Term paper

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Submitted to Submitted by

Ms. Anu sheetal Sinha Manjit Paul

Roll.no:R1903A23
Reg.no:10902965
Class: R1903

ACKNOWLEDGEMENT

Through my gratitude towards my supporters yet we like to add a few hearts

full for the people who were part of this case study in numerous ways.
People who gave understanding support right project ideas were conceived.
First we want to thank Ms. Anu Sheetal, Lecturer financial management,
lovely professional university, phagwara for assigning this term paper & we
also want to give hands full gratitude to him for his help & guidance. We
would like to thank all the faculty of lovely school of business for having
faith in us, & for their kind inspiration and helping us whenever asked.
Last but not least, we expand us heartiest gratefulness all people who have
given us best wishes & all help that we needed for the completion of the
term paper.

Contents

• Literature review
• Objective of the study
• introduction
• company, background, history, management
• •Company position relative to industry
• Change in its share price over a year
• Capital structure for last 3 years
• Liquidity position
• financial credibility through balance sheet, profit and loss
account
• Credit rating of company
• IPO issues made by companies during last 5 years
• Track and report news relevant to company
chronologically and its impact on share price of the
company
• Conclusion
• references

Literature review
A literature review is a body of text that aims to review the critical points of
current knowledge and or methodological approaches on a particular topic.
For this I used the secondary data as well as primary data.
Secondary data: For taking secondary data I searched the website of
company and other websites related to it.
Primary data: For taking primary data I take information from economic
times and business standard newspaper.

Objective of the study

Main objective of the study is to analyze the hindalco company. its
background, history, management, change in share price over the
years, its capital structure and every ins and outs about the
company and its relative position as compare to industry.

Introduction
Indian aluminum sector is characterized by large
integrated players like Hindalco, Hindalco Industries
Limited, a flagship company of the Aditya Birla Group, is
structured into and copper with annual revenue of US $14
billion and a market capitalization in excess of US $ 23
billion. Hindalco commenced its operations in 1962 with
an aluminum facility at Renukoot in Uttar Pradesh. Birla
Copper, Hindalco's copper division is situated in Dahej in
the Bharuch district of Gujarat. Established in 1958,
Hindalco commissioned its aluminum facility at Renukoot
in eastern U.P. in 1962 and has today grown to become
the country's largest integrated aluminum producer and
ranks among the top quartile of low cost producers in the
world. The aluminum division's product range includes
alumina chemicals, primary aluminum ingots, billets, wire
rods, rolled products, extrusions, foils and alloy wheels. It
enjoys a domestic market share of 42 per cent in primary
aluminum, 63 per cent in rolled products, 20 per cent in
extrusions, 44 per cent in foils and 31 per cent in wheels.
Hindalco has launched several brands in recent years,
namely Aura for alloy wheels, Freshwrapp for kitchen foil
and ever last for roofing sheets. The copper plant
produces copper cathodes, continuous cast copper rods
and precious metals like gold, silver and platinum group
metal mix. Sulphuric acid, phosphoric acid, di-ammonium
phosphate, other phosphatic fertilisers and phospho-
gypsum are also produced at this plant. Hindalco
Industries Limited has a 51.0%shareholding in Aditya
Birla Minerals which has mining and exploration activities
focused in Australia. The company has two R&D centers
at Belgaum, Karnataka and Taloja, Maharashtra. They
have been recognized by the Government of India's
Department of Scientific and Industrial Research (DSIR).
[Exhibit 1] Year over year, Hindalco Industries Ltd. has
been able to grow revenues from 121.2B to 193.2B. Most
impressively, the company has been able to reduce the
percentage of sales devoted to selling, general and
administrative costs from 4.15% to 2.96%. This was a
driver that led to a bottom line growth from 15.8B to
26.9B.

Company Background - Hindalco Industries

Industry Name Aluminum

House Name Birlas (Aditya Vikram) Group
Collaborative Country Name N.A.
Year of Incorporation 1958
.Regd. Office
Address Century Bhavan, 3rd Floor,
District Mumbai
State Maharashtra
Pin Code 400030

Hindalco embarked on its journey in 1958. Its first real contribution to the
vision of an industrial India occurred four years later, when the visionary —
late Mr. G.D. Birla set up India's first integrated aluminum facility at
Renukoot, in the eastern fringe of Uttar Pradesh, India. It was backed by a
captive thermal power plant at Renusagar in 1967. Hindalco attained its
leadership position in the aluminum industry under the dynamic leadership
of the late Mr. Aditya Vikram Birla — a formidable force in the Indian
industry.
And it was through the vision and guidance of Mr. Kumar Mangalam Birla,
the Group Chairman that the business segments of aluminum and copper
are consolidated to make Hindalco the non-ferrous metals powerhouse it is
today. This was achieved in part by expansion through mergers and
acquisitions with companies such as Indal and Birla Copper. Hindalco also
secured copper reserves and amplified its operating base by acquiring the
Australian Nifty and Mt. Gordon copper mines.

Over the years, Hindalco has grown into the largest vertically integrated
aluminum company in the country and among the largest primary
producers of aluminum in Asia. Its copper smelter is today the world's
largest custom smelter at a single location.

In 2007, the landmark acquisition of Novelis Inc., the world's largest

aluminum rolling company, placed Hindalco's footprint across the globe,
securing it a rank amongst the top five global aluminum majors and also
placing it in the Fortune 500 league.

History
Starting from 1958, the Company was incorporated on 15th December, at
Mumbai to Manufacture alumina, aluminum and aluminum fabricated items.
The Company was Formed by the house of Birlas in collaboration with the
Kaiser Organization of U.S.A.then in 1960,2,50,000 Pref. & 58, 50,000
equity shares issued through a prospectus of which 4,80,000 shares
allotted without payment in cash to Kaiser Aluminum Corporation and
9,61,000 shares against cash. 1,20,000 shares to Kaiser Aluminum
Technical Services Inc. allotted without payment in cash 21,33,000 shares
to Birla Gwalior Pvt. Ltd. & 21,56,000 shares to public. In 1961, Rate of
dividend on pref. shares altered. In 1962, 10,750 No. of equity shares &
300 pref. shares forfeited. Forfeiture on 2,250 No. of equity shares
annulled. In 1964 the Properzi mill plant was set up for the production of
redraw rods with a rated capacity of 6,000 tons per annum. In 1965 an
extrusion press and rolling mill for the production of aluminum extrusions
and rolled products (sheets, etc.) was installed with rated capacity of 2,000
tones and 7,000 tons respectively, thus bringing the total capacity of the
fabrication plant to 15,000 tons per annum.In 1967 another Properzi mill
plant was commissioned which expanded the fabrication plant capacity
from 15,000 tons per annum to 37,000 tons per annum. then , In 1968,two
more extrusion presses and a few additional facilities in rolling mill was
erected by the end of the year to get higher production. In 1985 26.69% of
the Company's equity capital was held by Kaiser Aluminum & Chemical
Corporation, U.S.A., along with their nominees (Kaisers) aggregating to
35,73,332 equity shares of Rs 10 each as on 31st December. in 1990,
During January-February, the Company issued 53,54,595-12.5% secured
redeemable partly convertible debentures of Rs 250 each on Rights basis
in the proportion 3 debentures: 10 equity shares held. Additional 8,03,189
debentures were allotted to retain oversubscription. In 1991,the Company
issued 40,00,000-17.5% redeemable non-convertible debentures of Rs 100
each to financial and other institutions on private placement basis. In
1994,the Company proposed to further expand the smelting capacity to
2,42,000 tones p.a. with an up gradation of all attendant plants In 2000
The board of directors has approved entering into an agreement with
Alcan Aluminum Ltd of Canada, for purchase of 3,88,44,324 shares
constituting 54.6 per cent of the paid-up capital of Indian Aluminum Co. Ltd.
Rs. 190 per share. Now in 2006,Hindalco Industries Ltd has announced
that on October 30, 2006 the Company has entered into a Joint Venture
partnership with ALMEX USA, Inc., for the manufacture of High Strength
Aluminum Alloys for applications in the aerospace, sporting goods and
surface transport industries.

