MIRA INFORM REPORT
|
Report
Date : |
14th
June, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
HINDALCO INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
Foil
and Packaging Business, Kalwa Works,
thane Belapur Road, Near Vitawa Village, Kalwa, Thane-400605, Maharashtra |
|
|
|
|
Country
: |
India |
|
|
|
|
Financials
: |
31.03.2005 |
|
|
|
|
Date
of Incorporation : |
15th December, 1958 |
|
|
|
|
Com.
Reg. No.: |
11-11238 |
|
|
|
|
CIN
No.: [Company Identification No.] |
L27020MH1958PLCO11238 |
|
|
|
|
Legal
Form : |
Public
Limited Liability Company. The
company’s shares are listed on the Stock Exchanges |
|
|
|
|
Line
of Business : |
Manufacturing
and selling of aluminium metal, rolled
products, extruded products, conductor redraw rods, Aluminium foil, hot and cold rolled flat
steel products and Generation of
electricity. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
Maximum
Credit Limit : |
USD
300000000 |
|
|
|
|
Status
: |
Good |
|
|
|
|
Payment
Behaviour : |
Regular |
|
|
|
|
Litigation
: |
Clear |
|
|
|
|
Comments
: |
Subject
is a part of Aditya Birla Group, a well-established and reputed company
having fine track. Available information indicates high financial
responsibility of the company. Trade
relations are reported as fair.
Payments are always correct and as per commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Foil
and Packaging Business, Kalwa Works,
thane Belapur Road, Near Vitawa Village, Kalwa, Thane-400605, Maharashtra,
India |
|
Tel.
No.: |
91-22-25347151 |
|
|
|
|
Head Office : |
Century Bhavan, 3rd Floor, Dr. Annie Besant
Road, Worli, Mumbai – 400 025, Maharashtra, INDIA |
|
Tel.
No.: |
91-22-2430
8491 / 92 / 93 |
|
Fax
No.: |
91-22-2422
7586 / 2436 2516 |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Principal
office & Works: |
District
Sonbhadra, P. O. Renukoot – 231 217, Mirzapur, Uttar Pradesh, INDIA |
|
Tel.
No.: |
91-5446-252077-9 |
|
Fax
No.: |
91-5446-252107
/ 252427 |
|
E-Mail
: |
|
|
|
|
|
Birla
Copper Division: |
P. O.
Dahej, Lakhigam, Dist. Bharuch - 392130, Gujarat |
|
Tel.
No.: |
91-2641-256004-06/251009 |
|
Fax
No.: |
91-2641-251002-3 |
|
E-Mail
: |
|
|
|
|
Renusagar Power Division:
|
P. O.
Renusagar, District Sonbhadra, Uttar Pradesh, INDIA |
|
Tel.
No.: |
91-5446-272501-5 |
|
Fax
No.: |
91-5446-272382 |
|
|
|
Foil & Wheels Division:
|
Village
Khutli, Khanvel, Silvassa – 396 230, Union Territory of Dadara & Nagar
Haveli, INDIA |
|
Tel.
No.: |
91-260-2677021-4 |
|
Fax
No.: |
91-260-2677025 |
|
|
|
|
Export
Office: |
9/1, R.
N. Mukherjee Road, Kolkata - 700 001, West Bengal |
|
Tel.
No.: |
91-33-22480949
/ 22200464 |
|
Fax
No.: |
91-33-22200214 |
|
Email: |
DIRECTORS
|
Name : |
Mr. Kumar Mangalam Birla |
|
Designation
: |
Chairman |
|
|
|
|
Name : |
Mrs. Rajashree Birla |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. T. K. Sethi |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. C. M. Maniar |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. E. B. Desai |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. S. S. Kothari |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. K. N. Bhandari |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. M. M. Bhagat |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. A. K. Agarwala |
|
Designation
: |
Whole Time Director |
|
|
|
|
Name : |
Mr. D. Bhattacharya |
|
Designation
: |
Additional Director |
|
Mr. Anil
Malik |
Company Secretary, Joint President (Company
Matters, Taxation & Treasury) |
|
Mr. R. K.
Kasliwal |
Executive President (Finance & Commerce) |
|
Mr. S. K.
Tiwari |
Chief Officer (Manufacturing) |
|
Ms. N.
Chainani |
Executive President (Corporate Affairs and
Development) |
|
Mr. S. K.
Maudgal |
Executive President (Marketing) & Chief
Executive Officer ( Foil & Wheel) |
|
Mr. R. P.
Shah |
Joint President (Alumina Plant) |
|
Mr. Ajey
Srivastava |
Joint President (Operation & Planning) |
|
Mr. P.K.
Panda |
Joint President (H. R.) |
|
Mr.
Ramesh Kumar |
Senior Vice-president (Marketing-Extrusions) |
|
Mr. A. K.
Karmakar |
Senior Vice-President (Boiler &
Co-generation) |
|
Mr. R. P.
Tiwari |
Senior Vice-President (Projects) |
|
Mr. S. N.
Sharma |
Senior Vice –President (Finance & Accounts) |
|
Mr. S. C.
Tandon |
Senior Vice-President (Port Room Operation) |
|
Mr. K. K.
Patodia |
Senior Vice- President (Raw Material) |
|
Mr. O. P.
Sharma |
Vice-President (Alumina Mech. Maintenance) |
|
Mr. R.
Haridas Menon |
Vice-President (Marketing – Primary Metal) |
|
Mr. I. C.
Rao |
Vice President (Marketing – Rolled Products) |
|
Mr.
Sanjeev Goel |
Vice President (Information Technology) |
|
Mr. N. K.
Zalani |
Vice President
( Industrial Engineer) |
MAJOR SHAREHOLDERS
Category |
No. of shares |
% of shareholding |
|
|
|
|
|
Indian
Promoters |
24,068,057 |
25.90% |
|
Mutual
Funds and UTI |
5,718,264 |
6.20% |
|
Banks,
Financial Institutions and Insurance
Companies |
10,097,594 |
10.90% |
|
FIIs |
21,091,621 |
22.70% |
|
Corporates |
2,343,062 |
2.50% |
|
Individuals
|
9,542,543 |
10.30% |
|
NRIs/OCBs |
3,999,270 |
4.30% |
GDRs
|
15,914,386 |
17.20% |
|
Total |
92,774,797 |
100.00% |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing
and selling of aluminium metal, rolled products,
extruded products, conductor redraw rods, Aluminium
foil, hot and cold rolled flat steel products and Generation of electricity. |
|
|
|
|
Exports
to : |
Bangladesh,
North America, Europe, Africa, Asia, Korea, Nepal, Singapore, Taiwan and UAE. |
|
|
|
|
Imports
from : |
Australia,
Belgium, France, Japan, Netherlands, Singapore, Spain, UK and USA. |
PRODUCTION STATUS
The
company's production status as on 31st March, 2005 was as under:
Class of goods |
Licensed / Registered Capacity |
Installed Capacity |
Actual Production |
|
|
Tonnes |
Tonnes |
Tonnes |
|
Aluminium
Metal |
375000 |
455000 |
409068 |
|
Rolled
Products |
128000 |
170000 |
175734 |
|
Extruded
Products |
31000 |
21700 |
28551 |
|
Conductor
Redraw Rods |
125000 |
50000 |
62392 |
|
Aluminium
Foil |
10000 |
11000 |
26177 |
|
Aluminium
Wheel |
1200000 Pcs. |
300000 Pcs. |
107279 Pcs. |
|
Hydrate
& Alumina |
NA |
1145000 |
1159664 |
|
Electricity |
741.77 MW |
809.2 MW |
6468 MU |
|
Electricity
(Co-generation) |
152.8 MW |
145.4 MW |
878 MU |
|
Continuous
Cast Copper Rods (CCR) |
120000 |
97200 |
88298 |
|
Copper
Cathodes |
250000 |
250000 |
128923 |
|
Phosphoric
Acid |
180000 |
180000 |
-- |
|
Sulphuric
Acid |
915000 |
735000 |
261882 |
|
DAP &
Complexes |
400000 |
400000 |
286264 |
|
Gold |
7.5 |
7.5 |
5.156 |
|
Silver |
75 |
75 |
36.595 |
GENERAL INFORMATION
|
No. of
Employees : |
12000 |
||||||||||||||||||||||
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|
||||||||||||||||||||||
|
Bankers
: |
˛
UCO
Bank, Mumbai ˛
State
bank of India, Mumbai ˛
Allahabad
Bank, Mumbai ˛
American
Express Bank Limited, Mumbai ˛
Bank
of America, Mumbai ˛
Citibank
N. A., Mumbai ˛
Standard
Chartered Grindlays Bank Plc, 19, N. S. Road, Kolkata, West Bengal Tel. No. 91-33-22220103 ˛
ABN
Amro Bank N.V., Mumbai ˛
Union
Bank of India, Mumbai ˛
IDBI
Bank Limited, Mumbai ˛
HongKong
& Shanghai Banking Corporation Limited |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors
: |
˛
Singhi
& Company Chartered Accountants Kolkata, West Bengal Cost Auditors
˛
R
Nanabhoy & Company Cost Accountants Mumbai, Maharashtra, India |
|
|
|
|
Associates
: |
˛
Grasim
Industries Limited ˛
Indian
Rayon & Industries Limited ˛
Indo
Gulf Fertilisers & Chemicals Corporation Limited ˛
Indo
Gulf Corporation Limited ˛
Mangalore
Refinery & Petrochemicals Limited ˛
Birla
Power Supply Company Limited ˛
Birla
Project Development Company Limited ˛
Bihar
Caustic & Chemicals Limited ˛
Birla
Sun-Life Joint Ventures ˛
Birla
Global Finance ˛
Bina
Power Supply Company Limited ˛
Rosa
Power Supply Company Limited ˛
HGI
Industries Limited ˛
Eastern
Spinning Mills Limited ˛
Shree
Digvijay Cement Limited ˛
Kerala
Spinners Limited ˛
Essel
Mining ˛
Tanfac
Industries Limited ˛
Birla
AT & T Communications Limited ˛
Birla
Global Finance Limited ˛
Birla
Maroochydore Pty Limited ˛
Birla
Minerals Resources Pty Limited ˛
Birla
Capital International AMC Limited ˛
Birla
Management Corporation Limited ˛
Birla
Telecom Limited ˛
Rajashree
Polyfil ˛
Thai
Rayon, Thailand ˛
Indo
Thai Synthetics, Thailand ˛
Century
Textiles, Thailand ˛
Thai
Acrylic Fibre, Thailand ˛
Thai
Carbon Black, Thailand ˛
Thai
Polyphosphates, Thailand ˛
Thai
Epoxy, Thailand ˛
Thai
Peroxide, Thailand ˛
Thai
Organic Chemicals, Thailand ˛
Indo
Phil Textile Mills, Philippines ˛
P T
Indo Bharat Rayon, Indonesia ˛
P T
Elegant Textile Industry, Indonesia ˛
PT
Indo Liberty Textiles, Indonesia ˛
Pan
Century Edible Oils, Malaysia ˛
Pan
Century Rubber Products, Malaysia ˛
Pan
Century Oleochemicals, Malaysia ˛
Alexandria
Carbon Black, Egypt ˛
AV
Cell Inc., Canada ˛
Learning
Byte International, USA ˛
Grasim
- Dubai, UAE ˛
LNG
Ennore Project ˛
Lucknow
Finance Company Limited Subsidiaries: ˛
Minerals
& Minerals Limited ˛
Renukeshwar
Investments & Finance Limited ˛
Renuka
Investments & Finance Limited ˛
Indian
Aluminium Company Limited ˛
Indal
Exports Limited ˛
Annapurna
Foils Limited ˛
Dahej
Harbour and Infrastructure Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
145,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 1450.000 millions |
|
500,000 |
14% Free of Company’s tax but subject to deduction of
taxes at source at the prescribed rates, Redeemable Cumulative Preference
shares |
Rs. 100/- each |
Rs. 50.000 millions |
|
|
Total |
|
Rs. 1500.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
92,780,847 |
Equity Shares |
Rs.
10/- each |
Rs. 927.810 millions |
|
Less: |
Face value of Shares Forfeited |
|
Rs. 0.060 million |
|
|
|
|
Rs. 927.750millions |
|
Add: |
Forfeited Shares Account
(Amount paid –up) |
|
Rs. 0.030 millions |
|
|
|
|
Rs. 927.780 millions |
|
|
Calls
in Arrears |
|
Rs. 0.010 million |
|
|
TOTAL |
|
Rs. 927.770 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
927.770 |
924.770 |
924.640 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves
& Surplus |
75738.010 |
67654.230 |
60986.280 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
76665.780 |
68579.000 |
61910.920 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
29523.380 |
17259.350 |
20492.700 |
|
|
2]
Unsecured Loans |
8476.590 |
8386.550 |
3457.480 |
|
TOTAL
BORROWING
|
37999.970 |
25645.900 |
23950.180 |
|
|
DEFERRED
TAX LIABILITIES |
11296.980 |
9951.350 |
8490.350 |
|
|
|
|
|
|
|
TOTAL
|
125962.730 |
104176.250 |
94351.450 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
56035.290 |
47402.150 |
40609.890 |
|
Capital work-in-progress
|
13229.810 |
4676.660 |
8024.140 |
|
|
|
|
|
|
|
INVESTMENT
|
37021.450 |
33772.050 |
26484.200 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
23745.180
|
11913.430 |
10022.220 |
|
|
Sundry Debtors
|
7873.670
|
5611.130 |
5607.410 |
|
|
Cash & Bank Balances
|
4009.690
|
2313.780 |
3031.420 |
|
|
Other Current Assets
|
422.220
|
0.000 |
0.000 |
|
|
Loans & Advances
|
8713.490
|
9245.010 |
9112.460 |
Total Current Assets
|
44764.250 |
29083.350 |
27773.510 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
16782.950
|
8966.110 |
7065.790 |
|
|
Provisions
|
8398.980
|
1791.850 |
1474.500 |
Total Current Liabilities
|
25181.930 |
10757.960 |
8540.290 |
|
Net
Current Assets
|
19582.320 |
18325.390 |
19233.220 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
93.860 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
125962.730 |
104176.250 |
94351.450 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
97932.960 |
65529.630 |
52321.720 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
19041.830 |
12456.690 |
8993.920 |
Provision for Taxation
|
5748.260 |
4067.400 |
2520.000 |
Profit/(Loss) After Tax
|
13293.570 |
8389.290 |
6473.920 |
|
|
|
|
|
Export Value
|
26051.710 |
12950.970 |
10282.640 |
|
|
|
|
|
Import Value
|
38469.350 |
24177.960 |
21603.480 |
|
|
|
|
|
Total Expenditure
|
78800.100 |
53072.940 |
41694.680 |
SUMMARISED
RESULTS
|
Particulars |
|
|
31.03.2006 Full Year |
|
|
|
|
|
|
Sales Turnover |
|
|
113965.000 |
|
Other Income |
|
|
2469.000 |
|
Total Income |
|
|
116434.000 |
|
Total Expenditure |
|
|
87914.000 |
|
Operating Profit |
|
|
28520.000 |
|
Interest |
|
|
2252.000 |
|
Gross Profit |
|
|
26268.000 |
|
Depreciation |
|
|
5211.000 |
|
Tax |
|
|
3342.000 |
|
Reported PAT |
|
|
16555.000 |
|
Dividend (%) |
|
|
220.000 |
KEY
RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt Equity Ratio |
0.44 |
0.38 |
0.31 |
|
Long Term Debt Equity Ratio |
0.42 |
0.28 |
0.29 |
|
Current Ratio |
1.24 |
1.12 |
1.64 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.33 |
1.07 |
1.03 |
|
Inventory |
5.77 |
5.98 |
7.65 |
|
Debtors |
15.27 |
11.70 |
12.65 |
|
Interest Cover Ratio |
12.20 |
8.71 |
9.37 |
|
Operating Profit Margin (%) |
24.65 |
26.28 |
26.34 |
|
Profit Before Interest and Tax Margin (%) |
20.15 |
21.44 |
21.33 |
|
Cash Profit Margin (%) |
17.41 |
17.62 |
17.34 |
|
Adjusted Net Profit Margin (%) |
12.91 |
12.78 |
12.33 |
|
Return on Capital Employed (%) |
19.87 |
15.63 |
15.94 |
|
Return on Net Worth (%) |
18.31 |
12.86 |
12.08 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. 137.85 |
|
Low |
Rs. 135.25 |
LOCAL AGENCY FURTHER INFORMATION
History:
The company
was incorporated on 15th December 1958 at Mumbai in Maharashtra
having Company Registration Number 11238.
Indal’s
strength in alumina and downstream products would ideally dovetail with
Hindalco’s strong presence in metal. It
is also among the world’s lowest cost aluminium producers. Company has recently acquired from Alcan Aluminium
around 38.84 millions shares of Indian Aluminium Company.
The critical
factor for the company’s cost advantage is its strategic control over key
inputs, which include: Access to good quality and low cost bauxite reserves.
Captive power generation to meet most of company’s power needs, Alumina and
smelting facilities Downstream production plants that span several products
Strategic joint venture companies to ensure uninterrupted supply of other key
inputs –caustic soda and aluminium fluoride.
To continue
to deliver superior value to its shareholders in the future and as part of its
growth strategy, the company had embarked on a brownfield expansion in
Renukoot. It has enhanced the copper smelter capacity by 100000 TPA and the
albumin refining capacity by 210000 TPA. A matching increase in the captive
power generating capacity is also on the anvil. The project is being
implemented at a cost of Rs. 18000 billion. Its first phase was completed, when
the 9th pot line with an installed capacity of 33000 TPA was
commissioned in September 2001. The 10th Pot line and 11th
Potline marks the milestone of the company's brownfield expansion. In 2002-03 the capacity of Albumin, Metal
Production was enhanced by 35000 tonnes and 220, 000 tonnes respectively. By
enhancing, the smelter capacity is now pegged at 310000 TPA, Albumin at 660000
TPA. The total power generation is now increased to 699 MW. The expanded
capacities of the Smelter, Albumin Refinery and Power plant will be fully
operational in current financial year.
The project
Rocket-2k was implemented successfully, aimed at improving through increase in
thru-put, better efficiencies and productivity as well as reduced cost and the
annualised savings is estimated at around Rs. 400-500 millions over a two year
periods.
Further,
the company is evaluating an integrated information technology solution. Its
major objective is : to integrate operations, ensure real time date
reliability, speedier decision, enhanced supply chain management and customer
relationship. This initiative will result in significant gains to the company.
The company
will be able to further consolidate its leadership in the domestic market and
also cater to a far greater extent to customers in the global market.
The project
Rocket-2K was implemented successfully, aimed at improving profitability
through increase in throughout better efficiencies and productivity as well as
reduced cost and the annualised savings is estimated at around Rs. 400-500
millions over a two-year period.
The company
is recently entered the Rs. 2500.000 millions branded foils market under the
“Hindalco Wrap” brand name. The company wants to address a category in the FMCG
sector. Launched in 54 cities across
the country, Hindalco Wrap is currently available at most retail outlets in a
unique dispenser pack at Rs. 42 for a nine-metre roll. The company also plans
to enter the aluminium-based kitchen utility products market in a big way.
Business:
The company
is engaged in manufacturing and selling of aluminium metal, rolled products,
extruded products, conductor redraw rods, aluminium foil, hot and cold rolled
flat steel products and generation of electricity.
The company
is one of the promoter members of Birla Management Corporation Limited (BMCL),
a company limited by guarantee which has been formed to provide a common pool
of facilities and resources to its members, with a view to optimize the
benefits of specialisation and minimise cost for each member. The company has participated in the common
pool and has shared the expenses incurred by BMCL and accounted these under
appropriate heads.
It was yet another landmark year for the Company as
aggregate revenues and net profits reached a new high of Rs.95,233 million and
Rs.13,294 million respectively. The results reflect an impressive growth, even
if adjusted for the impact of the business units, demerged from Indal, our
subsidiary, during the year.
The Company has delivered a commendable
performance amidst significant challenges. Though a rise in LME prices
benefited, both aluminium and copper businesses suffered on account of a steep
cut in import tariff, appreciation in the value of Indian Rupee against the US
Dollar, high energy and caustic prices. Being a custom copper smelter, the
company gained little from the steep rise in LME price. The business bore the
brunt of a heavy reduction in export incentives and a 10% cut in import tariff
effected through the two budgets. The dramatic recovery in the Treatment
Charges and Refining Charges (Tc/Rc) did not have any significant positive
impact on profitability as most of the long term contracts for FY05 were
negotiated towards the end of CY2004.
Generic
Names of the Principal Products / Services of Company are as under:
|
Item Code No. (ITC Code) |
Product Description |
|
7601 |
Aluminium Ingots |
|
7606 |
Aluminium Rolled Products |
|
7605 |
Aluminium Redraw Rods |
|
740311 |
Copper Cathodes |
|
740710 |
Continuous Cast Copper Rods |
The
company's foil and an aluminium alloy wheel plant at Silvassa, which has helped
the company to optimise capacity, and enhance the share of value-added
semi-fabricated products.
Awards & recognition
v
Subject
was adjudged the worldwide Runner-up for the "Millenium Business Award for
Environmental Achievement" under the auspices of the United Nations
Environment Programme.
v
Subject
has been categorised as a Star Trading House by the Government of India. It is also the recipient of EEPCs Award for
Export Excellence for exports during 1998-99 as well as a Special Award from
CAPEXIL exports during 1999-2000.
v
The
prestigious International Aluminium Institute has selected the company's Alumina
Refinery as "Joint Best Running Refinery for 1999".
v
The
company's mines also bagged several awards instituted for exemplary work
accomplished in Reclamation & Rehabilitation, Afforestation, Top Soil
Management and Water Quality Management.
v
The
company is a Government Recognised Trading House and has received several
awards from Export Promotion Councils as well as the Government of India.
v
The
company had been recognised through the Ministry of Power, Government of India,
conferring upon its Aluminium division the National Award for Energy
Conservation.
v
The
company's aluminium division also bagged the "Yogayata Praman Patra"
- for its safety record from the National Safety Council of India.
v
The
Aluminium division of the company was honoured by FICCI-SEDF with the
"Social Responsiveness Award". In addition it was the proud recipient
of FICCI award 2001-02 for excellent work in Family Welfare.
It is in trade terms with:
Ř
Air
Control & Chemical Engineering Company Limited
Ř
Alba
Security Systems Private Limited
Ř
Brassomatic
Private Limited
Ř
BVM
Compresor Spares Syndicate
Ř
Grip
Engineers Private Limited
Ř
Webb
India Private Limited
It has technical and financial collaboration with Kaiser
Engineering Corporation, USA.
The company has joint venture with Bihar Caustic and Tanfac
Industries Limited.
The company
has been accredited with ISO 14000 and ISO 9002 certification.
The
company’s fixed assets of important value include Mining Rights, Land &
Site Development, Buildings (Factory & Non-Factory), Plant, Machinery &
Equipment, Aerial Ropeways, Construction & Mobile Equipments, Vehicles
& Aircraft, Railways Sidings, Furniture, Fixtures, Air-conditioners, Office
Equipments, Computers, Fire Fighting Equipments, Live Stock and Roads &
Drainage.
Memberships:
˛ Confederation of Indian Industry
Press
Release:
BHEL bags Rs 80-cr order from Hindalco
Our
Bureau
NEW
DELHI, Sept. 5
BHARAT
Heavy Electricals Ltd (BHEL), the premier power equipment major, has bagged a
contract from Hindalco Industries Ltd for the manufacture and supply of an
environment-friendly cogeneration plant. The 41-MW plant is to be set up by
BHEL for meeting the captive power and steam requirements of Hindalco.
Valued
at nearly Rs 800 millions, Hindalco
has placed this repeat order on BHEL to enhance the capacity of its captive
cogeneration power plant at Renukoot in Sonebhadra district of Uttar Pradesh.
The project is to be commissioned by BHEL within a tight schedule of 20 months.
According
to a BHEL press release here, the company had supplied and commissioned
generating equipment for the existing 37-MW cogeneration power plant at the
same complex. The plant has been in commercial operation for the last five
years.
14 April 2005
Prime Minister, Dr.
Manmohan Singh, inaugurates Eternal Gandhi multimedia museum at Gandhi Smriti
Indian Prime Minister Dr.
Manmohan Singh today inaugurated the innovative Eternal Gandhi multimedia
Exhibition at Gandhi Smriti on Tees January Marg, New Delhi.
The exhibition sprawling
over 8000 sq. ft., has been put up by the Aditya Birla Group as a tribute to
the humanitarian values that the Mahatma epitomized, and to help percolate
these to the young across the nation.
