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NATIONAL ALUMINIUM COMPANY LIMITED

M.B.A 2ND SEMESTER(N.I.S.T)

Narayan Barada(201480037)

UNDER THE GUIDANCE OF

Mr. Pramath Nath AcharyaMr. Chinmay sahuMs. Gayatri Panda

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y INDUSTRY ANALYSIS

Indian Aluminium industry

Indian Aluminium Industry was established in the year 1808

It took 46 years to make its production commercially.

The liberalization resulted in a growth rate of 12% of the industry, comparing to the growth rate of 6% during the 1980.

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y PLAYERS IN THE INDUSTRY

Hindustan Aluminium Company Limited National Aluminium Company Bharat Aluminium Company limited Indian Aluminium Hind Aluminium Industries Limited Gujurat Foils Ltd Sudal Industries Ltd Parekh Aluminex ltd Parth Aluminium Pennar Aluminium Co.Ltd Alumeco India Extrusion Ltd

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NATURE OF COMPETITION Highly concentrated industry with only five primary plants in the

Country.

Controlled by two private groups and one public sector unit.

Electricity, coal, Furnace oil are the primary energy inputs.

All plants have their captive power units for cheaper and un- interrupted power supply.

Energy cost is of 40% of manufacturing cost for metal and 30% for rolled products.

Plants have set internal target 1-2% reduction in specific energy consumption in the next 5-8 years.

Energy management is a critical focus in all the plants.

Each plant has energy management cell.

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TOP THREE PLAYER OF INDUSTRY BOTTOM THREE PLAYER OF INDUSTRY

1. NALCO

2. HINDALCO

3. BALCO

1.SUDAL INDUSTRIES LTD

2.PARTH ALUMINIUM

3.PAREKH ALUMINEX LTD

NALCO

HINDALCO

BALCO

PARTH ALUMINIUNM

PAREKH ALUMINEX LTD

SUDAL INDUSTRIES LTD

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y COMPANY PROFILE

National Aluminium Company Limited (NALCO) is a Navratna CPSE under Ministry of Mines, Govt. ofIndia.

It was established on 7th January, 1981

A’ CPSE havinag integrated and diversified operations in mining,

Current profitof Rs 7777 crore in financial year 2014-15. The company has a 68.25 lakh TPA Bauxite Mine &22.75lakh

TPA Alumina Refinery located at Damanjodi in Koraputdist. Of Odisha, and 4.60 lakh TPA Aluminium Smelter& 1200 MW Captive Power Plant located at Angul, Odisha.

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Indo-French collaboration Agreement .

Established on 7th January, 1981

Foundation Stone laid by Late Smt. Indira Gandhi .

PROMOTERS OF NALCO

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y OBJECTIVES

To have a global presence and earn foreign exchange

To maintain leadership in domestic market

To maximize return on investment

To promote a result oriented organizational ethos and work culture that empowers employees and helpsrealization of individual and organizational goal .

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To achieve sustainable growth in business through diversification innovation and global competitive edge.

To continuously develop human resources, create safe working conditions, improve productivity and quality and reduce cost and waste.

To satisfy the customers and shareholders, employees and all other stakeholders.

To be a good corporate citizen, protecting and enhancing the environment as well as discharging social responsibility in order to ensure sustainable growth.

MISSION

VISIONTo be a reputed global company in the metals and energy sectors.

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y OPERATING BUSINESS UNITS IN DIFFERENT GEOGRAPHICAL FOOT PRINT

Aluminium Smelter The 3, 45,000 TPA capacity Aluminum Smelter is

located at Angul in Orissa. Based on energy efficient state-of-the-art technology of smelting and pollution control, the Smelter Plant is in operation since early 1987.

Presently, the capacity is being expanded to 4, 60,000 TPA.

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y CAPTIVE POWER PLANT

The Captive Power Plant of NALCO was established at Anugul of 960 MW capacity, comprising 8 x 120 MW clusters, has been established for firm supply of power to the Smelter in same location(Anugul).

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y ALUMINA REFINERY

The 15, 75,000 TPA Alumina Refinery, having three parallel streams of equal capacity, is located in the picturesque valley of Damanjodi in Koraput district

Provide Alumina to the Company's Smelter at Angul Export the balance Alumina to overseas markets through Visakhapatnam Port Presently, the capacity is being expanded to 21, 00,000 TPA.

