Hindalco: The Big Global Dream
Over the years, Mumbai-headquartered Hindalco has emerged to become one of the most respected global companies owing to its consistent growth
Photo Credit : Umesh Goswami
Hindalco was set up by industrialist G.D. Birla in 1958 with the vision of making it Independent India’s first integrated aluminum facility. Hindalco attained its leadership position in the aluminium industry under the dynamic leadership of the late Aditya Vikram Birla, a formidable force in the Indian industry.
The company witnessed its next phase of growth under the leadership of Group Chairman Kumar Mangalam Birla. Through a series of mergers and acquisitions with companies such as Indal and Birla Copper, Hindalco also secured copper reserves and amplified its operating base by acquiring Australian copper mines. In 2007, the landmark acquisition of Atlanta-based Novelis, the world’s largest aluminium rolling company, placed Hindalco’s footprint across the globe, securing it a rank among the Top 5 global aluminium majors.
Over the years, Mumbai-headquartered Hindalco has emerged to become one of the most respected global companies owing to its consistent growth. The company’s revenue has also witnessed steady growth and the revenue from its India operations stood at Rs 10,833 crore for Q2 FY19 versus Rs 10,313 crore in Q2 FY18 up by 5 per cent.
“The company delivered yet another strong quarterly results, despite the challenging business environment, rising input costs and surge in imports. The company continues its focus on strengthening its balance sheet, resource securitisation and its strategy to grow in the downstream businesses to deliver long-term shareholder value. Novelis will continue to play a crucial role in supporting the next generation of automotive innovation and design, as the market demand for lighter and more fuel-efficient vehicles grows,” says the spokesperson.
The phenomenal growth of Hindalco Industries as one of the most respected companies is also because of its strong leadership. Under the able leadership of Managing Director Satish Pai, who joined the company in 2013, Hindalco has seen robust rise in the segment.
Prior to joining the Aditya Birla Group, Pai worked with the oilfield services and equipment company Schlumberger based out of Paris. Over the course of his illustrious career of 28 years with Schlumberger, he held various important positions and was responsible for all aspects of operations for Schlumberger globally.
“The first few years I had to learn the Aluminium and Copper business because I came from an Oil and Gas background. I learnt by going to the field, to the mines and interacting with people. Now, I play more of a coach, I get involved when there are problems, I am setting the next five-year strategy of the company because aluminium and copper went through a very tough time,” said Pai in an interview in 2017.
Pai’s leadership success is best described in his own words, “Be accountable for the results” and “Life is a game”. This succinctly explains his risk taking ability and his vision to set Hindalco on the course of its next growth phase.
It is not only the global growth that Hindalco is looking at. The company is also seeing a lot of promise on the domestic front. “We have drawn up plans to invest another Rs 5,000 crore to increase our capacity in India in the medium term. We believe the government’s increased focus on housing, electrification and infrastructure will lead to higher demand for our products,” Pai explained in an interview with a business publication.