Addressing the
distinguished gathering among whom were Mr. Jaipal Reddy, Minister of Culture,
Information & Broadcasting; Mrs Shiela Dixit, Chief Minister of Delhi; Mrs
Rajashree Birla and Dr. Kumar Mangalam Birla, the Prime Minister appreciated
this initiative to take the message of the Mahatma in such a novel manner. He
believed that an exhibition of this kind would stoke an even greater interest
in the Father of the Nation, not only in India but globally.
The exhibition opens under
the aegis of the Gandhi Smriti and Darshan Samiti, of which the Prime Minister
is the Chairman.
Dr. Savita Singh, Director,
Gandhi Smriti and Darshan Samiti, remarked, "The idea to do something for
propagating Gandhian thoughts and values, and the teachings of the Mahatma, is
not new for Gandhi Smriti and Darshan Samiti. We have been deliberating amongst
ourselves and from time-to-time several steps have been taken and several
thoughts have been pondered over. This eternal journey towards project Shashwat
Gandhi has been one such historical moment when an idea came in the form of
Smt. Rajashreeji Birla and her team from the Aditya Birla Group - to contribute
to the never-ending journey of the Mahatma. Its culmination is this Eternal
Gandhi multimedia exposition."
Mrs Rajashree Birla,
Director, Aditya Birla Group, who has spearheaded this initiative, says that
the exhibition, the brainchild of Dr. Kumar Mangalam Birla, was conceived to
"pay homage to the Father of the Nation at one level. At another level,
for quite some time, all of us in the Birla family, who have been deeply
influenced by the humane values that Gandhiji and Shri G D Birla espoused, felt
a compelling need to present these in a contemporary fashion to the youth and
the children of today. To give them a sense of history, to help them realize at
what cost we won our freedom, to give them a feel of our leaders, of our nation
in its making - we believe is worthwhile. Most importantly, to take the message
of shanty - peace, of satya - truth, of ahimsa - nonviolence, ekta - the
universality of mankind, in today's day and age".
"To rediscover these
truths that the Mahatma lived by, we thought we should take them as voyagers on
an energizing and revealing journey that could touch them in a sublimal way -
and embed his life's message in their psyche. This has been our endeavour. To
do so, we have created a technological marvel, admirably conceptualized and
executed by Mr. Ranjit Makkuni, a renowned computer and multimedia
expert," remarked Mrs Birla.
The entire walk through the
exhibition serves as a stimulus, even a resurgence into Gandhism and is
undeniably a serendipitous experience. It can be a guiding light for this
generation and for all generations to come, given its potential to ignite the
minds of the young and spark in them an unquenchable thirst for truth, for
values, for compassion, avers Mrs Birla.
Mr. Ranjit Makkuni, the
Project Director, informed that the Eternal Gandhi Multimedia Exhibition is one
of the world's first digital multimedia exhibitions made possible through the
commitment of the Aditya Birla Group and the government to propogate Gandhism.
"The project presents
a language of physical interface actions derived from classical symbols of the
spinning wheel, turning of the prayer wheels, touching symbolic pillars, the
act of hands touching sacred objects, collaboratively constructed quilts,
sacred chanting in the collective group, the satsanga and the touching and
rotating of prayer beads. These tradition-based interactions inspire a rich
panorama of tactile interfaces that allow people to access the multimedia
imagery and multidimensional mind of Gandhiji," said Mr. Makunni.
The technology developed
does not 'merely scan' Gandhian images. It extrapolates Gandhian ideals to
newer domains of information technology and product design, and at higher
levels, the creation of meaning in a globalised world. For example, the
Gandhian commitment to hand-based production and its symbiotic relationship
with nature is interpreted in the context of modern culture-conscious design,
commented Mr. Makkuni.
The contributions of the
spectrum of artists, spanning wide geographic boundaries and disciplines,
illustrate the universal resonance in Gandhian messages. Computer scientists,
modern designers, mosaic makers, craftsmen, artists and wood carvers offer
their work as a dedicated prayer, in remembrance of the Gandhian vision; a
collective Likita Japa, the endless remembrance of the Divine through
repetition of the written mantra. Each object in the exhibition, whether a
pixel of light, a bit-map on the screen, an animation, a circuit or a
handcrafted object, is a living prayer. Here lies the reaffirmation of the
Gandhian view, a commitment to the dignity of hands, the healing of divides,
the leveraging of village creativity and cultural diversity in the face of
homogenization, concluded Mrs Birla.
The exhibition is now open to the public who can visit between 10.00 am. and
5.00 pm. on all days barring Monday.
Aditya Birla Group to
set up a world-class aluminium project in Orissa
Hindalco Industries
Limited, the Aditya Birla Group's flagship company, today entered into a Memorandum
of Understanding (MoU) with the government of Orissa to set up a world-class
aluminium complex in Orissa.
This integrated aluminium
project will comprise an alumina refinery of one million metric tonnes per
annum, an aluminium smelter plant of 2,60,000 tonnes per annum, a captive power
plant of 650 MW and bauxite mines of three million tonnes annual capacity, at a
project cost of about Rs.11,0000 millions.
Dr. Kumar Mangalam Birla,
Chairman of the Aditya Birla Group and the Honourable Chief Minister of Orissa,
Shri Naveen Patnaik, were present at the signing ceremony in Bhubaneswar. Dr.
Birla said that this MoU with the government of Orissa marks a key milestone,
creating a very strong global growth platform for the company's aluminium
business. This project also positions Orissa on the world map in the metals
sector.
He expressed his deep
appreciation to the entire Orissa government apparatus, which, under the
visionary leadership of the Honourable Chief Minister, Shri Patnaik, helped
facilitate the project.
29 January 2005
Hindalco posts robust Q3
FY05 performance
|
Turnover |
Rs. 2,044.9 crore |
|
|
PBDIT |
Rs. 531.7 crore |
|
|
PAT |
Rs. 264.9 crore |
|
23.0%
Financial highlights
|
|
Quarter ended 31 December 2004 |
Quarter ended 31 December 2003 |
% |
Nine months ended 31 December 2004 |
Nine months ended 31 December 2003 |
% |
|
Net sales |
2,044.9 |
1,662.8 |
23.0% |
5,766.1 |
4303.5 |
34.0% |
|
PBIDT |
531.7 |
415.8 |
27.9% |
1,494.7 |
1,273.8 |
17.3% |
|
Interest & financing charges |
41.4 |
37.2 |
11.3% |
121.0 |
124.5 |
(2.8%) |
|
Depreciation |
89.8 |
80.5 |
11.5% |
265.7 |
230.0 |
15.5% |
|
Profit before taxe (PBT) |
400.5 |
298.1 |
34.4% |
1,108.0 |
919.3 |
20.5% |
|
Provision for taxes |
135.6 |
102.1 |
32.8% |
377.6 |
302.6 |
24.8% |
|
PAT before extraordinaries |
264.9 |
196.0 |
35.1% |
730.4 |
616.7 |
18.4% |
|
Def tax for earlier years |
- |
- |
- |
19.9 |
- |
- |
|
Net profit |
264.9 |
196.0 |
35.1% |
710.5 |
616.7 |
15.2% |
|
E.P.S. - annualised (Rs) |
114.6 |
84.8 |
35.1% |
102.4 |
88.9 |
15.2% |
Q3 performance review
Hindalco Industries Limited (Hindalco), the flagship Company of the Aditya
Birla Group, has reported a robust performance for the third quarter ended
December 31, 2004.
The Company's turnover at
Rs. 2,0449 millions is up by 23 per cent, vis-ŕ-vis Rs. 16628 millions attained
in the comparable quarter of the previous year. Profit before Depreciation,
Interest and Taxes (PBDIT) has risen to Rs. 5317 millions compared to Rs. 4158
millions in the corresponding quarter of the previous year. Profit after taxes
at Rs. 2649 millions, has grown by 35 per cent as against Rs.1960 millions in
the earlier year.
On a segmental basis, the
aluminium business accounted for 44 per cent of net sales and 81 per cent of
Earnings before Interest and Taxes (EBIT), with the balance flowing in from the
copper business.
Of the Company's turnover
of Rs. 2,0449 millions, the aluminium business contributed Rs. 9017 millions,
mirroring an 18 per cent increase over Rs. 7612 millions in the corresponding
quarter of the last year. Higher volumes, improved realisations, a shift in the
market mix in favor of higher domestic sales and a continued thrust on value
added products have been its growth enablers.
In aluminium, realisations
improved substantially benefiting from higher international commodity prices
during the quarter. EBITDA margins at 44.2 per cent represent a significant
improvement when compared to 37.6 per cent reached in the corresponding quarter
of the previous year, despite higher cost of inputs like bauxite, caustic soda
and CP coke.
The copper business's net
sales at Rs. 1,1432 millions vis-ŕ-vis Rs. 9016 millions in the comparable
quarter of the previous year, reflect a 27 per cent rise, riding on the back of
higher international prices and modest volume growth of 3 per cent. However,
EBITDA margins fell from 11.0 per cent last year to 9.2 per cent in the current
quarter, as realisations fell, caused by a steep duty reduction of 10 per cent,
removal of export incentives, higher coal rates and other inputs.
12
July 2005
Hindalco poised for
greater growth in revenues and earnings
Addressing shareholders at
Hindalco's 46th AGM, Dr. Kumar Mangalam Birla said the long- term fundamentals
of both aluminium and copper are strong and promise exciting growth prospects
going forward.
Briefing them on the
company's performance in 2004-05, he characterised it as an eventful year for
the non-ferrous metals industry, and for Hindalco as well. Hindalco has posted
a splendid performance recording the highest ever net profit of Rs. 1,3290
millions and an excellent turnover of Rs. 9,5230 millions. Dr. Birla stated
that for this fiscal too, Hindalco's topline and bottomline growth would move
upwards.
Hindalco has declared a
dividend of Rs. 20 per share. The payout on this account — Rs. 2120 millions,
which is 16 per cent of net profit inclusive of the corporate dividend tax.
On the major developments
in Hindalco, Dr. Birla stated that the copper smelter capacity at Dahej has
been doubled from 250,000 tpa to 500,000 tpa. "Commissioning trials are
well ahead of schedule. Commercial production will roll on soon. Once
stabilised, this expansion will catapult Hindalco to the position of the
world's largest single location custom copper smelter and amongst the top ten
copper producers of the world. More importantly, it brings Hindalco closer to its
goal of being among the top 15 per cent of the globally cost-efficient copper
producers."
Spelling
out Hindalco's plans for moving forward, Dr. Birla stated that the company
would aggressively pursue both the organic and inorganic routes. Elaborating, he
said:
- The project to raise alumina capacity at
Hindalco's Muri plant from 110,000 tpa to 450,000 tpa is likely to be
commissioned by the third quarter of FY 2006.
- The proposal for capacity enhancement at Belgaum
from 350,000 tpa to 650,000 tpa is under evaluation.
- Significantly raising high value special alumina
capacity from its existing level of 91,000 tpa is on the cards.
- The Hirakud smelter metal capacity is being
enhanced from 65,000 tpa to 146,000 tpa, while power generation capacity
will increase from 67.5 MW to 317.5 MW in a phased manner.
- On the Utkal alumina project, Dr. Birla
confirmed that mining leases for bauxite reserves of over 195 million
tonnes are in place. The land for mining has been acquired. The site
development work has begun. The project is expected to gain further
momentum in the coming fiscal.
Moving over to the greenfield opportunities, he apprised
shareholders on the MoUs entered into with the Orissa government to set up a
world-class aluminium complex and the Jharkhand government for a greenfield
aluminium smelter in the state. The projects are subject to receiving the
necessary approvals, land and other infrastructural support from the respective
governments, he averred. "Once commissioned, these projects will position
Hindalco in the league of the top ten global players — marking a milestone in
our goal of making Hindalco a global non-ferrous metals powerhouse,"
commented Dr. Birla.
Highlighting Hindalco's roadmap for forging ahead, Dr. Birla
remarked that it is based on a multi-pronged strategy that rests on:
- Raising its cost competitiveness through further
efficiency improvements and optimal asset sweating.
- Leveraging the Hindalco-Indal combine in the market
place, riding on the complementary nature of their product capacities and
offerings, brand equity and customer reach.
- Exploring opportunities for value-added growth to take
advantage of the exciting long term potential in the country.
Likewise on the growth strategy in copper, the thrust is:
- Focus on attaining global cost competitiveness.
Doubling the smelter capacity to 500,000 tpa would help Hindalco reach
there.
- On strengthening presence in exports while retaining
its leadership in the domestic market. Capitalising on its coastal
advantages and captive jetty, the company intends entrenching further into
the profitable markets of South East Asia and the Middle East. The huge
demand-supply gap in the region, as well as improved availability of low
cost metal from the expanded capacity, will be exploited optimally.
- Acquiring new mines to secure concentrate supplies in a
tight market situation besides tapping the copper value chain optimally.
The company is optimistic about its future.
29 July 2005
Hindalco delivers
stellar Q1 FY06 performance
Click here to view the results
|
Turnover |
Rs. 2,2080 millions |
|
|
PBDIT |
Rs. 6380 millions |
|
|
Net profit |
Rs. 3250 millions |
|
|
EPS (for the quarter) |
Rs. 35 |
|
Financial highlights
|
(In Rs. millions) |
Quarter ended 30 June 2005 |
Quarter ended 30 June 2004 |
% |
|
Net sales & operating revenue |
2,2078 |
2,0616 |
7.1 |
|
PBIDT |
6380 |
5125 |
24.5 |
|
Interest & financing charges |
461 |
440 |
4.8 |
|
Depreciation |
1169 |
1057 |
10.6 |
|
Profit before tax (PBT) |
4750 |
3628 |
30.9 |
|
Provision for taxes |
1501 |
1272 |
18.0 |
|
Net profit |
3249 |
2356 |
37.9 |
Hindalco, the metals major
and a flagship company of the Aditya Birla Group, has posted a stellar
performance for the first quarter ended on 30 June 2005. The company's net
profit surged to Rs. 3249 millions from Rs. 2356 millions recording a 38 per
cent jump. Revenues, at Rs. 2,2078 millions, have moved up 7 per cent YOY from
Rs. 2,0616 millions. EBITDA margins improved significantly at 28.9 per cent
vis-ŕ-vis 24.9 per cent achieved in the same period during the previous fiscal.
The aluminium business accounted for Rs. 13406 millions of the total operating
revenues, marking a 15.5 per cent rise over the corresponding quarter. Higher
volumes, enriched product mix and better realisations helped by buoyancy in the
LME prices were the key growth enablers.
The copper business clocked revenues of Rs. 8677 millions vis-ŕ-vis Rs. 9033
millions reflecting a decline of 3.9 per cent, due to lower production volume
in the quarter on account of planned and preventive shutdowns.
The business, however, achieved better operating efficiencies and added 200
basis points to the EBITDA margins that increased to 9.4 per cent from 7.2 per
cent in the first quarter of the last year. This was accomplished inspite of a
tariff cut, reduction in export incentives and increased input and energy
costs.
Stock split
The company's board decided to sub-divide the face value of its equity shares
from Rs.10 per share to Rs.1 per share in its meeting held on 12 July 2005.
This is being done with the objective of encouraging more active retail
participation and to address the concerns of reduced liquidity and increased
volatility. The proposal will be carried out on shareholders' approval at the
extraordinary general meeting called for this purpose on 6 August 2005.
Expansion programmes
Expansions in aluminium
The company commissioned the 100 mw power unit at Hirakud, Orissa in April
2005. Subsequently, the output from the unit stabilised to full capacity in
June 2005.
Brownfield expansion in copper
In July 2005, the company's brownfield expansion, intended to raise its copper
smelter capacity from 250,000 tpa to 500,000 tpa, was commissioned. When fully
ramped up, it will position Birla Copper as the world's largest single location
custom smelter.
Operational review
Aluminium
Aluminium production rose considerably, driven by de-bottlenecking of the
expanded capacities at Renukoot and synergies from integrated Hindalco-Indal
operations.
- Alumina output grew by 15,032 mt and moved up to
300,055 mt. High value special alumina output increased 19.2 per cent from
26,982 mt to 32,168 mt.
- Metal production jumped by 10.4 per cent
reaching 106,081 mt from 96,095 mt.
- Wire rods output increased by 3.8 per cent from
16,008 mt to 16,614 mt in Q1 this year.
- Rolled products turnout of 47,110 mt shows an
impressive increase of 11.7 per cent over the 42,181 mt in the same period
during previous year.
- Extrusions production was higher by 7 per cent
at 7,627 mt vis-ŕ-vis 7,130 mt.
- Foils rollout at 6,084 mt declined by 6.7 per
cent from 6,523 mt.
- Alloy wheels turnout soared 62.6 per cent from
19,123 wheels to 31,087 wheels.
- Power generated at the company's captive power
plants surged 18.8 per cent YOY from 1,277 mu to 1,742 mu, aided by the
recently commissioned 100 mw power unit at Hirakud, Orissa.
Copper
Copper production suffered during the quarter due to
(i) planned maintenance shutdown of copper smelter for eight days.
(ii) an 18 day shutdown of the copper smelter II for refractory relining.
- Copper cathodes production stood at 42,714 mt vis-ŕ-vis
48,218 mt in the same quarter of the last year.
- The output of continuous cast copper rods was almost
flat at 20,331 mt as compared to 21,200 mt.
- Sulphuric acid production at 115,852 mt against 149,081
mt moved in line with the smelter output.
- The production of DAP and complexes stood at 65,838 mt
as compared to 67,844 mt in Q1 FY05.
- The output of gold registered a small increase of 2.2
per cent from 1,201 kg last year to 1,228 kg in the first quarter of the
current fiscal.
- Similarly, production of silver was slightly up from
8,024 kg to 8,031 kg in the current quarter.
The performance of the refractory in the converter of the
second smelter needs improvement, which will be taken up in the second quarter.
The heavy rainfall in the state of Gujarat during the first week of July
adversely impacted the copper plant. The plant and the neighbouring areas were
completely flooded and road transportation was cut off resulting in serious
dislocation in the movement of essential inputs and personnel. The plant
continued operation in a limited manner. These may affect performance in the
second quarter.
Outlook
The company believes that both aluminium and copper segments are poised for
growth.
Aluminium
Globally, aluminium demand is slated to grow at a stable rate of 4-5 per cent
this year. This would be fuelled by end-use specific demand across regions. The
centrepiece of this growth story is Asia, which is expected to grow at 8-9 per
cent for the year. Helped by increased semis production, China will remain the
biggest growth contributor, to be followed by the South East Asian markets,
which are forecast to grow by over 5 per cent in 2005.
World production is expected to adequately match the demand; however, regional
imbalances provide attractive opportunities. Aluminium supplies have continued
to lag behind the demand in Asia. The recent withdrawal of tax incentives by
the Chinese authorities on tolling of alumina is expected to reduce China's
export surplus significantly. The demand-supply gap in the region is thus
expected to widen to 4.3 million tonnes in 2005 and touch 5.7 million tonnes by
2009.
Reflecting the positive outlook for the sector, LME prices are forecast to
remain stable and move within the $1,700 to $1,900 band, over the next 12 to 18
months.
In so far as it relates to India, the growth prospects seem bright. The economy
is on an upswing; and the company expects end-use segments like housing,
construction, transportation and electrical sectors to provide the push.
Additionally, India is also emerging as a global hub for automobiles and auto
components manufacturing.
All these portend well for the business. The company expects the domestic
aluminium consumption to grow by 7 to 8 per cent in FY06.
Copper
In copper, continued demand from China and supply bottlenecks have helped
prices to remain strong. Metal shortage may hold high prices in the near term
before supply catches up in the next 6 to 12 months.
Tc/Rcs recovered smartly after hitting a new low in the first half of 2004.
However, spot Tc/Rcs have since retraced from their highs of around 50c/lb to
more sustainable levels of 27c/lb on the back of slowing mine output growth
coupled with increasing utilisation of refineries. We expect the Tc/Rcs to
sustain at reasonable levels of 20 to 30c/lb in the near to medium term
reflecting the demand-supply situation in the concentrate market.
The outlook for the domestic copper market is optimistic, with growth pegged at
4 to 5 per cent annually in the next few years. Signals from segments such as
winding wires, power cables and the transformer sector are very encouraging. On
a cautious note, non-value added imports from Sri Lanka under FTA continue to
pose a significant challenge for domestic copper producers.
With increasing volumes and better realisations in the aluminium business and
an improved outlook for the copper business in the second half as benefits of
the brownfield expansions set in, the future looks promising for Hindalco on
the whole.
Operational review
Aluminium
Production in aluminium has surged in the second quarter, as indicated:
- Metal production touched 89,568 mt vis-ŕ-vis 82,142 mt
in the corresponding period last year, reflecting a rise of 9 per cent.
- Redraw rods production at 14,722 mt is marginally lower
compared to the production of 15,087 mt in the comparable quarter last
year.
- Rolled product output of 24,545 mt increased by a
significant 35 per cent. In the comparable quarter of the previous year it
stood at 18,169 mt.
- Extruded products at 5,275 mt is up by 17 per cent from
4,510 mt last year.
- Production of foil at 5,331 mt reflects a 14 per cent
rise over 4,664 mt attained in the corresponding period last year.
- The output of alumina, a key input, was 175,494 mt, a
growth of 9 per cent over production of 161,487 mt in the comparable
period of the previous year.
- Power exported from the Company's Renusagar Power Plant
stood at 1,383 mu, a 5.6 per cent increase over 1,310 mu achieved in the
corresponding period last year
Copper
Production at the Company's copper plant has risen during the quarter as
indicated:
- Copper cathodes production moved upward by 8 per cent
from 50,301 mt to 54,120 mt.
- The output of value added continuous cast copper rods
is lower by 22 per cent to 20,691 mt vis-ŕ-vis 26,553 mt due to large
imports from Sri Lanka under the recently introduced FTA.
- Sulphuric acid production at 181,981 mt soared 36 per
cent over 134,082 mt. Consequently, the production of DAP and complex
fertilisers fell by 16 per cent from 81,015 mt to 67,874 mt.
- The output of gold dipped by 21 per cent from 2,033 kg
to 1,603 kg, because of the lower content of gold in the copper
concentrate.
- The production of silver is higher by 25 per cent to
10,084 kg vis-ŕ-vis 8,044 kg.
Brownfield
expansion in copper
The expansion project for doubling the copper smelter capacity at Dahej from
250,000 tpa to 500,000 tpa is progressing as scheduled and is slated for
completion by the end of 2005. On its completion, Birla Copper will be amongst
the top 10 globally cost efficient copper producers and the largest single
location smelter in the world.
Scheme of arrangement; Indal demerger
The Calcutta High Court and Bombay High Court have approved the scheme of
arrangement u/s. 391 to 394 of the Companies Act, 1956 (the scheme) on 23
December 2004 and 14th January 2005, respectively. This sanctions the transfer
by way of demerger of all the business undertakings (other than the aluminium
foil business at Kollur, Andhra Pradesh) of Indian Aluminium Company, Ltd.
(Indal) to Hindalco with effect from 1 April 2004. The scheme will become
effective upon requisite approvals and completion of certain legal formalities.
The Company expects the scheme to be effective by the end of this fiscal.
Fund
management
During the third quarter of the current fiscal, Hindalco raised Rs. 112.4 crore
for general corporate purposes. This was by way of external commercial
borrowing at an annualised rate of 5.74 per cent entailing bullet repayment at
the end of five years.
Outlook
The Company continues to believe in the strong long-term fundamentals for both
aluminium and copper. These throw up exciting growth opportunities in future.
The aluminium sector continues to perform well, with
worldwide consumption growth at 8.6 per cent in 2004. The Indian aluminium
market has grown by over 10 per cent in the first nine months of the financial
year and prospects in the electrical, building and transportation sectors look
good, indicating a second double digit growth year in a row for aluminium.
The worldwide consumption of copper grew at around 6.9 per
cent in 2004 on the back of economic growth in USA and strong Chinese demand.
Domestic consumption increased by 10 per cent as demand continued to be buoyant
from user segments such as winding wire, power cables and transformers
industry. An increased export of down stream products supported higher deemed
export sales. However, non-value added imports from Sri Lanka under FTA
continue to adversely impact the domestic sales of the Indian producers.
The premium on cathode has hardened and sustained period of
buoyant copper prices is being forecast.
With the existing mines producing more and the reopening of
small mines encouraged by strong copper prices and many smelters going for
their annual maintenance shut down during the first half of 2005, the TCRC
outlook appears to be positive.
The Company remains confident of reaping a rich harvest from
its three-pronged strategy of vertical integration, thrust on branding and
continued emphasis on value added products.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or order
had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey revealed
that the amount of compensation sought by the subject is fair and reasonable
and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.92 |
|
UK Pound |
1 |
Rs. 85.11 |
|
Euro |
1 |
Rs.58.08 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
9 |
|
OPERATING
SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
73 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent.
Repayment of interest and principal sums in default or expected to be in
default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |