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Objective

Time frame Define I. Study about the a) Company b) Profile c) Operation d) Market e) Industry f) Internal factors g) External factors II. ROOT CAUSE ANALYSIS OUT PUT Sales Demand Market Analysis Competitor Strategy Demand Analysis Strategy implemented SWOT Analysis Pest Analysis Develop Methodology Primary Secondary Sampling technology Assumption Constraints Hypothesis Analysis Various Attributes Customer Satisfection Demography Models Swot analysis Pest analysis Porter 5 models

OUT PUT Designing Questionires Mapping Customer Satisfection Survey Study Various Tools & Techniques Avialable

OUT PUT Actuals Plans Standard Goals Industry Parameters Bench mark analysis

Backed by abundant and good quality bauxite reserves and cheap labour costs, Indian aluminum producers have emerged among the lowest cost aluminium producer in the world. India is home to the sixth largest bauxite deposit in the world which makes its world's 5th largest aluminium producer. Aluminum industry in India registered a phenomenal growth during the past few years on the back of robust growth in the economy. However, the current ongoing global crisis seems to have created some medium term hiccups. In this article, we have analysed the domestic aluminium industry through Michael Porter's five forces model so as to understand the competitiveness of the sector. Barriers to entry: We believe that the barriers to entry are medium. Following are the factors that vindicate our view.

1. Economies of scale: As far as the sector forces go, scale of operation does matter. Benefits of economies of scale are derived in the form of lower costs and better bargaining power while sourcing raw materials. It may be noted that the minimum economic size of a fully integrated greenfield smelter is around 250,000 tonnes. The aluminium companies, which are integrated, have their own mines for key raw materials such as bauxite and coal and this protects them from the potential threat for new entrants to a significant extent. They also have their own power plants as it is a major cost driver. 2. Capital intensive: Aluminium industry is a highly capital intensive business. It is estimated that a capital investment of around US$ 1.2 bn is required to setup a economically viable greenfield project. 3. Higher gestation period: The gestation period for an economically viable green field plant is over 4 years while for a brownfield project, (modernization / capacity addition) the gestation period is relatively lower between 1.5 years to 2 years. 4. Government policies: The government has a favorable policy towards aluminium

manufacturers. In fact to protect the domestic industry, recently, the government has imposed duty on value added products like foils and rolled products from the Chinese markets. However, similar to other sectors, there are certain discrepancies involved in allocation of mines and land acquisitions. Furthermore, regulatory clearances and other issues are some of the major problems for the new entrants. Bargaining power of suppliers: The bargaining power of suppliers is low for fully integrated aluminium smelters (upstream) as they have their own mines for key raw material like bauxite. Examples here could be Nalco and Hindalco. However, those who are non-integrated or semi integrated, (downstream) have to depend upon the upstream producers for alumina or primary metal. While the bargaining power is limited in case of power purchase as it is highly regulated sector and government is the sole supplier most of the times, increasing usage of captive power plants are helping the companies to rationalize their costs to certain extent. Bargaining Power of Customers: Being a commodity, customers enjoy relatively high bargaining power as prices are determined on demand and supply. Competition: Competition is primarily on quality and price, as being a commodity, differentiation is difficult. However, the recent spate of consolidation has reduced the competitive pressure in the industry. Further, increasing value addition to aluminium products has helped some companies protect themselves from the high volatility witnessed in the industry. Threat of substitutes: On one side, the usage of aluminium is rising continuously in the automobile and construction sector but steel still remains a main substitute because of its relatively lower cost. On the other side, copper has been slowly substituting aluminum's usage in the power sector due to its higher conductivity. However, with properties like higher strength-to-weight ratio, durability, higher corrosion-

resistance and relatively lower cost, aluminium is able to hold its own. Thus the usage of aluminium is likely to increase over a long term period.

Hyderabad, Dec 6: Issues concerning allocation of coal blocks and environmental clearances may pose a threat to achieving the expected production levels of aluminium in the 12th Plan, a senior official has said. The current production of aluminium stands at 3.6 million tonnes per annum, and is expected to reach 4.7 million tonnes by the end of 12th Plan (2012-2017), said Mr G Srinivas, Joint Secretary of Ministry of Mines. If you see the performance of the sector in the 11th plan, no new Greenfield project has been put in place. That is the real cause of concern, Mr Srinivas said at the Sixth International Conference on Aluminium (Incal), a three-day event, which started here today. All the existing players are not able to start new plants. They are stuck up with environmental clearances or licenses and also stuck up at various stages with various problems. If we dont continue to start new projects, it is going be a real problem for the concerned area, he said. The mineral sector contributes around 1.5 per cent of the countrys GDP and it has stagnated for the past decade, as compared to other developing countries, Srinivas added. In some of major mining economies of the world, the mining sector contributes up to 6 per cent of GDP, he said. The per capita consumption of aluminium in India is 1.3 to 1.5 kg. It is very low. We are far away from Germany 38 kg, Japan 30 kg and China with 12 kg, Mr Srinivas said. He added that the new draft Mining Policy was ready and the state governments should take advantage of it and encourage the mining industry by speedy clearances.

Mr Srinivas requested the aluminium industry to concentrate more on Research and Development and recycling. Mr D Bhattacharya, Honorary President of Incal said, in India, electrical sector alone accounts for 41 per cent of the aluminium consumption. A significant portion of the country is still not connected to the power grid. Therefore the growth in the power sector alone is tremendous, Mr Bhattacharya said in his key-note address.

Aluminium in aircraft construction


The history of world aviation is closely related to aluminium and the history of creating aluminium alloys, and the more durable and reliable aluminium became, the higher, farther and safer airplanes flew. But, before it became the essential and most important material for aircraft manufacturers, aluminium navigated a long route from pure metal to high-strength alloys. The first person who managed to understand the potential of aluminium in the aerospace industry was the writer Jules Verne, who provided a detailed description of an aluminium rocket in his fantastic novel Journey to the Moon in 1865. In 1903, the Wright brothers got the first airplane off the ground, in which parts of the engine were made of aluminium. Aircraft aluminium appeared for the first time in Germany in the early 20th century. At that time, it was just starting to come into vogue. The technology of its industrial production had already been perfected, but the amounts of smelt metal were still small. Many scientists then set themselves the goal to solve the task of aluminium reinforcement. Among them was Alfred Wilm, a German physicist. During his experiments on selecting components for aluminium reinforcement, unexpectedly for himself and the entire scientific community, he discovered the aging effect of the aluminium alloy, which consists in the considerable improvement of metal strength after its quenching for a long period. Alfred Wilms discovery was patented and implemented in production at Duerener Metallwerke AG plant. In 1909, the plant officially presented its products: the ultra-strong alloy, duralumin (aluminium, copper (1.3%), magnesium (2.8%) and manganese (1%)). In fact, this metal became the base for development of aircraft alloys. The advantages of Duerener aluminium were appreciated by Professor of Thermal Dynamics, and Aircraft Manufacturer of Aachen University, Hugo Junkers. More than once he attempted to assemble an all-metal airplane: On December 15th, 1915 testing of the J1 glider made of sheet iron was held at the military airfield of Deberitsa. But the representatives of the military administration rejected the airplane, calling it a tin donkey: J1 too heavy, with a low climbing capacity and manoeuvrability, and did not comply with the requirements of military aviation. Junkers understood that the major culprit of the failure was metal. He needed an alternative to thick (up to 1 mm) iron sheets. And this alternative was found!

Duralumin met all the requirements of Hugo Junkers: high strength, forgeability, and the incredible lightness for a metal were very much to the point. As soon as in 1917, the J.7 fighter entirely built of the light metal took off from Adlershof airfield. In the same year, production of Junk J.1 military airplanes was started; they were ordered by the German Ministry of Defence for participation in the First World War campaigns. During the military campaign, duralumin completely proved Junkers calculations: The metal reliably protected the pilot from bullets and shells. Junk J.1 airplanes were named flying tanks. There is a recorded case when duralumin sustained 480 bullet shots on the wings and fuselage, and the airplane not only completed the combat mission, but also successfully landed at base.

The success of the first J.7 and Junk J.1 airplanes predetermined the breakthrough in the development of German military aviation. Duralumin became the favourite of Junkers design department. Germany won the battle for the sky, however its rivals were not going to surrender, and developments of ultra-strong aluminium alloys were in full swing in the USSR and USA. In 1918, on the insistence of the manufacturer A.N. Tupolev and Professor of Moscow State University N.E. Zhoukovsky, the Central Aerohydrodynamics Institute (CAHI) was established, where development of new models of airplanes and metal alloy studies were started. CAHI worked in collaboration with some smelters, which allowed them to promptly receive and test new metals. However, for as many as four years the efforts of the researchers were in vain: The created alloys could not pass the strength test. At that time, developments of wooden airplanes were underway in Soviet Russia, many of which were quite successful. The government of the country treated the idea of launching metal into the sky half heartedly: Aluminium was imported into the country, and the German manufacturers devoutly guarded the secret of duralumin. In Spring 1922, a significant event happened at CAHI: The fuselage of a shot-down Junkers D.I fighter a priceless trophy from the viewpoint of domestic aviation was delivered to the Institute. A separate Material Testing Division group was organised, in order to study the composition of the airplane metal covering. The researchers did not just determine the formula of duralumin but managed to develop a stronger alloy modification, able to compete with foreign developments. The results of their work were sent to the Brass and Copper-Rolling Plant of Kolchougin Co. and the Leningrad plant Krasny Vyborzhets. The first to master the production of this domestic know-how were the metallurgists of the Kolchougin plant: In late 1922, the plant started production of kolchougaluminium the first Soviet high-strength alloy. And as soon as the following year, Tupolevs design department was provided with the complete aircraft set: sheet, corrugated, and shaped kolchougaluminium. Work was started to create a competitor to Junkers, the Soviet airplane AN-2, which was presented on May 28th, 1924.

