The Aluminium industry comes under Basic Material group. It’s a commodity type industry.

Industry Strengths

Very strong and growing domestic demand
Hugh and growing requirement for housing and office space
Very high demand from organized retail
Domestically available raw material

Industry Weakness

Energy intensive, hence impacted negatively by high prices of coal and crude
Shortage of power
Volatile prices of raw material such as alumina and bauxite
Negatively impacted by environmental regulation
Uncertain government policies for mining rights, royalty etc.

Growth Drivers

Economic growth which leads to increasing number of automobiles, factories, offices etc.
Growing population and rise in disposable income
Growth in user industries such as automobile and construction

Hindalco is one of the largest aluminium producers in India with 0.5mtpa of upstream aluminium facility/capacity and backward linkage in alumina (1.5mtpa) and bauxite (reserves of 65mn tonnes).

It also operates India’s largest copper smelter with a capacity of 500,000 tonnes at Dahej with a captive power plant, jetty, and ~15% backward linkage in copper concentrate through Aditya Birla Mineral (a 51% subsidiary).

Hindalco acquired Novelis, a 3.0mtpa aluminium rolled-products producer; Novelis has 33 operating plants and 3 research facilities in 11 countries, across 4 continents.

Segments and Products

The Company's segments include

1.Aluminium, which includes hydrate and alumina,
2.aluminum and aluminum product, and
3.Copper

The Company's geographic segments include

1.India
2.Rest of the world.

The Company's products include

1.Aluminium Ingots/Rolled Products,
2.Copper Cathodes and
3.Concast Copper Rods.

The Company's aluminum downstream offerings include extrusions, flat-rolled products, foils, wire rods and billets.

Copper which includes continuous cast copper rods, copper cathode, sulfuric acid, di-ammonium phosphate (DAP) and complexes, and gold and silver products.

The Company offers its services to various industries, such as automotive and transport, building and construction, industrial applications, pharmaceuticals and packaging, and white goods.

The Company's brands include Hindalco extrusions, Maxloader, Eternia, Everlast, Freshwrapp, Superwrap and Birla Balwan.