INDUSTRIES LIMITED

COMPANY PROFILE
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 amongst the largest single location custom smelter
globally. 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 five aluminium
majors worldwide and the largest vertically integrated aluminium company in India. Today, we are a metals
powerhouse present in two of the fastest growing metal segments; aluminium and copper, with global
footprints in 13 countries and with a consolidated turnover of USD 14.8 billion (Rs. 80,193 crore).

MISSION VISION AND VALUES

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.

Values
Honesty in every action
On the foundation of integrity, doing what it takes to deliver, as promised
Missionary zeal arising out of an emotional engagement with work
Thinking and working together across functional silos, hierarchy levels, businesses and geographies
Responding to stakeholders with a sense of urgency

HISTORY
The Hindalco story dates back to the young Indian democracy of the 1950s. Ready to take a giant leap,
India was geared to make it big, especially in terms of innovation and industrialisation.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. GD Birla set up India's first integrated aluminium 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 aluminium industry under the dynamic leadership of
the late Mr.AdityaVikram 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 aluminium

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 aluminium company in the country and among the largest primary producers of aluminium 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 aluminium rolling company, placed Hindalco's
footprint across the globe, securing it a rank amongst the top five global aluminium majors and also placing
it in the Fortune 500 league.

WEIGHTED AVERAGE COST OF CAPITAL

Weighted average cost of capital (WACC) is the average after-tax cost of a companys various capital
sources, including common stock, preferred stock, bonds and any other long-term debt. A company has two
primary sources of financing - debt and equity - and, in simple terms, WACC is the average cost of raising
that money. WACC is calculated by multiplying the cost of each capital source (debt and equity) by its
relevant weight, and then adding the products together to determine the WACC value:

WACC =

* Re +

* Rd * (1 Tc)

Where:

Re = cost of equity

Rd = cost of debt

E = market value of the firms equity

D = market value of the firms debt

V=E+D

E/V = percentage of financing that is equity

D/V = percentage of financing that is debt

Tc = corporate tax rate

When calculating a firm's WACC, the first step is to determine what proportion of a firm is financed by
equity and what proportion is financed by debt by entering the appropriate values into the

and

components of the equation. Next, the proportion of equity (

and the proportion of debt (

) is multiplied by the cost of equity (Re);

) is multiplied by the cost of debt (Rd).

The debt side of the equation ( * Rd) is then multiplied by (1 - Tc) to get the after-tax cost of debt (there
is a tax shield associated with interest). The final step is to add the equity side of the equation to the debt
side of the equation to determine WACC.

SHAREHOLDING PATTERN:
SHARE HOLDING PATTERN
8%

3%

9%
0%

Promoters
40%

ForeignInstitutions
FinancialInstitutions
GeneralPublic
Others
NBanksMutualFunds

18%

CentralGovt

22%

Holder's Name

% Share Holding

Promoters

40.04%

Foreign Institutions

21.95%

Financial Institutions

17.67%

General Public

9.4%

Others
N Banks Mutual Funds
Central Govt

8.42%
2.5%
0.02%