Fact Sheet Leading manufacturer of Aluminum Extrusions and Aluminium Alloy Ingots. Manufacturing facility is located on a 25-acre property in Bhiwadi,

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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Date of Incorporation

17.10.1979

Head Office :– Aluminium Extrusion Division :606-Tolstoy House, 15-Tolstoy Marg, New Delhi-110001.Phone:+91-1143564200, 23738011-13, Fax:+91-1123312677, @: [email protected], Url : www.indoalusys.com

Power/Quad/Control Cable Division59, M.M. House, 2nd Floor, Rani Jhansi Road, Karol Bagh, New Delhi-110055, Phone : 43758100-115@ : [email protected] :

Architectural Division :59, M.M. House, 2nd Floor, Rani Jhansi Road, Karol Bagh, New Delhi-110055, Phone : 43758100-115@ : [email protected]

Works :SP-2/333, Bhiwadi Industrial Estate, Dist. Alwar, Rajasthan.Phone: 01493-220764/220868/306500, Fax: 01493-220786, @l: [email protected]

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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.

Our Operations (at Factory Site at Bhiwadi)

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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

Applications

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

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Alloy Alloy IngotsIngots

ApplicationsAlloy 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

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Quad/ Quad/ Control/ Control/ Power Power CableCable

ApplicationsQuad 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

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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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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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Present market demand, production & consumption

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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ISO Certification

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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 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 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 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 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 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.met from the expansion of existing units or creation of new capacities.

Assuming that existing capacities might add about 5% of production of Aluminium Assuming that existing capacities might add about 5% of production of Aluminium Extrusions by way of improved productivity, the remaining demand supply gap will Extrusions by way of improved productivity, the remaining demand supply gap will have to be bridged by new projects.have to be bridged by new projects.

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Import of Raw Material (Aluminium Ingots/Tense/T.T.)

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EuropeU.A.E. Middle East Australia

Hindalco Nalco Balco

Primary Producers In India

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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In-house Facilities

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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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Alloy division of Indo Alusys produces ingots which are primarily used by auto components companies

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• 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

Alloy Division Profile Revenue (Rs cr.)

Customer segmentation (% of revenues)Key customers

Top 5 customers

Others

Source: Company

1 Employees include staff and workers

Indian auto component market is expected to grow at a CAGR of 18% p.a. till 2020

All figures are in USD bn

• 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

The 4-wheeler segment utilizes more than 70% of the total auto component production

Growing domestic automobile market and increasing exports are expected to drive sector growth

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Key observations

Indian Auto Component Market

Source: IBEF

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 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

• 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

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Recent Developments

Source: IBEF

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

• 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

Engine & engine parts and transmission & steering segments account for 50% of the market

Auto Component Hub

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

Automobile players are centered across 3 major clusters in the North, West and South of India

Mumbai-Pune-Nasik-Aurangabad

Chennai -Bangalore-Hosur

Delhi-Gurgaon-Faridabad

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Key observations

Indian Auto Component Market

Source: Deloitte Analysis, Freedonia

Also increasing focus on fuel efficiency is resulting in reduction of vehicle weight leading to greater usage of aluminum in automotive sector

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Key trends impacting usage of Aluminum in Auto Comp. Attractive Product Segment on usage of Aluminum

80% of Aluminum

consumption

Engine – 55.65 Kgs

Wheels – 25.16 Kgs.

Transmission – 24.86 Kgs.

Heat Exchangers – 14.35 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.

• 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.

1 Based on Druker worldwide report for trends in North America