On

“THE DISTRIBUTION CHANNEL (To

Enhancing he Sales Promotion of the Company”

EXTRUSIONS OF HINDALCO

At

HINDALCO INDUSTRIES LIMITED

RENUKOOT, SONNEBHADRA

SUBMITTED TO SUBMITTED BY

Miss. Nidhi Agrawal Shravan Kr. Vishwakarma

Lecturer (MLRSM) Roll No. - 0906270107

PREFACE

1

The report is hard intends to reflect some of the basic covered under the

“DISTRIBUTION CHANNEL (To Enhancing the Sales Promotion of the

Company)” of HINDALCO, EXTRUSIONS 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 PGDM 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 “DISTRIBUTION CHANNEL (To Enhancing the Sales

Promotion of the Company)” 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.

AKNOWLEDGEMENT

2

At the outset, let us express my thankfulness to the person with whom we have

interacted and have been provided with the background for accomplishment of our

present task. The significant contributions have made my project completed.

With great pleasure, we express our heartiest thanks to Mr. S K Das (Manager

Training & Development Center), Mr. Ajay Jouhari (Manager, Sales Department),

for providing us an opportunity to undergo summer training in sales department of

“HINDALCO INDUSTRIES LIMITED”, Renukoot.

We would like to extend our earnest gratitude to Mr. M. C. Mahapatra (Sales

Manager) & Mr. Rahul Paliwal (Assist. Sales Manager), and all faculty members who

helped me in my project of our

Our project guide, whose timely guidance and assistance kept us in the right

direction throughout our project work.

We wouldn’t like to forget the valuable contributions of the entire Sales

Department, for lending us all possible co-operations.

SHRAVAN Kr. VISHWAKARMA

MBA - IIIrd Sem.

CONTENT

3

INTRODUCTION…………………………………………………….…... 5

ABOUT ADITYA BIRLA GROUP 15

JOINTVENTURES COMPANIES. 18

COMPANY PROFILE………………………………………………………25

PRODUCTION PROFILE………………………………………….…..…..29

PRODUCT PROFILE…………………………………….…………………32

OBJECTIVES & LIMTATIONS……………………………..…….………42

RESEARCH METHODOLOGY…………………………………..………..45

ALUMINIUM A WHITE GOLD………………………………….………...47

DISTRIBUTION CHANNEL OF HINDALCO…………………...……...65

CONCLUSION AND SUGGESTIONS……..……………..……….…… 98

BIBLIOGRAPHY…………………………………………….………..….. 105

4

EXECUTIVE PROFILE

GENERAL INFORMATION ABOUT STUDY

METHODOLGY OF STUDY

EXECUTIVE PROFILE

5

The investigator to fulfill some basic purpose has carried out the

present project training.

The first purpose of this project training is the partial fulfillment of

MBA Degree of Uttar Pradesh Technical University ,Lucknow.

The second purpose of this project training is to have in depth study

about a very important marketing mix that “DISTRIBUTION CHANNEL

(To Enhancing the Sales Promotion of the Company).” of the company.

Marketing distribution channel decision are among the most important

decision that management faced. A company’s channel decision directly

affects every other marketing decision management must make distribution

channel carefully , incorporating today needs with tomorrow’s likely selling

environment.

GENERAL INFORMATION ABOUT STUDY

6

The study of Distribution Channel of Hindalco was carried out of

HINDALCO INDUSTRIES LMITED, Renukoot(UP) 9th June to 8th

august 2009. The preliminary pages of the report provide introductory.

7

METHODOLOGY USED

As indicated above the major objective of this study is to examine the

distribution channel of Hindalco and come out with suitable suggestions,

which can help in determine the most efficient distribution channel of

Hindalco .

For this purpose the methodology of researchers include:-

1. Primary Data

2. Secondary data

1.PRIMARY DATA :-

Primary data collect by an investigator, face to face formal & informal

interaction with the relative personal of sales department & and also used the

observation method.

2.SECONDARY DATA:-

Secondary data are collected through the various magazines and

journal available in technical library and sales department.

8

ABOUT

ADITYA BIRLA GROUP

CHAIRMAN: Shri Kumar Mangalam Birla

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

Group vision

“To become a premium conglomerate with clear business focus at each corporate level.”

Group mission

“To deliver value for our customer, shareholders, employees and society at large.”

Group Philosophy

Reset on four pillars

Customize

People-size

Strategize

Institutionalize

Group values

Integrity

Speed

Seamlessness

Passion

9

KUMAR MANGALAM BIRLA

10

GROUP OVERVIEWS

The Aditya Birla Group is India’s first truly multinational corporation

(MNC), whose over 30% of revenues flow from its operations across the world.Over 75

units in India and overseas as well (in Thailand, Indonesia, Malaysia, Philippines, Egypt

and Canada) and international trading operations spanning several countries including

Singapore, Dubai, Russia, Vietnam, Myanmar and China make it India’s first truly

multinational conglomerate.

Aditya Birla Group has following achievements to credit: it is-

The world’s no.1 in viscose stable fibre.

The world’s largest single-location palm oil producer.

Asia’s largest integrated aluminium producer.

A globally competitive, fast growing copper producer.

The world’s third largest producer of carbon black.

The world’s eight largest producer of cement and the largest in single geography.

India’s premium branded garments player.

Among India’s most energy efficient private sector fertilizer plants.

India’s second largest producer of viscose filament yarn.

India’s second largest private sector insurance company.

11

COMPANIES

Group companies:

Grassim Industries Ltd.

Hindalco Industries Ltd.

Aditya Birla Nuvo Ltd.

Ultra Tech Cement Ltd.

INDIAN COMPANIES

PSI Data systems

Aditya Birla Minacs Worldwide Ltd.

Essel Mining & Industries Ltd.

Shree Digvijay Cement Ltd.

Idea Cellular Ltd.

Aditya Birla Insulators.

Aditya Birla Retail Limited

Bihar Caustic and Chemicals Ltd.

INTERNATIONAL COMPANIES

Thailand:

Thai Rayon

Indo Thai Synthetics

Thai Acrylic Fibre

Thai Carbon Black

12

Aditya Birla Chemicals(Thailand) Ltd.

Thai Peroxide.

Philippines:

Indo Phil Textile Mills.

Indo Phil Cotton Mills.

Indo Phil Acrylic Mfg.

Pan Century Surfactants Inc.

Indonesia:

PT Indo Bharat Rayon.

PT Elegant Textile Industry.

PT Sunrise Bumi Textiles.

PT Indo Liberty Textiles.

PT Indo Raya Kimia.

Egypt:

Alexandria Fiber Company S.A.E.

Alexandria Carbon Black Company S.A.E.

China:

Liaoning Birla Carbon.

Birla Jingwei Fibres Company Ltd.

Aditya Birla Grasun Chemicals(Fangchenggang) Ltd.

Canada:

AV Cell Inc.

AV Nackawic Inc.

Australia:

Aditya Birla Minerals Ltd.

Laos:

Birla Laos Pulp and Paper Plantation Company Ltd.

North and South America, Europe and Asia:

13

Novelis Inc.

JOINT VENTURES

Birla Sun Life Insurance

Birla Sun Life Asset Management Company Ltd.

Birla Sun Life Distribution Company Ltd.

Tanfac Industries Ltd

14

15

ABOUT HINDALCO

Vision

“To strength our position as a premium Aluminum company, sustaining, domestic

leadership and global competitiveness through innovation quality and value added growth.”

Mission

“To pursue the creation of value for our customers, shareholders, employees and society at

large.”

Values

INTEGRETY: 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, business and geographies.

SPEED: Responding to stockholders with a sense of urgency.

Strategy

EFFICIENCY FOCUS: To be one of the lowest cost producers globally.

EFFECTIVENESS FOCUS: To continue to remain the market leader

domestically.

GROWTH FOCUS: To pursue value adding growth opportunities.

16

HINDALCO OVERVIEW

“Hindalco” was set up in collaboration with Kaiser Aluminum & Chemicals

Corporation U.S.A, in a record time of 18 months. The plant started functioning in the

year 1962 with a capacity of 20,000 tons per annum.

The company has growth manifold and is managed by Board of Directors, with Shri

Kumar Mangalam Birla as the chairman of the Board of Directors. Day to day affairs of

the company are managed by Professional Executives headed by Shri Ratan K Shah as

the chief operation officer-Aluminium & Power.

Hindalco is one of India’s largest producers of Aluminium. The company was in

corporated on December 15, 1958 and commenced production in 1962 with an initial

smelting capacity of 20,000 TPA.

Hindalco’s integrated operation and operational efficiency have enabled the

company to be one of the world’s lowest cost producers of Aluminium.

HINDALCO TODAY

Aluminium has turned out to be the wonder metal of the industrialised world. No

other single metal can do so many jobs, so well, and so economically.

Aluminium’s growth rate is the highest amongst the major basic metals today. Hindalco

ranks as the largest Aluminium producer in India, whose more than 58% sales is in

value added product and has more than 40% in total market share. Hindalco’s integrated

operations and operational efficiency have enabled the company to be one of the world’s

lowest cost producers of Aluminium.

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Hindalco also owns a large captive thermal power plant at Renusagar that meets

the power requirement of the company very effectively. Hindalco currently has primary

Aluminium capacity of 3, 45,000 MTPA.

JOINT VENTURE COMPANIES OF HINDALCO

1. Indo-gulf Fertilizers & chemicals Corpn Ltd.

2. Bihar Caustic & Chemicals Ltd.

3. Tanfac Industries Ltd.

4. Mangalore Refinery & Protochemicals Ltd.

5. Birla AT & T Communication Ltd.

6. Bina Power Supply Co. Ltd.

7. Birla Global Finance Ltd.

8. Birla Capital International AMC Ltd.

9. Century Enka.

RECENT AWARDS WON BY HINDALCO IN DIFFERENT

FIELDS.

National Safety Award 2003 :

By Minister of Labor and Employment.

Rajiv Gandhi National Quality Award 2003 :

Joint award winner of R.G.N.Q.A. 2003 in large –scale manufacturing

category. The award is instituted by Bureau of Indian Standard, Ministry of

Consumer Affairs, Government of India.

18

CIOL Dataquest Award :

For best performance in the pioneer category for 2004-05 by CIOL, an IT

portal along with Dataquest Magazine.

Green Tech Gold Award 2003-04 :

By Greentech Foundation, New Delhi for organizational Health &

Safety.

Qualtech Award 2004 :

For Quality Management by Quimpro college, Mumbai.

CII National Award :

For Excellence in Energy Management-2004.

Prime Minister’s Shram Award 2004 :

Shram Veer award to Mr. Ram Kailash of Aluminium plant won the

Excellence Case Study Presentation Award at NCQC, Mumbai in December

2004.

IMC Rama Krishna Bajaj National Quality Award 2004:

Certificate of merit.

National Energy Conservation Award 2004 :

In aluminium sector – Government of India, Ministry of Power.

Aditya Birla Planet Award 2004 :

Jt. Winner of Aditya Birla Planet Award 2004 for community initiative

&Rural Development Works.

19

Our Mines Division has been reorganized Aluminium has turned out to be the wonder

metal of the industrialised world. No other single metal can do so many jobs, so well, and

so economically.

Aluminium’s growth rate is the highest amongst the major basic metals today.

Hindalco ranks as the largest Aluminium producer in India, whose more than 58%

sales is in value added product and has more than 40% in total market share. Hindalco’s

integrated operations and operational efficiency have enabled the company to be one of the

world’s lowest cost producers of Aluminium.

Hindalco also owns a large captive thermal power plant at Renusagar that meets the

power requirement of the company very effectively. Hindalco currently has primary

Aluminium capacity of 3, 45,000 MTPA.

10. Indo-gulf Fertilizers & chemicals Corpn Ltd.

11. Bihar Caustic & Chemicals Ltd.

12. Tanfac Industries Ltd.

13. Mangalore Refinery & Protochemicals Ltd.

14. Birla AT & T Communication Ltd.

15. Bina Power Supply Co. Ltd.

16. Birla Global Finance Ltd.

17. Birla Capital International AMC Ltd.

18. Century Enka.

By Minister of Labor and Employment.

Joint award winner of R.G.N.Q.A. 2003 in large –scale manufacturing category. The

award is instituted by

Bureau of Indian Standard, Ministry of Consumer Affairs, Government of

India.

20

For best performance in the pioneer category for 2004-05 by CIOL, an IT

portal along with Dataquest Magazine.

By Greentech Foundation, New Delhi for organizational Health & Safety.

Qualtech Award 2004 :

For Quality Management by Quimpro college, Mumbai.

For Excellence in Energy Management-2004.

Shram Veer award to Mr. Ram Kailash of Aluminium plant won the

Excellence Case Study Presentation Award at NCQC, Mumbai in December

2004.

Certificate of merit.

by Indian Bureau of Mines, Government of India for A forestation; Plantation,

waste Dump Management, Topsoil Management, Reclamation and

Rehabilitation, Dust suppression Arrangement, Publicity & propaganda and

overall Performance.

Training & Development (HR) Practices 2004 :

Renusager Power has declared winner of Innovation Training &

Development (HR) Practices 2004. Award given by Indian Society for

Training & Development, New Delhi.

Annual Greentech Safety Gold Award :

Hindalco own the 4th Annual Greentech Safety Gold award for the year 2004-

05 in Metallurgy Sector. The award will be presented on 11th May 2005 at

Hyderabad.

21

National Award for Excellence in Energy Management 2005 :

Belure Sheet Plant received the National Award for Excellence in Energy

Management 2005 (Energy Efficient Unite) from CII –Sohrabji Godrej Green

Business Center.

National Safety Award 2004 :

Owned by Renukoot Plant, given by the

Ministry of Labor and Employment, Government of India.

Vishkarma Rashtriya Puraskar :

Awarded to Five workmen of our smelter, Mr. Rajesh Pal, Mr. A.K. Gupta,

Mr. R.K. Singh, Mr. H.N. Singh, & Mr. S.K. Singh, given by the Ministry of

Labor and Employment, Government of India.

National Energy Conservation 2005 :

Renukoot plant won the 1st Prize in Aluminium sector, given by Ministry

of power, Government of India.

ICWAI National Award for Excellence in Cost Management-

2005:

Hindalco was awarded by Institute of Cost and Works Accountants of India.

FINANCIAL PERFORMANCE

22

23

24

25

INDUSTRY AT GLANCE

ALUMINIUM

COPPER

26

COMPANY PROFILE

INDUSTRY AT GLANCE

Hindalco industry limited, a flagship company of ADITYA BIRLA group, with a

turnover of Rs.18313.00 crore in 2006-07, ranks among India’s top 10 companies in

terms of capital market capitalization a non ferrous metal powerhouse Hindalco’s

operations are organized into two strategic business units –Aluminium and Copper. The

company is an industry leader in both these business.

ALUMINIUM

Hindalco is Asia’s largest integrated primary producer of aluminium and among

the most cost efficient producers globally. In India, Hindalco enjoys a leadership position

for aluminium and downstream products.

Synergies of operations with it’s wholly – owned subsidiary Indian aluminium

company Ltd. (Indal), have enhanced the company share in value addition segments, in

which the Hindalco – Indal combine has a market share of over 50 %.

As a step towards expanding the market for value –added products and services,

Hindalco has launched several brands in past year –“Aura”, “Freshwrapp”, Everlast”,

and, “Al plant”. The company’s product range includes primary

aluminium ingots, billets, wire rods, rolled products, extrusions, and foils and alloy

wheels.

To enhance its capacities, the company had under taken Brownfield expansions,

leading to smelting capacity of 1,46,000 tpa, an alumina refining capacity of 4,50, 0000

tones, and captive power generation of 167.5MW.

27

The company further enhanced the smelter capacity of 4, 29,140MT and alumina

refinery to 6, 60,000 tones, by streamlining to eliminate bottlenecks and installation of

balancing equipment, including another co- generation plant. This has facilitated

optimization of expand facilities and, more importantly, has been achieved within the

original budget.

Besides being a dominant player in the Indian aluminium market, Hindalco’s

products are well accepted in international markets. The company’s metal is accepted for

delivery under the high grade aluminium contract on the LME (London Metal Exchange).

The company’s export efforts have led to its reorganization as a “Star Trading House”.

Hindalco is an ISO 9001 company, and has been awarded the ISO 14001certification for

its entire operations at Renukoot and Silvassa, including its power plant and mines. It has

received several awards from the export promotion council as well as the government of

India. With the completition of on going Brownfield expansion, Hindalco will further

consolidate its domestic market leadership, and reach out to international markets in

larger measure.

COPPER

Birla copper enjoys leadership position in India, having built up-percent domestic

market share with in three years of commissioning. It has also made successful forays

into the export markets of the Middle East, South East Asia, china Korea and Taiwan.

Birla copper has a mega green field copper smelting and refining complex at dahej in the

bharuch district of Gujarat, India. With an investment of Rs 1,850. Crore, it is largest of

its kind in India. The plant produces world- class copper cathodes, continues cast copper

rods and precious metals. Sulphuric acids, phosphoric acid, di-ammonium phosphate,

other phosphatic fertilizers and phospho- gypsum are also produced at this plant .

Birla copper aspires to be among the world’s foremost cost competitive producers of

cooper. To reach this goal, it had under taken a brown field expansion raising its smelter

capacity from 65,000 tones per annum to 146000 tones per annum. The copper division is

evaluating a further expansion as well, so as to rank among the top 10percent of cost

competitive producer globally.

28

To make birla copper an integrated producer of copper, the company believes that

upstream expansion through ownership in mines is important for a smelter of its size.

As a first step in this direction, birla copper acquired the nifty copper mines in Australia.

Nifty currently has a capacity of 25000 tones per year of copper cathodes, with a large

underdeveloped copper sulphide.

29

PRODUCTION PROCESS

EXTRACTION OF ALUMINA FROM

BAUXITE

EXTRACTION ALUMINIUM FROM

ALUMINA

30

PRODUCTION PROCESS

The aluminum production process can be categorized into upstream and

downstream activities. The upstream process involves meaning and refining bauxite to

alumina while the downstream process involves smelting and casting and fabricating.

Hindalco refines bauxite primarily obtained from captive mines, to extract alumina,

which is smelted into alumina ingots or billets. Hindalco smelts its entire production of

alumina into aluminum and does not engage in alumina trade.

Production of aluminum can be categories in two stages, namely

From bauxite to alumina

From alumina to aluminum

EXTRACTION OF ALUMINA FROM BAUXITE

Alumina is manufactured by conventional bayers 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. Seam 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

31

the system and red mud cake is disposed off by means of dumpersSettler overflow

pregnant liquor is filtered in Kelly presses to remove fine mud particles. Clear pregnant

liquor is pumped to precipitators through plate heat exchanges after exchanging heat with

the spent liquor where it is seeded with alumina trihydrate. Alumina trihydrate is

separated out in thickness and pan filter. Alumina trihydrate cake thus obtained is fed into

the gas suspension calciner where furnace oil is burnt for calcining 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 recirculated

to digesters through heaters for further processing of bauxite and thus the process goes

on.

EXTRACTION OF ALUMINUM FROM ALUMINA

Alumina from alumina plant is conveyed to the reduction plant. The reduction

plant has 11 prebaked pot – lines which have 1278 pot cells. Each pot has 24/26 carbon

anodes and it is lined with carbon cathode. Alumina is converted to metallic aluminum is

these pot cells by the standard “hall heroult” process. The pot cells work at an average

4.3-volt D. C. current of 5800/6300 amperes. Electrolysis of the alumina takes place in

molten bath of cryolte at a temperature of 955 to 960 degrees centigrade. The molten

aluminum that collects at the cathodes is siphoned into crucibles periodically. The entire

process is controlled by microprocessor system.

32

PRODUCTION OVERVIEW

ALUMINIUM

COPPER

PRIMARY ALUMINIUM PRODUCTS

PRODUCTION CAPACITY

33

PRODUCT OVERVIEW

Hindalco operations are organized into two strategic business units- aluminum

and copper. The company is an industry leader in both these businesses.

ALUMINUM

Hindalco’s Aluminum business comprises primary aluminum, extrusions, rolled

products, foils and alloy wheels. In the value-added segment, hindalco, along with its

subsidiary Indal, has a 50 percent market share. In the past year, hindalco has launched

several brands – “Aura”, Freshwrapp”, “Everlast”, “Permashield”, and, Al Planet”.

34

COPPER

BIRLA copper, with an over 45 per cent market share, is India leading copper

producer in private sector. Its plant at dahej in Gujarat, produces world class copper

cathodes, continuous cast copper rods and precious metals.

A part form copper products, euphoric acid, phosphoric acid, di-ammonium

phosphate, other phosphates fertilizers and phosphor –gypsum are also produced at this

plant.

PRIMARY ALUMINIUM PRODUCTS

INGOTS:

35

Is an LME (London Metal Exchange) registered brand. These are

also known as virgin metal. These are used as raw material for making

aluminium product.

ROUND BILLETS:

These are use for making extrusion.

CAST SLABS:

Slabs are used input in Hot Rolling Mill,

which is converted into thinner sheets, plates or coils.

SEMI FABRICATED PRODUCTS:

Hindalco produces 900 different rolled product items of which 40 are

standard.

HOT ROLLED PRODUCTS:

36

These are the product which are used after the process of ht rolling

according to their specification and requirements, these products are as

follows:

Hot Rolled Plates:

These plates are supplied in alloys 6351, 5052, 5086. These are

supplied flat with sheared milled.

Hot Rolled Plates For Electrical application:

These electrical application plates are used as Bus

Bar. They are supplied in Alloy 1050, 1060 an 1070. Standard

Temper is F (As Fabricated)

Hot Rolled Coils:

These are supplied in alloy 5005, 60611, 6351,

5052, 5086.

COLD ROLLED PRODUCTS

(A)PLAIN SHEETS

(B)COLD ROLLED COILS

SLUG STOCK:

Hindalco also produces slug stock needed

for punching slugs for the manufactured of collapsible tubes etc.

They are manufactured in allow 1050, 1060, 1070, and in temper

‘o’.

CIRCLES:

This product is made as sheet cut to circular

37

cross section before subjecting it to deep drawing or other form of

operation.\

MILK CAN CIRCLE:

They are supplied in allow and temper ‘o’.

They are used to make milk cans.

CHECKERED SHEETS:

These checkered sheets are also known as

flooring sheets because there are use to join floor in buses etc.

CIRCULAR CORRUGATED SHEETS:

Corrugated sheets are supplied in allow 3003, 40800 with

temper 114. For roofing & siding, corrugated sheets in allow 8011

is ideal.

FOIL STOCK:

It is a semi finished coil strip used for

further rolling to manufacture foils.

LITHO STOCK:

It is semi-fabricated coils used for

lithography printing. Extremely high required

with emphasis on almost complete absence of surface defects.

ALKALOID SHEET:

It is also known as brazing sheet and extensively used air

passenger radiators, automotive air conditioning evaporators air

condensers, alkaloid sheets consist of a Bramble Aluminium Allow

(AA4045) Clade (10% of total thickness).

38

EXTRUSIONS

Hindalco extrusions offer an enormous range of shapes, wide range of alloys

for decorative, structural and functional application. The present die catalogue

included over one thousand die for various sections and we are fuy equipped to

design and make new die as per exclusive requirement. Some of the common

shapes are as follows:

ROD, BAR-Flat, Square, Hexagonal

STRUCTURAL SHAPES-Angles, Channels, Tee, I-beans, H

sections etc.

TUBES-Round, Oval, Square, Rectangular, Triangular

MOUDINGS

SOLID AND HOLLOW SHAPES

FOIL

Cable Rape stock

Light Gauge Foil

Bare & Coated Fine stock

Collapsible insulation Ducts

ALLOY WHEELS

12 to 18 inch diameters.

OTHERS: The main by products of the process included

39

VANADIUM SLUDGE

GALLIUM

THE MARKET LEADER

Hindalco is a leading domestic player in two metals business segments —

aluminum and copper.

The aluminum division's product range includes alumna chemicals, primary

aluminum ingots, billets, and wire rods, product extrusions, foils and alloy wheels.

The company has a significant market share in all the segments in which it operates. It

enjoys a domestic market share of 42 per cent in primary aluminum, 63 per cent in rolled

products, 20 per cent in extrusions, 44 per cent in foils and 31 per cent in wheels.

As a step towards expanding the market for value-added products and services,

Hindalco has launched several brands in recent years, which include Aura for alloy

wheels, Fresh Rapp for kitchen foil and Ever last for roofing sheets. Our exclusive

showroom, The Aluminum Gallery, seeks to promote Hindalco products to its customers.

It is a platform for the company to showcase quality products to a quality audience in an

appropriate ambience. The exhibits include products like windows, doors, furniture,

ladder, roofing sheets and ceiling and cladding panels.

Hindalco products are well received not only in the domestic market, but also in

the international market. The company's metal is accepted for delivery under the high-

grade aluminum contract on the London Metal Exchange (LME). The company exports

about 17 per cent of its total sales volume of aluminum.

The company's alumna chemical business is a leader in manufacturing and

marketing of specialty alumna and alumna hydrate products in the country. It has a

market share of 90 per cent in the country. These specialty products find wide usage in

diversified industries including water treatment chemicals, refractory, ceramics, cryolite,

glass, fillers and plastics, conveyor belts and cables, among others. The company also

40

exports these alumna chemicals to over 30 countries covering North America, Western

Europe and the Asian region

Birla Copper, Hindalco's copper division at Dahej in Gujarat enjoys a leadership

position in India, having built over 40 per cent of the domestic market share within three

years of its commissioning. It has also made successful forays into the export markets of

the Middle East, Southeast Asia, China, Korea and Taiwan.

The copper plant produces world-class copper cathodes, continuous cast copper

rods and precious metals. Sulphuric acid, phosphoric acid, DI-ammonium phosphate,

other phosphate fertilizers and phosphor-gypsum are also produced at this plant.

PRODUCTION CAPACITY

ALUMINA

CAPACITY 1.15 MTPA

RENUKOOT 685,000TPA

BELGAUM 350,000TPA

MURI 110,000TPA

SMELTER (PRIMARY ALUMINIUM)

CAPACITY 424,000MTP

RENUKOOT 345,000TPA

HIRAKUND 65,000TPA

ALPURAM 14,000TPA

ROLLED PRODUCTS

CAPACITY 2,00,000TPA

RENUKOOT 80,000TPA

41

BELUR 45,000TPA

TALOJA 45,000TPA

NAGPUR 30,000TPA

FOIL

CAPACITY 14,000TPA

SILVASA 5,000TPA

KALWA 6,000TPA

KOLLAR 3,000TPA

EXTRUSIONS

CAPACITY 27,700TPA

RENUKOOT 19700TPA

ALPURAM 8000TPA

ALLOY WHEELS

CAPACITY 3,00,000 Nos. PA

SILVASA 3,00,000 nos.

42

OBJECTIVE OF STUDY

43

SIGNIFICANT AND SCOPE OF STUDY

LIMITATIONS OF STUDY

OBJECTIVE OF STUDY

This project was undertaken to have an insight into the distribution

channel of Hindalco. The study aims to investigate the minute details of the

distribution channel. 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 distribution channel?” And

“what should be the future distribution channel?”

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 “Distribution Channel” plays a vital role in the success of any

organization. A distribution system has to be designed carefully, as it normally

takes years to build ands is not easily changed. This study provides a bird’s eye

view of distribution channel of Hindalco. This report would do well to the entire

person interested in learning about distribution channel of Hindalco. A general

idea about Hindalco’s presence in aluminium market is also well given by this

report. After a through 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

44

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.

LIMITATIONS OF STUDY

The duration of practical training was just of eight weeks. It was not

sufficient.

Due to heavy engagement of the top management people and other personnel,

many other information could not be collected within the limited span

of time.

To maintain secrecy, the company people do not provide various types of

information, such as actual sales to various customers, zonewise sales,

depot setup cost, depot handling cost etc.

Their recommendations are the outcome of an analysis made individually.

Another analysis may arrive at certain other recommendations after using

same data.

So, that it is advisable for the company to examine the various

recommendations, before going ahead with any of their implementations.

45

SAMPLING PLAN

SOURCES OF DATA

46

PRIMARY SOURCES

SECONDARY SOURCES

RESEARCH METHODOLOGY

SAMPLING PLAN:

There is no sampling plan as such as the study involved in understanding the

various processes and analyzing them. The study involved in the detailed analysis of

secondary data calculated from various sources and therefore no sample size and plan has

been c

SOURCES OF DATA

Data has been collected through literature survey and expert opinion. The part of

data is collected from various primary sources and secondary sources.

PRIMARY SOURCES:

Information gathered through interview and discussing with departmental members.

SECONDARY SOURCES:

Annual report of HINDALCO Fy2006-07, 2007-08 and individual contra sheets

of aluminum and copper for the year2006-07 and 2007-08.

Internet.

47

Induction guide.

PROPERTIES

APPLICATIONS

48

PRODUCTIONS & CONSUMPTION’S (DATA)

ALUMINIUM PROPERTIES

The major advantages of using aluminium are tied directly to its remarkable

properties. Some of these properties are outlined in the following sections.

Strength to weight ratio

Aluminium has a density around one third that of steel and is used

advantageously in applications where high strength and low weight are required.

This included vehicles where low mass results in grater lode capacity and

reduction fuel consumption.

Corrosion resistance

When the surface of aluminium metal is exposed to air, a protective oxide

coating forms almost instantaneously. This oxide layer is corrosion, resistant and

can be further enhanced with surface treatments such as anodizing.

Electrical and thermal conductivity

Aluminium is an excellent conductor of both heat and electricity. The grate

advantage of aluminium is that by weight, the conductivity of aluminium is

around twice that of copper. This means that aluminium is now the most

commonly used material in large power transmission lines including domestic

wiring.

Weight consideration means that a large property of overhead, high voltage

power lines now use aluminium rather than copper.

49

Light and heat reflectivity

Aluminium is a good reflector of both visible light and heat marketing it an

ideal material for light fittings, thermal rescue blankets and architectural

insulation.

Toxicity

Aluminium is not only non-toxic but also does not release any odors or

taint products with which it is in contact. This makes aluminium suitable for use

in packing for sensitive products such as food or pharmaceutical where

aluminium foil is used.

Recyclability

The Recyclability of aluminium is unparalleled. When recycled there is no

digression in properties when recycled aluminium is compared to virgin

aluminium. Further more, recycling of aluminium only require around 5% of the

input energy required to produce virgin aluminium metal.

50

APPLICATION OF ALUMINIUM

IN CONSTRUCTION INDUSTRY

Aluminium &aluminium alloys have a number of properties, which make

them ideal for use in building and construction industry. These properties include

light weight combined with high strength, good resistant to corrosion, visual

attractiveness without the need for panting, low maintenance and handling cost

and in the case of structural, materials, reduces building time and cost as the

materials are easier to handle, and involve the use of lighter, cheaper cranes and

other materials handling equipment. Aluminium is used in the both the structure

and fittings of residential and non-residential buildings.

The main uses are roofing and cladding and in window & doorframes, but

there are many other uses, some are as follows:

Solar panels

Cladding roofing

Window door &general application

Architectural hardware furniture

Grills

Ventilation blind

Foil insulating

51

Capping strip rain water guttering

Shower boxes

Mosquito nets

Casemate window

Ceiling system

Roller shutter

IN PACKING INDUSTRIES

An Aluminium metal can is used in a variety of products packing. Use of

Aluminium metal cans, include industrial products and consumer durable

products; such as milk &milk products, fresh fishes, soft drink etc. . Innovation of

Aluminium foil has also a silent future in packing the products. Foil can be used

as a household or commercial wrapping, either alone or in commercial wrapping,

in the from of laminates with their materials. Foil containers are widely used for

the packing of food, especially frozen food. Foil layers are important in paper

based packing such as cartons for fruit juice. Wine boxes have foil containers

inside them, which collapse as the contests are drawn off and prevent the ingress

of air, which of air which oxidizes and spoil the remaining contents.

Foil is used as on oxygen-tight seal in the packing of dry powders like

coffee and foil seals are also under development to provide tamper-proof seals for

pharmaceuticals

Major applications in the fields are as follows:

Pharmaceutical packing

Cigarettes foil

Tea industries

Tagger lids

Aluminium cans for milk

Dairy products packing

Multiply laminates

52

Electrical power applications

Decorative laminates

Collapsible tube

Powder & chemicals

Colors

Aseptic packing

Beverage cans

Flexible food packing

IN TRANSPORT ISDUSTRY

Aluminium alloys are used in the construction of almost all type of

transport equipment. The most widely publicized application for aluminium is in

aircraft, through this in one of the smelter application in term of the tonnage

consumed. The largest end use in the road vehicles, both passengers’ car &

commercial vehicles, and it is also used in railway rolling stock and in the

construction of naval and merchant ships and small boats.

The largest outlet for Aluminum amongst road vehicles is in passenger

cars, which though smaller than commercial vehicles are build in very large

numbers.

Such as:

Aeroplane

Commercial aircraft

Passenger cars

Bus and bus shelter

Railways

Bicycles &bikes

Ship &ship building

Trucks

Light motor vehicles

53

APPLICATION OF ALUMINIUM IN TRANSPORT SECTOR

IN AUTOMOTIVE INDUSTRY

The use of aluminum in construction of passenger cars is far from new. In

the UK the ROVER Company has made extensive of aluminum in body work for

over 40 years, starting with he LAND ROVER 1948 than notably in the ROVE 75

and ROVER90 series (1949-1964) and ROVER 2000. All the models of vehicles

concerned, where by the standards of the times during which they were build, low

volume models. Aluminium is still more widely used in low volume, high

performance, highly priced models of automobiles then in the high volume

production models, which account for most of the passenger car produce.

The consumption of aluminium, and light weight materials in the

manufactures of passenger car is governed by consideration of safety of fuel

efficiency, in emission control and cost.

54

Country % of consumption

Europe 29%

Japan 30%

US 28%

Canada 28%

Australia 25%

India 16%

Aluminum is used for a wide range of components. A variety of examples

are available to show the range of components, which have been produced from

aluminum. Currently, the European cars consume 70kg of aluminum compared to

120kg used in the US markets. In India, the use of aluminum in passenger cars

stands on an average at 20 kg in comparison to 35-35kg witnessed in other

developing countries.

Today, the per capita consumption of aluminum in automotive sectors

accounts for 22% of total per capita consumption of aluminum in India. Globally,

the sector holds 25% of the total consumption. Examples of parts being converted

from other traditional materials to aluminum include, but are not limited to the

following:

Wheels

Hoods

Deck lids

Bumper beams

Suspension parts,

Break discs

Break drum & other break components

Radiators

Cylinder heads & blocks

Stearing housings

Chryher designee engines

Doorframes, sills, steps, roof bows, ride pots.

Extrusions are used for flat truck beds, tanks, van bodies, dumpier

bodies and other application.

IN AVIATION INDUSTRY

55

Aluminum alloys are widely used in military as well as in civil aircraft..

the development of aluminum – lithium alloys that combine lightness of weight

with increased strength is extending the use of aluminum in airframe construction.

Alcoa estimates that aluminum Lithium alloys were substituted for

conventional alloys in BOING747, the weight reduction would be 14000lbs;

which would permit a saving of 4 million gallons of fuel over the service life of

aircraft.

The use of aluminium is maintained by the development of improve

aluminium alloy and of improved methods of fabricating them. In some instances,

this development may lead to the use of aluminium alloys to replace other

materials such as titanium alloys or composites, which are generally to be more

likely to replace aluminium.

Super plastic forming of aluminium alloys permits them to be used in

preferences to composites in non structured application because their

manufacturing processes are so cheap that the cost of a comparable component

manufactured using composite.

Major applications are follows:

Military & civil aircraft

Airframe construction

Aircraft gas turbines

Spacecraft & satellites

Missile & rocket components

Light aircraft

Micro light aircraft

Hang gliders, etc.

IN SHIP BUILDING INDUSTRY:

The use of aluminium as a construction material for marine craft is now

widely accepted although its use in large vessels is still not wide spared, the

recent emergence of the auto \ passenger fast ferry has sparked an existing new

56

era in marine transportation an dramatic growth in the construction of large

aluminium craft.

Aluminium is used for the fame a hull a vessels a rescue craft. The largest

design of ‘TRIUMPH’ rescue vessels used by the US coast guard service involves

an all aluminium sheet are used in hull, the keel and the other components like

engine mountings. Aluminium was selected in preference to fiber reinforced

plastics because it provides superior water lightness an in preference to steel to

achieve weight reduction.

Aluminium is used for decks are generally in the form of extruded planks,

which give better stiffness than plate over large flat areas without the need for

extensive framing. Aluminium planks have important advantages, which assist

fabrication an encourage their use. In fighters, the increased the use of aluminium

may permit carriage of increased payloads notably in containership in which the

containers are stacked to very high levels above deck.

Aluminium is used in hull & super structure of all vessels improves

stability by reducing the waterline. The alternative way to achieve is this is by the

increasing the size & displacement of the hull, which increases the drag and leads

to a reduction in operating efficiency.

A must larger application for e.g. is the use of aluminium alloy plate in the

construction of cargo tank in liquefied natural gas tankers which has been

reported to consume 4000 tones per ship of the A-5083 structural alloy. The use

aluminium in competition racing yacht also encourages its use in construction

pleasure craft.

IN RAILWAYS

The high strength to weight ratio of aluminium alloys makes them highly

suitable for use in railway rolling stock, in which they reduce the tare weight to

permit fuel saving and the carriage of increase the payloads. Aluminium alloys

are also resistant to corrosion, which leads to savings in maintenance, and

increase the service life of railway vehicles. The types of railways vehicle for

57

which aluminium alloys are suitable include mainline, locomotives, passenger

carriages and freight wagons.

Aluminium alloys are also being considered for use in the magnetically

levied trains, which have been introduced in some cities in recent years. ALCON,

ALCO, ALUSUISSE, KAISER & REYNOLDS have all developed lightweight

aluminium coal cars. These advantages of fuel economy an increased speed on

return journey when the train runs empty.

Aluminium alloys are widely used in rolling stock for this type of railway

operation. Because their lightness of weight permits faster acceleration and

reduces breaking both of which are important in trains, which are required to

provide the shortest possible journey time despite the need to make many

intermediate stops, sometimes at intervals of only a few hundred meters.

Aluminium car is 30% more expansive, but one- third lighter than its steel

counter port. Its payload is around 10% higher & fuel consumption is

significantly reduced. Aluminium is widely used in the best –known higher-speed

passenger trains in use and under development around the world. High –speed

passenger trains are used in FRANCE, the TGV makes extensive use of

aluminium.

Major applications are as follows:

Wagons

Doors

Window

Decorative frames, etc

As example: METRO TRAIN in India.

IN ELECTRICAL INDUSTRY:

Annealed commercial grade aluminium with purity of 99.7% aluminium

has an electrical conductivity 63.5% that of copper, but it has must lower density

than copper.

Aluminium has been used for overhead transmission of high voltage

electricity. Aluminium is resistant to corrosion. It is almost universally used for

58

high voltage bare overhead conductors and in some instances it is also used for

the transmission tower they.

Aluminium is almost suitable where space is not restricted and insulation

is not required. High voltage overhead transmission lines are usually not insulated

so the higher costs of insulating larger conductors avoided. Since aluminium

provides the equating conductance more cheaply than copper, it is widely used in

bare overhead conductors.

Major applications are also in following electrical fields:

Electrical components

Accessories

Cabinet frame

Motor body

Light fixture

Cable core

Electronic components

Heat sink

Telephone parts

Transmission tower

Transmission line.

IN CONSUMER DURABLES

Consumer durable goods included kitchen utensils and domestic

electrical applications. One of the earliest applications of aluminium was

in the manufacturing of kitchen utensils, notably saucepans.

The properties, which make aluminium suitable for use in consumer

durable products, includes its good thermal conductivity, its lightness of

weight, its resistance to corrosion, the brightness of its appearance and the

59

case of fabricating it, aluminium is use in components for many domestic

electrical appliances such as cookers, refrigerators etc.

Major applications are also in following fields:

Cookers

Refrigerators

Freezers

Vacuum cleaners

Washing machines

Dishwashers

Tumble dryers

Ice tray & grid

Scoops

Paddles

Stove top pots

Steam jacketed kettles

Gas fired kettles

Dry & steam irons

A.C Filter grill

Panels

Water filter

Furniture

Modeled language

Hangers

Letter plates

Poultry channel

Solar channel

Watch case

Tray etc.

60

APPLICATION OF ALUMINIUM IN INDIA

AUTOMATIVE INDUSTRIES

AEROPLANE &AIRCRAFT INDUSTRIES

RAILWAYS

SHIP BUILDING INDUSTRIES

TRANSPORTATION INDUSTRIES

DAIRY INDUSTRIES

PACKING INDUSTRIES

ELECTRICAL INDUSTRIES

HOUSEHOLD UTENCIL

CONSUMER DURABLE PRODUCTS etc.

Global Aluminium Production Growth forecast (mln tpa)

Year Actual Forecast

1985 15.5

1995 19.7

2005 31.4

2008 37.8

2010 41.3

2015 50.2

61

ALUMINIUM PRODUCTION & CONSUMPTION BY

MAJOR COUNTRIES IN 2009

Country Production

(KT)

CONSUMPTION(KT)

Norway 1376 246

Brazil 1499 759

Australia 1903 380

Canada 2894 803

USA 2480 6143

Russia 3647 946

Chaina 7806 7119

PERCAPITA CONSUMPTION OF ALUMINIUM

COUNTRY CONSUMPTION

(kg/person)

JAPAN 32.0

USA 31.9

GERMANY 31.6

CANADA 31.2

ITLY 29.5

FRANCE 21.4

62

AUSTRALIA 21.2

UK 15.0

CHAINA 6.5

BRAZIL 4.1

INDIA 1.1

INDIA-User Segment’s Growth FY08 over FY07

User Segment FY0

7

FY

08

Change

%

Electrical 398 490 23

Transport 234 308 32

Buil. & Const. 135 165 22

63

Consumer Durable 46 53 15

Packing47 51 9

Indus. Machinery 37 41 11

Others 37 41 11

Total 934 1149 23

64

Major Aluminium Producer Industries in India.

Company Owner

ship

Location Capacity

Hindalco AB

Group

Renukoot

Alpuram

Hirakud

Belgaum

345,000

14,000

65,000

31,000

NALCO Public

Sect.

Angul 345,000

BALCOSterlight

Korba 350,000

MALCO Sterlig

ht

Mettur 40,000

EXTRUSIONS CAPACITY, PRODUCTION & DEMAND 1991-

2020(MT)

Particulars 91-92 99-00 03-04 2010 2020

Capacity 122000 190000 202000 202000 400000

Production 61000 109000 132000 188000 370000

Domestic

Demand

60000 105000 117000 166000 325000

Export Nil 4000 15000 22000 45000

Excess

Capacity

62000 81000 70000 14000 30000

65

A CONCEPTUAL FRAMEWORK

CHANNEL SELECTION FRAMEWORK

MARKET SEGMENTATION OF HINDALCO

DISTRIBUTION PROCESS AT HINDALCO

FACTORS FINDINGS

SUGGESTION/RECOMONDATION/CONCLUSION

66

A CONCEPTUAL FRAME WORK

A set of interdependent organizations involved in the process of making a product

available, or reached the target market or consumers.

Smooth availability of our products to the right customers, at a right place, at a right time

with safe & secured quality and quantity is an important task for the customers

satisfaction or goals of an organization. Organizations are spending a huge amount, about

25 to 35% of the cost of products.

Most producers do not sell their goods directly to the final users stands a marketing

channel, a host of marketing intermediaries performing a variety of functions and bearing

a variety of names.

Thus, “A channel of distribution for a product may be define as a route taken by the title

to the goods as they move from the producer to the ultimate customers or industrial

users.” The primary objective of channel of distribution is to bridge the gap by resolving

spatial (geographical distance) and temporal (relating to time) discrepancies as to supply

and demand.

CHANNEL OBJECTIVES

Making smooth availability of product to the target market.

Achievement of the best possible coverage of the target market.

Ensuring that the consumer incurs the minimum extenuation in procuring the

product.

Safe in quality & accuracy in quantity.

Quick services.

Ensuring that the firm is able to carry on with its manufacturing activities,

confident that the channel will take care of the distribution job.

Ensuring that the distribution is cost effective.

67

The primary objective of channel of the distribution is to bridge the gapby

resolving spatial (geographical distance) and temporal (relating to time)

discrepancies as to supply and demand.

ROLE OF CHANNEL MEMBERS

Channel members are not play only the role of sales the products to the customers but

also play the role as the 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.

68

VARIOUS TYPES OF CHANNEL LEVELS

While a marketers wants to sell or marketing about the products or services, requirement

of design a distribution channel to make product & services available to customers in

different ways. In the process of distribution of products, each layer of marketing

intermediaries are performs some work in bringing the product and its ownership closer

to the final buyer is a channel level.

Generally two methods of distribution are in the practices.

1. DIRECT MARKETING CHANNEL

2. INDIRECT MARKETING CHANNEL

DIRECT MARKETING CHANNEL

DMC is a marketing channel that has no intermediary levels. Manufacture or sellers are

advertise their product through the various method of advertising & make awareness

about the products, then contact to the needful customers through their salesmen, internet,

e-mail, telephone or by post.

IMC is a channel containing one or more intermediary levels. Manufactures or sellers are

appointed various type of marketing intermediaries in the context of nature of the

products & segmentation of markets.

69

MANUFACTURES

CUSTOMERS

CONSUMER DURABLE PRODUCTS

70

MANUFACTURER MANUFACTURER MANUFACTURER

DEPOTS, C&F AGENTS

DISTRIBUTORS

SUPER STOCKIEST

EXCLUSIVE SHOW ROOM

RETAILERS

DEPOTS, C&F AGENTS

DISTRIBUTORS

RETAILERS

RETAILERS

CONSUMERS CONSUMERS CONSUMERS

MANUFACTOR’S OR MEMBER’S SALES REPRESENTIVE

MANUFACTOR’S OR MEMBER’S SALES REPRESENTIVE

INDUSTRIAL PRODUCTS

s

71

MANUFACTURERMANUFACTURER

BUSINESS DISTRIBUTORS

DEPOTS, WAREHOUSESDEPOTS, WAREHOUSES

RESIONAL SALES OFFICES, AREA SALES EXECUTIVES

RESIONAL SALES OFFICES, AREA SALES EXECUTIVES

CUSTOMERS CUSTOMERSCUSTOMERS

TYPES OF CHANNEL MEMBERS C & F AGENTS :

It means clearing & forwarding agents. They are responsible for storage &

transportation of the company’s products and its distribution to the distributor and some

time retailers.

DISTRIBUTORS:

A distributor is usually appointed by the company and does not sell its

competitor’s products. He can also be a distributor of many products of the same

company. A distributor is responsible for ensuring that his company’s product is

available at the retail stores. The distributor is very much an extension of the company as

he ensures that the market is properly served. A company has direct control over the

distributors.

Some of the following type of wholesalers:

MERCHANT WHOLESALERS:

Purchase and resell merchandise

He has title to merchandise.

He provides wide range of services.

FULL SERVICE WHOLESALERS:

Perform full range of distribution services.

Provide trade credit; offer promotion assistance, personal sale force, and

communication of information.

Provide installation and services.

72

RACK JOBBER:

Deals with highly promoted items.

Furnishes rack and shelves, price the goods, keep them fresh, set up point of

purchase displays.

Sell on consignment.

Provide services as delivery, shelving, and inventories caring.

LIMITED FUNCTIONS WHOLESALE

Not provide credit, marketing research information and merchandising assistance.

MERCANDISING AGENTS & BROKERS:

They usually perform fewer services than merchant wholesalers do. Merchandising

agents and brokers do not take title to product but negotiate sales for manufacture, they

represent.

MANUFACTURER’S AGENTS

They are free to work for several manufactures.

They carry non-competitive, complementary products in exclusive

territories.

They do not provide credit facility but at times store and deliver

products.

Also provide research aid and promotion support.

BROKERS:

To bring buyer and seller together

To assist in negotiation.

They have not title to goods.

But they provide the facility of financing.

73

COMMISSION MERCHANTS

Received goods on consignment

They have not title to goods.

To accumulate them from local markets & arrange for their sales.

Offer credit & storage goods facility.

To provide sales force & research aid.

They do not normally promote the goods.

MANUFACTURER’S SALES FACILITIES

Established by manufacture

It is separate from manufacturing operations.

It’s performing the wholesaling function himself.

Generally used in industrial customers.

Types of manufacturer’s sales facilities.

MANUFACTURER’S SALES BRANCHES

Carry inventory

Promote the sales activities

Sell to retail outlet.

MANUFACTURER’S OFFICE (Regional Sales Office)

It does not carry inventory

Perform market research, demand

forecasting, etc.

Collect orders from customers.

Make delivery to customers from manufacturing point

Collection of payments.

Dispose all the disputes or claims.

Create better relationship.

74

THE CHANNEL SELECTION PROCESS

75

MANUFACTURER

DEPOTS OR WAREHAUSES CLEARING & FORWARDING AGENTS

DISTRIBUTERS OR WHOLE -SALERS

MERCHANT WHOLESALERS

MANUFACTURER’S SALES FACILITIES

MERCANDISING AGENTS OR BROKERS

Full ServiceWholesalers

Rack Jobbers

Limited FunctionWholesaler

Manufacturer’s Agents

Brokers

Commission Merchants

Manufacturer’s Sales Branch

Regional Sales office

STEP-1

STEP-2

STEP-3

STEP-4

STEP-5

STEP-6

CHANNEL SELECTION PROCESS

76

Identify Target Consumers

Determining Consumer Buying Habits For The Types Of Goods

Locate Potential Customers

Pinpoint Channel Alternative

Evaluate Channel Alternative

Select Channel Members

EVALUTION OF THE DISTRIBUTION ENVIRONMENT:

Selection of channel model has to be necessarily take into account the distribution

environment obtaining in the country/ region and in the specific business in which the

firm is engaged.

A firm has to evaluate the vital features of the distribution environment and

ensures that the channel model to be adopted is compatible with them. Distribution

environment in the border sense includes the legal environment as well in so far as its

implications and distribution are concerned.

EVALUTION OF COMPETITOR’S CHANNEL PARTERNS

The firm should also study the competitors’ channel patterns before deciding its

channel. While the firm may not necessarily follow the competitors it will be worthwhile

for the firm to analyze in depth the plus and minus of the channel patterns adopted by

each of the major competitors.

EVALUTION OF COMPANY RESOURCES AND MATCHING THE

CHANNEL TO THE RESOURCES :

On the other hand firm with larger resources and large size marketing operation

will be in a position to go in for highly intensive distribution committing a good deal of

resources to the distribution task.

77

IDENTIFICATION OF ALTERNATIVES CHANNEL & SELECTION

OF THE ONE THAT SUITS THE FIRM BEST:

Two important considerations are cost and efficiency. Often though not

necessarily they are directly proportional. The channel that its efficient but relatively less

expensive has to be chosen. Two types of evaluations an economic evaluation and a

conceptual evaluation may be necessary. The firm should also examine whether the

channel member s in the desire alternatives would be willing to work enthusiastically for

the firm and the product.

ANALYSING THE PRODUCT CHARACTERSTICS AND LINKING

CHANNEL TO THE PRODUCT:

The firm should analyze the characteristics of the product and choose the channel

designee that is most suited to the product. Within each of these broad categories of

product channel choice can very 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.

78

Need for specialized distributor must be appreciated; after considering all such

factors, if a given industrial product lends itself for marketing through distributors, it

must still remembered that;

As a general rule industrial products require specialized distributor and entrusting

them with the general-purpose (consumer product) distributors does not produce

the best result.

Different industrial products need different types of distributors.

Establish relationship and use problem-solving techniques for prevention of crisis

and preventing customer dissatisfaction.

Gather quality intelligence on customer dissatisfaction and provide this

information to management.

ON TIME DELIVERY

Consumer will be happy, if the material is delivered on time. OTD has come into

sharper focus, for it has become a competitive weapon in all most all industries. For

example Nissan offers a guaranteed ten-day delivery to its dealers, Caterpillar deliver

replacements parts within 72 hours.99.7% of time

OTD customer satisfaction gap has three components

Calibration Gap

Operations Gap

Organization Gap

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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 where as then supplier may measure it from a negotiated date.

OPERATION GAP:

Businesses that face variability from one manufacturing phase to another or from

operations to ware house normally have an operations gap. Operations gap can also result

from too many stages in production process, too many supplier or too many people

involved in order filling.

ORGANISATION GAP:

If people do not have incentives to improve OTD it will probably result into

organization gap. In other words organization gap result from the priority accorded to

OTD.

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MARKETING STRATEGY

OLD STRATEGY

Marketing Head office (Renukoot)

EAST WEST NORTH SOUTH

Vice-President Vice-President Vice-President Vice-president

Extrusions Rolled Primary

Sales Manager (Territory Manager)

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ADVANTAGES

Cost effective

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.

The new marketing strategy structure is as follows:-

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MARKETING HEAD OFFICE (MUMBAI)CMO* (CHIEF MARKETING OFFICER)

EXTRUSIONS ROLLED PRIMARY

Vice-President

EAST WEST NORTH SOUTH

Regional Manager

T.M T.M T.M… (Territory Manager)

*Mr.Mudgal

ADVANTAGES

It’s product based..

Emphasis on more customer satisfactions.

Helpful to increasing the sales performance of various products of product line.

Helpful to production processes to delivery the products.

Accumulation of small customers.

Provide quick service to customers.

Enhance the sales promotion.

DISADVANTAGES

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Cost ineffective.

More men power required.

MARKET SEGMENTATION OF HINDALCO

The market for Aluminium products in India is very widespread

Geographically

By diversified of end user

Further, there are a large number of small and medium consumers and a select a few

large consumers. The smallest consumer would be consuming as little as 1MT/Month.

However, the largest numbers of Hindalco’s customers are in the consumption range of

5-50 Mts./Month.

Aluminium is being used in around 3000 products in developed countries like USA,

Japan, Canada, etc. Where as 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 therefor, Hindalco decided to cater to as many consumers as

possible. Their distribution system therefore, is designed to the object.

Hindalco manufacture the products with very specification as desired by the various

customers. Hindalco’s market may be segmented in the following manner.

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(A) MARKET SEGMENTATION BASED ON THE PRODUCT

GROUP

On the basis of product groups, Hindalco market may be segmented in the

following manner

PRIMARY PRODUCTS

Ingots

Wirerods

Billets

ROLLED PRODUCTS

Sheets

Chequered sheets

Roofing sheets

Coils

Hot Rolling plates

Circles

EXTRUDED PRODUCTS

General solid sections

Tubings

Structurals

Architecturals

Mouldings

FOIL

Cablewrap stock

Light gauge Foil

Bare & Coated Finstock

Collapsible Insulation Ducts.

ALLOY WHEELS (“AURA”)

12” to 18” diameters.

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(B) MARKET SEGMENTATION ON THE BASIS OF PRODUCT

WISE KEE CONSUMERS.

PRIMARY PRODUCTS:

Consumers:

Value added aluminium sheet producer industries.

Foil Producer Industries.

Extrusion Producer Industries.

Electricals Equipment

Automobile Industries

Ferrow allows

Smelter pot lining.

ROLLED PRODUCTS

Consumers:

Foil & Packing Industries: box, cop, and container.

Electrical Industries: bulbs, tube lights, fan blade etc

Transportation industries

Building & construction sectors –roofing flooring etc.

Defense & Marine sectors.

Transportation sectors.

Consumer durable: flooring & roofing

General engineering:

Pilper-proof bottle cops

Pressure cookers, non-stick cookware.

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EXTRUDED PRODUCT

Consumers:

Automobile Industries

.uilding & construction Sector

Mines & defence Sector

Transportation sectors

Electrical sectors

Architectural sectors

Furniture sectors

House holds consumer durable

FOIL

Consumers:

Packing sectors (printed & multi-laminated)

Pharmaceuticals

Dairy products

Processed food

Con-fectionery

Personal care products

Cigarettes

Box rapping

Air conditioner

Auto mobile radiator

Collapsible Insulation Ducts.

ALLOY WHEELS

Consumers

Automobile sectors

Maruti Suzuki

TATA Motors

FIAT India

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Hindustan Motors

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:

BULK CUSTOMERS

Bulk customers are those customers, whose demand is very high and consistence.

Some of the bulk customers are Howkin, TTK, Foil Division Silwassa, Jugraj Tejraj,

Bajaj Auto, etc.

SMALL & MIDIUM

Small & medium customers may be bracketed as those customers, whose

demand is comparatively low and not so consistence, some of the small customers of

Hindalco included ITI Allahabad, Defense Organization, Dockyards etc.

(D) MARKET SEGMENTATION BASED ON THE PRIORTY:

On the basis of priority given to various orders Hindalco market may be segmented

in the following manner:

ROUTINE CUSTOMERS

Routine customers are those customers, who are regularly sourcing the company.

Their orders are processed in the normal course of working.

SPECIAL CUSTOMERS

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Special customers are those customers, whose orders are for products under

developments. Since their demand is usually urgent in nature they are given priority

under routine customers. Examples: Export Customers, Government organization

like Defense, Establishment etc. continue this category.

(E)MARKET SEGMENTATION BASED ON CONSUMPTION

SECTOR.

Uses of aluminium metal are every where. 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 have different

type of industries, whose are used aluminium in different quantity. Here, segment the

market in geographical areas based on consumption or demand pattern.

(G) TRANSPORTATION FACILITY

Smooth transportation facility is available all over the country all the time. Some

area are 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 BOOKING

Every purchaser has to book his order giving details which aluminium rolled

products they want such as Plain sheet, Cold rolled coils, milk can sheet, circles, etc.

Purchaser should be fully disclose about the product such as, product name, quality,

quantity, technical data, mode of transportation, desire delivery time, payment mode etc.

Technical wing of Hindalco examines their application and if necessary also make

inspection of the facing and decided quality to be offered. Thereafter, terms of payment

finalised and his order is finally booked. This order is passed to the relevant personnel’s

officials with relevant details.

PRIORITY

A priority list of all categories of consumers has been fixed in consultation with

all concerned. Consumer gets delivery in order to their priority, which is also followed by

transporting agents.

ORDER PROCESSING:

Hindalco procure order either directly from the customers or through the

agents/stockiest. The order contains the name of product, quality, size, clearance etc.

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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 monthely 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.

WARE HOUSING

Every has to store to goods while they wait to be sold. A strong function is

necessary because production and consumption cycles rarely match. Ware housing is the

responsibility of warehouse 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:

While taking delivery from inspection & packing to ensure packages are intact & dry.

If packages are damaged or loose condition, get it repacked.

If packages are wet, do not accept it.

DURING LOADING AT WAREHOUSE

Truck’s floor should be clear and flat.

There should not be any hole or damage in the floor of the Truck’s

Floor should be covered with Tarpaulin.

Packages being loaded should be intact and dry

Proper stocking of packages should be done while loading.

Heavy packages to be kept at bottom and lighter packages over heavy.

PACKAGES:

No vertical stoking of packages. After loading truck should be covered with tarpaulin.

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DURING STORAGE

Out doors storage should be avoided.

Do not store packages directly on the floor, use wooden pallets.

Cheek condition of metal every few hours to ensure no water condensation

DELIVERY OF MATERIAL:

They deliver the material as per the delivery order. Then they note down the

delivered material in the godown register. Then they send delivery report daily to zonal

office.

BANKING INSURANCE BILLS & OTHER DOCUMENTS

Hindalco enjoys the facilities of three public sector banks & private sector bank in its

town Renukoot.

United Commercial Bank (UCO Bank).

State Bank of India (SBI).

Allahabad Bank.

Industrial Development Bank of India (IDBI).

Banking services at Renukoot is punctual. Banks help the company in carrying the

documents to the party. It helps in quicker payments relisation.

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.

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GODOWN SALES PROCEDURE

Godown sales procedure describes the sales procedure of Hindalco’s products

through its godown. The respective zonal head exercise control over all activities related

to godowns sales. This sales procedure is followed by all the godown of company

situated at Delhi, Faridabad, Chandigarh, Jaipur, Haryana, Bangalore, Hydrabad, Calcutta

Gohati, Mumbai, Silvasa, Taloja … There is a clearing agent in the godown, which is

appointed by Hindalco for the operation & maintenance of the godown.

VARIOUS MODES OF DISTRIBUTION IN HINDALCO

Hindalco emphasizes on , “Taking the product to the market” Distribution of

products in Hindalco is carried out through a network of zonal offices, Area offices,

Agents, Stockiest and company operated Depots, located through the country. A brief

description is given below

(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:

Signed a contract between the zonal offices and customers, regarding to details of

products such as quality, packing, transportation, destination, etc.

Clearly mentions about the mode of payments.

Eliminating intermediaries.

Make a direct contact with the customers

Help the company to cater to the need of customers.

Helpful the company to earn additional profits

(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

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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) STOCKIESTS

Hindalco appointed a number of stockiest in various geographical areas across the

country. Certain products of the company are sold through the network. Stockiest are

made conform sale for the company.

Stockiest is free to make sell to any customer

Free to charge any price from customers

Helps the company to cover the wide geographical market.

Helpful in minimizes extra distribution setup costs.

(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 provide the following advantages to the company & also

the customers:

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.

AT RANDOM DELEVERY: Emergency needs of customers full filled

immediately by the depots, at a premium price small offtakes of the scattered

customers can also be provided easily by the depots.

HELPFUL IN PRODUCTION: Depots provide a foundation to the production

department, by keeping inventory of the various products. For example, in the 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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ZONAL OFFICE

CUSTOMER

HINDALCO

AGENT/STOCKIST

PLANT

PRODUCTION

INSPECTION & PACKAGING

WAREHOUSE

DESPATCHCUSTOMER

AGENT/STOCKIST

GODOWN

VARIOUS MODES OF DISTRIBUTION IN HINDALCO

MAJOR DOMESTIC MARKETS (GEOGRAPHYCALLY)

In order to cater the demand of geographically scattered market, Hindalco has broadly

divided its domestic market into the following five zones-

ZONE ZONAL SALES & MARKETING

OFFICE

NORTH DELHI

SOUTH BANGALORE

EAST KOLKATTA

WEST 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

, 3rd floor

Dr. Annie Besant Road

Worli

Mumbai 400 030

India

Tel: 91-22-6662 6666

Fax: 91-22- 2422 7586

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Regional offices —

North East

Vandhana, 5th Floor industry House, 9th Floor

11 Tolstoy Marg 10, Camac Street,

New Delhi 110 001 Kolkata

Tel: 91-11-4220 0200 Tel: 91-33 2282 6130

Email: nutansingh@adityabirla.com Email:suresharg@adityabirla.com South

West

Industry House, 7th Floor Ahura Center, 1st Floor

45, Race Course Road 82, Mahakali Caves Road

Bangalore 560 001 Mumbai 400 093

Tel: 91-80-4041 6000 Tel: 91-22 6691 7059

Email: jshankar@adityabirla.com Email:sanantharam@adityabirla.com

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CONSIGNMENT AGENTS & STOCKIEST

ZONE WAREHOUSES No of

CONSIGNMENT

AGENTS

No of

STOCKIEST

EASTERN 2 6 8

NORTHERN 5 - 32

SOUTHERN 3 12 20

WESTERN 3 26 24

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THE SWOT ANALYSIS OF HIL.

STRENGTH

Global brand image.

Cost effective producer.

Sound financial position.

A high degree quality consciousness is the core competence of the company, ISO

9001 and ISO 14001 have added more prestige to the company.

Integrated production facility at Renusagar power plant.

Company has a well-established distribution network, covering a geographically wide

and scattered market.

A number of Brownfield & Greenfield projects.

Industrial peace as, there has been no major strike in last 22 year.

A well focussed human resources development.

Serve maximum customer satisfaction.

WEAKNESS

Present production capacity is not adequate to meet the rising high demand.

Technology is not upgraded to mark as compare to global giants in aluminium

industry.

OPPORTUNITY

R & D collabratation with universities and another research organization.

More emphasis on down stream production of value added products.

Recycling should be adopted as routine production.

Raising more finance from marketing for more acquisition and merger for

consolidating position in the global market.

Aluminium, continuous to be strong with a growth in transportation sector 16%,

construction15%, passenger car 25%, two wheeler segments 14% respectively during

FY07.

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THREATS

Strong domestic and global competitors, such as TATA, POSCO, MITTLE, ESSAR .

Innovative revolution in plastic and steel industry.

Reduce in exide duty.

Fall in price of Al. In neighbor country.

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SWOT ANALYSIS OF DISTRIBUTION CHANNEL

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.

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THREATSWEAKNESS

DISTRIBUTION CHANNELDISTRIBUTION CHANNEL

SOLUTION

STRENGTHOPPORTUNITY

OPPORTUNITY

The demand of the company’s products is rapidly increasing. Thus, there is a

necessity to expand the dist. network to avail the benefits of the fast growing market.

Indirect sales should be convert in direct sales through TM sales force.

THREAT

The major threat is from the competitors like BALCO, NALCO etc. because the

company may loose its market leader position , if it does not take timely steps to

modify its present distribution system in the wake of fast growing demand

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SUGGESTIONS/RECOMMENDATIONS/CONCLUSIONS

Certain recommendations with regard to distribution channel of HIL are as under:

(A) Northern zone offers the most lucrative sales in last financial year.. In the light of

such high sales driven by the factors such as heavy investments in infrastructures and

related industries – machinery, transportation etc. In this zone our more than 65%

sales depends on indirect sales. So that our focus should convert indirect sales to

direct sales. Our effort should be here increase the depots in proportionate way, and

also made appointment TM’s and RM’s.

(B) Southern zone is also the fast growing market for the company. The zone offers

bright prospects to company in terms of future demand driven by rapid industrial

expansion. In this zone our more than 60% sales depends on direct sales and also we

face cutthroat competition. In maintain the sales need of continuous market research

in regard to distribution channel & appoint stockiest instead of consignment agents.

(C) Western zone is the key market of the company. This zone is the most advanced zone

in industrialization in the country. In this zone our 65%(Approx.) sales is through

direct sales.

Analysis of sales data, present depots, stockiests & consignment agents, 35% of the sales

in this zone is indirectly depending upon consignment agents & stockiest. The demand of

this zone is very high. To optimize in this key zone, the company should established

additional depots in that areas- Ahmedabad & Nagpur for enhancing direct sales.

(D) In eastern zone company’s, indirect sales is approx. 70%. Such a heavy indirect sales

reflects that the company is not in

direct contact of its customers and their worries and feedback and these are most essential

factors for improving level of sales.

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In direct sales is not helpful to create, grow & retain the customers. So making the

sales customer oriented and to improve the sales, the company can take the following

initiatives-

1. Assign sales representatives to contact all prospects in this

area.

2. Design a sale promotion complain focusing on brand

awareness.

3. Appoint a regular sales representative with each stockiest.

4. Shift to retail format of business by owning aluminium

galleries in malls.

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ANNUAL REPORT (07-08), HIL

INDUCTION GUIDE , (TRAINING CENTRE )

PRINCIPLES OF MARKETING, “KOTLER & ARMSTRONG”.

RESEARCH METHODOLOGY, “C.K. KOTHARI” & “NARESH K.

MALHOTRA”

INCAL 98

WWW.ADITYABIRLA.COM

WWW.ALUMINIUM-INDIA.COM

WWW.ALUMINIUMMLEADER.COM

WWW.ALUMINIUM-MESSE.COM

WWW.WIKIPENDIA.COM

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