Hindalco Industries LTD Purchase Order

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INTRODUCTION ADITYA BIRLA GROUP OVERVIEW GENESIS:

Aditya Adity a Birla Group traces traces its origin back to the tiny village of  Pilan Pilanii in the the Ra Raja jast stha han n de dese sert rt,, wh wher ere, e, la late te Shri Shri Seth Seth Sh Shiv iv Nara Na raya yan n Birla Birla star starte ted d cotto cotton-t n-tra radi ding ng oper operat ation ions s in 18 1857 57..  Then one visionary – the late Shri G.D Birla set up India’s first integr int egrate ated d alu alumin minium ium manufa manufactu cturin ring g uni unitt at Renuko Renukoot, ot, in 1962, backed by captive power plant at Renusagar in 1967. It further evolved under the dynamic leadership of the late Shri Aditya Vikram Birla – a prominent figure in the Indian indus ind ustr try, y, un unde derr wh whos ose e stew stewar ards dship hip Hinda Hindalco lco at atta taine ined d its its leadership position in aluminium. Today our Group chairman, Dr.. Kuma Dr Kumarr Ma Mang ngla lam m Bi Birl rla a ha has s pu putt to toge geth ther er the the bu buil ildi ding ng blocks to make Indian business a global force.

 The Aditya Birla Group is India’s first truly multinational corporation global in vision, rooted in Indian values, A US $24 billion corporation with a market cap of US $31.5 billion and in the the leag league ue of Fo Fort rtun une e 500, 500, th the e Adity ditya a Bir Birla Grou Group p is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged “The Best Employer in India and among the top 20 in Asia” by the Hewitt-Economic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations.

 

 The

group’s

products

and

services,

offer

distinctive

consume cons umerr soluti solutions ons.. Its 66 sta statete-ofof-thethe-art art manufac manufactur turing ing units and sectoral service span throughout the world. Entry of Syt. Ghanshyam Das Birla 1916 of sick

First taste of industrial management – take over cotton mill in Delhi.

1918 -

First limited company – Birla Brothers Limited. The real industrial thrust in 1919 with Birla  Jute in Calcutta and 1921.

Jiyajeerao Cotton –

Gwalior Birla Jute was established in defiance of  Scottish monopoly. 1923 -

Purchase of Kesoram Cotton.

1926 -

Orient Paper Mills.

193 9311-33 33

-

Bh Bhar arat at Suga Sugar, r, Upp pper er Ga Gang nges es Su Suga gar, r, New New

Swadeshi Sugar, New Delhi Sugar. By 1947 -

Asse setts wroth Rs. 25 cr cro ores in 20 com companie nies.

 Thereafter 1954 - Durgapur Iron & Steel 1957

- Gwalior Rayon, Nagda

1962

- Hindalco co commencement o off pr production

1966

- Take over of Indian Rayon

 

ADITYA BIRLA GROUP A truly multinational multinational Indian Group  The Aditya Birla Group was the first in Indian to venture overseas, by starting a joint venture in Ethiopia. Thereafter, over the last quarter century, this group has started 20 very successful and diversified ventures spread through the Asian region. It has been declared by Euro money that this is the only truly multinational group of India. At present, the group has more than 50 manufacturing units, prod pr oduci ucing ng a diver diverse se range range of pr produ oduct cts, s, finan financia ciall serv servic ice, e, trading and computer consultancy. It is also expanding its activitie ities s

in

the

field ield of

tel ele ecom,

oil

refine nerry,

pow power

generation, copper smelter etc.

Globally the Aditya Birla Group is:



A me meta tals ls po powe werh rhou ouse se,, am amon ong g the the worl world’ d’s s most most co cost st-efficient aluminium and copper producers. Hindalco-Novelis fr from om its its fold is a Fort Fortune une 50 500 0 com compan pany. y. It is the

la larg rgest est

aluminium rolling company. It is one of the three biggest

 

prod pr oduce ucers rs of pr prim imar ary y al alum umini inium um in Asia, Asia, with with the the la larg rges estt single location copper smelter.





No.1 in viscose staple fibre



 The fourth largest producer of insulators  The fourth largest producer of carbon black



 The 11th largest cement producer globally



Among Am ong th the e wo worl rld’ d’s s to top p 15 BP BPO O comp compan anies ies and and amon among g India’s top three



Among the best energy efficient fertilizer plants

In India: A premier branded garments player •



 The second largest player in viscose filament yarn



 The second largest in the chlor-alkali sector



Among the top five mobile telephony companies



A leading player in life insurance and asset management



Amon Am ong g the the top top thre three e supe superm rmar arke kett ch chai ains ns in the the reta retail il business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture cultur e where success does not come in the way of the need to keep learning afresh, to keep experimenting.

Beyond business – “Reaching Out” A valu value e ba base sed, d, ca cari ring ng co corp rpor orat ate e ci citi tize zen n th the e Ad Adit itya ya Birl Birla a Grou Gr oup p inhe inhere rent ntly ly be beli liev eves es in th the e trus truste tees eshi hip p conc concep eptt of  management. A part of the group’s profits is ploughed back

 

in to meani eaning ngfu full we welf lfa are dr driv iven en in init itia iattive ive that hat mak ake e a qualita qual itativ tive e dif differ ference ence to the lives lives of margina marginaliz lized ed people people..  These activities activiti es are carried out under the aegis of the Aditya Birla

Center

for

community

initiatives

and

Rural

Development spearheaded by Mrs. Rajashree Birla.

