1. INDO ALUSYS
INDUSTRIES LTD.
Superior Technology
Superior Solutions

2. 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 9001:2008 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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3. IAIL Date of Incorporation 17.10.1979 Head Office :–
Aluminium Extrusion Division :
606-Tolstoy House, 15-Tolstoy Marg, New Delhi
Phone: , , Fax: ,
@: Url :
Power/Quad/Control Cable Division
59, M.M. House, 2nd Floor, Rani Jhansi Road, Karol Bagh, New Delhi , Phone :
@ : :
Architectural Division :
@ :
Works :
SP-2/333, Bhiwadi Industrial Estate, Dist. Alwar, Rajasthan.
Phone: /220868/306500, Fax: ,
@l:
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4. 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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5. Architectural Products
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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6. Alloy Ingots User Industry Automobile Industry Two Wheelers
Four Wheelers
Heavy Vehicles &
Earthmoving Equipments
Applications
Alloy Wheels
Cylinder Block
Cylinder Head
Cylinder Head cover
Intake Manifold
Exel Housings
Gear Box Housings
Brake Lining
Misc. Small castings
Alloy Ingots
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7. Quad/ Control/ Power Cable
User Industry
Indian Railways/Metro
Power Grid
State Electricity Boards
BHEL, NTPC, ABB
Steel Plants, Siemens
Reliance Engery,
J.P.Industries,
Jindal Power
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.
Quad/ Control/ Power Cable
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8. 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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9. 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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10. 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 9001:2008 certifi-cation from world renowned Certifying Agency DET NORSKE VERITAS (DNV) OF NETHERLANDS.
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11. 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 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 to 4,77,000 tons by 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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12. Primary Producers In India
Import of Raw Material (Aluminium Ingots/Tense/T.T.)
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U.A.E.
Europe
Middle East
Australia
Hindalco
Nalco
Balco
Primary Producers In India
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13. 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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14. 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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15. Quad/Control/Power Cable Project
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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16. 1100 UST EXTRUSION PRESS (2) 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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17. 2100 UST EXTRUSION PRESS (3) 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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18. ALUMINIUM CONDUCTOR PROJECT
(4)
ALUMINIUM CONDUCTOR PROJECT
(AAC/AAAC/ACSR)
Capacity 2,208 Kms.Per Month
(26,500 Kms. per annum)
Project Cost : Rs Crores
Term Loan Sanctioned : Rs.8.10 Crores
Bank : Axis Bank Ltd., New Delhi
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19. Alloy Division Profile Customer segmentation (% of revenues)
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 MT per month from various auto component manufacturers
The division currently has 100 employees1
Key customers
Customer segmentation (% of revenues)
Others
Top 5 customers
1 Employees include staff and workers
Source: Company

20. Indian Auto Component Market
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 FY
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

21. Investment in R&D and Infrastructure Favorable government policies
Robust export demand, policy support and competitiveness of indigenous market are likely to drive this growth
Rising export demand
Investment in R&D 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
India’s 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 R&D
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 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

22. Indian Auto Component Market
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
Sundaram group
West
East
Bharat Forge
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

23. 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.
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.
Attractive Product Segment on usage of Aluminum
80% of Aluminum consumption
Engine – Kgs
Wheels – Kgs.
Transmission – Kgs.
Heat Exchangers – Kgs.
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