Hindalco Industries Ltd, India''s premier private sector aluminium
company, and a part of the A V Birla group, will focus on
controlling costs, and concentrate on the downstream
segment. Meanwhile, sales and profitability are rising.
Hindalco aims to control costs through various means.
First, it will exploit its access to high quality and low cost bauxite reserves and the
capacity to generate power captively. It has created joint ventures for the uninterrupted
supply of caustic soda and aluminium fluoride, two other raw materials used in the
production of aluminium, apart from bauxite.
In the next few years, Hindalco will increase the
contribution of downstream products in its overall turnover. This is expected to improve
margins since the company will achieve greater value addition in its production process.
The company has commissioned an aluminium foil plant in Silvassa and expects to begin
production of aluminium alloy wheels in the first quarter of 2000.
Hindalco claims to have achieved a 44 per cent share of
the Indian primary aluminium market in the year ended 31 March 1999. Sales volumes rose
16.5 per cent during the year.
During the first quarter of 1999-2000, the company made a
net profit of Rs.138 crore, which is 10 per cent higher than that made in the year-earlier
period. Sales aggregated Rs.478 crore, rising 14 per cent, while exports almost doubled to
In July, the company decided not to go ahead with its
Rs.10,000 crore Aditya Aluminium greenfield project.
The company hopes to achieve good performance in
1999-2000. It expects that the Asian economies will emerge from their recession and help
revive the demand for aluminium. Aluminium prices have been rising on the London Metal
Exchange in the current year.
Hindalco owns bauxite mines, an alumina refinery,
generates its own power and does its own
smelting and downstream activities. The company is
already one of the lowest cost aluminium manufacturers
in the world.
Its integrated aluminium complex has ISO 14001
also see : Financial results: