spiral finstock
c) Extruded Products:
Rods
Flats
Squares
Equal leg angles
Channels
Round tubes
Rectangular tubes
Square tubes
d) Foil:
Blister foil
Cigarette foil
Closure stock (bare)
Closure stock (coated)
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Finstock (bare, coated)

House foil (bare)
Lidding foil
Light gauge foil
Pharmaceutical foil (bare)
Polylaminated strip foil
Semi-rigid container foil
e) Alloy Wheels (Aura):
12 To 18 Diameters
B. Market Segmentation on the Basis of Product Wise Kee

Consumers:
It may be segmented in the following manner:
a) Primary Products:
The consumers of primary products are as follows:
Value added aluminium sheet producer industries
Foil Producer Industries.
Extrusion Producer Industries.
Electricals Equipment
Automobile Industries
Ferrow allows
Smelter pot lining.
b) Rolled Products:
The consumers of rolled products are as follows:
Foil & Packing Industries: box, cop, and container.
Electrical Industries: bulbs, tube lights, fan blade etc
Transportation industries
Building & construction sectors roofing flooring etc.
Defence & Marine sectors.
Transportation sectors.
Consumer durable: flooring & roofing
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General engineering
Pilfer-proof bottle cops
Pressure cookers, non-stick cookware.
c) Extruded Product:
The consumers of extruded products are as follows:
Automobile Industries
Building & construction Sector
Mines & defence Sector
Transportation sectors
Electrical sectors
Architectural sectors
Furniture sectors
Households consumer durable

d) Foil:
The consumers of foil products are as follows:
Packing sectors (printed & multi-laminated)

Pharmaceuticals
Dairy products
Processed food
Confectionery
Personal care products
Cigarettes
Box rapping
Air conditioner
Auto mobile radiator
Collapsible Insulation Ducts

e) Alloy Wheels:
The consumers of alloy wheels are Automobile sectors. Some of them are:
Maruti Suzuki
TATA Motors
FIAT India
Hindustan Motors
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Telco
Ford India
Hundai India
GM India, etc.
C. Market Segmentation Based on the Demand Pattern:

Based on size & frequency of order, Hindalco market may be segmented as follows:
a) 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.
b) Small & Medium:
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, defence Organization, and Dockyards etc.
D. Market Segmentation Based on the Priority:

On the basis of priority given to various orders Hindalco market may be segmented in the
following manner:
a) Routine Customers:
Routine customers are those customers, who are regularly sourcing the company.
Their orders are processed in the normal course of working.
b) 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
defence, Establishment etc. continue this category.
E. Market Segmentation Based on Consumption Sector:
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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
F. 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.
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.
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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 Processing:
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 finalised and his
order is finally booked. This order is passed to the relevant personnels 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 proceeding month. The produced material is sent to the inspection and packing
department.
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Warehousing:
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 incharge in Hindalco. The work start when warehouse officials receive finished
goods from production. Hindalco warehousing incharge dispatches the material to respective
customers on advice of CSMO and follows the guidelines given to them. The guidelines are:
At warehouse:
a) While taking delivery from inspection & packing to ensure packages are intact & dry.
b) If packages are damaged or loose condition, get it repacked.
c) If packages are wet, do not accept it.
During loading at warehouse:
a) Trucks floor should be clear and flat.
b) There should not be any hole or damage in the floor of the truck.
c) Floor should be covered with Tarpaulin.
d) Packages being loaded should be intact and dry.
e) Proper stocking of packages should be done while loading.
f) 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:
a) Out doors storage should be avoided.
b) Do not store packages directly on the floor, use wooden pallets.
c) Check condition of metal every few hours to ensure no water condensation.
d) If possible, forced hot air circulation inside Godown desired.
Buying agencies:
The Buing Agencies of Hindalco Industries Limited for rolled products are Prestige pressure
cookers, Hawking pressure cookers, and India foils ltd., Telco Jamshedpur etc.
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Mode of Loading:
Mode of loading is a part of the distribution system. There are two types of modes of loading:
a) Manual Loading
b) Automated loading
Now a days everywhere the automated loading system is used because it is time arising and
also very economical than manual loading. In HIL , there is good system of loading I.e.
automated loading system. They use fork lifters cranes to load goods into the Trucks. They
also use some manual labours for small products. By the automated loading system HIL saves
lots of money and time and they are able to reach their products at time to their customers.
Transportation:
In distribution system without proper mode of transportation the products cannot be reached
to the market at times as a result of which the company must face failure. In HIL the products
are transported only by road. The Rail mode is only used to bring the raw materials, which is
uses to produce Aluminium in the industry. By observing the mode it can be said 100% of the
products of Hindalco Industries are transported by road.
All the downward transportation of Hindalcos products carried by road due to adopting
following road transportation advantages:
a) Manufactures warehouse too directly destination warehouse.
b) Cost efficient in the case of small quantity.
c) Cost efficient in short distances.
d) No more loading & unloading work.
e) Timely delivery.
f) Safe delivery.
g) Customers satisfaction.
Sale Of Material:
They make a contact with potential customer for sales of product after receiving the order
they prepare an invoice for material sold. They obtain payment from customer and or
negotiate the documents as pre mutually agreed terms on the basis of agreed terms on the
basis of the payments/negotiation of documents they deliver order in favour of the party.
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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 Hindalcos 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, and Taloja. There is a clearing agent in the godown, which is appointed by Hindalco
for the operation & maintenance of the godown.
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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:
A. 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:
a) Signed a contract between the zonal offices and customers, regarding to details of
products such as quality, packing, transportation, destination, etc.
b) Clearly mentions about the mode of payments.
c) Eliminating intermediaries.
d) Make a direct contact with the customers.
e) Help the company to cater to the need of customers.
f) Helpful the company to earn additional profits.
B. 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.
C. Stockiest:
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.
a) Stockiest is free to make sell to any customer
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b) Free to charge any price from customers

c) Helps the company to cover the wide geographical market.
d) Helpful in minimizes extra distribution setup costs.
D. 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 provided the following advantages to the company & also
the customers:
a) Tax-Shield: In many states, state sales tax is less then the central sales tax. In these
states sales of products through depots, lead to tax saving.
b) At Random Delivery: 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.
c) Helpful In Production: Depots provide a foundation to the production department,
by keeping inventory of the various products. For example, in the even 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.
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FLOW CHART OF COMPLETE DISTRIBUTION PROCESS OF HINDALCO
Supply Chain
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Major Domestic Markets (Geographically)

In order to cater the demand of geographically scattered market, Hindalco has broadly
divided its domestic market into the following four zones:
Zone
Zonal Sales & Marketing Office
North
South
East
West
Delhi
Bangalore
Kolkata
Mumbai
Registered Office:
Corporate Office:
Hindalco Industries LTD
Aditya Birla Center
Century Bhavan, 3rd floor
S.K Ahire Marg
Dr. Annie Besant Road
Worli
Worli
Mumbai 400030
Mumbai 400 030
Tel: 91-22-6652 5000/24995000
Tel: 91-22-6662 6666
Fax: 91-22-6652 5841/24995841
Fax: 91-22-2436 2516 / 2422 7586
Marketing Head Office:

Century Bhavan, 3rd floor
Dr. Annie Besant Road
Worli
Mumbai 400 030
India
Tel: 91-22-6662 6666
Fax: 91-22- 2422 7586
Regional Offices:
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North
Vandhana, 5th Floor
East
industry House, 9th Floor
11 Tolstoy Marg
10, Camac Street,
New Delhi 110 001
Kolkata
Tel: 91-11-4220 0200
South
Tel: 91-33 2282 6130
West
Industry House, 7th Floor
Ahura Center, 1st Floor
45, Race Course Road
82, Mahakali Caves Road
Bangalore 560 001

Tel: 91-80-4041 6000
Mumbai 400 093

Tel: 91-22 6691 7059
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Transportation
Meaning:
The operation of transportation determines the efficiency of moving products. The progress in
techniques and management principles improves the moving load, delivery speed, service
quality, operation costs, the usage of facilities and energy saving. Transportation takes a
crucial part in the manipulation of logistic. Reviewing the current condition, a strong system
needs a clear frame of logistics and a proper transport implements and techniques to link the
producing procedures. The objective of the paper is to define the role of transportation in
logistics for the reference of further improvement. The research was undertaken to assist
logistics managers, researchers and transportation planners to define and comprehend the
basic views of logistics and its various applications and the relationships between logistics
and transportation.
INTERRELATIONSHIPS
BETWEEN
TRANSPORTATION
AND LOGISTICS:
Without well-developed transportation systems, logistics could not bring its advantages into
full play. Besides, a good transport system in logistics activities could provide better logistics
efficiency, reduce operation cost, and promote service quality. The improvement of
transportation systems needs the effort from both public and private sectors. A well-operated
logistics system could increase both the competitiveness of the government and enterprises.
Move
ment
Trans
porta
tion
Mana
geme
nt
Orderi
ng
Operational
cost
Inven
wareh Packa
tory
ouse
ging
The Effects of Transportation on Logistics Activities:

Transportation plays a connective role among the several steps that result in the conversion of
resources into useful goods in the name of the ultimate consumer. It is the planning of all
74 | P a g e
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these functions and sub-functions into a system of goods movement in order to minimize cost
maximize service to the customers that constitutes the concept of business logistics. The
system, once put in place, must be effectively managed. Traditionally these steps involved
separate companies for production, storage, transportation, wholesaling, and retail sale,
however basically, production/manufacturing plants, warehousing
services, merchandising establishments are all about doing transportation. Production or
manufacturing plants required the assembly of materials, components, and supplies, with or
without storage, processing and material handling within the plant and plant inventory.
Warehousing services between plants and marketing outlets involved separate transport.
Merchandising establishments completed the chain with delivery to the consumers. The
manufacturers limited themselves to the production of goods, leaving marketing and
distribution to other firms. Warehousing and storage can be considered in terms of services
for the production process and for product distribution. There have been major changes in the
number and location of facilities with the closure of many single-user warehouses and an
expansion of consolidation facilities and distribution centres. These evelopments reflect
factors such as better transport services and pressures to improve logistics performance.
The Role of Transportation in Service Quality:

The role that transportation plays in logistics system is more complex than carrying goods for
the proprietors. Its complexity can take effect only through highly quality management. By
means of well-handled transport system, goods could be sent to the right place at right time in
order to satisfy customers demands. It brings efficacy, and also it builds a bridge between
producers and consumers. Therefore, transportation is the base of efficiency and economy in
business logistics and expands other functions of logistics system. In addition, a good
transport system performing in logistics activities brings benefits not only to service quality
but also to company competitiveness
75 | P a g e
HINDAL
Supply Chain
Hindalco
Requirement of SMS & E-mail Technology in transportation:

SMS & E-mail based tracking and Business application for customers along with value added
services to the customers and enhanced management information system for own use using
the prevalent SMS & E-mail technology.
The services can be offered by transport industries to the customers will be:
1. Transit time calculation.
2. Rate and Freight Calculation
3. Costing
4. Branch Location
5. Pick Up request
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6. SMS tracking of consignment

7. Booking and delivery notification to the Consignee or consigner.
NEED:
The process of delivering goods and services is changing as corporations restructure

distribution channels and re-engineer inefficient practices. To remain competitive, it is
essential to reduce expenditure and build up capacities of "just-in-time" delivery
management
Efficient operations require accurate, timely decision-making. Knowledge of the

location of vehicles, pickup schedules and delivery schedules at any given point of
time, leverages assets for optimum deployment and cost savings
TRANSPORTATION IN HINDALCO:
Transportation is divided into two parts:
A. Inbound Transportation
B. Out bound Transportation
A. Inbound Transportation of raw material (Procurement):
In Hindalco at Renukoot plant inbound raw material used to bring through rail and
road mode .The ratio for both the transport mode is:-
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a. Rail-70%
b. Road-30%
There are following reason for using rail more than road transport
As per transport freight economics principle the rail is cheaper mode compared to
road.
The geographical location and availability of the railway siding infrastructure at
Renukoot.
The volume of incoming material in quantity at once is as much so a full rake load
can be created.
The nature of material suitable for the railway carriage.
It helps in fast loading and unloading facility with of loader crane and Tripler.
So to know the rail or road transportation firstly, we should know their respective process.
Which give us the initial differences between both the modes? As they have different
parameter in there process for inbound transportation.
B. Out bound Transportation for Finished Goods (Delivery):

In Hindalco Renukoot Finished goods Delivered to Customer by Road transport. 30%
of Delivery mode used by road transport by Hindalco because rail route not available
everywhere
in
country
so
we
used
road
transport.
Region behind road Transport:
Weather road transport costly than rail transport but most of time our buyer only
affords only road transport because rail transport needs lots of Formalities.
Consumer demand for Aluminium not at regular basis so we used road transport as
required.
Our consumer not so big buyer to afford rail allotment charge.
In case of export our finished goods reached at the port as possible as nearest to doc
yard.
By road transport we are secured to about finished goods till delivery to consumer.
We call road transport as we required for delivery of finished goods.
We track down our consignment on running road by deferent security system as
Swipe card system & regular touch with transporter & driver.
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In Hindalco Renukoot We see transport structure in Finished Goods Delivery system in this
Figure till warehouse loading to gate pass generation.
Annual Dispatch of Financial Year (10-11):

In Financial year 2010 & 2011 Hindalco Dispatch total 35433 tonne Finished Metals. The
table of dispatch asProducts
FY-10 (Actual)
FY-11 (P&B)
Mt./ Month
Mt./ Month
Extrusion
2373
2666
Rolled
7401
8184
Wire rod
7681
7936
Ingots
16234
16647
Total
33689
35433
Recently Dispatch of Finished Metal in Financial Year (14-15) for domestically in India by
Hindalco asMonth
Tonnes
April -14
30307
May -14
33290
June -14
32801
July -14
33277
August -14
31756
September -14
31734
October -14
30212
November -14
31212
December -14
38471
January -15
32311
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February -15
32456
March -15
37035
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Standard Operating Process (Sop) Of Transportation in

Hindalco:
After receiving Finished Goods to warehouse from production house, warehouse department
demanding truck to transportation department as per requirement of consumer. Truck hiring
process we see in following:
1. Grouping (Product Grouping):
Grouping is mainly based on the our two products1. Primary metal
Ingot
Sow ingot
Master alloy
Semi-fabricated metal
Rolled
Extrusion
When we doing grouping of finished goods we do following things
Find out demand of goods from consumer side whether it is primary product or semi-
fabricated product. Because some time consumer demanding mix product.

Demand of finished goods from which Zone -East, West, North or South zone. By
zone, we line up our truck demand for particular zone for FTL.
Then we determine the demand type of consumer whether it demanding ingot (tons),
wire rode (meter, tons), rolled & extrusion in size, diameter, thickness, Cut-length,
temper. All description provided by the consumer about the product.
We doing grouping on Hindalco Oracle system. Which is allocated the grouping system as
per our consumer demand & after that all process at Oracle system.
1. Allocation (material allocation):

Finished goods allocation on the basis of
Semi-fabricated:
Semi product are allocated by product co-ordinators. After allocation sales order is
either releases or hold by product co-ordinators based on availability of statutory
document, payment.
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Primary:
Primary metal are mostly made to stock items primary metal are allocated by
warehouse based on schedule given by primary metal product co-ordinators. And
2.
i.
Product
ii.
Quantity of product
iii.
Size, diameter & hardness
iv.
Weight
v.
Packing type
Hiring slip pending:

Truck Hiring slip pending till transporter call for the truck hiring as per quota system
& according to material to be transported & truck capacity.
Type of truck
Weight
Loading capacity
6 Wheeler
7.5 tonne
9 tonne
10 Wheeler
10 tonne
15 tonne
12 Wheeler
12 tonne
15 tonne
14 Wheeler
13 tonne
21 tonne
18 Wheeler
14 tonne
27 tonne
3. Offer to Transporters:
Offer of truck requirement sent to Registered transporters as per business quota By
SMS & E-mail. This is allocated in oracle system as per quota provided to different
transporter within 100% in per-sent basis which is allocated in system. We see
followingi.
We first sent offer to highest % transporter for truck requirement.
ii.
If Truck available by the transporter within 3 hour or denied by the transporter

then we give same offer to another transporter.
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iii.
In every 3 month we renewal our transport contract.
iv.
Transporter chosen on quota system as descending order.
v.
If first transporter will not able to provide truck within a period then we cut
2% from his quota & provide same offer to next transporter including this 2%
in
4.
his
quota.
Truck hiring Generation:

After conformation of truck availability by transporter we generate truck hiring slip
for given truck number.
i.
Two copy of hiring slip is printed.
ii.
One copy for office record
iii.
And second copy for transporter
iv.
Once the delivery grouping is completed, transporters are instructed to place

truck.
v.
All details update on oracle system.
TRUCK IN:
- Based on hiring slip, truck are allowed entry inside Hindalco premises for loading.
- Tare weight of empty truck is taken inside plant at the weight-bridge before.
5.
Loading slip generation:

i.
Once the truck placed inside, weight slip provided to warehouse office.
ii.
After getting weight slip warehouse office provide loading slip to transporter
for loading of goods.
iii.
Loading slip mention the all the details of goods.
iv.
In loading slip
i. Product
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ii. product weight

iii. Size (in case of extrusion product)
iv. Packing details & No.
v. Lot No.
vi. Gross weight & Net weight of packed goods.
vii. Destination & party name
v.
After getting slip transporter go to warehouse according to goods to be loaded

e.g WH-1(Wire rode), WH-2(Rolled), WH-3(Extrusion) & WH-4(Ingot).
vi.
Vehicle to be loaded are checked by shift in-charge for

i. Tally the truck no with the loading slip.
ii. In case of Export container, container no. must be confirmed with the
loading slip.
iii. Truck floor should be clean & dry
iv. Good quality Tarpaulin should be spread on floor.
vii.
Heavy metal loaded at bottom section and hollow product loaded on top
section of truck.
viii.
Loading register is maintained, in loading register following data are

maintainedi. Date
ii. Truck no.
iii. Transporter name
iv. Product
v. Condition of truck floor, truck body wall & tarpaulin.
vi. Truck placement time at loading point & loading completion time.
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vii. No. of packets loaded.

viii. Driver receipt/ signature.
ix. Loader signature
x. Signature of sift in-charge.
xi. And last photography of truck for future reference.
6. Gate pass generation:

i.
Intermediate weighing is done between loadings of different product group.
ii.
Once all the packets/ materials are loaded, final weighing of trucks is done.
iii.
Final weighing data is crossed checked in warehouse and if the same is correct
factory gate pass is generated.
iv.
We only accept weight differences in weight up to40 K.G., 40 K.G. for 15

tonne truck & 25 K.G. for 9 Tonne truck.
v.
In case of any variation truck is called in loading area and individual packets
are rechecked.
vi.
On the basis of weight slip we generate the gate pass for truck. We print 3
copy of gate pass- one for office record, second for transporter & third for
invoice generation.
7.
Ship conform:
With gate pass print we conform the shipment of goods as according to consumer
demands as
i.
Weight of goods (Gross Weight & net Weight)
ii.
Product
iii.
Lot no.
iv.
Packet no.
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v.
8.
Truck No etc.
Invoice generation:
After ship conforms on the basis of L.R. & Chalan, invoice section prepared invoice
of good for customer. Hare we print 2 copy of invoice, one for office record, and
second send by courier to consumer. And one Xerox of invoice provided to truck
driver. Invoice mention the following information-
9.
i.
Consumer name
ii.
Delivery No. & packing date
iii.
Destination of goods
iv.
Weight ( gross weight & net weight)
v.
Number of packets
vi.
Length section
vii.
Rate
viii.
Trade discount
ix.
Packet No. & batch No.
x.
Truck no.
xi.
Transporter name.
xii.
Date of dispatch.
Truck out:
After creation of Invoice, truck driver go for security check. Gate security check the
weight slip and gate pass of truck. After conformation of all think is right security
give him clearance for truck and also give him Swipe Card (E-trans) to lorry driver
for, know the lorry position on running road & goods position.
Process overview : Loading & dispatch:

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Flow Chart-Freight Bill Processing
87 | P a g e
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Receiving of Bill
Checking & Verification
Normal Bill
Processed
Disputed Bill
Shortage
damage
Arranged
rectification by
carrier
Forwarded to
Mr. Ajad For
Debiting
Undertakin
g
T.D.S. Applied
Amount Deducted/
Added
Print is taken and

Submitted to Account
paid data is submitted

to excise after getting
the data note captured
in report from Mr.
Ashok singh
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Transpor
Process
89 | P a g e
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Net Sales of Aluminium products Year 2010-2011:

For the year For
Products
Tonnes (10-11)
Tonnes (09-10)
ended
the
year
31st ended
March,2011
March, 2010
31st
Hydrate & alumina

(standard
309,566
241,095
767.18
586.79
209,910
222,347
2,301.33
2,020.42
177,409
184,186
2,541.07
2,276.74
35,033
38,874
551.16
549.35
94,294
roads
Aluminium foils
17,754
Net sales (Rs.
91,964
1,092.87
913.72
16,962
382.35
363.11
7,635.96
6,710.13
metallurgical
&
specials)
Aluminium
ingot/billets
Aluminium rolled
products
Aluminium
extruded products
Aluminium redraw
Crore)
Zone wise distribution of Aluminium Products:
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East
Kolkata
West
Katni
North-A
Delhi
Chandigha
Jamsedpur
Raipur
Ranchi
Sarailla
Cuttak
Bhuneshw
Silwasha
Taloja
Mouda
Ahmadnag
rh
Aligarh
Allahabad
Alwar
Ambala
ar
Amtala
ar
Akola
cantt
Amritsar
North-B
Basti
South-A
Anantapur
Bathinda
Angamaly
beawar
Bharatpur
Bhardesh
Attibele
Banalkot
Balanagar
eerla
Karaical
Karaikkudi
Karimnagar
Bhilwara
Bellary
korur
Bhiwadi
Calicut
Kochi
Machilipatn
Auragabad Ambad
ballia
Bilaspur
Chalakudy
Belur
Baroda
Banswara
Biswan
Chenni
Dhanbad
Bhiwandi
Chopan
Dumdum
bhopal
Dadri
Cochin
Coimbator
Durgapur
Hazaribag
Hirakund
Khurda
Purnia
Rayagada
Bhuj
Chakan
Dadra
Dahej
Dhar
Durg
Goa
Halol
Indore
Deoband
Faizabad
e
Eluru
Erode
Hubli
Jigni
South-B
Kadiyam
Kannur-
am
Madhavara
m
Padi
Peeya
Puukkottai
Salem
Zahirabad
Vellore
Trichy
thrissur
Sonebhadra based industries & nearby areas commercial Vehicle

demanded supply
91 | P a g e
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Firm
Greed
Productio
n area
Billi, dalla
Obra
Sand
Chopan
site
Dudhi
P.C.C
Pole
J.P.
Cement
Hi-tech
No.
of
productio
n capacity
n Plant
79200
220
Dala
24800
Renukoot
ton/day
1000 pole/
day
1000
Demand
Supply
Outgoin
Incoming
g Vehicle
vehicle
1970/day 1970/day 1970/day
ton/day
26
Chopan
Productio
ton
clinker
800/day
800/day
800/day
18-20
18-20
18-20
4 trucks
25-30
25-30
25-30
By trolly
220 ton/day
20-22
60-70
truck
Working cost per km per tonne

Distribution of fixed cost
Truck price per km= Total capital invested for truck
Per day running * days in a year * truck life in year
= 14,00,000
=Rs. 1.44 perkm
300*324*10
Insurance charges per km= Total insurance charges

Total running per year
= 36000
=0.37 paisa per km
97200
Road tax = Road tax

Per day running * running days in a year * truck life in year
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21500
=0.022 paisa/ km
300*324*10
Registration fee = registration fees

Per day running * running days in a year * life in year
=
140
=0.000144 paisa/km
300*324*10
National permit charges =
Total national charge

Per day running * running day in a year
=
15000
=0.15 paisa/ km
300 * 324
Interest on Loan =
Total interest on loan
Per day running*running days in a yea *No. of year interest charge

=
7200
=0.246 paisa/km
300 * 324 * 3.321
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Supply Chain
Objective of the study

This project was undertaken to have an insight into the Supply Chain Management and
Logistics system 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 Logistics System? And what
should be the future Supply Chain Management and Logistics System?
Understand the entire organizational behaviour of industries and its official attitude.
Understand the inter-connection of the different parts of the operation of organization.
Build the communication skill in the student by interacting to different department

officers at the job.
Appreciate the utility of the basic skills such as communication and computer usage
to know the real work condition in the industries.
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Supply Chain
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 and Logistics System 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 birds 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 Hindalcos 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
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Supply Chain
DATA COLLECTION
For this purpose we are used both primary and secondary data collection method and data
have been collected by means of face to face informal conversation with sale and technical
professionals.
1- Primary Data
Primary data collected by face to face formal and informal interaction with the related
personnel of sales department and also used the observation method.
2- Secondary Data
Secondary data are collected though the various magazines and journals and web sites of
Hindalco. Which are available in technical library of training centre and sales
department?
STATISTICAL TOOLS:
As per the need of project analysis to be used for analysis:
Percentage
Graphs
Bar Diagrams
Pie Charts
Scatter charts
Line charts
S.W.O.T. ANALYSIS OF H I L.
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Supply Chain
Strength
HINDALCO
INDUSTRIES
LIMITED
Strength:
1. Worlds largest integrated aluminium plant.
2. Lowest cost producer of aluminium plant.
3. The plant is backed by co-generation power unit and a captive power plant at
Renusagar.
4. Sufficient space for future expansion and modernization plans.
5. Companys esteemed brand image to the world level.
6. Having he network and most assumed supply position.
7. The companys favourable attitude towards safety, environment and quality
consideration.
8. Quick decision making and flexible marketing policies.
9. Ability to face high prices competence under adverse marketing situation.
10. Easy mode of payment and flexible marketing policies.
11. Good management and industrial stabilization as there been no big issues of problem
with transporter or labour.
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Supply Chain
Weakness:
1. Remote location with transportation bottlenecks.
2. So many organized and unorganized firms in nearby area.
3. Present distribution system and production capacity in not adequate to meet the
present and future demand.
4. Does not adhere to delivery schedule. Late delivery is recurring problem.
5. After sales service and claim settlement is a slow process.
Opportunities:
1. Rapid increased demand of aluminium and its product both in India and abroad
provides the company the opportunity of enhancing its production and distribution
worldwide.
2. Diversification strategy if properly adopted, it could open new horizon.
3. Export of both primary metal and export quality consumer products, such as, foil and
wheel could prove to be one of the major opportunities.
4.
More proper opportunities for transporters should be opened up to add with the
company.
5. Manufacturing of aluminium cabinets of computer and inverters.
Threats:
1. Cut throat competition with major and new modernized aluminium
producing industries.
2. High price of aluminium as compared to its cheap substitute such as
a. Polyvinyl chloride.
b. Molded plastic
c. Steel
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Supply Chain
d. Wood etc.
3. Policy of government to increase export and excise duty could also
increase the cost of sales and result in reduction of market share.
4. Development of light weight steel is also one of the threats to the
aluminium industry.
FINDINGS
FINDING:
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
companys 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.
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Supply Chain
Approximately 50% employees at operational level as well as middle are not satisfied
by their job but they do not tell the reason.
Findings at Warehouse:
Minor Problems- Nature Calamity
Employees 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
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Supply Chain
Limitation of study
1.
The duration of practical training was just of eight weeks. It was not sufficient.
2.
Due to heavy engagement of the top management people and other personnel, much
other information could not be collected within the limited span of time.
3.
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.
4.
Their recommendations are the outcome of an analysis made individually.
5.
Another analysis may arrive at certain other recommendations after using same data.
6.
Biasness factor /error could not be eliminated completely.
So, that it is advisable for the company to examine the various recommendations, before
going ahead with any of their implementations.
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Supply Chain
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.
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Supply Chain
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.
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Supply Chain
BIBLIOGRAPHY
BOOKS
AUTHERS
1. Aluminium and its Applications
:M. Conserva, G. Donzelli
2. Aluminium Properties & Physical metallurgy
:John E. Hatch
3. Aluminium
Properties
,Physical
Applications
and :Dietrich G. Altenpohl
Environment
4. Aluminium extrusion technology
:Pradeep K. Shah
5. Induction guide , (training centre )

