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INTRODUCTION
Finance is an important integral part of modern economic life. Financing decision plays a
vital role. It involves raising funds for the company. It is concerned with the designing of
capital structure. The financial decision should be shaped in such a way it should support thecompanys capital structure. Capital structure should be examined from the viewpoint of its
impact on the value of the firm. The firm should select the financing mix in such a way that
it maximizes the shareholders wealth. The combination of debt and equity determines it. If
the company opts for more debt, they may trigger off a high Interest burden, devour profits
and depress earnings per share and, above all, endanger the very survival of the firm. On the
other hand, a conservative policy may deprive the company of its advantage in terms of
magnifying the rate of return to its equity owners as higher equity component results in low
earnings per share. The finance manger should consider various factors while deciding the
choice of debt and equity.
Apart from risk return financial considerations, the financial manager also considers
nonfinancial factors. When equity shareholders are more in numbers; they have access to
control the company. But when debts Owings are more then equity, finance managers
consideration is more on debt then equity.
Financial crisis may arise in the firm due to two main reasons. They are
Unexpected decline in operating profit.
Requirement for increased funds. Non-payment of interest or principal amount to lenders at
specified time will have to be recovered through liquidations in the company. At the same
time the non use of debt prevents the firm from availing an opportunity to have the
advantage on rate of return to its shareholders. The financial manger would always try to
maximize the wealth of shareholders. Hence the credit of the financial manger lies on how he
settle Disputes, overcome difficulties with help of optimum mix of debts and equity, which
would satisfy both the shareholders and creditors. He has to make a risk return transaction
between these two sources in such a way that it earns maximum benefits to the company.
When the finance manger, is not able to provide benefits to the company he needs to redefine
capital structure.
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MEANING OF CAPITAL STRUCTURE:
Every business enterprise, whether big, medium or small, needs capital to carry on its
operations smoothly and to achieve its targets. However, the actual capital should be neithermore or less than the amount which is needed and gainfully employed. It is called capital
structure of a business enterprise. Capital structure of a business enterprise is related to the
long-term financial requirements of the business enterprise. It is determined by the long-term
debt and equity capital used by the business enterprise. As a matter of fact, the capital
structure of a business enterprise should be ideal, i.e., according to the requirement of the
business enterprise.
Capital structure is the mixture of sources of funds a firm uses (debt, preferred stock,
common stock). The amount of debt that a firm uses to finance its assets is called leverage. A
firm with a lot of debt in its capital structure was called to be highly levered.
A firm with no debt is said to be unlevered. Capital structure can be viewed as the permanent
financing the firm represented primarily by long-term debt, preferred stock, and common
equity but excluding all short-term credit.
DEFINITIONS
Capital structure of a company refers to the composition of its capitalization and it includes
all long term capital sources i.e., loans, reserves, shares and bonds. GERESTENBEG
The Capital structure of business can be measured by the ratio of various kinds of permanent
loan and equity capital to total capital. - SCHWARTY
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FEATURES OF CAPITAL STRUCTURE
1. Return
The capital structure of the company should be advantageous subjects to other considerations;
it should generate maximum returns to the shareholders without adding additional cost to
them.
2. Risk
The use of excessive debt threatens the solvency of the company. Debt can be used the point
where there is no significance risk, it should be avoided.
3. Flexibility
The capital structure should be flexible. It should be possible for the company to adapt its
capital structure with a minimum cost and delay if warranted by a changed situation. It should
also possible for the company to provide funds whenever needed to finance its profitable
activities.
4. Capacity
The capital structure should be determined within the debt capacity of the company, and the
capacity should not be exceeded. The capacity depends on the ability to generate future cash
flows. They should have enough cash to pay the creditors fixed charges and principal sum.
5. Control
The capital structure should involve minimum risk of loss of control of the company. The
owners of closely held companies are particularly concerned about dilution of control.
For example, a company may give more importance to flexibility then control while another
company may be more concerned about solvency than any other requirement; Furthermore
the relative importance of the requirement may change with shifting conditions.
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FORMS OF CAPICTAL STRUCTURE:
There are two forms of capital: equity capital and debt capital. Each has its own benefits
and drawbacks and a substantial part of wise corporate stewardship and management is
attempting to find the perfect capital structure in terms of risk / reward payoff for
shareholders.
