HINDALCO: Excellence by Design

Hindalco Industries Limited, the metals Flagship Company of Aditya Birla Group (ABG), is amongst the industry leader in aluminium and copper segments. With a consolidated turnover of around USD 15 billion, Hindalcoistheworldslargestaluminiumrollingcompany and one of Asias major integrated producers of primary aluminium. Its state-of-the-art copper facility is one of the worlds largest custom smelters at a single location. During the year accelerated deleveraging, supported by strong business performance, helped signifi cantly to improve the consolidated Net Debt to EBITDA of the Company.

Consolidated Financials

Operational and Financial Highlights:

• Year of stable operations – achieved highest Aluminium production at 1.3 million tonnes and Alumina production at 2.9 million tonnes.

• Consolidated Revenue stood at 102,631 Crore for the FY17.

• Record Consolidated EBITDA at 13,558 Crore up 36 percent over the previous year.

3 Record EBITDA for Hindalco standalone stood at 5,819 Crore.

3 Record Adjusted EBITDA (excluding metal price lag) up 13% to USD 1.1 billion at Novelis.

• Automotive shipments at Novelis increased 17%, representing 18% of total FRP shipments. Recycled inputs improved from 53 percent to 55 percent for the full year.

Key Initiatives:

The Company successfully raised USD 500 million through Qualifi ed Institutional Placement (QIP) in March 2017. This is the largest non-bank QIP in the last two years. There was a strong participation from FIIs and long-only investors, generating demand in excess of USD 1.5 billion (3x subscription). The QIP was priced at zero discount to the previous days closing share price. In line with its commitment, the Company used the cash proceeds from QIP towards prepayment of

4,505 Crore of long term loan in April 2017 – from September 2016 to April 2017, total prepayments stand at 5,536 Crore. During the year, Novelis refi nanced its USD 2.5 billion Senior Notes and USD 1.8 billion Term Loan. As a result, annual cash interest savings of USD 79 million has been achieved, along with an extended debt maturity profi le for Senior Notes. Further, Novelis entered into a joint venture agreement with Kobe Steel in May 2017 to sell 50 percent of ownership interest in Ulsan, South Korea facility for USD 315 million. This venture, named Ulsan Aluminium Limited, will provide synergies to both the high-quality partners. Cash proceeds from this transaction will further enhance the strategic fl exibility in order to capitalize on potential future market opportunities, and in the near term be used to reduce net debt. During the year, the Hindalco also divested its stake in Aditya Birla Minerals Limited, Australia.

Outlook:

In line with its commitment, the Company will continue to focus on strengthening the balance sheet by accelerating deleveraging and prudent capex spending in high return based projects mostly in downstream. However, there are concerns pertaining to continued low cost imports in Aluminium and Copper segments which is hurting the domestic players in India. Further, there is an increase in domestic Aluminium production in India. Also if China does not implement its supply-side reforms and environmental-led closures, it may end up with higher production, which may lead to moderation in Aluminium prices. The Company continues to keep a close watch on price movement and availability of major inputs like Caustic Soda, Pet Coke, Pitch, Furnace Oil and Coal, which can impact the cost of production.

Business Performance Review:

Aluminium India

Industry Review:

Global primary aluminium consumption touched around 60 million tonnes, thus witnessing a growth of 5.0 percent in CY16 compared to a growth of 4.0 percent in Calendar Year 2015 (CY15). Demand growth in China witnessed a marginal recovery, growing at 7.0 percent in CY16 from 6.0 percent in CY15, due to stimulus provided by the government. China continued to be the largest consumer of the metal, accounting for more than 50 percent of the total global consumption. Global consumption, excluding China (i.e. ROW) also accelerated from a marginal growth of around 1.0 percent in CY15 to around 3.0 percent in CY16. Regions like Japan (up by 3.0 percent) and Europe (up by 3.0 percent) were major drivers of demand in CY16 whereas, demand growth in North America marginally moderated to around 1.8 percent in CY16 from 2.5 percent in CY15.

On the other hand, the growth in global primary aluminium production signifi cantly moderated to around 3.5 percent in CY16 from 5.5 percent in CY15. Large-scale production curtailment in the U.S. was the major cause of the production slowdown in CY16. China also faced moderation in the beginning of the year, but recovered as the year progressed, on account of strong government stimulus. On the contrary, production in ROW grew from around 1.8 percent in CY15 to around 2.4 percent in CY16, on the back of production recovery from Central & South America, Russia and Canada.

In the Indian market, primary aluminium production maintained robust growth momentum for the third consecutive year in a row. In FY17, production registered a growth of 17 percent as compared to 19 percent in FY16 and 18 percent in FY15. However, primary producers share in domestic market sales reduced to 47 percent in FY17 from 49 percent in FY16. Overall aluminium consumption growth in India moderated to 1.5 percent in FY17 as against a growth of 14 percent in FY16. Disaggregating the demand at sectoral level, only transport sector witnessed a growth of around 15 percent in FY17, whereas, rest of the sectors registered slow demand growth during the same period. On the other hand, imports touched 1.8 million tonnes in FY17 (up by 5.0 percent) including 931 KT of scrap and 247 KT from FTA countries as against 1.7 million tonnes including 867 KT of scrap and 212 KT from FTA countries in FY16. Moreover, in value added and downstream segments, Indian market continued to be under pressure from low cost imports from China.

In FY17, LME was on an upward trend as compared to FY16. The trend was supported by fi rm global demand, acceleration in cost of production driven by higher coal and alumina prices. Further, Chinese cost escalations accentuated due to logistical bottlenecks, which impacted local availability of raw materials like coal and alumina. Post the U.S elections, LME prices in aluminium witnessed a rally due to expected boost on infrastructure development by the new President. In Q4FY17, further rally in LME was majorly driven by announcement of environment-led closures and supply side reforms by the Chinese government.

Premiums in FY17 remained at low levels, in September 2016 premiums fell to a record low versus the past few years. However, premiums started to recover from November 2016 due to supportive demand, price outlook and low inventory level in LME warehouses.

Operational Review:

The Companys operational performance was indeed commendable. All the three new manufacturing units operated at their designed capacities, yielding planned effi ciency and productivity gains, improving the competitive strength of the Companys core operations. The Utkal Alumina continues to be one of the lowest cost refi nery in the world. During FY17, the Company produced record aluminium metal at 1.3 million tonnes up 12 percent and alumina at 2.9 million tonnes up 8 percent. The Company secured around 5 million tonnes coal in the linkage auctions concluded in FY17. The additional quantity secured through such new linkages is about 30 percent of its annual coal requirement. Overall, two-thirds of the Companys annual coal requirements are now secured through various long-term linkages and captive coal mines. In FY17, Gare Palma IV/4 Coal Mines and Gare Palma IV/5 Coal Mines reached their peak capacity. The operations at Kathautia Mines also commenced in February 2017.

Alumina:

Alumina production at 2.9 million tonnes was 8 percent higher than that in the previous year. Utkal Alumina produced 1.5 million tonnes of alumina during the year and is amongst the lowest cost alumina producers globally.

Primary Metal:

In FY17, Primary aluminium production increased by 12 percent to 1.3 million tonnes. This increase was primarily on account of higher production from Mahan and Aditya smelters, which together contributed 0.7 million tonnes of metal production this year.

Value Added Products (VAP including Wire Rod and excluding foil):

Value added downstream production (including wire rods and excluding foil) grew by 14 percent over last year to 481 KT. This growth was in line with the Companys focussed strategy of value maximization.

Financial Review:
( Crore)
Description FY17 FY16 % Change
over FY16
Revenue 19,983 18,363 9%
EBITDA 3,473 2,009 73%

Revenue for standalone aluminium business increased by 9 percent to 19,983 Crore vis-- vis 18,363 Crore in the previous year. This achievement was primarily on the back of higher sales volume and favourable macroeconomic factors. Higher proportion of value added products and speciality alumina also contributed to increase in revenue. The standalone Aluminium EBITDA was 3,473 Crore in FY17, up 73 percent compared to 2,009 Crore in the FY16. The increase was driven by moderation in input costs (particularly coal, alumina and carbon products), higher volumes, improved and stable plant operations and supportive macro factors.

Outlook:

Global aluminium industry is expecting further recovery in demand as major economies across the world showed signs of revival in CY16. Global demand excluding China (ROW) is likely to grow by around 4.0 percent in CY17, mainly driven by recovery in the U.S and European consumption activities. Impact on growth due to tightening of credit policy by China was not visible in initial months of CY17 as industrial activities supported aluminium consumption. Construction, housing and auto demand may get impacted by credit tightening in the later part of CY17. However, new infrastructure projects may provide support to demand generation. On the production side, in spite of environmental led closure and supply side reforms in China, production is likely to register steady growth in CY17, due to capacity ramp-ups and restarts of smelters. Global production excluding China (ROW) is expected to grow by about 2 percent in CY17. Overall global market is likely to be in surplus driven by excess Chinese production in CY17. However, defi cit may widen further in the world excluding China (ROW), as demand is likely to surge during the same period. In India, given the strong base, demand from user industries is expected to improve with increase in economic activities in FY18. Power sector is likely to be the major demand driver among the user industries. Effective implementation of reforms in China will be the major key driver of LME movement in FY18. Other than Chinese reforms, global inventory level, input cost, exports from China and USD exchange rate movement may infl uence LME price during FY18.

Copper

Industry Review:

The LME price of copper in fi rst half of CY16 was subdued. However, with the surge in Chinese sentiments, supply disruption in the period from July 2016 to September 2016 and expected boost on infrastructure spending in U.S supported copper LME in Q4 CY16.

Refi ned copper consumption growth recovered from a dismal growth of around 1.2 percent in CY15 to around 2.5 percent in CY16, majorly driven by Chinese consumption. In CY16, consumption in China registered a growth of around 4.5 percent as against a growth of 3.8 percent in CY15 on account of demand generated from power sector, air conditioning industry and auto sector. Global growth excluding China (ROW) recovered from a decline of around 0.9 percent in CY15 to a marginal growth of 0.7 percent in CY16. Recovery in demand was witnessed in Asia excluding China, North America and Europe whereas, demand in Brazil and Russia continued to decline in CY16.

Demand growth in domestic market declined by 3.0 percent in FY17 as compared to a growth of 18 percent in FY16. The decline in overall demand was majorly driven by the sluggish economic activities especially industrial sector in second half of FY17.

On the supply side, total mines production touched 20 million tonnes in CY16 as compared to around 19 million tonnes in CY15 on account of more than expected ramp-up activities in new mines of Los Bambas and Cerro Verde situated in Peru. However, mines disruption in July 2016 to September 2016 period dented robust growth of production in CY16. As a result, Treatment and Refi ning Charge (TC/RC) came under pressure in Q4 CY16.

Operational Review:

The Copper Business continued to deliver robust operational performance; during FY17 cathode production was at 376 KT, as compared to 388 KT in FY16. The dip in Cathodes production was mainly due to planned shutdown in both the smelters.

Copper Rods production was down by 5 percent as compared to last year mainly on account of subdued demand and downtime due to machine up-gradation during the year. Production of Di-Ammonium Phosphate (DAP) was lower by 7 percent as compared with the previous year, mainly due to a planned shutdown.

Financial Review:

Revenue for copper segment was up 6 percent vis--vis the previous year, at 19,400 Crore as the overall realization was higher. EBITDA stood at 1,456 Crore, slightly lower than the previous year, impacted by lower volumes due to planned shutdown, lower by-products realization and marginally lower TC/RC, partly offset by lower input cost.

( Crore)
Description FY17 FY16 % Change
over FY16
Revenue 19,400 18,350 6%
EBITDA 1,456 1,467 -1%

Outlook:

Despite revival in major economies, the overall demand of refi ned copper is expected to grow at 1.8 percent in CY17 due to rolling back of stimulus by Chinese government; Chinese consumption is around 48 percent of global consumption. Refi ned copper consumption growth in China is expected to be 2.9% in CY17 and defi cit is expected to be fl at at 2.7 million tonne. On supply front, mine production in CY17 is expected to remain at CY16 level as there were series of disruption in major mines in Q1CY17 and there may be minor disruptions in the remaining period of CY17. In the domestic market, demand is likely to gather pace and is expected to grow around 7.0 percent in FY18. The thrust on power and infrastructure sectors will support demand in FY18 and in the medium to long run, emphasis on electric vehicles will provide an additional boost to copper demand.

Novelis

Industry Review:

Economic growth and material substitution continue to drive global demand for aluminium and rolled products. However, slower economic growth in Brazil has muted the beverage can demand. Global can-sheet overcapacity, increased competition from Chinese suppliers of fl at rolled aluminium products and customer consolidation are also adding downward pricing pressures in the can sheet market.

Meanwhile, demand for aluminium in the automotive industry continues to grow. This is primarily driven by the benefi ts that result from using lighter weight materials in vehicles, as companies respond to government regulations, which are driving improved emissions and better fuel economy, while also maintaining or improving vehicle safety and performance. We expect the automotive aluminium market to grow signifi cantly through the end of the decade, which has driven the investments made by Novelis in automotive sheet fi nishing capacity in North America, Europe and Asia.

