INDO ALUSYS

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INDO ALUSYS
INDUSTRIES LTD.
Superior Technology
Superior Solutions
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Fact Sheet

• Leading manufacturer of Aluminum Extrusions and
  Aluminium Alloy Ingots.
• Manufacturing facility is located on a 25-acre
  property in Bhiwadi, Rajasthan, about 70 kms from
  Delhi.
• Products are used in various industries like
  Construction, Automobiles, Electrical Equipments
  and in Energy Sector.
• Current Manufacturing capacity is 27,000 MT per
  annum of Aluminium Extrusions and Alloy Ingots,
  7,800 Kms/annum of Power/Control Cables and
  1,08,000 Kms./annum of Aluminium Conductors.
• Company has successfully implemented 1100 UST
  Extrusion Press and 2100 UST Extrusion Press to
  produce high precision profiles for its
  customers.
• Most of the Automobile Companies have their
  manufacturing base in the radius of 10-15KM. and
  the construction activities are taking place in
  the radius of 50 Km.)
• One of the first Extrusion companies of India to
  be ISO 90012008 certified by Det Norske Veritas
  (DNV) of the Netherlands
• The Company currently has 800 employees with no
  incidences of industrial unrest.

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Date of Incorporation 17.10.1979 Head Office
Aluminium Extrusion Division 606-Tolstoy
House, 15-Tolstoy Marg, New Delhi-110001. Phone9
1-1143564200, 23738011-13, Fax[phone],
_at_ info_at_indoalusys.com, Url www.indoalusys.com
Power/Quad/Control Cable Division 59, M.M.
House, 2nd Floor, Rani Jhansi Road, Karol Bagh,
New Delhi-110055, Phone [phone] _at_
sales_cables_at_indoalusys.com Architectural
Division 59, M.M. House, 2nd Floor, Rani Jhansi
Road, Karol Bagh, New Delhi-110055, Phone
43758100-115 _at_ infoaap_at_indoalusys.com Works
SP-2/333, Bhiwadi Industrial Estate, Dist.
Alwar, Rajasthan. Phone [phone]
0, Fax [phone], _at_l admin_at_indoalusys.com
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Our Operations (at Factory Site at Bhiwadi)

• Aluminium Extruded Sections for Industrial use.
• Architectural Products namely Doors, Windows,
  Curtain Wall, Structural Glazing etc. for
  commercial as well as residential buildings,
  Govt. Buildings and at many places.
• Aluminium Alloy Ingots for Automobile Sector.
• Quad/Control/Power Cables for Indian
  Railways/Delhi Metro and other Public Sector
  Undertakings.
• New Extrusion Presses of 1100 UST 2100 UST for
  different type of profiles as per specification
  of the customers.

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Applications Architectural and decorative
fittings, doors and windows, false ceilings,
electronic component, bus body, rail coach,
bicycle rims etc.

• User Industry
• Construction Activities
• Automobiles
• Electric Switchgears
• Control Panel Boards
• Light Fittings
• Textile Accessories
• Moulded Luggage
• Telecommunication Instruments
• Sprinkler Irrigation System
• Office Equipments
• Sports Goods
• Survey Instruments
• Wall Clocks
• Knitting Niddles

• Aluminium Extrusions
• Architectural Products
• Exports
• Traders

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• Applications
• Alloy Wheels
• Cylinder Block
• Cylinder Head
• Cylinder Head cover
• Intake Manifold
• Exel Housings
• Gear Box Housings
• Brake Lining
• Misc. Small castings

• User Industry
• Automobile Industry
• Two Wheelers
• Four Wheelers
• Heavy Vehicles
• Earthmoving Equipments

• Alloy Ingots

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• Applications
• Quad cable of all sizes for Indian Railways/
  Metro for signalling.
• Power Cable for Power Grid, Indian Railways,
  BHEL, NTPC etc. for signalling.
• Control Cable for Power Grid, NTPC, BHEL etc.

• User Industry
• Indian Railways/Metro
• Power Grid
• State Electricity Boards
• BHEL, NTPC, ABB
• Steel Plants, Siemens
• Reliance Engery,
• J.P.Industries,
• Jindal Power

Quad/ Control/ Power Cable
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Industry Overview

• The Aluminum Extrusion is a high growth industry
  due to derived demand from the Construction,
  Housing, Electric Equipment and Automobile
  industries.
• The applications of aluminum extrusion include
  architectural and decorative fittings, doors and
  windows, false ceilings, electronic components,
  vehicle bodies and rims etc.
• In India, the largest player is Jindal Aluminum,
  which is based at Bangalore and is focused more
  on the Southern and Western markets. In addition,
  Century Extrusions and Bhoruka Aluminium also
  produce Aluminum Extrusions.
• Indo Alusys is one of the largest player in the
  North Indian market and its products command a
  higher premium due to its quality and operational
  efficiencies.

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Present market demand, production consumption

• Aluminium Extrusion Industry has passed through
  various phases in the last decade. Since 2005
  there is an unexpected growth in the demand of
  Aluminium Extrusion. Due to increase in the cost
  of Steel, Stainless Steel and Copper, various new
  applications are emerging for Aluminium.

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ISO Certification

• The Company has an excellent track record and is
  in profits from last 10 years. IAIL believes in
  high quality and has ISO 90012008 certifi-cation
  from world renowned Certifying Agency DET NORSKE
  VERITAS (DNV) OF NETHERLANDS.

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• Global Industry Outlook
• As per the data furnished by Aluminium
  Association of India, aluminium production of the
  major aluminium producing countries would reach
  50,335 thousand tons as compared to 40,131
  thousand tons in 2008. Growth in Chinese
  aluminium output, which contributes about 43 of
  the world primary aluminium production, was
  13,695 thousand tonnes in 2008 (34) which would
  reach to 21,481 thousand tonnes in 2014 (43).
  The aluminium output of India which was 1348
  thousand tonnes in 2008 (3) which would reach
  to 3,958 thousand tonnes in 2014 (8).
• Domestic Outlook
• The overall demand of aluminium extrusion is
  expected to grow from 2,50,000 tons in 2007-08 to
  4,77,000 tons by 2014-15. In India, aluminium
  extrusion industry is expected to grow by approx.
  10 every year.Due to demand and growth of
  Aluminium Extrusion Industry in the recent past,
  most of the existing Aluminium Extrusion Plants
  are already operating by their maximum
  capacities. The new demand will have to be met
  from the expansion of existing units or creation
  of new capacities.
• Assuming that existing capacities might add about
  5 of production of Aluminium Extrusions by way
  of improved productivity, the remaining demand
  supply gap will have to be bridged by new
  projects.

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Import of Raw Material (Aluminium
Ingots/Tense/T.T.)
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Europe
U.A.E.
Middle East
Australia
Nalco
Balco
Hindalco
Primary Producers In India
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In-house Facilities

• The plant has a most modern Foundry having
  facility of melt and cast Aluminium Alloy Billets
  of very high quality.
• Extrusion Dies are manufactured in-house.
• The company is equipped with in-house facility
  of-
• -- Anodising
• -- Electro-coloring
• -- Powder Coating.

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The covered shed for Aluminium Alloy Ingots has
proper arrangement for hand sorting for the
mechanization of Cold Refining to achieve higher
productivity and better sorting which allows uses
of various low grade materials. We have a
technical department which includes hot refining,
cold refining, production planning and control,
quality and process control, maintenance and
project and new developments, each being handled
by highly experienced and qualified engineers.
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Completed Expansion Programme
(1)
Quad/Control/Power Cable Project
Capacity 650 Kms. Per Month (7,800 Kms. per
annum) Project Cost Rs.11 Crores Term Loan
Sanctioned Rs.7.50 Crores Bank Axis Bank Ltd.,
New Delhi.
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(2)
1100 UST EXTRUSION PRESS
Capacity 225 M.T. Per Month (2,700 MT per
annum) Project Cost Rs.6 Crores Term Loan
Sanctioned Rs.4 Crores Bank State Bank of
Mysore, Nehru Place, New Delhi.

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(3)
2100 UST EXTRUSION PRESS

Capacity 650 M.T. Per Month (7,800 M.T. per
annum) Project Cost Rs.12 Crores Term Loan
Sanctioned Rs.8 Crores Bank State Bank of
Bikaner Jaipur Nehru Place, New Delhi.
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(4)
ALUMINIUM CONDUCTOR PROJECT
(AAC/AAAC/ACSR)
Capacity 2,208 Kms.Per Month (26,500 Kms. per
annum) Project Cost Rs.12.50 Crores Term Loan
Sanctioned Rs.8.10 Crores Bank Axis Bank
Ltd., New Delhi
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Alloy division of Indo Alusys produces ingots
which are primarily used by auto components
companies
Alloy Division Profile
Revenue (Rs cr.)

• Indo Alusys has an alloy ingots capacity at
  10,000 MT per annum
• It recycles scrap aluminum to produce alloy
  ingots
• It supplies alloy ingots to major ancillary
  companies of automotive sector
• Having a manufacturing facility within the auto
  component hub offers a great locational
  advantage
• Since this division is producing prime raw
  material, its customers are regular/recurring.
  This division is getting regular orders worth
  700-800 MT per month from various auto component
  manufacturers
• The division currently has 100 employees1

Customer segmentation ( of revenues)
Key customers
Others
Top 5 customers
1 Employees include staff and workers
Source Company
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Indian auto component market is expected to grow
at a CAGR of 18 p.a. till 2020
Indian Auto Component Market
Growing domestic automobile market and increasing
exports are expected to drive sector growth
The 4-wheeler segment utilizes more than 70 of
the total auto component production
CAGR 18
All figures are in USD bn
Key observations

• Auto component market in India is valued at USD
  26 bn in 2011
• Over the next 10 years, the market is expected to
  grow at a CAGR of 18 and cross USD 113 bn by
  2020
• 53 of auto components (by volume) are used in
  passenger cars and utility vehicles followed by
  22 in two-wheelers
• Capital investments in the industry have
  witnessed a CAGR of 21 from USD 3.8 bn to USD 12
  bn during FY2005-11
• The number of organized players in the sector are
  less than 10 of the 6000 players that exist in
  the market today however they contribute more
  than 75 to the total production
• Within the organized segment, large Indian
  players like Bharat Forge, TVS group, etc.
  account for 43 of the overall production while
  multinationals account for 15
• Of the 600 organized players in auto component
  industry, 30 have revenues greater than USD 25 mn

Source IBEF
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Robust export demand, policy support and
competitiveness of indigenous market are likely
to drive this growth
Rising export demand
Investment in RD and Infrastructure
Favorable government policies

• The export market for auto components has grown
  at a CAGR of 17 during FY05-10
• Increasing number of international OEMs prefer
  India as the sourcing hub for auto components
• Indias frugal engineering capabilities in terms
  of lower costs of raw material and labor, broad
  supplier base, competent design, manufacturing
  engineering skills have been key factors in
  driving demand

• With India becoming the global OEM sourcing hub,
  auto component OEMs are increasingly focusing on
  investments in RD
• Indian manufacturers are embracing best practices
  for shop-floors like TPM, 6 Sigma and deploying
  IT enabled automotive support systems
• Minda Industries Ltd. (switch div.), Endurance
  Technologies Pvt. Ltd. (suspension div.) and Sona
  Somic Lemforder Components Ltd. received the TPM
  Excellence Award (outside Japan) in 2011

• Auto Policy 2002 approves 100 foreign investment
  in the auto component manufacturing business.
  Additionally, it exempts manufacturing and
  imports in the sector from licensing and approval
• Automotive Mission Plan 2006-16 promotes setting
  up of automotive training institutes, auto parks,
  design centres, etc.
• The Department of Heavy Industries Public
  Enterprise started a USD 200 mn fund to provide
  interest subsidy for loans and investments in new
  automotive plants and equipment

Recent Developments

• International players are expanding their
  capacities in India due to cost benefits and
  favorable policies
• Ford expanded its manufacturing capacity in South
  India by 20 in 2010 and plans to make it the hub
  (engines) for Asia Pacific and Africa region
• Honda plans to invest USD 115 mn for setting up
  its powertrain facility in Rajasthan
• Indian players are being recognized globally for
  efficient processes
• 15 Total Productive Maintenance (TPM) Awards won
  by Indian players
• 3 Indian OEMs won the Japan Institute of Plant
  Maintenance (JIPM) Award

Source IBEF
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As Indo Alusys is present in the northern auto
component hub, this gives the company a huge
locational advantage to cater to auto component
companies
Indian Auto Component Market
Engine engine parts and transmission steering
segments account for 50 of the market
Automobile players are centered across 3 major
clusters in the North, West and South of India
North/Central South
Bosch Denso RICO Auto Sona Koyo Motherson Sumi Delphi India Visteon Bosch Denso Sundaram group
West East
Bosch Bharat Forge Denso TAL Manufacturing Alfa Industries Exide
Delhi-Gurgaon-Faridabad
Mumbai-Pune-Nasik-Aurangabad
Chennai -Bangalore-Hosur
Auto Component Hub
Key observations

• The following segments account for a major share
  in the overall auto component sales
• Transmission steering systems (specially gears
  and clutch assemblies) are likely to see a growth
  in demand due to rising traffic density in India
• Engine engine parts are likely to experience
  growth in line with increase in demand for PVs
  and CVs. However, emerging technologies such as
  hybrid engines could have a significant impact on
  the size of this segment going forward
• The three major OEM clusters enable automobile
  players to remain in close proximity to their key
  markets as well as to auto component suppliers

Source Deloitte Analysis, Freedonia
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Also increasing focus on fuel efficiency is
resulting in reduction of vehicle weight leading
to greater usage of aluminum in automotive sector
Key trends impacting usage of Aluminum in Auto
Comp.
Attractive Product Segment on usage of Aluminum

• Fuel efficiency to increase from 27 miles per
  gallon to 35 miles per gallon by 20201
• Change in consumption pattern
• With focus on higher fuel efficiency, demand of
  heavier trucks is being replaced by increase in
  demand for B,C D unibody vehicle with lower
  curb weight. This in turn is driving the demand
  for more aluminum consumption per vehicle
• Threat of substitutes is low in future
• Going forward, threat of substitute products
  (iron, steel, magnesium) is quite low as any
  other material would not be able to yield fuel
  economy like that of aluminum
• Future demand is expected to come from drives and
  transmission
• The demand of Aluminum over next decade is
  likely to be driven primarily by new applications
  for suspensions, knuckles, closures and body
  structures. Those applications account for less
  than 10 kgs of aluminum content today, but could
  grow to 25 kgs of vehicle content by 2020.
• Trends in India
• In India, only 2 wheeler OEMs have started
  manufacturing aluminum engine blocks. The
  penetration of Aluminum amongst domestic OEMs is
  limited to K series engine manufactured by
  Maruti.

On an average, Aluminum contributes 149 Kgs per
vehicle which is forecasted to increase to 179
Kgs per vehicle by 2020 thus resulting in more
than 10 of the curb weight.
1 Based on Druker worldwide report for trends in
North America