Each In Detail:
EQUITY CAPITAL: This refers to money put up and owned by the shareholders
(owners). Typically, equity capital consists of two types:
1. Contributed capital, which is the money that was originally invested in the business in
exchange for shares of stock or ownership and
2. Retained Earnings, which represents profits from past years that have been kept by the
company and used to strengthen the balance sheet or fund growth, acquisitions, or
expansion.
Many consider equity capital to be the most expensive type of capital a company can
utilize because its "cost" is the return the firm must earn to attract investment. A
speculative mining company that is looking for silver in a remote region of Africa may
require a much higher return on equity to get investors to purchase the stock than a firm
such as Procter & Gamble, which sells everything from toothpaste and shampoo to
detergent and beauty products.
DEBT CAPITAL: The debt capital in a company's capital structure refers to borrowed
money that is at work in the business. The safest type is generally considered long-term
bondsbecause the company has years, if not decades, to come up with the principal, while
paying interest only in the meantime.
Other types of debt capital can include short-term commercial paper utilized by giants
such as Wal-Mart and General Electric that amount to billions of dollars in 24-hour loansfrom the capital markets to meet day-to-day working capital requirements such as payroll
and utility bills. The cost of debt capital in the capital structure depends on the health of
the company's balance sheet - a triple AAA rated firm is going to be able to borrow at
extremely low rates versus a speculative company with tons of debt, which may have to
pay 18% or more in exchange for debt capital.
Other Forms of Capital: There are actually other forms of capital, such as Creditors
where a company can sell goods before they have to pay the bill to the vendor that can
drastically increase return on equity but don't cost the company anything. This was one of
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the secrets to Sam Walton's success at Wal-Mart. He was often able to sell Tide detergent
before having to pay the bill to Procter & Gamble, in effect, using PG's money to grow his
retailer. In the case of an insurance company, the policyholder "float" represents money
that doesn't belong to the firm but that it gets to use and earn an investment on until it has
to pay it out for accidents or medical bills, in the case of an auto insurer. The cost of otherforms of capital in the capital structure varies greatly on a case-by-case basis and often
comes down to the talent and discipline of managers.
Debts Vs Equity Financing
Financing a business through borrowing is cheaper than using equity. This is because-
Lenders require a lower rate of return than ordinary shareholders. Debt financial securities
present a lower risk than shares for the finance providers because they have prior claims on
annual income and liquidation. In addition security is often provided and covenants imposed.
A profitable business effectively pays less for debt capital than equity for another reason: the
debt interest can be offset against pre-tax profits before the calculation of the corporation tax
bill, thus reducing the tax paid. Issuing and transaction costs associated with raising and
servicing debt are generally less than for ordinary shares. There are some valuable benefits
from financing a firm with debt.
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DETERMINANTS OF CAPITAL STRUCTURE:
The following are the determinants or factors which determine the capital structure of a
business enterprise:
Cost of Fixed Assets
The fixed capital of a business enterprise is invested in fixed assets. The fixed assets are not
fixed in value; in fact, their value may record an increase or decrease in course of time. They
are fixed in the sense that without them the business cannot be carried on. Further, they
remain in business for a longer time. Hence, while making an assessment of the capital
requirement the cost of fixed assets also be kept in mind.
Size of the Business Enterprise:-The capital structure of a business enterprise is also
influenced by the size of business enterprise. It may be small, medium or large. A large-sized
business enterprise requires much more capital as compared to a small-sized business
enterprise.
Nature of the Business Organisation: - The capital structure of a business enterprise is also
influenced by nature of business organisation. It may be manufacturing, financing, trading or
public utility type.
Retaining Control of the Business Enterprise:- The capital of the business enterprise is
also influenced by the intention of the promoters of having effective control. This is also a
very important factor in deciding the capital structure. For this purpose they raise a large
amount of money by issuing debentures and preference shares which hardly enjoy any voting
rights.
Legal Requirements:-One has to comply with the provisions of the law in regard to the issue
of different types of securities. For example, in India banking companies are not allowed by
the Banking Companies Act to issue any type of securities except shares.
Period of Finance: - Period of finance, i.e., short, medium or long term is also another factor
which determines the capital structure of a business enterprise. For example, short-term
finances are raised through borrowings as compared to long-term finance which is raised
through issue of shares, stocks etc.
The Purpose of Financing:-The purpose of financing should also be kept in mind in
determining the capital structure of a business enterprise. The funds may be required either
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for betterment expenditure or for some productive purposes. The betterment expenditure,
being non-productive, may be incurred out of funds raised by issue of shares or from retained
profits. On the contrary, funds for productive purposes may be raised through borrowings.
Requirements of the Potential Investors:-The capital structure of a business enterprise is
also affected by the requirement of the potential investors. Different classes of investors go
for different types of securities. Investors who are interested in the stability and safety and
regularity of income prefer debentures and preference shares. On the contrary, investors who
prefer to take risk so as to have higher income and also to take part in the management prefer
shares or stocks.
Elasticity of Capital Structure:-The capital structure of a business enterprise should be
quite elastic so as to meet the future requirements of the capital also. For this purpose the
amount of authorized capital should be fixed at a higher level as compared to present needs.
Money Market Conditions:-Money market conditions also influence the capital structure of
a business enterprise. In case of boom period it is advisable to issue shares which can fetch
higher premium due to large profits. On the contrary, during the depression period it is
advisable to issue debentures on account of lower rate of interest.
Miscellaneous:-(i) Liquidity, (ii) Simplicity, (iii) Mutual rights, (iv) Policy of the business
enterprises, (v) Capital gearing, (vi) Age of business enterprises.
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IMPORTANCE OF CAPITAL STRUCTURE
Capital structure planning is very important to survive the business in long run. After
simple watching the balance sheet of company, you see two sides of balance sheet. One side
is liability side and other side is asset side. Liability side is the mixture of finance of company
which company has collected from internal and external sources and it has been used or will
be used for development of company.
Liability side of balance sheet is made underperfect capital structure planning. Finance
manager and other promoters decides which source of fund or funds should be selected
aftermonitoring the factors affecting capital structures. So, capital structure planning
makes strong balance sheet. The right capital structure planning also increases the power ofcompany to face the losses and changes in financial markets. Following points shows the
importance of capital structure and its planning.
1. To reduce the overall risk of company
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When we make capital structure before actual getting money from money supplier, we can do
many adjustments for reducing our overall risk. Suppose, we have made capital structure in
which we add three sources of fund, one is equity share, and other is debenture and last is
pref. shares. Because we know that we have to pay debt at its maturity at any cost and its
interest at fixed rate. So, we try to get minimum debt in new business because in new
business our rate of return will be less than rate of interest and for getting more loan means
taking high risk of return more amount of interest even there is no profit.
But, if our business will be succeeded, at that time, we can increase estimated amount of debt
by just changing the value of debt in capital structure (written just for planning) in excel
sheet. We can easily pay the interest because our ROI is very high. At that, Time Company
can enjoy the trading on equity. But finance manager should also careful watch
whether shareholders are more expected regarding dividend or not. Because high expectation
will also against the development of our company.
2. To do adjustment according to Business Environment
Company also adjusts different sources expected amount according to business environment.
Suppose in future, if government of India cuts off his relation with China, from where our
company is getting fund, it will definitely tough for us to get more money from China. Butproper planning of capital structure of future sources will be helpful for us to enlarge our area
for getting money. In finance, it is called manoeuvrability. It means to create mobility of
sources of fund by including maximum alternatives in planned capital structure. Suppose, if
RBI increases the interest rate, it means your cost for getting debt will be high, at that time,
you can choose any other cheap source of fund.
3. Idea generation of new source of fund
Good planning of capital structure will make versatile to finance manager for getting money
from new sources. If you have studied Wikipedias page ofventure capital or
private sources, you would precisely understand that how finance managers of company are
generating new and new idea for getting money from public at low risk. Promoters or
managers do 10 minutes meeting with investors and motivate them by showing the special
event which they have made in PPT.
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THEORIES OF CAPITAL STRUCTURE
1st Theory of Capital Structure
Name of Theory = Net Income Theory of Capital Structure
This theory gives the idea for increasing market value of firm and decreasing overall cost of
capital. A firm can choose a degree of capital structure in which debt is more than equity
share capital. It will be helpful to increase the market value of firm and decrease the value of
overall cost of capital. Debt is cheap source of finance because its interest is deductible from
net profit before taxes. After deduction of interest company has to pay less tax and thus, it
will decrease the weighted average cost of capital.
For example if you have equity debt mix is 50:50 but if you increase it as 20: 80, it will
increase the market value of firm and its positive effect on the value of per share.
High debt content mixture of equity debt mix ratio is also called financial leverage.
Increasing of financial leverage will be helpful to for maximize the firm's value.
2nd Theory of Capital Structure
Name of Theory = Net Operating income Theory of Capital Structure
Net operating income theory or approach does not accept the idea of increasing the financial
leverage under NI approach. It means to change the capital structure does not affect overall
cost of capital and market value of firm. At each and every level of capital structure, market
value of firm will be same.
3rd Theory of Capital Structure
Name of Theory = Traditional Theory of Capital Structure
This theory or approach of capital structure is mix of net income approach and net operating
income approach of capital structure. It has three stages which you should understand:
Ist Stage
In the first stage which is also initial stage, company should increase debt contents in its
equity debt mix for increasing the market value of firm.
2nd Stage
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In second stage, after increasing debt in equity debt mix, company gets the position of
optimum capital structure, where weighted cost of capital is minimum and market value of
firm is maximum. So, no need to further increase in debt in capital structure.
3rd Stage
Company can gets loss in its market value because increasing the amount of debt in capital
structure after its optimum level will definitely increase the cost of debt and overall cost of
capital.
4th Theory of Capital Structure
Name of theory = Modigliani and Miller
MM theory or approach is fully opposite of traditional approach. This approach says that
there is not any relationship between capital structure and cost of capital. There will not effect
of increasing debt on cost of capital.
Value of firm and cost of capital is fully affected from investor's expectations. Investors'
expectations may be further affected by large numbers of other factors which have been
ignored by traditional theorem of capital structure.
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ABOUT HINDALCO INDUSTRY
Hindalco Industries Limited, established in 1958, is the metals flagship company of the
Aditya Birla Group. Hindalco is one of the leading producers of aluminium and copper.
Our aluminium units across the globe encompass the entire gamut of operations, from
bauxite mining, alumina refining and aluminium smelting to downstream rolling,
extrusions, foils, along with captive power plants and coal mines.
An Industry Leader In Aluminium And Copper
An industry leader in aluminium and copper, Hindalco Industries Limited, the metals
Flagship Company of the Aditya Birla Group is the world's largest aluminium rolling
company and one of the biggest producers of primary aluminium in Asia. Its copper
smelter is the worlds largest custom smelter at a single location. Established in 1958, we
commissioned our aluminium facility at Renukoot in eastern Uttar Pradesh, India in 1962.
Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon
copper mines in Australia, strengthened our position in value-added alumina, aluminium and
copper products .The acquisition of Novelis Inc. in 2007 positioned us among the top fivealuminium majors worldwide and the largest vertically integrated aluminium company in
India. Today we are a metals powerhouse with high-end rolling capabilities and a global
footprint in 13 countries. Our consolidated turnover of USD 15.85 billion (Rs. 72,078 crore)
places us in the Fortune 500 league.
HINDALCO'S BUSINESSES
CREATING SUPERIOR VALUE
Hindalco is one of the leading producers of aluminium and copper. Our aluminium units
across the globe encompass the entire gamut of operations, from bauxite mining, alumina
refining and aluminium smelting to downstream rolling, extrusions, foils, along with
captive power plants and coal mines.Our copper unit, Birla Copper, produces copper
cathodes, continuous cast copper rods and other by-products, such as gold,
silver and DAP fertilisers
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Our units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several units
have gone a step further with an integrated management system (IMS), combining ISO
9001, ISO 14001 and OHSAS 18001 into one business excellence model. We have been
accorded the Star Trading House status in India. Hindalco's aluminium metal is accepted
for delivery under the High Grade Aluminium Contract on the London Metal Exchange
(LME). Our copper quality standards are also internationally recognised and registered on
the LME with Grade A accreditation.
Aluminium
Hindalco's major products include standard and specialty grade aluminas and hydrates,
aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil.