hindalco-management
Hindalco’s management team consists of experienced individuals with
strong credentials.
Name Designation
Kumar Mangalam Birla Chairman / Chair Person
A K Agarwala Non Executive Director
S S KothariNon Executive Director
M M Bhagat Non Executive Director
N J Jhaveri Non Executive Director
Name Designation
Rajashree Birla Non Executive Director
E B Desai Non Executive Director
C M Maniar Non Executive Director
K N Bhandari Non Executive Director
D Bhattacharya Managing Director

hindalco' position relative to industry

Sales Net Profit Total Assets
Turnover
Hindalco 18,219.65 2,079.44 32,082.61
NALCO 5,230.80 1,272.27 9,769.81
India oils 98.94 -148.82 -10.37
Century Extr 98.56 2.80 49.14
Man Aluminium 41.95 0.71 27.48

Hindalco’s sale’s turnover rs.18219.65 is highest than all other companies

in the same pace it acquired highest net profit (rs. 2,079.44) and larger
assets than it’s peer groups reflect it’s strong market position in the
domestic aluminum industry, its superior operating efficiency resulting in
it being one of the lowest cost aluminum producers globally and its strong
financial position, which is characterized by low gearing, large cash
accruals in relation to debt and strong liquidity. The ratings factor in the
restructuring announced by the Aditya Birla group under which Indo Gulf
Corporation Ltd’s (Indo Gulf) copper business would be hived off and
merged with Hindalco. Further, as part of this restructuring, Hindalco has
made a voluntary open offer to buy the remaining 25.4 per cent shares of
its subsidiary, Indian Aluminum Company Limited (Indal, rated AAA, P1+ by
Crisil), following which it will delist Indal.
• Strong market position: Hindalco has a strong market position in
the domestic aluminium industry, in which it is the largest player with
a capacity of 275,000 tpa. Further, it is the largest domestic player in
the semi-fabricated (semifab) aluminium products segment. Its
market position is further enhanced through its subsidiary, Indal,
which is a leading player in the semifab segment.
• Superior operating efficiency: Hindalco has fully integrated
operations from mining bauxite to manufacturing downstream
aluminium products. It has captive power, which is a critical input in
manufacturing aluminium. Its performance on various operating
parameters is favourable. These strengths result in Hindalco’s cost of
production being among the lowest in the world.
• Strong financial position: Hindalco’s business strengths are
reflected in its strong financial position. Its low-cost structure
results in high profit margins.
change in share price over 1 year

• there is a significant change in the share price of the hindalco

company on national stock exchange from 13april 2009 to 26 feb
2010.
• share price change dramatically from Rs. 58 to Rs 188.there was lot
of fluctuations in share price. Share price rose sharply in the month
of September to February.
• on 13 april,share price of hindalco is at rs.58 then on 29th may ,it s'
high value rise significantly to 95rs. and its lower value also rose but
les sharply than the higher value to rs. 76.afer tis ,on 13 July
2009,higher value decrease in a fluctuating way from rs. 95 to rs, 70
but lower value of share remains constant with slight but negligible
fluctuations.
• over a period of 13-07-09 to 25-08-09 value of share further hiked by
large amount and then lies nearer to 100 with smaller value stable at
Rs. 76.there were large fluctuations in the end of September.
• in 12 oct, value share plunged to higher value Rs.133 and lower
value increase steadily around Rs.80.
• on 26 nov,value of share rise nearer to Rs.150 lower value remains
stable with little e fluctuations.
• share price were at peak on 13 jan,2010 and then fell sharpley to
Rs. 140 and lower value ramins stable.
• now share price is at its highest possible value i.e. 188.40 Rs. and
lower value to Rs. 52.

Capital structure for at least 3 years

Class Of Authorized Paid Up Shares Paid Up Face Paid Up
From Year To Year Share Capital Issued Capital (Nos) Value Capital
2008 2009 Equity Share 195.00 170.15 1700817056 1 170.08
2007 2008 Equity Share 145.00 122.72 1227190692 1 122.72
2006 2007 Equity Share 145.00 115.93 1159329501 1 115.93

Hindalco is characterized as unleveled company who is using

only equity to finances its assets.
2006-07: paid up capital in 2006 is 115.93 then it suddenly hiked to 122.5
in 2007. which is financially very risky. so management should act wisely.
2007-08: paid up capital in 2007 is 122.5 then it rose to 170.08. company s
taking very financial risk which can be dangerous for it. so management
should think about it.

Liquidity position
Key Financial Ratios of Hindalco Industries ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09

Investment Valuation Ratios

Face Value 1.00 1.00 1.00 1.00

Dividend Pe r Share 2.20 1.70 1.85 1.35

Operating Profit Per Share (Rs) 21.79 34.60 26.64 17.12

Net Operating Profit Per Share (Rs) 97.95 157.96 155.79 106.77

Free Reserves Per Share (Rs) 77.84 103.16 138.43 86.29

Bonus in Equity Capital 49.89 47.13 40.09 28.92

Profitability Ratios

Operating Profit Margin(%) 22.25 21.90 17.10 16.03

Profit Before Interest And Tax
17.35 18.55 13.64 12.07
Margin(%)
Gross Profit Margin(%) 22.08 22.27 14.02 12.48

Cash Profit Margin(%) 18.75 16.72 14.31 13.76

Adjusted Cash Margin(%) 17.94 16.90 14.31 13.76

Net Profit Margin(%) 14.29 13.76 14.56 11.87

Adjusted Net Profit Margin(%) 13.43 13.91 14.56 11.87

Return On Capital Employed(%) 15.37 19.07 12.44 9.00

Return On Net Worth(%) 17.23 20.65 16.54 9.38

Adjusted Return on Net Worth(%) 16.20 20.88 12.83 8.16

Return on Assets Excluding
8.76 10.25 9.24 --
Revaluations
Return on Assets Including
8.76 10.25 9.24 --
Revaluations
Return on Long Term Funds(%) 17.77 20.03 13.56 9.72

Liquidity And Solvency Ratios

Current Ratio 1.12 1.22 1.08 1.20

Quick Ratio 0.73 0.66 0.53 0.88

Debt Equity Ratio 0.51 0.59 0.48 0.35

Long Term Debt Equity Ratio 0.31 0.52 0.37 0.25

Debt Coverage Ratios

Interest Cover 11.37 20.90 13.63 10.43

Total Debt to Owners Fund 0.51 0.59 0.48 0.35

Financial Charges Coverage Ratio 12.23 17.87 13.53 10.48

Financial Charges Coverage Ratio
10.68 13.88 13.30 9.53
Post Tax
Management Efficiency Ratios

Inventory Turnover Ratio 2.83 4.32 4.32 5.16

Debtors Turnover Ratio 11.16 13.30 12.46 13.13

Investments Turnover Ratio 3.22 4.89 4.32 5.16

Fixed Assets Turnover Ratio 1.57 2.30 1.53 1.37

Total Assets Turnover Ratio 0.79 0.93 0.74 0.57

Asset Turnover Ratio 1.10 1.64 1.53 1.37

Average Raw Material Holding 86.77 42.95 58.22 49.40

Average Finished Goods Held 5.30 4.20 5.60 3.66

Number of Days In Working Capital 92.47 51.60 51.35 72.50

Profit & Loss Account Ratios

Material Cost Composition 60.88 62.46 65.31 59.77

Imported Composition of Raw
84.66 89.50 90.35 86.35
Materials Consumed
Selling Distribution Cost Composition 2.19 1.60 1.62 1.75
Expenses as Composition of Total
32.14 38.10 33.65 28.38
Sales
Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 14.93 7.88 9.27 12.04

Dividend Payout Ratio Cash Profit 11.34 6.47 7.68 9.34

Earning Retention Ratio 84.11 92.20 88.05 86.16

Cash Earning Retention Ratio 88.11 93.58 90.56 89.61

Adjusted Cash Flow Times 2.36 2.34 2.96 3.22

Mar '06 Mar '07 Mar '08 Mar '09

Earnings Per Share 14.28 22.12 23.31 13.11

Book Value 82.86 107.11 140.94 139.67

Liquidity position of company can be shown by liquidity and
solvency ratios.
current ratio of company is increased in mar06 and mar-07 from
1.12 to1.22, then it suddenly decreased to 1.08 in mar 08.
it shows that company is not using its current assets efficiently. as
it should be in ratio 2:1.as company’s decreased current ration
shows that hindalco’s ability to meet the short term securities is
very less.
Quick ratio: quick ration of company is also decreasing from year
mar 06 to mar 06 as it should be 1:1.
It shows that company can’t handle its financial commitments
effectively.

Therefore solvency position of the company is degrading

Financial credibility through balance sheet, profit and

loss Account
Profit and loss account

Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Income
Operating income 18,159.81 19,118.01 18,312.93 11,355.15 9,523.25
Expenses
Material consumed 11,392.95 12,344.83 10,994.42 5,879.57 4,661.94
Manufacturing expenses 2,375.02 2,026.73 2,080.80 1,972.22 1,702.44
Personnel expenses 675.05 631.07 529.58 466.26 414.13
Selling expenses 318.54 310.60 293.82 249.62 238.85
Administrative expenses 487.04 535.38 403.55 260.83 233.33
Expenses capitalized - - - - -
Cost of sales 15,248.60 15,848.60 14,302.17 8,828.49 7,250.69
Operating profit 2,911.21 3,269.41 4,010.77 2,526.65 2,272.56
Other recurring income 621.10 527.95 321.13 227.64 207.81
Adjusted PBDIT 3,532.31 3,797.36 4,331.89 2,754.29 2,480.38
Financial expenses 336.93 280.63 242.39 225.17 169.96
Depreciation 644.34 587.81 552.80 516.68 463.26
Other write offs - 3.62 4.00 6.29 6.07
Adjusted PBT 2,551.04 2,925.30 3,532.70 2,006.15 1,841.09
Tax charges 610.88 705.34 940.30 450.15 646.39
Adjusted PAT 1,940.16 2,219.97 2,592.40 1,556.01 1,194.71
Nonrecurring items 91.56 43.23 -37.61 56.17 53.13
Other non cash adjustments 198.55 597.74 9.54 43.37 81.52
Reported net profit 2,230.27 2,860.94 2,564.33 1,655.55 1,329.36
Earnings before appropriation 2,530.27 2,959.38 2,619.33 1,710.55 1,384.36
Equity dividend 229.58 226.89 177.34 216.84 185.56
Preference dividend 0.02 0.02 - - -
Dividend tax 39.03 38.56 24.87 30.41 26.42
Retained earnings 2,261.64 2,693.90 2,417.11 1,463.30 1,172.38

Operating income of company is increasing as it is increasing from mar

06 to mar08, in mar 06-07 it hiked with 11355.15 to 18312.93,then in
mar 08,it increased to rs.19118.01. rise in operating income shows
growth of company.
Operating profit: operating profit is also increasing from 2526.25
to4010.77 and 5010.8. this rise shows further growth of company.
Retained earnings: are also hiked from 1463.3 to 2417.11 and then
further rise to rs.2693.9.
This retained earnings show company’s path to growth.

Balance sheet:
FY 09 FY 08 FY 07 FY 6

Source of funds
Shareholders’ funds
Share capital 104.3 98.6 92.8 92.5
Reserves and surplus 12,313.7 9,507.7 7,573.8 6,765.4 6,098.6
12,418.0 9,606.3 7,666.6 6,857.9 6,191.1
Loan funds
Secured loans 6,410.2 2,848.0 2,952.3 1,725.9 2,049.3
838
Unsecured loans 958.4 2,055.4 847.7 345.8
.7
7,368.6 4,903.4 3,800.0 2,564.6 2,395.1
Deferred tax liability (net) 1,125.8 1,233.3 1,129.7 995.1 849.0
 Total 20,912.4 15,743.0 12,596.3 10,417.6 9,435.2
Application of funds
Fixed assets
Gross block 11,252.6 10,418.3 8,772.8 6,658.5 5,668.0
Less: depreciation &
4,245.9 3,635.5 3,169.3 1,918.3 1,607.0
impairment
Net block 7,006.7 6,782.8 5,603.5 4,740.2 4,061.0
Capital work-in-progress 1,476.4 832.9 1,323.0 467.7 802.4
8,483.1 7,615.7 6,926.5 5,207.9 4,863.4
Investments 8,675.3 3,971.3 3,702.1 3,377.2 2,648.4
Current assets, loans and advances
Inventories 4,315.3 4,095.1 2,374.5 1,191.3 1,002.2
Sundry debtors 1,504.5 1,248.4 787.4 561.1 560.7
Cash and bank balance 665.5 917.3 401.0 227.9 303.2
Loans, advances and other 1,293.0 1,042.0 913.6 905.9 911.3
current assets
7,778.3 7,302.8 4,476.5 2,886.2 2,777.4
Less: current liabilities and provisions
Current liabilities 2,743.4 2,199.6 1,648.4 896.4 706.6
Provisions 1,284.1 953.2 869.8 157.3 147.4
4,027.5 3,152.8 2,518.2 1,053.7 854.0
Net current assets 3,750.8 4,150.0 1,958.3 1,832.5 1,923.4
Misc. expenditure 3.2 6.0 9.4 - -
Total 20,912.4 15,743.0 12,596.3 10,417.6 9,435.2

Share capital: Balance sheet of hindalco company depicts that

there is rise in its share capital from mar 06 to mar 07 with 92.5
to 92.8 then in mar08,it further rise to 98.6.this rise shows that
company has strong share capital with which it can boost its
growth.
Reserve and surplus of company also rise from mar 2006 to
mar2008. From mar06 to mar 08,it increased with 6,765.4 to
rs9507.7. this shows that company has growing by saving money.
Inventory: company’s inventory is also incrementing year
by year as from mar 06-mar07,it rises from rs 1191.3 to rs.
2374.5 then it further rise to rs. 2095.1 in mar 08. This hike
in inventory shows company’s growth with diversifying
operations.
Current assets: as company is on growth pace its assets
are also increasing, in mar 06 these are rs.1832.5, then in
mar 07 these rise to rs.1958.3 then in mar 08 it increases
to rs. 4150. This also shows company’s contributing highly
towards its assets.

Credit rating of company

 Crisil downgrades Hindalco's NCDson 15 may 2007

This rating done by rating agency crisil reflects Hindalco's dominant
position in the domestic aluminum and copper industries and
problem it faced.

Crisil has downgraded its long-term rating on Hindalco Industries

Ltd's non-convertible debentures aggregating Rs 1,039 crore to
`AA/Stable' from `AAA/Rating Watch with Negative Implications'.
• The rating is prominently watched when Hindalco has given
offer to acquire Novelis Inc (Novelis, rated `BB-/Negative/B-
2' by Standard & Poor's). the completion of deal put hindalco
in many complications. crisil said that this downward
revision in the long-term rating reflects the increase in
Hindalco's financial risk after this largely debt-funded
acquisition.
• The incidence of a large amount of debt (estimated at $3.1
billion) for funding the acquisition will impact Hindalco's
capital structure. Novelist’s profitability and cash accruals
are expected to remain subdued over the medium term;
therefore, Hindalco will be required to support the large
interest burden arising from the debt-funded acquisition.
• although crisil expects, Hindalco's large capital expenditure
plan of Rs 15,000 crore over the next five years, for capacity
enhancements in aluminum and alumina, will preclude any
material improvement in Hindalco's capital structure and
debt protection indicators. The company's financial risk
profile is likely to be strained over the next three to four
years, said the ratings agency.
• The ratings continue to reflect Hindalco's dominant position
in the domestic aluminum and copper industries in which the
company accounts for almost half of India's installed
capacities.
• if we see the safe side then, the `stable' outlook
incorporates Crisis’s expectation that Hindalco's strong
business profile will help sustain the ratings at the current
level, despite medium-term weakening in the financial risk
profile due to the largely debt-funded acquisition and
implementation of large cape plans.
• Crisil expects Hindalco to continue to operate with high
financial leverage over the medium term.
"Correction in the capital structure, through further equity
infusion, or higher-than-expected synergy benefits through faster
integration, could lend a positive bias to the rating. Conversely,
delayed or lower-than-expected equity infusion, large debt-
funded capex/acquisitions, or delays in integration, could result in
a negative bias to the rating."
 rating agency crisil rated hindalco in 2009 as strong
domestic aluminum industry
The ratings reflect Hindalco Industries Ltd’s (Hindalco) strong market
position in the domestic aluminium industry, its superior operating efficiency
resulting in it being one of the lowest cost aluminium producers globally
and its strong financial position, which is characterised by low gearing,
large cash accruals in relation to debt and strong liquidity.
IPO issues made by companies during last 5 years

2006
Hindalco has managed to raise A$300 million through its maiden
issue of 15.36 crore shares at a price of a$1.95 per share on the
Australian stock exchange.

2007
- company issued IPO’s in 2007 with its announcement that on
October 30, 2007 the Company has entered into a Joint Venture
partnership with ALMEX USA, Inc., for the manufacture of High
Strength Aluminium Alloys for applications in the aerospace,
sporting goods and surface transport industries.
2008
-The company has issued rights in the ratio of 3:7at a premium
of Rs.95/- Per Share.
2009
- Company issue equity shares of $600 milion when group
flagship firm, has decided to cut its overseas operations and is
restructuring its capital expenditure in India in an effort to
stabilise operations. As part of this overall plan, Novelis, which
Hindalco acquired for $6 billion in 2007, is closing its sheet mill at
Rogerstone in the UK, involving 440 job lo

