Hindalco Industries

Industry Profile  :  Mining as primary sector of economics is very important for development. Not for employment but utilization of natural resources. Minerals constitute the back-bone of economic growth of  any nation and India has been eminently endowed with this gift of na­ture. There are many evidence that exploitation of minerals like coal, iron-ore, copper,  lead-zinc has been going on in the country from time immemorial. The Mining industry in India is a major economic activity which contributes significantly to the economy of India. The GDP contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production. Indian mining industry provides job opportunities to around 700,000 individuals

However, the first recorded history of mining in India  dates back to 1774  when  an English  Company was granted permission by the East India Company for mining coal in Raniganj.  M/s  John Taylor & Sons Ltd. started gold mining in Kolar Gold Fields in the year 1880.  The first oil well was drilled in Digboi in the year 1866 – just seven years after the first ever oil well was  drilled anywhere in the world viz.  in Pennsylvania state, USA in 1859. Mining activities in the country however remained  primitive  in  nature and  modest in scale uptill the beginning of the current century. Thereafter,  with progressive industrialisation the  demand  for and  hence  the production of various minerals gradually went up. After India became independent,  the growth of mining  under  the impact  of  successive Five Year Plans has been very fast.  There are ambitious plans in coal, metalliferous  and oil sectors to  in­crease  production of minerals during the 8th Five Year Plan and thereafter.

Metal including Aluminium and copper are important for industrialization. It is second most manufactured mining product after Iron. Transportation Industry, packaging, food and beverage containers, in construction as  window door, street light pools, household items, Aluminium is widly used.

Company Profile : Asia’s largest Aluminium manufacturer company. it is a flagship company of Aditya birla group in metal business. the company is manufacturing Flat roll Aluminium, Aluminium foil for packaging, different types of alumina like metallurgical, chemical usefull from plastics to water treatment. Copper, one of the useful chemical in industry is also manufactured by   company as Cathods useful in many industries from Aluminium purification to many other business. the company also manufacture sulfuric acid, phosphoric acid and gypsom  as by product. the company is also manufacturing fertilizers under brand Birla Balwan, mainly sold in Gujarat, Maharashtra, rajasthan. though it is not large part of revenue.

Shareholding Pattern :  After the merger of Grasim and Aditya Birla Nuvo, there are 21 promoter entities holding 36.54% out of which 4% is held with Grasim. IGH Holdings and Turquoise Investments being largest Promoter Holding. Mutual funds hold 8.11%. Financial institutions and banks hold 0.08% Insurance companies hold 10% out of which 9.3% held by LIC. Foreign investors hold 29.52%. remaining is held with public.

Financials and Ratio : 

 2010-112011-122012-132013-142014-152015-16
Revenue24,206.7027,212.5727,040.0228,975.3535,407.2435,383.87
Net Profit2,136.922,237.201,699.201,413.33925.16607.25
NPM8.958.416.525.072.671.76
EPS11.1611.688.877.094.482.94
Book Value155.12164.46174.59177.90180.40179.49
Dividend Per share1.501.551.4111
Dividend Pay Out13.4313.2615.7714.6022.3234
ROE7.197.105.083.842.481.63
ROCE5.824.902.982.301.470.95
ROA4.594.022.551.911.210.79
Debt to equity0.300.460.720.720.770.77
Asset Turn Over51.2747.7939.1137.7545.4245.07

Future Prospects :  operations of company are such divers that it is not only metal company. fertilizer sector is going from large change. acids, mainly Sulfuric acid which is important in many industrial products and process. Recently the company was facing bad time, but now company is expecting growth on its business. Recent quarterly results also showing the growth sign. only issue is the debt oriented growth of the company but that is like characteristics of Aditya Birla group.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter