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Excellence by design : y g

“The Hindalco Way”

2HINDALCO

• An Industry leader in Aluminium and Copper,Hindalco Industries Ltd is the metals flagshipHindalco Industries Ltd. is the metals flagshipcompany of Aditya Birla Group.

• We are the world’s largest Aluminium rollingWe are the world s largest Aluminium rollingcompany and one of the biggest primary Aluminiumproducers in Asia.

• The Copper Smelter is amongst the largest singlelocation custom smelter globally.

• Hindalco operates 51 units in 11 countries andincludes a work force of 34000 representing 15different nationalities.

3HINDALCO

• In India, Hindalco commissioned Renukoot plant in 1962.Other units in india are located at Muri in Jharkhand, Belur inWest Bengal, Kollur in AP, Silvassa in D&H, Hirakud in Orissa,Alupuram in Kerala, Taloja in Maharastra, Belgaum inKarnataka and Dahej in Gujarat.Karnataka and ahej in Gujarat.

• Two R & D centers are located in Belgaum and Taloja.• Novelis is headquartered in Atlanta, Georgia and operates 25

manufacturing facilities in nine countries on four continents,with nearly 11000 employees. Novelis is the world’s largestrolled aluminium producer in terms of volume shipped, androlled aluminium producer in terms of volume shipped, andthe largest purchaser of aluminium as well.

• Hindalco – Almex operates first of its kind facility in India forf l ll l hHi‐performace Aluminium Alloys located at Shendra,

Aurangadab.

4HINDALCO

• Hindaclo – With our modest beginning in Renukoot to becoming thebiggest FRP producers globally and one of the biggest producers ofi l i i d fi d i A iprimary aluminium and refined copper in Asia.

• The methodology for excellence rest on four strong pillars :It is powered by the values of The Aditya Birla Group.p y y pIt is driven by the fundamental tenets of behavior – our Code ofConduct, Governing Principles and Guiding Policies.It i d l d th h th E ti F k hi h iIt is deployed through the Execution Framework which comprisesessential processes and controls that will define every aspect ofour daily operating procedures.It is reaffirmed continuously through measurement of all aspectsof our output, results and performance – thus ensuring totalcompliance and continuous improvement.

5HINDALCO - ALUMINIUM

• India is endowed with huge high quality bauxitereserves, making the 5th largest country in the world., g g y

• India’s per capita Aluminium consumption is one of thelowest in the world i.e. 1.8 kg against 16.7 kg by China& 38.2 kg by Germany, world avg. per capitaconsumption of Aluminium is 8.0 kg.

d f l d l d• Present production of Aluminium and Alumina in indiais 2.01 & 4.78 Million Tonne per annum.

• It is hoped that with increase in country’s GDP avg 7 %• It is hoped that with increase in country’s GDP avg. 7 %per annum in coming years, India’s Aluminiumconsumption will grow by 5‐6 times of current level byp g y y2022.

6HINDALCO - ALUMINIUM

• Hindalco’s Aluminium portfolio spread across the globe embodiesthe entire value chain with operations ranging from Bauxite mining,l i fi i d l i i lti t d talumina refining and aluminium smelting to downstream processesand products including rolling, extrusions, foils, recycling along withcaptive power plants and coal mines.

• Novelis is the largest manufacture of rolled aluminium products i.e.14% of the world’s total.

• Resource sustainability in the minerals & metal sector is a keyResource sustainability in the minerals & metal sector is a keychallenge. We ensure that our holistic approach is sustainable andtax into account stack holder’s interest.

• In India our bauxite mine in jharkhand Chhattisgarh Maharastra• In India, our bauxite mine in jharkhand, Chhattisgarh, Maharastraand Odisha provide the raw material to our alumina refinerieslocated at Belgaum in Karnataka, Muri in Jharkhand, Utkal in Odishad R k t i UPand Renukoot in UP.

7HINDALCO - COPPER

• India is among top 10 major copper producers globally. It’spresent consumption is approx. 600 KT of refined copper.

• Typically over 30% demand from telecom sector and 26% fromelectrical sector.

• India’s copper market has significant potential for growth Indian• India s copper market has significant potential for growth. Indianeconomy is the 4th largest of the world after US, China & Japan.

• With growing urban population India’s expected to see increasedemand for copper from construction industry.

• Plans for heavy investment in Railways over next 5 yrs will resultinto increased copper consumption.into increased copper consumption.

• Increase in Copper’s architectural use like interior and exteriorwall cladding, radio frequency shielding and anti‐microbiali d d t h h d il b th fi t dindoor products such as handrails, bathroom fixtures andcounter tops.

8Birla Copper, Dahej

•Located 350 Km, North of Mumbai in the state of Gujarat;  50 Km from NH8 Delhi‐Mumbai•Land: 311 Hectares [106 Hect green belt]Scale & Complexity : • 23 fully integrated & interdependent plants at one location.• 5 industry segments & 15 technologies• Logistics intensive, 5 Million TPA material handling;

• 350 trucks per day• 150 ships per year

• Global Supply Chain

Dahej

• Exports to 15 countries• Sources from 10 countries

•$2.5 Billion Business

O ti l t d i I di (S lt ) A t li•Operation located in India (Smelter), Australia

(Mines).

8Supply Chain Encircling the Entire GLOBESupply Chain Encircling the Entire GLOBE

9Capacity and Major Product Profile

Capacities:

Smelter : 5.0 Lac TPA (@31% Cu)

Refinery : 5.0 Lac TPA 

CCR : 1.65 Lac TPA Cathode CC Rod Gold

SAP : 17.64 Lac TPA

PAP : 1.8 Lac TPA

DAP                 : 4.0 Lac TPADAPS lf i A id

PMR        : 15  TPA‐ Gold 

150 TPA‐ Silver  

CPP 135 MW

• LME –A Grade Copper Rods ( 99.99 % pure)

• LME- A Grade Copper Cathodes

Silver DAPSulfuric Acid

CPP : 135  MW

Oxygen         : 2200 TPD

Jetty              : 4.5  Million  MT 

pp

• Phosphoric Acid (Merchant Grade)

• Sulfuric Acid (98.5 %)

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• Gold & Silver (99.9%), Selenium and Pt/Pd

• DAP & NPK Grade of Fertilizers and Phospogypsum

10World Class Technological Tie-ups

No.No. PlantPlant TechnologyTechnology

1 Smelter – I OEC, Finland

2 Smelter – II Ausmelt, Australia

3 Smelter – III Mitsubishi – Japan4 Oxygen – I to V Prax Air , Air Liquide, BOC .4 Oxygen I to V Prax Air , Air Liquide, BOC .

5 Refinery-I,II & III ISA, Australia

6 PMR OEC, Finland7 CCR I and II Southwire – USA.

8 SAP-I,II & III Monsanto - USA

9 PAP DH from Prayon Belgium and SNC9 PAP DH from Prayon Belgium and SNC-Lavlin

10 Fertilizer Incro, Spain

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11 CPP Krupp, Germany

12 Jetty Howe, India.

11Flash Smelting & Converting @ Cu-I

FSF PSC Fire Refining & Anode Casting

Flash Smelting : Converting 27‐32% Cu conc. into Matte containing 62‐64% CuConverting : Liquid  Matte (62‐64%  Copper) is converted into Blister Copper 

FSF PSC Fire Refining & Anode Casting

(98‐99% copper) semi‐finished product.Fire Refining  : oxidation and reduction process, Blister Copper (98.5 %)  99.6% 

purity Copper is produced Casting machine :(Cast Wheel) casts 99.6 % pure Copper from Anode Furnace into 

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Anodes sent to Refinery for Electro Refining

12SAP, PAP & DAP Complexes

P r o c e s s – D C D ASulfuric Acid is produced as a by-product from the Sulphurous off-gases emanating from the

• Phosphoric acid isproduced with reaction ofRock Phosphate andsulfuric acid.

• Rock Phosphate is

DAP & ComplexesThrough Pipe-Reactor technology

using granulation process, Phosphoricacid is mixed with Ammonia indesired proportion to produce

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g gsmelting and converting furnaces.

• Rock Phosphate issourced mainly fromJordan and South Africa.

desired proportion to producegranules of DAP.

13HINDALCO - COPPER

• Copper Production 2013  ‐ 2019 projected

2013 2014 2015 2016 2017 2018 2019CAGR 

2013 2014 2015 2016 2017 2018 201913‐19

India 619 761 768 768 768 768 768 3.70%World's forecast production

20741 21671 22121 23168 23773 23953 24509 2.80%

* 000s tonnes of copper

2013 2014 2015 2016 2017 2018 2019lBirla Copper ‐

Dahej319 381 370 370 370 370 370

Sterlite Ind. ‐ Silvassa

110 144 150 150 150 150 150

Sterlite Ind. ‐ Tutocorin

173 219 200 200 200 200 200

World's forecast production

20741 21671 22121 23168 23773 23953 24509p

* 000s tonnes of copper

14WORLD REFINED COPPER: PRODUCTION Vs CONSUMPTION IN 2014

ASIANORTH AMERICA

P C B

EUROPE

P C B

All fig. In kt

RUSSIA

P C B873 622 251

P C B10888 14561 ‐3673

P C B1809 2145 ‐336

P C B3678 3893 ‐215

USACHINA JAPAN

P C BP C B

MIDDLE EAST

P C B

AFRICASOUTH & CENTRAL SOUTH & CENTRAL 

P C B6835 9529 ‐2694

P C B1538 1036 502

INDIA

1087 1643 ‐556

P C B

215 734 ‐519

AFRICA

P C B1432 288 1144

AMERICA

P C B3403 580 2823

AUSTRALASIA

780 540 240

AUSTRALASIA

P C B515 22 493

Bal (B)= Production (P) – Consumption (C)

Total Refined Production  21725

Total Refined Consumption 21489Balance 236

Source: CRU

Surplus in South America , Africa , Japan & Australia  Target  to service  deficit in other parts of world  ‐ China , Middle East  (Natural choice)

Balance 236

15REFINED COPPER MARKET INDIA- FY15

Wire & CablesS &T

Cathode to Rods10%

PRODUCT WISE ANALYSIS SECTOR-WISE ANALYSIS

44%

Others13%

16%

Cathode3%

Winding

Auto 5%

CC Rods87%

Winding wires22%

SECTORS APPROX QTY (KT)

Estimated Market Size- 540 kt

Strips & Transform. 86 

Wire & Cables 238

Winding Wires 119

Auto 27

Trade & Others 70

16Segment wise Growth – India GDP

GDP by Segment (%YoY)8

9.1

5.9

10.6

7.26.5

9.9

1.22.4

‐4.3

3.74.5

2.5

1.1

4.53.6

Agriculture Industry Construction Services

Fy'13 Fy'14 Fy'15 Fy'16 

• India’s GDP is expected to grow at > 7 % post FY’15. 

• Manufacturing/Industry sector to benefit from low commodity and oil 

Ref: City Research Feb’15

prices.

• As global growth is expected to increase, Indian manufacturing will 

f h b f i ifurther boost from rising exports.

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Global copper consumption affected due to China slowdown… but India has huge potential

Source: CRU Jan’15

Per capita consumption (KG)India 0.4Global Cu consumption growth%

0.390.41

0.42

0.44Per capita Consumption, India (Kg)

China 5.4USA 10Japan 11World 2.8

CY 2013 5.4CY 2014 3.9CY 2015 3.1

2013 2014 2015e 2016e

0.39

As a developing nation, India has a huge potential for copper consumption

18DOMESTIC MARKET SHARE

Market Share‐LE FY'15

32%33% Birla Copper 

Sterlite

Hindustan Copper

31%

3%1% TDT

Imports 

19Our Pledge• We are committed to working with our stakeholders to

realize social, environmental and economic benefitsfor the communities around the worldfor the communities around the world.

• We achieve this by using our technological skills inproduct design and innovation as well as through long‐p g g gterm partnerships to integrate sustainability into allaspects of our business

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Thank You