Maan Aluminium Management Discussions


Global economic activity is experiencing a broad-based and sharper-than-expected slowdown, with inflation higher than seen in several decades. The cost-of-living crisis, tightening financial conditions in most regions, continued Russias invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook.

However, despite several headwinds, global gross domestic product (GDP) growth forecast for 2023 was revised from 2.7% to 2.9%, signaling that the expected global recession will not be as severe as previously feared. According to the International Monetary Fund (IMF), "adverse risks have moderated" since its previous World Economic Outlook, released in October 2022. Global inflation is expected to be lower on-year in 2023 but will remain above the pre-pandemic average and higher than central bank targets.

While risks have reduced, the global economy remains vulnerable to the geopolitical fallout from the Russia-Ukraine conflict. Increasing crude oil and food grain prices and formation of trade blocs due to intensification of the conflict remain risks to the economy.


Indias recovery from the pandemic was relatively quick, and growth in the upcoming year will be supported by solid domestic demand and a pickup in capital investment. Incipient signs of a new private sector capital formation cycle are visible and more importantly, compensating for the private sectors caution in capital expenditure, the government raised capital expenditure substantially. According to the Economic Survey 2022-2023, budgeted capital expenditure rose 2.7 times in the last seven years, from FY16 to FY23, re-invigorating the Capex cycle. In Union Budget 2023-24, Capital investment outlay has been increased steeply for the third year in a row by 33% i.e. Rs. 10 Lakh Crore, which would be 3.3 per cent of GDP. This will be almost three times the outlay in 2019-20. Structural reforms such as the introduction of the Goods and Services Tax and the Insolvency and Bankruptcy Code enhanced the efficiency and transparency of the economy and financial discipline and better compliance.

Strong domestic demand amidst high commodity prices may raise Indias total import bill and contribute to widen Current Account Deficit (CAD). These may be exacerbated by subduing export growth on account of slackening global demand and the Indian currency may come under depreciation pressure due to widening CAD. Entrenched inflation may prolong the tightening cycle, and therefore, borrowing costs may stay ‘higher for longer. In such a scenario, global economy may be characterized by low growth in FY24 and will also impact the Indian Economy. However, the oil prices may stay low, and Indias CAD may be better than currently projected.


Aluminium is a metal of significant strategic importance to India, critical to almost all sectors of significance to modern life and essential to build a sustainable tomorrow. By virtue of its unusual properties like high strength-to-weight ratio, exceptional design flexibility, superior thermal & electrical properties, 100% recyclability over and over again, Aluminiums demand in space exploration, aviation, electric vehicles, renewable energy production, electricity transmission, construction, consumer goods, and more, is only slated to increase.

India is a leading player in the global Aluminium industry with the second largest Aluminium production capacity of about 4 million tonnes per annum (MTPA)

Indias Aluminium demand is estimated to double again by the year 2025 with current resilient GDP growth rate driven by increasing urbanization and push for boosting domestic infrastructure, automotive, aviation, defence, and power sectors.


The aluminium business continues to be affected to a large extent by the volatility in the aluminium raw material prices, foreign exchange fluctuations and low quality aluminium products being dumped by neighbouring countries.


During FY 2022-2023, the Company has achieved production of 9127.66 MT as compared to 7569.20 MT during the previous year. Considering the installed capacity of 10,000 MT w.e.f from 02nd February 2023 (earlier 9000 MTs), we have significant spare capacity to increase production and sales level. Accordingly Company has geared-up marketing activities and production, so as to achieve Production and sale of 10,000 MT in coming years.


Rise in infrastructure development is expected to drive growth in the aluminium sector. Demand for aluminium is expected to pick up as the scenario improves for user industries like power, infrastructure and transportation.

The Government of Indias "National Mineral Policy" is expected to bring more transparency, better regulation and enforcement, balanced socio-economic growth along with sustainable mining practices in the aluminium sector.

Domestic demand is likely to remain robust driven by construction and packaging.

The increasing share of imports of aluminium products, including scrap, will continue to be a major concern for domestic aluminum producers.

Over the last few years, the domestic rolled products industry has been witnessing an increase in dumping of imports especially from China, at unfair prices leading to the pricing pressure.

The adoption of strong, lightweight and formable aluminium sheets in vehicle parts and structures is driving growth in the automotive body sheet segment.

This market is expected to record growth, despite some recent softening in European and Chinese demand.

The Indian government has plans to invest over US$ 1 billion in its "Make in India" initiative.

The aluminium industry will benefit from this as there is great demand to build new production facilities. India›s annual aluminium consumption is expected to double to 7.2 MnT by 2023.


The Company has well defined structure which enable and empower management to identify, assess and leverage business opportunities and manage risk exposure in the organization effectively.

As per Risk Management framework and procedures, management treat various category of risks and take appropriate actions for its mitigation. For example, for higher priority risks, the Company has developed and implemented specific risk management plans that supports management in strategic decisions and funding considerations, if any. Lower priority risks are also monitored as per plan.

Company has the process of communication, consultation, monitoring and periodical review of the risks and effective -ness of the mitigation plan.

The aluminium (metals) sector has provided investors healthy returns in certain time periods during the past decade but overall, the performance of the sector has been underwhelming.

Supply of primary aluminum is in excess as India is one of the largest producers of primary aluminium. However, due to limited scope of value addition within the country, primary aluminium producers export large quantities of primary aluminium products and companies import a sizeable quantity of downstream products.

Aluminum consumption in India at 2.7 kg per capita is much below the global average of 11 kg per capita. Demand for the metal is expected to pick up as the scenario improves for user industries, like power, infrastructure and transportation.

Most domestic players operate integrated plants. Bargaining power is limited in case of power purchase, as Government is the only supplier. However, increasing usage of captive power plants (CPP) will help to rationalize power costs to a certain extent in the long-term.

The company also has an internal risk committee that reviews the risk management process on a periodic basis.


Your Company continues to focus on sustained quality control and has build a strong brand image among competition. The Companys manufacturing facility is accredited with the prestigious ISO-9001:2015, 14001:2015, IATF & CE Marking certification endorsing its strong quality systems.

Your Company continues to focus on sustained quality control and has build a strong Brand image among competition.


The Company is following a proper and adequate system of internal controls in respect of all its activities including safeguarding and protecting its assets against loss from unauthorized use of disposition. Further, all transactions entered into by the Company are duly authorized and recorded correctly. The Internal Auditors are submitting reports to the Company on a Quarterly basis.

The internal audit process is designed to review the adequacy of internal control checks and covers all significant areas of the companys global operations.

The company has an Audit Committee of the Board of Directors, the details of which have been provided in the corporate governance report.


During the year under review, earnings before interest, tax and depreciation (EBITDA) of the Company recorded Rs. 7644.65 Lakhs as compared to Rs 3810.15 Lakhs in previ -ous year.

The higher EBITDA was mainly due to higher sales volume; record high production and export; fixed and variable cost optimization; reduction in overall Finance cost & power cost; and efficient & sustainable plant operations.

The demand for aluminium may continue to be driven further by the pick-up in the infrastructure projects viz. bridges, roads, ports, metro rails and low budget housing segment, bringing opportunities for growth in this sector. The long-term outlook for aluminium is expected to be positive.

Despite the pressure from increase in raw material prices, freight cost adversely impacted the operations and overall aluminium demand, the Company has recorded profit af -ter of Rs. 4997.10/- lakhs with strong EBITDA margin of 9%.

Concerted efforts throughout the year resulted in higher sales volume, export and increased production along with value added products. The Company continues to focus on optimizing costs, improving operational efficiency and fur -ther strengthening the brand.


The Summary of Key Financial metrics and Key Ratio has been mentioned in the Note No. 35 of Audited Financial.


All the statutory compliance with respect to Securities and Exchange Board of India (Listing obligations and Disclosure Requirements) Regulations, 2015, Income Tax Act, Sales Tax Act, GST Act, Companies Act, 2013 and all other applicable Acts, and Rules & Regulations are complied with.


The Company continued with efforts to ensure that its pool of human resources is "future ready" through its robust processes of learning & development, capability building and its development programmes. Efforts were taken to develop leadership lines as well as to enhance technical and functional capabilities with special focus on nurturing young talent, in order to face future challenges that may arise. The Company organized several training, awareness and coaching programs to develop the leadership, technical and management skills of employees. Employee engagement programs were organized to create openness and sharing ideas by employees. This learning journey includes formal, informal and highly interactive components that would help in honing their leadership, and coaching skills. It will ensure that the development initiatives result not just in better skills but in enhanced performance and higher engagement.

The total number of employees on the rolls of the Company as on 31st March, 2023 was 210 (Previous year as on 31st March, 2022, number was 204).

Industrial relations during the year under report remained cordial.


The Company continuously focuses on the health and safety of all its workers and staff. Adequate safety measures have been taken at the plant for the prevention of accidents or other untoward incident. The necessary medical facilities are available for the workers and staff to maintain good health. During the pandemic worldwide, the Company ensures proper sanitisation and safety measures. During the worldwide pandemic situation the Company followed all the norms and advisory issued by the Government of India/State Government.


Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable laws or 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 domestic demand- supply conditions finished goods prices, raw materials costs and availability, fluctuations in exchange rates, changes in Government regulations, tax laws, natural calamities litigation and industrial relations, monsoon, economic developments within the country and other factors.