Stock Insight: Tensile Strength

Hindalco Industries (Idirect Code: Hindal), the flagship company of the Aditya Birla Group, boasts of a dominant position in each of its two main businesses - aluminium and copper. It is the largest integrated aluminium and copper player in the country with a market share of over 40 per cent in each.The company's fundamental strengths along with macroeconomic elements combined to deliver a strong performance for the second quarter running. Hindalco is in a position to reap the maximum benefit from the firm outlook in both aluminum and copper prices given its industry leader stature. Aluminium: Hindalco commenced operations in 1962, with a 20,000 tpa capacity at Renukoot in Uttar Pradesh and is a market leader. Its cost of manufacturing primary aluminium is $1100 per tonne, one of the lowest in the world. This cost competitiveness is mainly due to its integrated nature of operations and strategic control over key inputs such as access to bauxite reserves, coal and captive power generation. The product range includes primary aluminium (42 per cent market share), rolled products (63 per cen

This article was originally published on December 01, 2006.