Track and report news relevant to company

chronologically and its impact on share price of the
 company
• Top 10 companies net up 25 % in Q1
new delhi: beating recession, the top ten private companies led by reliance
industries (ril), improved their profits by 25 per cent to about rs 2,750 crore
in the first quarter of this fiscal from about 2,100 crore last fiscal. although
ril maintained its number one position with a 14 per cent growth in net
profit at rs 618 crore during april-june 2001, its group company reliance
petroleum (rpl) was outsmarted by fmcg major hindustan lever this time.
according to latest company data, hll's net profit from its operations was
about rs 347 crore during april-june 2001 as against rs 287 crore in the
corresponding period last fiscal. "after including a one-time exceptional
income of rs 119.98 crore on account of profit arising from the sale of quest
flavours business to ici group, the net profit goes up to rs 466.59 crore," the
company clarified. otherwise, hll's net profit from operation was rs
347 crore, which is significantly lower than that of rpl. rpl, which was the
turnover topper of last fiscal, logged in a 52 per cent jump in net to rs 456
crore in the last quarter as against rs 300 crore during april-june 2000.itc
retained itstobacco major nfosys improved their ranking in the big league
outpacing recession-hit old economy majors including hindalco.
av birla's hindalco posted a marginal fall in net profit at rs 161
crore the aluminium major had posted a net profit of rs 172 crore
but after providing for deferred tax payment, its net was down at
rs 161 crore, hindalco said in its website. even in case of bajaj auto,
the net profit accounted to rs 118.85 for tax adjustments although its net
profit was at rs 120.77 crore during the last quarter. bajaj auto also gained
from a rs 45 crore income received from allianz, its foreign partner for
general insurance venture. hdfc made it to the top 10 list last quarter with
rs 114 crore net profit, which is 19 per cent more than rs 96 crore during
april-june 2000. none of the tata group companies figured among the top
10 list in the first quarter. tisco, which was in the list last fiscal, slipped out
due to 80 per cent fall in net profit
Result: due to recession price of shares decline but with constant efforts
it further hiked with significant profit.
• Hindalco profit dips 22% in Q3
MUMBAI: Aditya Birla group company, Hindalco Industries
reported a 22% decline in net profit to Rs 427 crore in the third
quarter ended December 31, 2009, compared to Rs 545 crore in
the correponding quarter last year. A 66% drop in other income,
on account of lower treasury corpus post repayment of the bridge
loan taken for the acquisition of Novelis, pulled down the net
profit of the company. Higher metal volumes and better copper
realisation during the December quarter drove Hindalco's net
sales up by 29% to Rs 5,315 crore during the third quarter from Rs
4,117 crore.
Result: this downfall in profit and decrease in sales decreases price of
shares of hindalco.

• Hindalco to acquire Nifty copper mine in

Australia
MUMBAI: Hindalco Industries has said it will acquire a copper
mine in Australia for A$79.80 million (around Rs 222 crore), a
step towards consolidating the raw material base for its smelter in
Gujarat. Hindalco Industries has signed an agreement with Straits
Resources (SRL) to acquire the latter's subsidiary, Straits (Nifty),
which owns the mine.
"The acquisition of Nifty, when completed, will elevate company
to an integrated copper producer. then it can source 25 per cent
of it's total requirement from captive copper mines .the
acquisition also comprises rights to explore in Paterson range
located in the richly mineralised Paterson province that hosts
known copper and gold ore bodies.
result: this deal has vey positive effect on share price of hindalco as this
deal further streangthen it's capacity and company is thinking on
expansion by making new deals which is making it a global player then
obviously.price of it's shared will be increased.

• Hindalco to raise $500m

MUMBAI: The board of Hindalco Industries, an Aditya Birla group
company, has approved the company's plans to raise $500
million by way of a qualified institutional placement (QIP),
the company's chairman Kumar Mangalam Birla said.

The company had said that in addition to the QIP issue, it would also
explore other options such as issuing shares under global
depository receipts or any other instrument or a combination of
the two.

This was done taking into account the volatility in domestic market
and developments in international markets. The company had said
that the amount to be raised would be restricted to $500 million.
all off the above news's shows that first there is sudden decrease
in price of shares then again price of shares increased by
acquiring nifty then it further raise 500 million dolor by issuing
QIP and GDP.

Conclusion
All in all hindalco is a very well established company who has strong
market position, superior operating efficiency, having big array of product
diversity. Strong market position, limited project risk. Performance of
company is degrading in 2006-07-08, but now I regain its position which is
very good for company’s growth. Company’s acquisition’s and merger’s
make it strong and global player. So hindalco is in good pace now.

References

• http://www.religareonline.com/fundamental/InvestorRetu
rn.aspx?
CompanyCode=15040001.00&CompanyName=HINDALC
O&MajorSector=1&Ticker=HINDALCO

• http://www.financialexpress.com/news/hindalco-
industries/58918
• http://www.adityabirla.com/media/press_reports/200401
_global_metals.htm
• http://www.hindalco.com/about_us/management_team.h
tm
• http://www.financialexpress.com/news/hindalco-
industries/58918/0
• http://www.puntercalls.com/hindalco.html