A Study On Jindal Aluminium LTD
A Study On Jindal Aluminium LTD
A Study On Jindal Aluminium LTD
INDUSTRY PROFILE
History
Indian aluminium industry was started in the year 1808 and it took 46 years to
make its production commercially applicable, the research work took several
years and resulted in extracting the aluminium from ore. Aluminium is the
third most element constituting almost 7.3% by mass on the earth. Aluminium
is also second most used metal in the world after steel.
In the 1970s, the government regulated and controlled the aluminium industry
through price distribution control and barriers to entry. In 1970 Aluminium
Control Order compelled the Indian companies to sell 50% of aluminium
produced for electrical purposes.
The government decontrolled the industry in 1989 with the removal of the
Aluminium Control Order. The industry was de-licensed in 1991 and was
allowed liberal import of capital goods and technologies.
Introduction
Indian Aluminium Industry is a highly concentrated industry with the top 5
companies constituting the majority of the country’s production. With the
growing demand of aluminium, the industry is also growing at an enviable
Market capitalisation
Consumption is estimated to have increased to a 5 year CAGR of 12.9%
MALCO
INDAL
Market share
According to Aluminium Association of India (AAI), Import increased from
878kt in FY11 to 1750kt in FY17 (at 12% CAGR)(mainly from china and middle
east) Domestic Aluminium Producer’s Market Share is down from 60% to 47%.
The capacity utilization of primary producers is just less than 70%.
PEST Analysis
Political factors
India’s alumina production capacity is 6.1 million tonnes per annum. The
requirement for bauxite is around 18 million tonnes per annum. Since no
new major bauxite mines could be started in the last 20 years, Alumina
refineries in India are finding it difficult to source indigenous bauxite and
are forced to import. On the other hand merchant mines are exporting
huge quantities of bauxite. Even though the government has increased
the export duty to 20% on bauxite in Union Budget 2014-15, it has failed
to stem the outflow of bauxite. Bauxite exports in FY14 and FY15 were
3.3 and 6.4 million tonnes respectively. To ensure domestic value
addition within India, export of bauxite must be discouraged.
GST. The coal industry would have fewer logistics cost due to the
reduction in the tax rate on both goods and service and a better-
regulated tax system.
Economic factors
Social factors
Technological factors
Automotive sector.
Coating technology.
Company profile
ed in 1968, and it was set up as a private limited company in the year 1970 by
taking over the aluminium extrusion factory of Jindal India (P) Ltd Jindal nagar,
tumkur road, Bangalore.
Name Designation
Dr.S.R.Jindal Chairman and managing director
Shri. Pragun Jindal Khaitan Managing Director
Shri. K.R.Raghunath Vice Chairman and Whole time
Director
Shri. B.D.Garg Executive director
Shri. Dharam Pal Jindal Director
Over the last four decades, the company has been able to build a large pool of
highly productive and skilled manpower and an experienced management
team in engineering, finance, marketing, corporate planning and other areas.
JAL is an ISO 9001:2008 certified company, the first company in the country to
get IS/ISO certification in the aluminium extrusion industry.
Vision
To become number one supplier of quality Aluminium sheets rolled foils and
extrusions in the years to come, not only in the domestic market, but also in
the global market.
Mission
It is our mission to provide customers of both in domestic market as well as
global market with what they need at a price, which to them represents value,
and delivered in a manner that exceeds their expectations.
JAL commitment to
Customer satisfaction
Reliability
Locations
Jindal Nagar, Bangalore (registered work office)
Ahmedabad
SIT-PGDMS & RC Page 8
A study on Jindal Aluminium ltd
Chennai
Kochi
Mumbai
New Delhi
Pune
Products of JAL
Product Name About Product Product image
Plain sheet and It is the most demanding
product in today’s
coils market. By seeing the
market and customer
requirement, JAL
achieved the highest level
of quality in plain sheet
and coil. This product is
majorly used in general
engineering, transport,
electrical, etc.
Pattern sheet It is also one of a key
product in aluminium 5 bar
industry. It is light weight
and design pattern
product. This product is
having good weldability
and formability. JAL are
supplying this product
Diamond
majorly in transport
industry.
The product comes in 2
different patterns: 5 Bar
and Diamond.
JAL products offers more than 10000 different shapes and sizes of aluminium
extruded sections/profiles meeting the requirement of Aviation, Architectural,
Transport, Electronics, Defence, Solar, Roofing, Cladding, Insulation, Closure
stock, Foils etc.
Jindal also makes customised shapes on specific request from customers with
promising off-take.
Production facilities
Aluminium extrusions
JAL have installed capacity, from 5000 TPA of aluminium extrusions in 1970 to
110000 TPA at present. JAL plant on Bangalore comprises extrusion presses of
750 UST, 1600 UST, 2200 UST, 2200 UST, 1650 UST and 4000 UST capacities
and Dabaspet factory comprises extrusion presses of 1150 UST, 2000 UST and
1650 UST. Thus it makes JAL to largest aluminium extrusion manufacturer in
the country. One of the JAL extrusion press of 4000 UST capacity has a billet
size of 12” dia and can extrude profiles up to 16”/425 mm width. This is the
largest and latest (most modern) press in India imported from SMS, Eumuco,
Germany, the world leaders in manufacture of extrusion presses.
Die making section, using precision CNC machines and tools together with
efficient and robust production facilities enable JAL the capability to meet the
needs and wants of consumers from various segments of the aluminium
extrusion market, in the shortest possible time.
The company has setup a most modern and advanced technology rolling plant
at Dabaspet, Bangalore, Karnataka (about 35 km from the extrusion division)
with an average installed capacity of 40000 TPA for manufacture of aluminium
sheets, foils, slugs, circles, roofing sheets, chequered sheets, etc. The
investment on this plant is Rs.500 crores. This plant is manufacturing
aluminium foils up to 7 micron thickness
Marketing Network
Jindal have strong dealer network of over 125 dealers across the country, with
sound financial background and expertise to sell our products. It also
established branch offices in 7 major cities in the country to facilitate sales
coordination.
Jindal have an array of satisfied customers, include both public sector and
private sector units, some of satisfied clientele are
NTPC
BHEL
MICO Bosch
Daimler
Essar Power
Reliance
TATA
Vedanta
JSW Steel
Hindustan Zinc
BGR Energy
ACGL
LMW
HAL
VSSC
ITI
ISRO
Ordnance Factories
Kirloskar
Godrej
Videocon
Siemens
Exports
Jindal started exporting aluminium extrusions in1994 on a small scale
which went up to 9418 MT in 2015-16. JAL is one of the largest exporters
of aluminium extrusions in India. The company has been granted Export
House status by the Ministry of Commerce, Govt of India. Jindal export
our products to UK, USA, Australia, Middle East, Sri Lanka, South Africa
and South East Asian countries. It is exporting aluminium sheets and foils
also to various countries. Total exports for the last 5 years is as under
SWOT Analysis
Strength Weakness
SWOT
Opportunity Threat
Strength
Highest presses in the factory with high capacity of production.
A most modern tool shop having sophisticated CNC machines to manufac-
ture dies through AutoCAD drawing.
A strong financial background.
A strong quality control facility with computerised lab having spectrometer.
It has a huge library of approximately 15000 readymade dies to meet the
requirements of the customers.
Weakness
Non availability of skill manpower and high turnover.
Old industry needs to upgrade technology.
Lack of trained manpower.
Opportunity
High increase of demand in usage of aluminium extrusion in modern
world.
Currently available technologies will continue to generate new
opportunities for JAL capable of delivering responsive and quality
service.
Threat
Vulnerable industrial relations.
Climate in and around the city and interference of different political par-
ties.
Competition is increasing in the market with existence of many unorgan-
ised extrusion industry producing sub-standard materials.
With increase in population in extension of city area, the industry may
have to be shifted to a designated industrial area.
Quality policy
JAL are committed to comply with requirements of ISO 9001:2015 to ensure
good quality meet customer requirements and enhance customer satisfaction
in the manufacture and supply of extrusions of aluminium and its alloys.
Longer die life and thus saving foreign exchange on purchase of die
steel.