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y SEGMENT INITIAL CAPACITY

CAPACITY AFTER FIRST EXPANSION

CAPACITY UNDER SECOPND EXPANSION

LOCATION

Bauxite Mines

2,400,000tpy 4,800,00tpy 6,300,000tpy Panchpatmali in Koraput

Alumina Refinery

8,00,000tpy 15,75,000tpy 21,00,000tpy Damanjodi in Koraput

Aluminums Smelter

2,30,000tpy 3,45,000tpy 4,60,000tpy Angul

Captive Power Plant

720 MW 960 MW 1200MW Angul

Port Facilities (Ship Loading Rate)

2200tph 2200tph Vishakhapatnam(Andhra Pradesh)

Capacity Analysis

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y DEMAND SUPPLY ANALYSIS

Year Average peak Demand Supply Shortfall

2010 12,624 10,921 1,703

2011 13,517 11,917 1,240

2012 14,043 12,841 1,202

2013 14,0.32 13,309 723

2014 13,879 13,387 492

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Profit & Loss account -------in Rs. Cr.-------March 2014 March 2013 March 201212 months 12 months 12 months

INCOMESalary Turnover 1,485.14 17.43 12.78Excise Duty 0.00 0.00 0.00Net Sales 1,785.14 17.43 12.78Other Income 63.22 1.39 0.02Stock Adjustments -23.34 0.00 0.00Total Income 1,925.02 18.82 12.80

EXPENDITURERaw Materials 758.04 0.00 0.00Power & Fuel Cost 35.27 0.00 0.00Employee Cost 91.15 0.00 0.00Other Manufacturing Expenses 0.00 0.00 0.00Selling and Admin Expenses 0.00 0.00 0.00Miscellaneous Expenses 418.22 16.99 12.76Preoperative Exp. Capitalized 0.00 0.00 0.00Total Expenses 1,895.68 16.99 12.76

March 2014 March 2013 March 201212 months 12 months 12 months

Operating profit 66.12 0.44 0.02

Balance Sheet

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y GROUP CHAIRMAN

Shri. Ansuman Das (CHAIRMAN-CUM-MANAGINGDIRECTOR )

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y Member Of the Board Of Directors

Shri R. SridharanPar- Time Official Director

Shri Qaiser ShamimIndependent Director

Ms. Soma MandalDirector(Commercial)

Shri K.C SamalDirector (Finance)

Shri S.C PadhyDirector(HR)

Shri Sanjiv BatraIndependent Director

Shri V BalasubramanayamDirector(Production)

Shri N.R MohantyDirector(Project & Technical)

Dr. Niranjan Kumar SingPart-Time Official Director

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Board of Directors

Chairman-Cum-Managing -Director

Company Secretary

Support ServicesTechnical Teams Administrative

Principal &seniorConsultants Technical Officer Administrative

Officer Accountant

Research Associates

Secretary/clerkReceptionist

Associate Consultants

Organization Structure

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y Governance

NALCO believes in practicing good Corporate Governance

Attaining maximum level of Accountability and equity in all facets transparency of its operations and

in all its interactions with itsstakeholders viz. shareholders, employees

Government, bankers, society at large, customers etc.

The Board of Directors of theCompany comprised of eight directors viz. Chairman-cum-Managing Director (Executive Chairman), four executive

directors and three nonexecutive directors as on 31.03.2004. In terms of Clause 49 of the Listing Agreement with Stock Exchanges, at least half of the Board should comprise of independent directors.

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AMOUNT ALLOCATED TOWARDS PERIPHERY DEVELOPMENT TILL 2013-14

(including special projects)

Damonjodi :Rs.48.88 Cr Anugul :Rs.61.10 Cr Other Area:Rs.26.89 Cr

(Full-fledged hospitals at Damanjodi and Angul)

(Mobile medical units of Nalco visit peripheral villages in Angul and Damanjodi sectors and hold health camps round the year, distributing free medicines.)

Corporate Social Responsibility

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Nalco Bhawan, P/1, Nayapalli, Bhubaneswar-751 013, India Phone: 0674-2301988 to 2301999 Fax : 0674-2300521/2300580

Registered Office

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THANK YOU