INDIAN ALUMINIUM COMPANY LTD Page |1

INDAL –INDIAN ALUMINIUM CO. Ltd

In its over 30 year journey to excellence, Indal has become one of the largest
integrated aluminium extrusion manufacturers in South East Asia region that delivers value in
product quality and customer service. Several advantages that our customers will be able to
gain from us are competitive price, quality control and excellent customer service.

Being an ISO 9001:2000 certified company and having semi-automatic production

facilities, Indal's aluminium extrusion and fabrication division ensures that production
process adheres with the international quality standard. We provide customer with the highest
quality and precision from product design stage to product delivery. We also perfected our
service with surface anodizing and paint coatings finishing facilities and on time deliver.
Aluminium plays a vital role in various fields in day-to-day life. INDAL has been a pioneer
in the field of development of Aluminium industry in India and caters to most of the usage
segments of the market in the country today.

INDAL was incorporated as a private limited company in December 1938, under the
name ‘Aluminium Production Company of India Ltd.’. In 1944, the name changed to ‘Indian
Aluminium Company Ltd.’. Since its inception Alcan Aluminium Ltd., Canada had been its
principal shareholder. Indal benefits from a continuous technology and personnel exchange
with Alcan. Professionally managed, Indal has around 30,000 shareholders and over 8000
employees. In the year 2000, Alcan sold its stake in Indal to the A.V. Birla group – Hindalco
w.e.f. from 27th June 2000.

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INDAL is one of the largest private limited companies in India and the first to embark
on the production of Aluminium in the country. With a nation wide network of production
facilities and offices, INDAL is engaged in all phases of the Aluminium industry, from
Bauxite mining, Alumina refining through smelting to manufacturing of a wide range of
finished Aluminium products.

Corporate Information

PT INDAL
ALUMINIUM INDUSTRY
Tbk. (“Indal”) was established
in 1971 as a private limited
company. Over the years, it
has grown to a public listed
company engaged in a
strategic and widely diversified
aluminium business. Now,
Indal has become one of the largest fully-integrated
aluminium manufacturers in South East Asia that delivers
value in product quality and customer service. Being an ISO
9001:2000 certified company and having semi-automatic
production facilities, Indal’s extrusion and fabrication
divisions ensure the production processes adhere to the
international quality standards.

 Vision

To be a market leader in aluminium extrusion and fabrication industry in Asia through

innovation, continuous improvement and total commitment to positive growth.

Mission

To continuously improve productivity and efficiency to enhance stockholder’s value”.

Company Policies

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1. Supply the products that satisfy the customer requirements with respect to quality,
delivery, service and price.
2. Improve the performance of suppliers / subcontractors.
3. Optimize workflows and manufacturing process to reduce defect.
4. Develop competent manpower in achieving company goal.

Company Profile

Basic Information
Company Name: PT. Indal Aluminium Industry 
Business Type: Manufacturer  
Product/Service Aluminium Extrusion,Aluminium Composite Panel, Aluminium
(We Sell): Heat sink  
Brands: Indal  
Number of Employees: Above 1000 People 

Trade & Market

Main Markets: North America
South America
Eastern Europe
Southeast Asia
Africa
Oceania
Mid East
Eastern Asia
Western Europe
Total Annual Sales Volume: US$50 Million - US$100 Million  
Export Percentage: 71% - 80%  
Total Annual Purchase US$50 Million - US$100 Million  
Volume:

Factory Information
Factory Size (Sq.meters):
Factory Location:
QA/QC:
Number of Production
50,000-100,000 square meters  
Maspion Industrial Estate Unit I  
In House  
Above 10  

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Lines:
Number of R&D Staff: 31 - 40 People  
Number of QC Staff: 31 - 40 People  
Management Certification: ISO 9001:2000  
Contract Manufacturing: OEM Service Offered   Design Service Offered   Buyer Label
Offered  

Key Executives

Name Title
William T. Foley President
Tim Stubbs Chief Executive Officer Indalex Holding Corp and President
Indalex Holding Corp
Charles Ulik Chief Operating Officer of Indalex Holding Corp
Bob Sharpe Plant Manager

Board of Directors

Name Primary Company

Virgil K. Johnson Erickson & Sederstrom

Other Board Members on Board of Directors

Name (Connections) Primary Company

Virgil Johnson Erickson & Sederstrom

Coorporate Information

P T Indalex

PT. Indalex is one of Indal’s subsidiary engaged in design, estimation and installation
of innovative architectural façade products with lower cost and better quality services. PT.
Indalex is able to position himself as one of the biggest architectural façade specialist in
Indonesia because it is supported by over 10 years of experience, professional team,
experienced engineers and comprehensive resources of Indal group. Indalex committed to
bring highest value, punctual delivery at reasonable cost. Among some of prestigious projects
that make use of PT. Indalex services are Ritz Carlton Hotel, The Peak and Senayan City.

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Indal Servis Sentra

 
Indal Servis Sentra (‘ISS’) is a fast-moving trading company that
provides all kind of architectural products for residential and high
rise building requirements such as aluminium composite panel,
aluminium extrusions, float glass, and other related commodities
such as ladders, water tank, floor strainer, etc. ISS is committed to
give the best effort to every customer and fulfil all their living hood
needs. Highly motivated and experienced human resources are
combined with state of the art logistic centre; material handling and
transportation equipment will add value to the services

  PT. Furukawa Indal Aluminium

PT Furukawa Indal Aluminium is a joint venture

company with the Furukawa Electric Company and
Toyota Tsusho Co. of Japan. Supported by advance
technology, team of expertise and modern facilities,
Furukawa is able to manufacture high technology
zinc-coated condensers and multi-void evaporative
tubes for the automotive industry and aluminium drawn tubes.

Products

Indal manufactures aluminium-extruded products of high aesthetics and technology

for all architectural applications that are widely installed in the high-rise building. Indal
architectural products take account of standard and customized aluminum profiles. Indal also
caters various types of exterior cladding, which includes curtain wall for conventional stick
system and technically sophisticated unitized system, window wall, partition, shop front, door
and window, louver, solid panel, and other architectural façade system.

Indal also deals with aluminium composite panel to deliver total satisfaction to its
customer in architectural sector. As an interior/exterior material, aluminium composite panel

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is a combination between art and hi-tech. This product often used in high rise building
because it is light and rigid, having superior flatness, corrosion resistance, sound & vibration
proof, thermal insulation, easy maintenance and unlimited choice of colours. This superb
quality panel is available in 2 types; Fire Rated Core and Polyethylene Core, which come
with various thickness, length, width, PE finishing (interior use) and PvDF finishing(exterior
use).

Different Products are:

Archirectural Products

   Curtain Wall  
   Door  
   Windows  |
   Aluminium Composite Panel

Other Commodities

 
Water Tank

Stainless steel water tank is compatible to use in

high rise building such as hotels, restaurants,
universities, apartments and hospitals etc. This
stainless steel water tank is available in two options;
with stand & without stand.

Transportation

Indal manufactures high quality aluminium profiles for various parts of

transportation, such as body frames and window frames of vans, trucks
and other commercial vehicles, etc.

Furniture & Interior Decoration

Indal manufactures aluminium-extruded products which are widely

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installed in the office room partitions together with other material (glass,
gypsum board, etc). Indal also fabricates aluminium frames for
showcases, picture frames, signage profiles, customized chair and table.
 
Household Ladder

Indal manufactures wide range of aluminium

ladders for domestic / occasional use with load
rating of 100 kg. These ladders offer some
advantages such as light-weight, compact size
from slim line designs to platform ladders and
artistic appearance. They are also built strong, easy to use, safe,
attractive and economical.

 
IH Series:

Solder-able heat sink for PCB, excellent

extrude-ability, light weight, higher heat
dissipation.

Insert Fin Base:

Heat sink assembly that includes base and fin. It is available in

limited range and designed to satisfy the need for thermal resistance.

Custom design:

Heat sink with profile and machining designed according to

customer's requirements.

Labour

Indian Aluminium Company Ltd (Indal) proposes to revamp its business

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activities, streamline production and cut workforce by introducing a voluntary retirement

scheme (VRS). These steps will help retain its competitive edge. Indal plans to introduce the
VRS at four of its units. It plans to close its Belgaum smelter due to the high power costs in
Karnataka. This unit has 1,296 permanent employees and has been closed since 1996. Indal
will also close its 25kA pot line at Alupuram and operate the other 50kA line at 13,000
tonnes per annum. These two units have around 995 employees. Indal will also restructure
the Belur sheet mill and make huge investments on modernisation. This unit has 1,263
employees. The trade unions have opposed the proposed VRS and have sought
redeployment of all the employees.

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Scope

Indal’s architectural products quality has been acknowledged by a large number of

project owners, building consultants and main contractors. These large project references
which use Indal products testify Indal’s commitment in this industry. Among all of Indal
project references, some of the noticeable projects are:

The Ritz Carlton Hotel Plasa ABDA & Sudirman Mansion

The Peak Jakarta Stock Exchange Tower II
Bank Indonesia Twin Tower Menara Peninsula Hotel
Mulia Tower Pantai Mutiara Apartment
Menara Kuningan Jubille School
Maspion Plaza Office Park
Menara Jamsostek Roxy Square
Wisma Fedex La Piazza
Plaza Indonesia Extension Pacific Place
Bakrie Tower Westin Hotel
Talavera Project Grand Indonesia
Menara Satrio Menara Ratu Prabu
Senayan City Menara Kuningan

Financials

Profit & Loss account ------------------- in Rs. Cr. -------------------

  Mar '03 Mar '04 Mar '05 Mar '06 Mar '07
  12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales Turnover 1,523.66 1,787.49 75.87 72.97 87.60
Excise Duty 152.62 173.50 9.45 8.86 11.11
Net Sales 1,371.04 1,613.99 66.42 64.11 76.49
Other Income 46.88 21.02 0.08 -0.05 0.01
Stock Adjustments 57.66 -23.65 -2.69 -0.41 0.85
Total Income 1,475.58 1,611.36 63.81 63.65 77.35
Expenditure
Raw Materials 473.01 481.05 49.04 48.64 63.30
Power & Fuel Cost 346.62 377.91 3.27 2.97 2.81
Employee Cost 163.20 177.48 5.55 5.87 6.40
Other Manufacturing 46.02 51.27 0.30 0.65 0.74
Expenses
Selling and Admin Expenses 158.53 186.20 2.31 2.15 2.07

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Miscellaneous Expenses 79.10 61.65 2.12 1.40 1.37

Preoperative Exp -30.73 -8.36 0.00 0.00 0.00
Capitalised
Total Expenses 1,235.75 1,327.20 62.59 61.68 76.69
Operating Profit 192.95 263.14 1.14 2.02 0.65
PBDIT 239.83 284.16 1.22 1.97 0.66
Interest 32.96 25.90 0.33 0.26 0.36
PBDT 206.87 258.26 0.89 1.71 0.30
Depreciation 70.20 74.97 3.46 3.46 3.61
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 136.67 183.29 -2.57 -1.75 -3.31
Extra-ordinary items 2.48 0.37 0.00 0.00 0.36
PBT (Post Extra-ord Items) 139.15 183.66 -2.57 -1.75 -2.95
Tax 20.50 51.50 -1.02 -0.43 -0.50
Reported Net Profit 118.63 132.15 -1.55 -1.33 -2.46
Total Value Addition 762.75 846.15 13.54 13.05 13.39
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 0.00 0.00 0.00 0.00 0.00
Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.00
Per share data (annualised)
Shares in issue (lakhs) 712.57 712.57 712.57 712.57 712.57
Earning Per Share (Rs) 16.65 18.55 -0.22 -0.19 -0.34
Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) 124.04 142.15 2.37 2.18 1.84

Conclusion

Indian Aluminium Company, Limited (Indal), an Aditya Birla Group Company, has
been a part of India's aluminium industry for over six decades. As a member of the Aditya
Birla Group and a wholly owned subsidiary of Hindalco Industries (holding 96% equity)
Indal is a part of one of India's largest business houses. With technological expertise of over
60 years of experience in the aluminium industry in India, INDAL is a market leader in the
upstream range of standard and speciality alumina products in India, providing applications
for refractories, ceramics and electrical industries. It manufactures alumina and hydrates of
aluminium and primary aluminium metal. Recently Aditya Birla Group took over the
company and changed it's name to Hindalco. Indal is vertically integrated through all stages
of the aluminium business - from bauxite mining, alumina refining, power generation,
aluminium smelting to semi-fabricated products of sheet, foil and extrusions as well as
aluminium scrap recycling. In the downstream segment,

INDAL is the largest manufacturer of rolled products in India with the widest range of
extrusions, meeting the requirements of different industrial applications such as building,

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transportation, consumer durables, packaging and telecommunication.

A nationwide spread of plants, mines and offices gives Indal the advantage of being in
proximity to various regional markets within and outside the country. Certified with ISO
9001 and 14001 certifications for quality and environment management, the Company enjoy
a leading market position in India for speciality alumina chemicals and value added products
of aluminium sheet, foil and extrusions. The Aditya Birla Group is a dominant player in all
sectors in which it operates, viz., aluminium, viscose staple fibre, copper, cement, viscose
filament yarn, branded apparel, chemicals, carbon black, fertilisers, sponge iron, insulators,
power, telecom, financial services and insurance. Its flagship companies, include Hindalco,
Grasim, Indian Rayon and Indo Gulf.

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