Operational Review:

FY17 was a remarkable year for Novelis. Operational effi ciencies and strategic product shift supported record results and automotive shipments.

During the year, total FRP shipment declined by 2 percent over previous year to 3,067 KT impacted by lower can stock shipment on account of weaker economic conditions and demand in Brazil and the Middle East. However, the overall EBITDA per tonne improved due to change in sales mix with share of auto products increasing from 15 percent in FY16 to 18 percent in FY17 and operational effi ciencies.

Novelis thrust on sustainability and recycled aluminium is unparalleled. Novelis invested signifi cantly in recycling initiatives and developed high tech recycling capabilities, expanded aluminium scrap buying footprints globally, widened scope of recycled scrap that can be used and developed close loop recycling systems with end users to improve effi ciencies. Novelis has now increased inputs from recycled material from 53 percent in FY16 to 55 percent in FY17.

In FY17, Novelis signed an agreement with next generation car company NIO to provide innovative Aluminium solutions for its fl eet of smart, high-performance, premium aluminium-intensive electric vehicles to be launched over the next fi ve years.

Financial Review:
(USD Million)
Description FY17 FY16 % Change
over FY16
Net Sales 9,591 9,872 -3%
Adjusted EBITDA 1,085 963 13%
Net Income/(loss) 45 (38)

Revenues decreased marginally to USD 9.6 billion in FY17 on account of a slight decline in shipments to

3,067 KT. Novelis registered a record Adjusted Annual EBITDA (excluding metal price lag) of USD 1.1 billion in FY 17, up 13 percent over the previous year. This strong performance was driven by focused strategy to improve operational effi ciencies and increase shipments of premium products, resulting in FY17 net income of USD 45 million. It also recorded a free cash fl ow of USD 361 million which is more than double that of the previous year.

Outlook:

Novelis is prepared and positioned to overcome headwinds arising from can-stock market overcapacity and customer consolidation through continued favourable mix shift as automotive shipments increase further operational effi ciencies and metal cost management. Demand for Aluminium Auto Sheet is expected to continue to be robust.

Standalone and Consolidated Financial Review and Analysis:

( Crore)
Description

Standalone

Consolidated

FY17 FY16 FY17 FY16
Revenue from Operations 39,383 36,713 1,02,631 1,01,202
Earning Before Interest, Tax and Depreciation (EBITDA)
Aluminium 3,473 2,009 4,033 2,654
Copper 1,456 1,467 1,438 1,588
Novelis 7,194 5,039
Others (including other income) 890 849 894 723
Total EBITDA 5,819 4,325 13,558 10,004
Depreciation, amortization and impairment 1,428 1,282 4,468 4,507
Finance Cost 2,323 2,390 5,742 5,134
Earning before Exceptional Items and Tax 2,068 653 3,348 362
Exceptional Income/ (Expenses) (Net) 85 - (8) (577)
Profi t Before Tax 2,153 653 3,340 (214)
Tax 596 99 1,433 498
Profi t/ (Loss) After Tax (attributable to the owners of the Company) 1,557 552 1,900 (251)

Standalone fi nancial statement:

Revenue

• Hindalcos standalone revenue in FY17 stood at

39,383 Crore as compared with 36,713 Crore in FY16 mainly to due increase in Aluminium volume and realization.

EBITDA

• The company achieved a record standalone EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of 5,819 Crore, up 35 percent as compared to the previous year. The robust performance was achieved on the back of higher Aluminium volumes with favourable macros and stable plant operations with lower input cost across businesses. Other Income at

890 Crore in FY17 was higher as compared to

849 Crore in FY16, up by 5 percent mainly due to higher treasury corpus and improved yields.

Finance Cost

• Finance costs reduced from 2,390 Crore in FY16 to 2,323 Crore in FY17 (reduction by 3 percent) mainly due to pre- payment of a term-loan.

Depreciation, amortization and impairment

• Depreciation stood at 1,428 Crore in FY17 as compared to 1,282 Crore in FY16 up 11 percent, due to progressive capitalization.

Exceptional Income/ (Expense)

• Exceptional Income of 85 Crore in FY17 consists of gain of 145 Crore from sale of ABML investment and a provision of (60) Crore on account of a retrospective amendment in the regulations relating to the date of applicability of the levy of contribution to District Mineral Foundation on coal purchased by the Company.

Taxes

• Provision for tax was at 596 Crore in FY17 as compared to 99 Crore in FY16 on account of higher earnings.

Net Profi t

• Net profi t stood at 1,557 Crore in FY17, up by 182 percent as compared to 552 Crore in FY16.

Consolidated Financial Statement:

Revenue

• Hindalcos consolidated revenue stood at

102,631 Crore in FY17, up by 1 percent as compared to 101,202 Crore in FY16.

EBITDA

• The Company achieved a record consolidated EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) at 13,558 Crore, up by 36 percent as compared to FY16. The robust performance was achieved on the back of higher volumes supported by favourable macro at Indian Aluminium operations and strong performance by Novelis helped by improved product mix and higher recycling volumes.

Finance Cost

• Finance cost increased from 5,134 Crore in FY16 to 5,742 Crore in FY17 due to debt extinguishment cost of around 900 Crore at

Novelis arising on refi nancing of long term debt. Excluding debt extinguishment cost, interest cost has come down due to prepayment of a term loan at Hindalco standalone business and lower interest rates at Novelis as a result of refi nancing of its long term debts.

Depreciation, amortization and impairment

• Depreciation and amortization (including impairment) decreased from 4,507 Crore in FY16 to 4,469 Crore in FY17.

Exceptional Income/ (Expense)

Exceptional Expense reduced to (8) Crore in FY17 as compared to (577) Crore in FY16, mainly due to impairment of fi xed assets and inventory at ABML in the previous year.

Taxes

• Provision for tax was at 1,433 Crore in FY17 as against 498 Crore in FY16 mainly due to increase in overall profi tability.

Net Profi t / (Loss)

• Consolidated net profi t for the year was 1900 Crore in FY17 as against loss of (251) Crore in FY16.

The following table sets forth a summary of our cash fl ows for the periods indicated:

( Crore)
Standalone
Particulars Year ended
31/03/2017 31/03/2016
A. CASH FLOW FROM OPERATING ACTIVITIES
Operating Cash fl ow before working capital changes 5,005 3,295
Changes in working capital 785 733
Cash generated from operations 5,790 4,028
Payment of Direct Taxes 108 (387)
Net Cash generated/ (used) -Operating Activities (a) 5,898 3,641
B. CASH FLOW FROM INVESTMENT ACTIVITIES
Net Capital Expenditure (999) (1,225)
Proceeds from/Repayment of treasury instrument (Net) (569) (912)
Investment / Loans in subsidiaries/disposal of Investment (55) (100)
Proceeds/(repayment) of loans and deposits (Net) (85) 577
Interest and dividends received 468 609
Net Cash generated/ (Used) - Investing Activities (b) (1,241) (1,050)
C. CASH FLOW FROM FINANCING ACTIVITIES
Equity Raised 3,313 0
Net Debt Infl ows (1,340) (333)
Interest & Finance Charges (2,319) (2,374)
Dividend Paid (including Dividend Distribution Tax) (239) (223)
Net Cash generated/ (Used) - Financing Activities (c) (584) (2,931)
Net Increase/(decrease) in Cash and Cash Equivalents (a) +(b) + (c) 4,074 (341)

Standalone Cash fl ow

Cash from operations was signifi cantly higher at

5,898 Crore in FY17 as compared to 3,641 Crore in FY16 on account of higher EBITDA and tax refund received during FY17. The above cash fl ow statement also refl ects the proceeds of the equity issuance and accelerated repayment of term loans during the year. The overall consolidated cash fl ow also improved with Novelis generating cash fl ow of USD 361 million.

Risk management

Hindalcos fi nancial performance is signifi cantly impacted by fl uctuations in prices of Aluminium, exchange rates and interest rates. The Company takes a very structured approach to the identifi cation and quantifi cation of each such risk and has a comprehensive risk management policy. The company has also put in place an elaborate ERM (Enterprise Risk Management) framework.

Internal Controls

A strong internal control culture is pervasive throughout the Group. Regular internal audits at all locations are undertaken to ensure that the highest standards of internal control are maintained. The effectiveness of a business internal control environment is a component of senior management performance appraisals. The principal aim of the system of internal control is the management of business risks, with a view to enhancing shareholder value and safeguarding Groups assets. It provides reasonable assurance on internal control environment and against material misstatement or loss.

Sustainability

Both Aluminium and copper are widely used metals with bright consumption prospects. The recent Emphasis on greenhouse emissions have brought in new game-changing concepts such as light weighting in the automobile industry further augmenting the consumption growth. The Companys business portfolio is geared to ride on these changing patterns and today boasts of a de-risked portfolio through a strong accent on conversion businesses.

By virtue of being a strong player in the downstream aluminium industry in India, the company also has a strong commitment towards product development. The Company has developed several pioneering applications in the Indian context and Novelis is the global leader in FRP space. Sustained access and availability of resources is critical to the businesses of the company. The Company follows a holistic approach to address the multi-dimensional facets of resource sustainability throughout the value chain. As it continues to serve the increased demands of the society for sustainable metals, it recognizes the limited availability of resources and impacts of resource extraction. The Company has identifi ed climate, water, raw material and regulatory risks while considering its future sustainability framework. In this regard, the sustainability efforts comprise energy optimization, water conservation, social forestry, recycling of waste generated and safety amongst others. The Companys mining practices, regeneration activities and community engagement are aimed at minimising the environmental impact with a focus on improving socio economic life. Improving operational effi ciencies, adoption of technological advances are important for effi cient use of raw materials. The Company believes that systems and work practices are critical in conserving resources, energy and environment and ensuring and improving health and safety standards. Aluminium is a 100 percent recyclable metal and does not degrade in quality on recycling. The Companys wholly owned subsidiary Novelis presently uses 55 percent of input in the form of recycled scrap against 51 percent used during the last year. Novelis has invested in major recycling initiatives, including advanced equipment and technology to process diversifi ed scrap. The Copper business also has a focused approach on recycled materials. The Company continues to maintain its thrust on inclusive growth, stemming from the belief in triple bottom line accounting and trusteeship management concept encompassing economic, environmental and social wellbeing. The Company has carried out several projects aimed at development of neighbouring communities and society. The focus areas are health care, education, sustainable livelihood, infrastructure and social reform.

Safety

As a responsible corporate citizen, Company is dedicated to human health & safety, conservation of natural resources & the environment. The Companys plants and mines follow the environmental, health and safety management standard that integrates environment and safety responsibilities into everyday business. The focus of these efforts is to make Hindalco the safest company and to go for "zero harm" to its employees, community & environment. Hence Safety is considered as core value all across Hindalco and initiatives to help achieve this ambition and to be the benchmark within the industry are underway. Extensive work is in progress to ensure risk control in important areas like mining activities, road traffi c management and contractor management. In order to build a sustainable safe work place environment, a common health and safety management system across the company is being implemented. This includes implementation of world class safety standards, organisational safety competency and capability improvement, safety leadership development, a cross auditing activity to enhance sharing experiences and sharing best practices across Hindalco.

Human capital

Aditya Birla Group is one of the preferred employers in the country. It is a name to reckon within the fi eld of human resources. Since last few years, the Group has been able to establish world class HR Practices and has been successful in passing the benefi ts of these HR practices to the last man standing in the organisation. Due to people oriented HR processes, the Group has been able to attract and retain the best of talents across functions. At Aditya Birla Group, all employees have opportunities to fulfi l their professional and personal aspirations. In the last few years, for its people practices, the Group has got several accolades from the global agencies like AON Hewitt, Fortune, SHRM etc. The People Oriented Best HR Practices enables the Group to attract and retain the best of available talent.

People are the most valuable resource of the company and it is ensuring that all the HR systems, the processes and practices are enabling people to grow professionally and personally. As on 31 March 2017, Hindalco is managing a pool of around 23,700 people in India and around 11,000 people outside India. Hindalco has well laid down HR processes like talent management, employee engagement, performance management, rewards and recognition. Line and HR Managers are fully equipped and are duly supported for robust implementation of the people practices.

Training and Development

The Learning and Development function is well integrated with the overall HR Function and the business objectives. Across locations, the Company has full-fl edged learning infrastructure to support its learning objectives. The Companys strategy aims at equipping all our people across Units with business linked knowledge, technical and behavioural improvement based learning events. For the leadership development, the company works closely with ‘Gyanodaya-Aditya Birla Groups Learning University that provides relevant and current knowledge and competency based learning opportunities along with e-learning programs.

Cautionary Statement

Statements in this "Managements Discussion and Analysis" describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand supply conditions, fi nished goods prices, feedstock availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information events or otherwise.