The integrated facility at Renukoot houses an alumina refinery and an aluminium
smelter, along with facilities for the production of semi-fabricated products, namely,
redraw rods, flat rolled products and extrusions. The plant is backed by a co- generation
power unit and a 742 MW captive power plant at Renusagar to ensure the continuous
supply of power for smelter and other operations.
A strong presence across the value chain and synergies between operations has given us a
dominant share in the value-added products market. As a step towards expanding the market
for value-added products and services, we have launched various brands in recent years
Everlast roofing sheets, Freshwrapp kitchen foil and Freshpakk semi- rigid containers.
Copper
Birla Copper, Hindalcos copper unit, is located at Dahej in Gujarat, India. The unit has
the unique distinction of being the largest single-location copper smelter in the world.
The smelter uses state-of-the-art technology and has a capacity of 500,000 tpa. Birla Copper
also produces precious metals, fertilisers and sulphuric and phosphoric acid. The unit has
captive power plants for continuous power generation and a captive jetty to facilitate
logistics and transportation.
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Birla Copper upholds its longstanding reputation for quality copper cathodes and
continuous cast copper rods by assuring its management processes meet the highest
standards. It has acquired certifications such as ISO-9001:2000 (Quality Management
Systems), ISO-14001:2004 (Environmental Management System) and OHSAS-
18001:2007 (Occupational Health and Safety Management Systems).
Mines
Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003. The Birla
Nifty copper mine consists of an underground mine, heap leach pads and a solvent
extraction and electrowinning (SXEW) processing plant, which produces copper
cathode.The Mt. Gordon copper operation consists of an underground mine and a copper
concentrate plant. Until recently, the operation produced copper cathode through the ferric
leach process.
In 2004, a copper concentrator was commissioned to provide concentrate for use at
Hindalco's operations in Dahej.
Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement with
Hindalco for supply of copper concentrate to the copper smelter at Dahej.
Cornerstones Of Growth
Our well-crafted growth and integration hinges on the three cornerstones of cost
competitiveness, quality and global reach. We are also committed to the triple bottom line
accountability of economic, environment and social factors. Care for the community
around our operating units is best exemplified by our deep-rooted social commitment.
HINDALCO PROFILE
Hindalco Industries Ltd
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Type Public
Traded as BSE:500440
NSE:HINDALCO
BSE SENSEX Constituent
Industry Metals
Founded 1958
Headquarters Mumbai, Maharashtra,
Area served Worldwide
Key people Kumar Mangalam Birla (Chairman)
Products Aluminum and copper products
Revenue 720.77 billion (US$13.05 billion) (2011)
Operating 56.82 billion (US$1.03 billion) (2011)
Net income 28.79 billion (US$521.1 million) (2011)[3]
Total assets 589.32 billion (US$10.67 billion) (2011)
Employees 19,341 (2011)
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MISSION, VISSION &GOALS
Hindalco Industries Ltd. (BSE: 500440, NSE: HINDALCO) is one of the world's
largest aluminum manufacturing companies and is a subsidiary of the Aditya Birla
Group. Its headquartered at Mumbai, Maharashtra, India.
Vision
To be a premium metals major, global in size and reach, excelling in everything we do,
and creating value for its stakeholders
Mission
To relentlessly pursue the creation of superior shareholder value, by exceeding customer
expectation profitably, unleashing employee potential, while being a responsible
corporate citizen, adhering to our values
GOALS OF HINDALCO INDUSTRIES LTD
The development of new business opportunities. To increase the company's role in relations to social responsibility.
To provide excellent customer service.
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STRATEGIES ADOPTED
Where strategy counts high alumina content, less than 2 per cent Boehmite content, a
very low reactive silica content and negligible organic content. It has higher liquor
purity and productivity, which is more cost efficient. Also, in India, large deposits
of bauxite can be found in a single plateau, allowing for more efficient
extraction. India also has abundant coal supplies, easy availability of labour and is
located in close proximity to the fast-growing markets.
Captive bauxite mines that provide the highest quality bauxite and a refinery located
near the mine, state-of-the-art technology and economies of scale further enhance our
cost advantage.
Aluminium is a power intensive industry. One tonne of aluminium requires over
15,000 Kwh of power. Power constitutes almost 40 per cent of the total cost of
production. Low cost, uninterrupted power is absolutely vital for the successful
aluminium operations.
Our smelters fully backed by captive power plants located at the pitheads of the
owned coal mines make us one of the lowest cost producers globally
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DOWNSTREAM PRODUCTS
We are the market driver for aluminium products in India, being the largest
downstream producer. We leverage our strengths further when it comes to downstream
strategy. The recent acquisition of downstream producer Novelis gives us a well-diversified
geographical market base and enhances our stature in the area of downstream production.
Novelis is the world leader in rolled aluminium products; thus, this acquisition extends our
reach in the industry.
Novelis also has long-standing relationships with leading customers, which Hindalco expects
to grow. This combination of strong integrated and downstream production offers us multiple
advantages.
Copper
We have one of the world's largest single-location custom smelters at our Dahej
facility in Gujarat, India along with a power plant and nearby jetty.
In our pursuit of vertical expansion, we extended our presence in copper production
across national borders when we acquired the Nifty and the Mt. Gordon mines in
Australia. These m i n e s secure partial supply of our concentrate requirement.
The efficient handling of logistics and transportation in this business is paramount in
keeping costs low, and that is why our ownership of the all-season jetty at Dahej is so
financially advantageous. We are also mindful of opportunities related to the
production of copper that can benefit the business.
Gold and silver have an affinity to copper ore. We extract them, as well as trace
amounts of platinum and palladium after copper refining. We ensure that the dispatch
of these precious metals is conducted using special armoured vehicles that we
contract on a long-term basis through agencies.
We use the sulphuric acid employed in copper processing by converting it to
phosphoric acid and then using that to produce the fertilisers di-ammonium phosphate
and nitrogen phosphorus potassium compound.
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We also import the rock phosphate required to
produce phosphoric acid using our jetty, which is
capable of handling more than four million tpa of
cargo. The jetty is also used to import copper
concentrate, ammonia and coal and to export
copper products. One and two million tpa of
commercial cargo can additionally be handled,
depending on captive cargo requirements.
Another strong growth catalyst is research and development.
We maintain a steady focus on research, which has resulted in advances in thecompany's operations and commercial strategy as well as an increased focus on foreign
trade.
All told, we are well positioned for greater value creation.
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STRENGTH
Global brand image. Cost effective producer. Sound financial position. A high degree quality consciousness is the core competence of the company,
ISO 9001 and ISO 14001 have added more prestige to the company.
Integrated production facility at Renusagar power plant. Company has a well-established distribution network, covering a geographically
wide and scattered market.
A number of Brownfield & Greenfield projects. Industrial peace as, there has been no major strike in last 22 year. A well focused
human resources development.
Serve maximum customer satisfaction.WEAKNESS
Present production capacity is not adequate to meet the rising high demand. Technology is not upgraded to mark as compare to global giants in
aluminium industry.
OPPORTUNITY
R & D collabratation with universities and another research organization. Moreemphasis on downstream production of value added products.
Recycling should be adopted as routine production. Raising more finance from marketing for more acquisition and merger
for consolidating position in the global market.
Aluminium, continuous to be strong with a growth in transportation sector16%, construction15%, passenger car 25%, two wheeler segments 14%
respectively during FY07.
THREATS
Strong domestic and global competitors, such as TATA, POSCO, MITTLE,ESSAR .
Innovative revolution in plastic and steel industry. Reduce in Exide duty. Fall in price of Al. In neighbor country.
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COMPANY SOCIAL RESPONSIBILITY
Winning smilestouching heartsLong before corporate social responsibility found a place in the corporate lexicon, it
was already textured into the Group's value system. As early as the 1940s, the late Mr.
G.D. Birla espoused the trusteeship concept of management investing a portion of the
company's profits for the larger good of society. The late Mr. Aditya Birla went
beyond chequebook philanthropy when he brought in the concept of 'sustainable
livelihood'.
For over 50 years, Hindalco has worked in the hinterlands of India to better the quality
of life of the underprivileged sections of society.
Today, we reach out to millions of people in the villages, of whom more than 60 per
cent live below the poverty line. Their needs include: access to water, agriculture and
sustainable livelihood, healthcare, and education. These four areas form the focus of
our efforts.
The company also works to bring about social reform through widow re-marriage and
dowerless marriages. We work in partnership with government agencies and the
beneficiaries to provide these necessities and encourage social reform.
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Education
Balwadis: Providing for the primary education of underprivileged children.
Adult literacy: Providing formal and informal classes and active support to th
government's mission to improve rural literacy levels.
Merit scholarships / Schemes: Support female students for educational endeavours
Educational support: Contributing uniforms, textbooks and classroom equipmen and
undertaking school building construction and maintenance.
Health facilities: Setting up well-equipped and professionally manned health centres at
several locations.
Regular health camps: Providing family planning, mother and child care and
specialised camps for eye care and for cataract; coordinating regular pulse polio
immunisation drives; and promoting the awareness, prevention and treatment of
malaria, water-borne diseases, TB, HIV/AIDS, and others diseases.
WOMEN'S EMPOWERMENT
Self-Help Groups (SHG): These programmesinvolve over 11,000 women from rural communities
around Hindalco units.
SHG activities: Micro credit and micro finance schemes, entrepreneurship building,
oil-processing units, tailoring centres, horticulture and nutrition gardens, diesel and
hand pump repair, vermi compost production, mushroom cultivation, food processing,
etc.
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Awareness building: Health and sanitation, family planning, literacy drives and
microfinance; facilitating government loans for small-scale enterprise and rural
insurance schemes, etc.
Social causes: Promoting dowerless marriages and widow re-marriages.
AGRICULTURAL SUPPORT
Irrigation schemes: Land brought under irrigation with
better yield and multi-cropping methods.
Watershed development: Hydel towers, drainage
canals, wells, check-dams, pedal pumps and harvest
tanks.
Training: Field schools train local farmers in modern
agricultural techniques for higher crop yield;
introducing lac cultivation, post-harvest technology
with safe grain storage through an integrated pest-
management system, floriculture, horticulture and
kitchen gardens; shifting from mono to multi cropping
patterns and distribution of high-yield seeds.
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CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD
Capital Structure (Hindalco Industries)
Period Instrument Authorized
Capital
Issued
Capital
- P A I D U P -
From To (Rs. cr) (Rs. cr) Shares
(nos)
Face
Value
Capital
2011 2012 Equity Share 210 191.51 1915088557 1 191.51
2010 2011 Equity Share 210 191.5 1914944163 1 191.49
2009 2010 Equity Share 210 191.47 1914008691 1 191.4
2008 2009 Equity Share 195 170.15 1700817056 1 170.08
2007 2008 Equity Share 145 122.72 1227190692 1 122.72
2006 2007 Equity Share 145 115.93 231521031 1 11.58
2005 2006 Equity Share 145 115.93 231521031 0 5.792004 2005 Equity Share 145 92.78 92780847 10 92.78
2003 2004 Equity Share 145 92.48 92481325 10 92.48
2002 2003 Equity Share 145 92.48 92481325 10 92.48
2001 2002 Equity Share 145 74.47 74466213 10 74.47
2000 2001 Equity Share 145 74.47 74472020 10 74.47
1999 2000 Equity Share 145 74.47 74472020 10 74.47
1996 1999 Equity Share 145 74.47 74472020 10 74.47
1995 1996 Equity Share 145 49.65 49650030 10 49.651994 1995 Equity Share 70 49.65 48012080 10 48.01
1993 1994 Equity Share 70 45.48 43377514 10 43.38
1992 1993 Equity Share 70 38.77 38773864 10 38.77
1991 1992 Equity Share 45 38.77 38773864 10 38.77
1990 1991 Equity Share 45 38.77 38773864 10 38.77
1989 1990 Equity Share 45 17.85 17854700 10 17.85
1988 1989 Equity Share 21 17.85 17848650 10 17.85
19821988 Equity Share 15 13.39 13386488 10 13.39
1972 1982 Equity Share 12 10.05 10039866 10 10.04
1968 1969 Equity Share 10 8.04 8031893 10 8.03
1967 1968 Equity Share 10 8.04 7670510 10 7.67
1965 1966 Equity Share 10 6 5993950 10 5.99
1964 1965 Equity Share 10 6 5993200 10 5.99
1961 1963 Equity Share 10 6 5991500 10 5.99
1960 1961 Equity Share 10 6 750000 10 0.75
1959 1960 Equity Share 10 0.15 150000 10 0.15
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