Beyond business — the Aditya Birla Group is: •



Working in 3,700 villages





Reaching out to seven million people annually through the Adit Ad itya ya Bi Birl rla a Cent Centre re fo forr Comm Commun unit ity y Init Initia iati tive ves s an and d Rura Rurall Development, spearheaded by Mrs. Rajashree Birla





Focusing on: health care, education, sustainable livelihood, infrastructure and espousing social causes

GROUP PHILOSOPHY  RESTS ON FOUR PILLARS: 

CUSTOMERIZE



PEOPLE- IZE



STRATEGIZE



INSTITUTIONALIZE

GROUP VALUES OUR VALUES ARE NON NEGOTIABLE, THEY ARE NEVER TO BE  JETTISONED, FOR US OUR VALUES ARE OUR WELLSPRING.  THESE ARE: 

INTEGRITY



COMMITMENT

 



PASSION



SEAMLESSNESS



SPEED

GROUP VISSION “TO “T O BECO BECOME ME A PREM PREMIU IUM M CO CONG NGLO LOME MERA RATE TE WI WITH TH CL CLEA EAR R BUSSINESS FOCUS AT EACH CORPORATE LEVEL”

GROUP MISSION “TO DELIVER VALUE FOR OUR CUSTOMERS, SHAREHOLDERS, EMPLOYEES AND SOCIETY AT LARGE”

Aditya Birla Management Corporation Ltd. (ABMCL) In a st stra rate tegi gic c mo move ve to inst instit itut utio iona nali lize ze its its mana manage geme ment nt proc pr oces ess, s, th the e Ad Adit itya ya Birl Birla a Gr Grou oup p ha has s set set up Adit Aditya ya Birl Birla a Management Corporation Limited (ABMCL) It is headed by Boar Bo ard d of Di Dire rect ctor ors s wi with th Mr. Mr. Kuma Kumarr Mang Mangal alam am Birl Birla a as a Chairman. It is a Grou Group’ p’s s ap apex ex de deci cisi sion on maki making ng body body an and d prov provid ides es strategic direction to group companies.  The Group has following Achievement to its credit   The

world’s no.1 in viscose staple fiber.

  The

third largest producer of insulator.

 

  The

world’s third largest producer of carbon black.

  The

world’s eighth largest producer of cement and the

largest in a single geography. 

Asia’s largest integrated aluminum producer.



A globally competitive, fast growing copper producer.



India’s premier branded garments player.



Amon Am ong g In Indi dia’ a’s s mo most st ener energy gy effi effici cien entt priv privat ate e sect sector or fertilizer plants.



India’ Indi a’s s seco second nd larg larges estt pr prod oduc ucer er of vi visc scos ose e fi fila lame ment nt yarn.



Indi dia a’s

se sec cond

large ges st

private

sector

ins nsu urance

company. 

Among the world’s top 15 and India’s top three BPO companies.

  The

group has also made successful succes sful forays into it and IT

sector and has a significant presence in the Financial Sector and telecommunications sectors in tie-ups with giants like Sun Life insuran insurance ce (Canada) and At &T (USA) respectively.

HINDALCO INDUSTRY LTD

 

Hindalco Industries Limited, the metals flagship company of  the Aditya Birla Group, is an industry leader in aluminium and an d coppe opperr. A metal etals s powe powerh rhou ouse se wit with a con conso soli lida date ted d turnover of Rs.600, 128 million (US$ 15 billion), Hindalco is the world’s largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelt sm elter er is the the wo worl rld’ d’s s la larg rges estt cust custom om sm smelt elter er at a singl single e location.

Established in 1958, Hindalco commissioned its aluminium facility

at

Renukoot

in

Eastern

U.P.

in

1962.

Later

acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt.Gordon copper mines in Australia, strengthened the company’s position in value-added alumina, aluminium and copper products, with vertical integration through access to captive copper concentrates.

In 2007 2007,, the the ac acqu quisi isitio tion n of Nove Noveli lis s Inc. Inc. a wo worl rld d lea leader der in alumi alu miniu nium m rolli rolling ng and and can can recy recycli cling ng mark marked ed a si signi gnifi fica cant nt milestone in the history of the aluminium industry in India. With Novelis under its fold Hindalco ranks among the global top five aluminium majors, as an integrated producer with lo low w cost cost al alum umina ina an and d al alum umini inium um fa facil cilit ities ies co comb mbine ined d with with high hi gh-e -end nd ro roll llin ing g ca capa pabi bili liti ties es and and a glob global al foot footpr prin intt in 12 coun co untr tries ies outs outsid ide e In India dia.. It Its s co comb mbine ined d turno turnove verr of US$ US$ 15 billion, places it in the Fortune 500 league.

 

HINDALCO INDUSTRIES LIMITED COMPANY PROFILE Hindalco Industries Ltd. is the Flagship Company of Aditya Birla Group. The Aditya Birla Group is India’s second largest business busines s house with a turnover of Rs. 280 billion, and  and   Assets are ar e va valu lued ed at over over Rs Rs.. 26 265 5 bi bill llio ion. n. The The gr grou oup p ha has s near nearly ly 72000 employees in 18 18  countries. Hindalc Hin dalco o Indu Industr stries ies Lim Limite ited d was inc incorp orpora orated ted in 1958 1958 and commercial production commenced in 1962. The Company was set up in technical collaboration with Kaiser Aluminium & Chemicals Chemica ls Corporation, Corporation, USA. Hindalc Hindalco o is today one of India’s premiu pre mium m corpor corporate ate,, contri contribut buting ing sign signific ificant antly ly to eco econom nomic ic growth, generating employment and setting high standards in respect of fulfilling of obligations to all stakeholders. The Company prizes its ‘Human Capital’, and employees have been reciprocating by turning in a sterling performance for the th e Comp Compan any, y, ye year ar aft after er year year.. Hi Hind ndalc alco o has has an envia enviable ble record of harmonious Industrial Relations, with not a single man day lost since the past 30 years on account of industrial strife. Company’s principal products comprise of Aluminium Ingo In gots ts,, Alum Alumin iniu ium m Bi Bill llet ets, s, Alum Alumin iniu ium m Wi Wire re Rods Rods,, Shee Sheett Products, Extrusions, Aluminium Foils and Aluminium Alloy Wheels. The Company’s by products include Gallium Metal, Vanadium Sludge and Aluminium Dross.

 

Hindalco Industries Limited, one of the major producer of  Aluminium metal and its semis in the country as well as a premier flagship company of A.V. Birla group in the biggest industrial enterprise of Uttar Pradesh. It is a public limited company in the private sector having about 39000 shareholders. It is the largest integrated Aluminium plant in India with all its production facilities viz. Alumina, Aluminium & Fabr Fabric icat atio ion n loca locate ted d at Renu Renuko koot ot ne near ar Riha Rihand nd Dam Dam in Soneb So nebha hadr dra a (Utt (Uttar ar Prad Prades esh). h). Hi Hinda ndalc lco’ o’s s power power divi divisio sion n is sit situat uated at Renu Renusa saga garr ab abo out 35 km fr from om Renu Renuk koot oot. In September 1959, an industrial license was granted by the Government for setting up an integrated Aluminium plant at Renukoot, with an initial installed capacity of 20000 MT. The construction work was completed with 18 months, a record for a major job of this kind.  The dream of the great visionary Syt. G.D. Birla to locate an Aluminium plant near Rihand power house came true. The late

Prime

Minister

Pt.

Jawaharlal

Nehru,

formally

inaug ina ugur urat ated ed th the e pla plant nt in Ja Janua nuary ry 19 1963 63.. From From th the e mode modest st beginning in 1962, Hindalco has now become an industrial giant with capacity to produce 242000 MT of Aluminium per annum. Renukoot a fast growing & thriving industrial township, which is no now w hum hummi ming ng with with act activ ivit itie ies s & prov providi iding ng al alll the the basic basic amenities of modern life to the inhabitants. From being one of the most backward areas of U.P., it has now carved a plac pl ace e fo forr itse itself lf on th the e in indu dust stri rial al map map of Indi India a as we well ll as

 

World. Lying in the foothills of the Vindhya range, Renukoot is about 165 km from Varanasi and 154 km from Mirzapur.  The expansion programme of plant from the initial capacity of 242000 MT took place in the stages during the last thirty five years. Apart from catering to the internal demand of  Alum umiini nium um in the count untry, Hind indal alc co is also lso exporting Alum Al umin iniu ium m se semi mis s to vari variou ous s coun countr trie ies s incl includ udin ing g U. U.S. S.A. A.,, Germany, Japan etc. Renusagar power, a division division   of Hindalco is the major ajor su supp ppli lier er of powe powerr to Hinda indalc lco. o. The The powe powerr gene ge nera ratting ing

cap apac acit ity y

of

Renu enusa saga garr

powe powerr

divi divisi sion on

ha has s

increased to 575 MW since last year. Now Renusagar is able to meet the full requirement of Hindalco. Hindalco is an ISO-9002 company since 1994. Recently in  July 1998 it has also received the certification of ISO-14001 forr envi fo enviro ronm nmen entt maint mainten enan ance ce sy syst stem em.. The The co comp mpany any has has been able to continuously enhance the quality and range of  the product and provide customer satisfaction. In 1962 when production started, the company had on its roll about 900 staff and workmen and the present strength of  employ empl oyee ees s is ab abou outt 1400 14000. 0. Th The e offi office ce an and d work works s site site is located at Renukoot and there are zonal offices at Bangalore, Bombay, Delhi and Calcutta.  The company is managed by a Board of Director and other Senior Executives.

Management  Syt. Kumar Mangalam Birla Syt. Sy t. De Debu bu Bhata Bhatach char arya ya

-

Chairman - Ma Mana nagi ging ng Dire Direct ctor or

 

COORPOR  ATE (RATAN SOMANI)

SMELTER  HEAD (Umakant Babulal Agarwal)

ELECTRIC AL HEAD

MECHENI CAL HEAD

POWER  HEAD S.v.s Smyanaray an)

TECHNOL OGICAL HEAD

CIVIL HEAD

MEHENIC AL HEAD

MECANIC AL HEAD

TECHNOL OGY HEAD

CIVIL HEAS

Hindalco today Hindalco ranks as one of the largest Aluminium producer in India and contributes about 35% of the total Aluminium production of the country. The company’s fully integrated Alum Al umini inium um oper operat ation ions s consi consist st of the the minin mining g of Baux Bauxit ite, e, conversion of Bauxite into Alumina, production of primary aluminium from Alumina by electrolysis and production of  properzi redraw rods, rolled products and extrusions. Capacities

Present

Power

575

MW

Alumina

4,50,000 MT p.a.

Aluminium

2,42,000 MT p.a.

Rolled products

80,000

MT p.a.

Extrusions

15,000

MT p.a.

Wire rods Foils

50,000 5,000

MT p.a. MT p.a.

 

Co-generation

37

MW

 Joint venture companies companies of Hindalco Hindalco 1.

Indo Indo-G -Gul ulff Fe Fert rtil ilis iser ers s & Ch Chem emic ical al C Cor orpo pora rati tion on L Lim imit ited ed

2 3.. 4. 5. 6. 7. 8. 9.

B ihar ha Ca a us tisctr& hem miitca cal Liimite ited Ta nfracC Inust du ieC s he Lim edls L Mang Mangal alor ore eR Ref efin iner ery y&P Pet etro roch chem emic ical als s Limi Limite ted d (MRP (MRPL) L) Birl Birla a AT & T Com omm munic unicat atio ions ns Li Lim mited ited Bina Power S Sup uppl ply yC Co ompany Limited ited Birla Global bal F Fiinance Limit ite ed (B (BGFL) Birl Birla aC Cap apit ital al Inte Intern rnat atio iona nall A AMC MC Li Limi mite ted d (BC (BCIA IAMC MC)) Rajshree P Po olyfil Li Limited

HINDALCO’S VISION  To

strengthen

compan pany,

our

sustainin ining g

position

as

domestic

a

premium

leade derrship

aluminium and

global

competitiveness through innovation, quality and value added growth.

HINDALCO’S MISSION  To relentlessly pursue the creation of superior shareholder valu va lue e

by

exce exceed edin ing g

cust custom omer er

expe expect ctat atio ion ns

pr prof ofit itab ably ly,,

unle un leas ashi hing ng em empl ploy oyee ee pote potent ntia iall an and d bein being g a resp respon onsi sibl ble e corporate citizen adhering to our values. .

HINDALCO’S STRATEGY 

 

EFFICIENCY FOCUS: To be one of the lowest cost producers globally. EFFECTIVENESS FOCUS: To continue to remain the market leader domestically. GROWTH

FOCUS:

To

purchase

value

adding

growth

opportunities in aluminium.

HUMAN RESOURCE (HR) Human Resources play a vital role in shaping a healthy and grow gr owin ing g

orga organi niza zati tion on.. Wi With thou outt

do doub ubt, t, hu huma man n

reso resour urce ces s

development has hence been aptly described as the “soul”  of a vi vib bra rant nt an and d dyna dynam mic or orga gani niz zatio ation. n. The The incr increa easi sing ng comp co mple lexit xity y an and d pr prob oblem lems s of ma mana nagin ging g huma human n reso resour urce ces s places heavy demands on ensuring equal emphasis on all the sub-systems which play a crucial part in ensuring holistic develo dev elopm pmen entt of th the e human human reso resour urces ces.. Huma Human n Re Reso sour urces ces Mana Ma nagem gement ent has has gained gained imme immens nse e im impo port rtan ance ce in toda today’ y’s s environment of global competition to meet future challenges in the new millennium. In these days of rapid advancement in Information Technology and Techno-Commercial aspects of bus busine iness ss,, it would would be ev event entual ually ly the the “M “Man an behin behind d the the Machine”  wh who o wo woul uld d det deter ermi mine ne wh which ich way way / dire direct ctio ion n an organization goes. Human Resources Development systems have an important task ta sk in ac achi hiev evin ing g the the re requ quir ired ed dyna dynami mics cs to en enab able le an any y organization to perform at its peak. The right recruitment and

selec lection

to

start

with,

progr gres ess sive ive

trainin ining g

and

develop dev elopmen mentt therea thereafte fter, r, and, and, a fair fair perfor performan mance ce appraisa appraisall system syst em gi give ves s an impe impetu tus s to prof profes essi sion onal al and and pr prof ofic icie ient nt management of HR. There is yet another dimension of HRM

 

which wh ich is dire direct ctly ly re relat lated ed to to,, and and fa falls lls wi with thin in the the ambi ambitt of  organiz org anizati ationa onall developm development ent that that deserve deserves s major major att attent ention ion becau bec ause se the the “ch “chara aracte cterr & cult culture ure”  ”  of an orga organi niza zati tion on is formed by HR of the organization and that will finally decide the future of the organization. Afte Af terr sa said id al alll th this is,, it is im impe pera rati tive ve to co cons nsol olid idat ate e on th the e available availa ble human potent potential ial and check HR wastages wastages to ensure orga or gani niza zati tion onal al ef effe fect ctiv iven enes ess s as it ha has s beco become me a key key to sustain excellence and achieve competitive advantage over othe ot hers rs.. thus thus as assu sume mes s an ev even en gr grea eate terr rele releva vanc nce e in th the e existing changing business scenario especially so when there is a paradigm shift in the Organizations’ approach towards Human Hum an Res Resour ources ces Man Managem agement ent in outlini outlining ng spec specific ific rol roles. es. Without

defining

orga or gani niz zat atio ion n

HR

vision,

roles

would ould jeop jeopar ardi dize ze its its

&

objectives,

gr grow owtth

and and

an

surv surviv ival al

therefore it is all the more necessary to indigenize the HR sub-systems for one’s own benefit after a close microscopic scrutiny. .

HINDALCO HR VISION, MISSION & OBJECTIVES HR VISION  To provide

an

competencies

enabling are

environment

nurtured

and

where

harnessed

sustainable business growth and leadership.

employee towards

 

HR MISSION  To proactively assess and provide for the HR needs of the business and customer for the attainment of organizational goals. HR OBJECTIVES  To collaborate with and an d support internal customer of HR in achiev achieving ing bus busines iness s obje objecti ctives ves throug through h HR service services s viz. effective manpower planning , ensuring harmonious industrial relation etc.  To review and redesign the structure of the organisation with the clarity of roles, responsibilities and account acc ountabil ability ity for ove overall rall organi organizat zationa ionall effecti effectiven veness ess and speeding response to emerging business challenges.  To develop knowledge and skills of the employees and groom leaders with functional and business competencies to meet future demands of the organizational (viz. flexibility and change management).  To benchmark best HR practices in order to enhance human resource effectiveness.  To enhance employee productivity through rationalization of jobs and manpower optimization.  To promote employee involvement in decision-making, team working, creativity and empowerment.  To institutionalize transparency by framing, updating and communicating systems and processes.  To maintain good liaison with government/ external agenc ag encies ies in or orde derr to be bett tter er serv serve e the the orga organiz nizat atio iona nall cause.  To provide a safe and healthy work environment and continuously benchmark and upgrade the standards of  safety and hygiene.  To work towards improving the quality of work life of  employees and the lives of their families. •



















HINDALCO INDUSTRIES LIMITED

 

Organisation Chart of HRD Division V.P. (HR)

Medical services

Head, HRD

Head E.R

Head Security &

HeadSafety

School ( all principles)

Services directly or indirectly end to Customer Satisfaction. Sati Sa tisf sfac acti tion on is a em emot otio iona nall resp respon onse se to his his or her her prio priorr experience experie nce with and expectations expectations with the benefits provided by the services of service department of the organisation. It is believed that satisfaction will influence future. Customers can experience satisfaction with; • • •



Organisation’s services, overall Specific performance aspects of organisation’s services Orga Or gani nisa sati tion on’s ’s co cond nduc uctt of tr tran ansa sact ctio ion n (d (del eliv iver ery y of  services, repair visits, complaint handling, etc...)  The kind of relations between employees and the organisation.

 

Services can be explained with the help of a following cycle

IMPROVEED EMPLOYEE SATISFACTION

SATISFIED CUSTOMERS

LOWER

LOWER CUSTOMER

EMPLOYEE

CHURN

TURNOVER

 

HIGHER PROFIT MARGIN

 

Following model presents the interrelation between customer satisfaction and Loyalty interrelates. This model advises that loyalty to be more of an emotional bond, while satisfaction deals more with functional performance.   Emotional Bonds

Perceived Caring

Trust & Confidence Brand awareness

Customer  Loyalty Product Satisfaction

Brand Image

Channel Assets

Perceived Caring

Perceived Knowledge

Accessibility & responsiveness

 The management shall review the organisation’s quality manag ma nagem ement ent syst system em,, at pla planne nned d In Inte terv rvals als,, to ens ensur ure e its its cont co ntin inui uing ng suit suitab abil ilit ity, y, ad adeq equa uacy cy an and d

effe effect ctiv iven enes ess s

.t .thi his s

review shall include assessing opportunities for improvement and the need for changes to the quality policies and quality objectives. The input of management reviews shall include information on:

 

• • • •



Results of audit Customer feedback Process performance Chan Ch ange ges s tha hatt co coul uld d affe affect ct the the qual qualit ity y ma mana nage geme ment nt system Recommendations for improvement

 The main objective of the measurement of performance of  the th e Quali Quality ty Ma Manag nagem ement ent Sy Syst stem em.. The The organ organis isat atio ion n shall shall monitor information relating to customer perception as to whether

on

the

organisation

has

met

customer

requirements. Considering

Hindalco

industries

limited,

Renukoot,

emphasis empha sises es on th the e ben benef efit its s of cust custom omer er sati satisf sfact actio ion. n. The The service departments of Hindalco are : • • • • •

Recruitment/ Personnel Recruitment/ IT Building Buil ding Maintenance Accounts  Town Admin, Security and Camp Office

 

INFORMATION TECHNOLOGY  For ens ensuri uring ng Qua Qualit lity, y, Service Service and Info Informa rmatio tion n Securit Security, y, IT Department has established ITMS based on PDCA model and witth th wi the e he help lp of in inte tegr grat atio ion n of ISO9 ISO900 001: 1:20 2000 00 (Qua (Quali lity ty Management ), BS 15000 (IT Service Management) and ISO -270 -2 7001 01 (I (Inf nfor orma mati tion on Secur Securit ity y Mana Manage geme ment nt). ). Hinda Hindalco lco IT Department is World’s 1st integrated implementation of 3rd International IT Standards , which is certified by DNV in Dec 2005. Our main objective is to implement the best practices and continuously improve upon it.  The DR solution setup at Renusagar ensure Business application availability in case of disaster , which is an online true replica of Database server at Renukoot, results to zero data loss by implementation of State-of-the-art “Metro Mirror Technology.

Information Security Prerequisites

 

 The deployment and use of information system in the Group are governed by the Information Security Policy of the Group. Upon joining Aditya Birla Group, employees are required to sign sign

“I “Inf nfor orma mati tion on

Sy Syst stem em

Ac Acce cept ptab able le

Use Use

Ag Agre reem emen ent” t”

before befo re th they ey ca can n acce access ss an any y of the the Grou Group’ p’s s Info Inform rmat atio ion n System.

Access to Information System Emplo Em ploye yees es will will be gr gran ante ted d acces access s to Inf Infor orma mati tion on Syst System em based on business needs. Users will be assigned a unique identification code (User ID) and password to enable them to gain ga in acce access ss to Info Inform rmat atio ion n Sy Syst stem em.. The The IT depa depart rtme ment nt regu re gula larl rly y moni monito tors rs and and au audi dits ts the the usag usage e of In Info form rmat atio ion n System. IT department generally generally provide services to the employee in the form of following: Setup i.e. Change Calls Bug i.e. Incident Calls Information i.e. Information Calls For solving the employee’s problem/complaint IT Department • • •

has software called Calls Management System (CMS). The IT Department has signed two agreements: • •

Service Level Agreement (SLA) Operation Level Agreement (OLA)

SERVICE LEVEL AGREEMENT (SLA) - This agreement is signed betwe bet ween en IT Depa Depart rtme ment nt and othe otherr Depa Depart rtme ment nts s that that the the complaints will be solved within the specified period. OPER OP ERAT ATIO ION N LEVE LEVEL L AG AGRE REEM EMEN ENT T (SL (SLA) A) - This This ag agre reem emen entt is signed internally among employees of IT Department that

 

the th e pa part rtic icul ular ar comp compla lain intt will will be so solv lved ed wi with thin in spec specif ifie ied d period.

BUILDING DEPARTMENT Build Bu ildin ing g De Depa part rtme ment nt lo look oks s af afte terr Colo Colony ny Maint Mainten enanc ance. e. It includes more than 8000 quarters. Building department has the following functions:  Construction  Routine Maintenance  Development

CONSTRUCTION Construction include jobs like  The job of construction does not exactly deal with the services that are rendered to the employees.

 

MAINTENANCE  Accepts the complaint through: Online   Telephone  Writing



DEVELOPMENT WORKS Major

maintenance problems Development Works.

are

considered

as

Their job is being identified into following categories:



Painting Carpentry Fabrication

 

Plumbing Massionary

 

ACCOUNTS

DEPARTMENT

Every organization has some objectives and whether these are achieved or not is also monitored. It is possible when all the transaction evaluated in terms of money and is recorded in a me mean anin ingf gful ul ma mann nner er.. Th The e pr proc oces ess s of keep keepin ing g thes these e records is called “Accounting” and the department that does it is called as “Accounts Department”.  The main task of the accounts department is to advise management on the financial matters and maintain accounts prescribed under the companies act. A necessary part of this

 

function is proper accounting of income and expenses and asse as setts an and d li liab abil ilit itie ies. s. Ther There e ar are e man any y func functtio ion n in the the Accoun Acc ounts ts depa departm rtment ent i.e. Acc Accoun ounting ting,, Audit, Audit, Tax Taxati ation, on, PF, Banking, Insurance, Fixed Assets, Cash Receipts Payments, Budgeting etc.  The Accounts Department performs their function in the form of service to the employees in the following manners: 1. Grat Gratui uity ty 2. Super Super Ann Annuat uation ion 3. Reimbur Reimbursem sement ent of Bi Bills lls 4. Insu Insura ranc nce e 5. Provide Provident nt Fun Fund d 6. Ex-Gratia Payment  

 

CONCLUSION In our project” Purchase Order Procedure in Hindalco Co. Ltd. (Mahan Project)”, We have finalised the service indicators for all the service departments of Hindalco Industries limited.  Today is the buyers market. In the world of globalisation, by ensuring merely the customer satisfaction, the organisation can ca n surv surviv ive e but but it ca cann nnot ot fl flou ouri rish sh and and comp compet ete e with with th the e competitors. For that, it is important to move from customer satisfaction to customer delight and ultimately to customer obsession, only then the th e orga organi nisa sati tion on ca can n rule rule the mar arke kett. Ther There e are both both extern ext ernal al and int interna ernall cust custome omers rs whose whose attitud attitudes, es, opinio opinions ns and behaviour affect the organisation’s day-to-day success: Externa Ext ernall custom customers ers-- ext externa ernall custom customers ers exist exist outside outside the organisation. This type that comes to mind are “end-use” customers, the ones who use or consume the product or serv se rvic ices es of the organ rganis isat atiion fo forr their heir own own purp purpos oses es or production. Internal Intern al customerscustomers- employees of the organisatio organisation n for whom the th e

se serv rvic ice e

de depa part rtm ments ents

prov provid ide e

prod produc uct, t,

serv servic ices es

or

servicing. Stakeholders- are those whose interests are linked with the organisation.

It

includes

employees,

stockholders,

community leaders . If the internal customers are satisfied, then only it is possible to attract and retain the external customers.

 

Serrvi Se vice ce in indi dica cato tors rs ar are e bas asic ical ally ly fr fram amed ed to en ensu sure re the satisfaction of internal customers and developing the culture where the organisation can ensure the best

LIMITATIONS:



Base Ba sed d on cert certai ain n or orga ganis nisat atio ion’s n’s re rest stric ricti tions ons,, certa certain in data cannot be revealed to general mass.



Limited time period.

 

 

 

How to Create a Formal Purchasing Program Make sure you're purchasing quality supplies at good prices by formalizing your business's purchasing.

It's easy to neglect the area of purchasing in your business. Of course you buy goods and services, but you don't always plan the purchases as well as you could. As a result, you may spend more money than they need to, buy goods that aren't of the proper quality for your needs, or choose suppliers that don't offer the level of customer service you deserve. If you fail to devote enough attention to your purchasing, your cost of doing business could rise to an unnecessarily high level. As operating expenses increase, profit margins shrink, you would either have to live with lower profits or raise your prices, and neither of these choices is appealing. By keeping your costs under control, you'll be able to keep your prices at competitive levels and maintain a desirable profit.

Purchasing Policies

 To purchase wisely, you need to buy the right quality and

 

quantity of materials or products at the best possible price and at the appropriate time from the best vendor.  The purchasing process is much more streamlined in small compani com panies es than than in larger larger business businesses, es, especial especially ly whe when n the businesses are still fairly new. The owner usually decides what to buy, when to buy, where to buy, and how much to buy. As the business grows, however, the owner may no longer be able to handle this task and will have to delegate it to others. While a small business probably won't need to create an entire purchasing department, it will need to have a purchasing manager. By selecting one person to manage all of the business's purchasing activities, you will decrease the risk of duplicating orders for the same materials. Purchasing Purchas ing need not be the purchasing manager's manager's sole duty; in fa fact ct,, your your bu busi sine ness ss ma may y no nott do en enou ough gh purc purcha hasi sing ng to require a full-time purchasing manager. You should select an employee who can handle purchasing, as well as the other duties he or she my already have. This individual should be able to communicate clearly with your business's suppliers. Although purchasing duties probably won't occupy all of this individual's time, there is more to purchasing than placing orders. The purchasing manager will have to gather orders, make sure they are complete, and stay within any limits the company may have set on spending, select an appropriate vendor, order the goods, check their condition upon receipt, make sure the invoice is correct, and speed payment of the invoice by forwarding it to the accounting department.

 

Befo Be fore re yo you u dele delega gate te the the pu purc rcha hasi sing ng func functi tion on to anot anothe herr employee, you should write out a purchasing policy for your business. You may even want to create such a policy while you yo u are are st stil illl respo espons nsib ible le fo forr pur urch chas asin ing, g, as a guid guide e for for yourself.  The purchasing policy, according to the SBA, should answer the following questions: •

Who ha has s the auth uthority to purchase ite items for the company? What items can that person purchase? Are there any spending limitations?



What Wh at are are th the e bu busi sines ness' s's s requ require ireme ment nts s fo forr adequ adequat ate e supplier competition and what criteria will be used to select possible vendors?



What is the company's position on the acceptance of  gifts?



Which types of contracts can the business enter into with successful bidders or vendors?



What is the company's position on conflict of interest



and personal loans from suppliers? What kinds of information does the company consider confidential?



What is the procedure for dealing with legal questions?

The Ordering System  The steps your employees and purchasing manager will foll fo llow ow to re requ ques est, t, orde order, r, rece receiv ive e and and pay pay for for good goods s and and materials make up your ordering system. A good ordering

 

syst sy stem em will will he help lp ma main inta tain in sa sati tisf sfact actor ory y su suppl pplier ier relat relatio ions ns,, impr im prov ove e ca cash sh ma manag nagem ement ent,, ai aid d in inv inven ento tory ry con contr trol ol,, and increase the overall profitability of your company.

The Purchase Order  Once the purchasing manager has received a requisition, her or she will need to select a supplier and check the price of  the items ordered. After agreeing on a price, the purchasing manager will send a purchase order to the supplier. This order is a formal request to the supplier to deliver materials or supplies according to the terms and prices agreed upon. Purc Pu rcha hase se or orde ders rs,, li like ke requ requis isit itio ion n form forms, s, can can help help sm smal alll businesses keep track of their purchasing activities. Firms can refer to their purchase orders to see if suppliers have shipped the correct goods in the correct quantity. They can also see if suppliers are delivering goods on time. Purchase orders can also serve as support in any legal disputes if they arise between you and the supplier. Although you can write out purchase orders by hand, you would give a better impression if you used standard multipart forms that you can purchase at any stationery store.  They should include information such as the type of product or service you are ordering, the quantity desired, price and delivery terms. The orders should also have an area for any additional information. Purchase orders should also include your company name, address, telephone and fax numbers, and logo. You can simply write in this information, stamp this information on your purchase orders with a rubber stamp, or

 

design and print your own purchase order forms. Purchase orders should have at least three parts: a vendor copy, an internal file copy, and an accounting copy. In addition to the standard purchase order, you might choose to use two other types: blanket purchase orders and annual contracts. If you routinely order fairly inexpensive items from a single vendor, you might want to place a blanket order for thos th ose e item items s with with the the ve vend ndor or.. Th The e blan blanke kett orde orderr cove covers rs specific items to be delivered over a specific period of time, such as six months or one year. This type of purchase order lets you take advantage of quantity discounts and saves you the ti the time me an and d trou trouble ble of re reor order derin ing g sm small all items items yo you u nee need d often. You will also receive a monthly invoice covering your purc pu rcha hase ses s for for a give given n mont onth, in inst stea ead d of se seve verral smal smalll invoices covering each individual purchase. Annual contracts cover the purchase of a specific product from a vendor over a period iod of 12 months. An annua nual contract contr act will usually let you fix the price for buying a specific quantity of a given item over a year. You can also arrange to have goods delivered as needed, either monthly, weekly, or on another specific schedule.

Receiving Records A packing list will accompany orders you receive. Make sure that the items shipped match the items indicated on the packing list. Inspect all of the items shipped carefully, paying special attention to items that appear damaged. Initial the

 

packing list to verify receipt and file it in a folder until you receive the invoice for the shipment. In many cases, you won't have to send payment with your order; your suppliers will either include an invoice with the shipment or send the invoice invoic e to yo you u sepa separa rate tely ly soon soon afte afterr sendi sending ng your your orde order. r. When the invoice arrives, check it against the packing list and the purchase order. Write a check for the appropriate amount, note the check number on a copy of the invoice, and file the invoice and packing list. If you receive any damaged items, or if a vendor sends you items you did not order, let the vendor know as soon as possible. The vendor will tell you the best way to return the items and to receive the ones you actually ordered. Fill out an internal receiving report and distribute it to those who need to know when shipments come in, such as the perrso pe son n in ch char arge ge of in inve vent ntor ory y co cont ntrrol ol,, the buyer uyer,, the the employee requisitioning the items, and the person in charge of accounts payable in accounting. Alth Al thou ough gh pu purc rcha hasi sing ng is ce cert rtai ainl nly y an impo import rtan antt task task an and d deserved careful attention, you will not be able to spend the same amount of time on all of your purchases, nor should you. yo u. More More expe expens nsiv ive e it item ems, s, for for inst instan ance ce,, dese deserv rve e more more careful attention and consideration than less expensive ones.  The following four considerations will help you decide what items deserve the most attention, according to the SBA:

 

1. Unit cost. The SBA recommends that you give more attention to costly items than to less expensive ones.  The more money you have tied up in a given type of  inventory product, the more attention you need to give to that product in your purchasing, even if you sell few of these expensive items. 2. Extended cost. The SBA points out that some items may have a low cost, but you may buy and sell them in high hi gh volu volum me. In thi his s ca case se,, yo you u may need eed to gi give ve a higher priority to these items, although their unit cost is fairly low. 3. Lea Lead d tim time. e. You need to consider the time to allow between ordering an item and receiving it. If a low-cost item has a long lead time, for instan instance, ce, you would need to make regular checks on its delivery status. In that case, the SBA says, you may need priority. 4. Shipment rejection. If there is a high possibility you will wi ll rejec rejectt an item item be beca cause use of te tech chnic nical al prob proble lems ms or deficiencies in quality, the SBA suggests assigning it a high priority.

The Costs of Buying In addition to the cost of goods you buy, you also have to pay pa y an and d acco accoun untt fo forr the the cost costs s of acqu acquir irin ing g and and carr carryi ying ng inventory. Inve In vent ntor ory y

acqui cquisi siti tion on

co cost sts s

ar are e

co cost sts s

as asso soci ciat ated ed

with with

generating and processing orders, and include the following:

 



Portions of employee salaries and operating expenses direc dir ectl tly y perta pertaini ining ng to purc purcha hasin sing, g, inv inven ento tory ry cont contro rol, l, receiving, inspection and accounts payable.



Costs

of

supplies

such

as

forms,

envelopes

and



stationery. Costs of placing orders (telephone, fax, postage, etc.)

Inve In vent ntor ory y ca carr rryi ying ng cost costs s usual usually ly consi consist st of the the follo followin wing g elements: •

Inte In tere rest st ch char arge ged d on yo your ur fi fina nanc ncia iall inve invest stme ment nt in into to inventory.



Cost of insurance covering your inventory.



Property taxes paid on inventory.



Cost of storing inventory.



Obsolescence and deterioration of items in inventory.

 

Buy Wisely  Prices for the goods and materials you buy may fluctuate. If  you find that the price for a given item is rising, do not buy large quantities of this item thinking that the price will rise even higher if you wait. Instead, the SBA advises that you buy smaller quantities of this item, but buy them more often.  You can quickly sell off the items you bought at high prices, inste ins tead ad of tying tying up money money in ov over erpr price iced d inven invento tory ry.. Keep Keep buying small quantities as prices return to their normal level.  You will save money on your purchases, as well as reduce deman dem and d fo forr th the e it item em,, "e "enco ncour urag aging ing"" price prices s to drop. drop. On Once ce prices have stabilized at their normal level, you can resume buying in larger quantities.

Discounts Suppl Sup plier iers s ex exte tend nd a va vari riet ety y of differ differen entt dis disco count unts s to th their eir customers. custom ers. Many vendors vendors offer quantity discounts: the more units you buy, the less you pay per unity. These discounts can apply to individual purchases or to a specific group of  purc pu rcha hase ses s ma made de ov over er ti time me,, as yo you u woul would d make make unde underr a blanket order. Suppliers also offer seasonal discounts that apply to merchandise being sold out of season. The danger with buying off-season goods is that they may go out of style or become obsolete, and never go back "in-season." Vendors also offer cash discounts that you earn by paying the entire invoic inv oice e with within in a sp spec ecifi ified ed ti time me pe peri riod od.. If yo you u re rece ceiv ived ed an invoice with the notation "1/10, Net 30," it would mean that

 

you could take a one-percent discount from the net amount of the inv invoice ice if you paid withi hin n ten days. You would otherwise have to pay for the entire amount of the invoice within 30 days.

Dealing With Vendors Once you have compared prices from a group of suppliers, you can then select your vendors. vendors. Before you place an order with a vendor, you not only need to compare prices, but you also need to compare credit terms, emphasis on customer service, standing in the industry, and other related factors. If you buy a number of different kinds of products, you may have to use a variety of vendors. If, on the other hand, a sing single le ve vend ndor or ca can n meet meet al alll of your your need needs s at reas reason onab able le prices, you may want to give that vendor the bulk of your business. Do not, however, rely solely on this vendor. You should keep in contact with other vendors, and watch for new ones. It's a good idea to be on good terms with more than one supplier. If your primary supplier ever fails to ship goods on time, suspends operations because of some natural

 

disaster, or starts offering poor service, you will have other sources to use as back-up. By using a few different sources of supply, furthermore, you will build more credit than you would if you used only one.  Your primary supplier may also offer you better discounts or otherwise try to win all of your business.

Evaluating Suppliers  You not only need to evaluate suppliers before you place an orde or der, r, bu butt yo you u al also so need need to eval evalua uate te thei theirr perf perfor orma manc nce e constantly. Consider the following points when you evaluate a supplier's performance: •

 Timeliness of deliveries



Completeness of orders shipped



Quality of items shipped



Quality of customer service



Competitiveness of price



Previous performance with similar orders



Strength of financial condition



Ability to meet design specifications



Expertise of sales representatives and technical staff 

Locating Suppliers Before you can approach a supplier, you need to know where to find them. You need to be aware of where you can find suppliers both before you begin business and after you have suppliers started. start ed. Keep looki looking ng for new suppliers. To look for suppliers

 

in your your area, area, se sear arch ch on onlin line e and consu consult lt th the e Busin Business ess-t -tooBusiness Yellow Pages and your local Chamber of Commerce.  To broaden your search, consult websites, publications and asso as soci ciat atio ions ns pert pertai aini ning ng to yo your ur indu indust stry ry;; thes these e sour source ces s should be able to give you a number of leads. Many trade associations and publications publish directories listing suppliers to their industries. If you require industrial or mechani mec hanical cal equipme equipment, nt, con consult sult manufa manufactu cturer rers' s' direct directori ories es such suc h as th the e Th Thom omas as Re Regis giste terr of Amer America ican n Manuf Manufac actu ture rers rs.. Finally, talk to your employees. They may know of excellent suppliers you might use..

 

HINDALCO BARGAWAN POWER PLANT (ALUMINIUM)

ACKNOWLEDGEMENT

 A Summer Training is a combination of views and ideas and suggestions and contribution of many people. Thus, one of the pleasant parts of the writing. Thiss rep Thi report ort is the opp opport ortuni unity ty to th thank ankss tho those se who con contr tribu ibuted ted to towar ward d it itss  fulfillment..  fulfillment

 I am thankful to MR. SHAILENDRA SIR (HR MANAGER) for his vital  inputs and valuable suggestions and continuous guidance, which have gone a long way in providing necessary impetus to our efforts in consummating this report.

 My sincere thanks to his for providing with all the relevant information  for completion completion of my pr project. oject.

 

 My interacti interaction on with Company was immensely pleasurable and it was an honor to have been a small part of this training.    Last, but not the least I am thankful to all my co trainees without whom my time at company would not have been as pleasurable.

 AMRITA SHARMA  M.B.A. 4TH  Sem.

PREFACE

 It is well evident that work experience is an indispensable part of every  professional course course .In the same manner practical practical training in any organization is must   for each and every individual individual who is undergoing undergoing management management course.

Without the practical exposure one cannot consider himself or herself as a qualified capable manager. During the training period the student learn through his own experience, the real situation of the corporate world and to put his theoretical  knowledge into practice. This experience is very valuable for the student and plays a leading and an important role in the career of the student.

 Hence to fulfill this requirement, requirement, I had completed my 45 Days in HINDALCO  Ltd.

 

 Entering in an organization is like a stepping into altogether a new world. At   first everything seems to be strange and unheard but at the same time when the time  passes one understands understands the concepts and working of the organization and thereby developed professional relationship.

 Initially, it felt as if classroom study was was just theory and have no re relation lation in any concern’s working but gradually it is realized that all the basic fundamental concepts studies are linked in one or the other ways to the organization. But how and what can be done done with with fu funda ndamen mental talss depend depend upon upon the intell intellect ectual ual and applic applicabi abilit lityy of the individuals. It is just a matter to modify the theory so as to apply it to the given  practical solution.

CERTIFICATE TH

This is to certify that MS. AMRITA SHARMA (4 Sem.)) Com Sem. Complet pleted ed her tra trainin ining g and s submi ubmitted tted a

 

 pr  p roject

on

Hindalco Hind alco



Purch ase

Order

Procedure

in

Co. Ltd. " in partial fulfillment of the

requirement

for

the

degree

Business Administr Administration ation of U ni ni v ve er rs s it it y S ag ag ar ar

of

Master

of  

Dr. Hari Singh Gour 

w iitt h h i s t r ru u ly ly a nd n d h on on es es tl tl y  

observed inferences during his training..

I wish him bright future in his career.

 Internal Examiner

External Examiner 

 Signature of Head of Deptt. Deptt.

BIBLIOGRAPHY  Website: 1.www.google.com 1. www.google.com 2.www.hindalco.com 2. www.hindalco.com 3.

en.wikipedia.org/wiki/Renusagar 

 

CONTENTS • •

PREFACE ACKNOWLEDGEMENT



CERTIFICATE



 TRAINING CERTIFICATE

CHAPTER NAME NO



INTRODUCTION ABOUT ADITYA GROUP

PAGE

 



INTRODUCTION OF HINDALCO 

HISTORY



VISSION & MISSION



HR OBJECTIVE & VISSION



HINDALCO STRATEGY



INFROMATION TECHNOLOGY



ACCOUNT DEPARTMENT



PURCHASE ORDER 

HOW CREATE PURCHASE ORDER



PURCHAING POLICIES



RECEIVING ORDER



BUYING ORDER



SUPPLYING ODER



LIMITION



CONCLUSION



BIBLIOGRAPHY

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