6. Principles of marketing, kotler & Armstrong.
:kotler & Armstrong.
MAGAZINES:
Impex Times
FIEO News
Aluminium International Today
Aluminium Times
Aluminium Now. Annual report (09-10),
Incale 2
Incale 3
INTERNET WEB SITES:
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Supply Chain
http://www.algomtl.com
http://www.go4worldbusiness.com
http://www.scribd .com
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
http://www.aluminiumindustries.com
http://www.aluminiumleader.com
105 | P a g e
Supply Chain
Thank
you
106 | P a g e

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Supply Chain Management of H.I.L.

SUMMER TRAINING PROJECT REPORT

Supply Chain Management

U P TECHNICAL UNIVERSITY, LUCKNOW

Mr. Manveer Ajaad

Mr. S.k Dubey

ANSAL TECHNICAL CAMPUS

Supply Chain Management of H.I.L.

Supply Chain Management of H.I.L.

Supply Chain Management of H.I.L.

Supply Chain Management of H.I.L.

The wining organization will be those who regularly outperform

KUMAR MANGALAM BIRLA

Supply Chain Management of H.I.L.

2. Introduction to Aditya Birla Group

3. Hindalco Industries Overview

4. Supply Chain Management

5. Marketing Strategy (Old)

6. Marketing Strategy (New)

7. Distribution Process of Hindalco

8. Major Domestic Market (Geographically)

10. Objective of the study

11. Research Methodology

12. S.W.O.T. Analysis

13. Finding & Limitation of study

14. Recommendation/ Suggestion

Supply Chain Management of H.I.L.

Origin to Aditya Birla Group

kr.mangalam Birla ,G.D.birla,B.K.birla

Supply Chain Management of H.I.L.

Introduction to Aditya Birla Group

mining, wind power, insulators, telecommunications, financial

US$ 45 billion (2014)

Globally, the Aditya Birla Group is:

Supply Chain Management of H.I.L.

No.1 in viscose staple fiber

No.1 in carbon black

The fourth-largest producer of insulators

The fifth-largest producer of acrylic fiber

Among the top 10 cement producers

Among the best energy-efficient fertilizer plants

The largest Indian MNC with manufacturing operations in the USA

A top fashion (branded apparel) and lifestyle player

The second-largest player in viscose filament yarn

The largest producer in the chlor-alkali sector

Among the top three mobile telephony companies

A leading player in life insurance and asset management

Among the top two supermarket chains in the retail business

Among the top 10 BPO companies

Beyond business - The Aditya Birla Group:

Works in 3,000 villages.

Its 18 hospitals tend to more than a million villagers.

Supply Chain Management of H.I.L.

The No.1 producer of carbon black in the world

Policy Highlights of Aditya Birla Group

Supply Chain Management of H.I.L.

Subsidiaries & Associates of Aditya Birla Group

Aditya Birla Nuvo

Supply Chain Management of H.I.L.

Aditya Birla Minerals

Sectors of Aditya Birla Group

Supply Chain Management of H.I.L.