Aluminium played an important role during the Second World War. The invaluable contribution in establishing the defence power of the Soviet Army was made by the Urals Aluminium Smelter (UAZ). The first stage of UAZ was commissioned in September 1939. On the eve of the war, 36% of aluminium produced in the country was produced there. High-strength duralumin sheets and slabs served as the main material for airplane covering. Complex-preformed blocks were produced from them to make component parts of airplane engines, propellers, the chassis, and the fuselage frame. Soft low-alloy duralumin and aluminium-magnesium alloys were used for rolling wire for rivets, covering connective elements; sheets of aluminium-manganese alloy were used for welding fuel tanks. Without magnesium and aluminium powders, it was impossible to produce bombs, shells, and flares. At present, aluminium is used in the aviation industry everywhere in the world. From two thirds to three quarters of a passenger planes dry weight, and from one twentieth to half of a rockets dry weight accounts for the share of aluminium in airborne craft. The casing of the first Soviet satellite was made of aluminium alloys. The body casing of American Avantgarde and Titan rockets used for launching the first American rockets into the orbit, and later on spaceships, was also made of aluminium alloys. They are used for manufacturing various components of spaceship equipment: brackets, fixtures, chassis, covers and casing for many tools and devices. 2xxx, 3xxx, 5xxx, 6xxx, and 7xxx series alloys are widely used in aviation. The 2xxx series is recommended for operation at high working temperatures and with high destruction viscosity rates. 7xxx series alloys for operation at lower temperatures of highly-loaded parts and for parts with high resistance to corrosion under stress. For less loaded components, 3xxx, 5xxx, and 6xxx series alloys are used. They are also used in hydraulic, oil and fuel systems. Aluminium alloys have a certain advantage for creating space equipment units. High values of specific strength, and the specific rigidity of the material enabled the tanks, inter-tank and casing of the rocket to be manufactured with high longitudinal stability. The advantages of aluminium alloys (2219 etc.) also include their high performance under cryogen temperatures in contact with liquid oxygen, hydrogen, and helium. The so-called cryogen reinforcement happens in these alloys, i.e. the strength and flexibility increase parallel to the decreasing temperature. Engineers and manufacturers never cease to study the properties of aluminium, developing more and more new alloys for construction of aircraft and spaceships. Who knows, maybe, what the modern science-fiction books write about will be realised very soon.

Aluminium in aircraft construction


The history of world aviation is closely related to aluminium and the history of creating aluminium alloys, and the more durable and reliable aluminium became, the higher, farther and safer airplanes flew. But, before it became the essential and most important material for aircraft manufacturers, aluminium navigated a long route from pure metal to high-strength alloys. The first person who managed to understand the potential of aluminium in the aerospace industry was the writer Jules Verne, who provided a detailed description of an aluminium rocket in his fantastic novel Journey to the Moon in 1865. In 1903, the Wright brothers got the first airplane off the ground, in which parts of the engine were made of aluminium. Aircraft aluminium appeared for the first time in Germany in the early 20th century. At that time, it was just starting to come into vogue. The technology of its industrial production had already been perfected, but the amounts of smelt metal were still small. Many scientists then set themselves the goal to solve the task of aluminium reinforcement. Among them was Alfred Wilm, a German physicist. During his experiments on selecting components for aluminium reinforcement, unexpectedly for himself and the entire scientific community, he discovered the aging effect of the aluminium alloy, which consists in the considerable improvement of metal strength after its quenching for a long period. Alfred Wilms discovery was patented and implemented in production at Duerener Metallwerke AG plant. In 1909, the plant officially presented its products: the ultra-strong alloy, duralumin (aluminium, copper (1.3%), magnesium (2.8%) and manganese (1%)). In fact, this metal became the base for development of aircraft alloys. The advantages of Duerener aluminium were appreciated by Professor of Thermal Dynamics, and Aircraft Manufacturer of Aachen University, Hugo Junkers. More than once he attempted to assemble an all-metal airplane: On December 15th, 1915 testing of the J1 glider made of sheet iron was held at the military airfield of Deberitsa. But the representatives of the military administration rejected the airplane, calling it a tin donkey: J1 too heavy, with a low climbing capacity and manoeuvrability, and did not comply with the requirements of military aviation. Junkers understood that the major culprit of the failure was metal. He needed an alternative to thick (up to 1 mm) iron sheets. And this alternative was found! Duralumin met all the requirements of Hugo Junkers: high strength, forgeability, and the incredible lightness for a metal were very much to the point. As soon as in 1917, the J.7 fighter entirely built of the light metal took off from Adlershof airfield. In the same year, production of Junk J.1 military airplanes was started; they were ordered by the German Ministry of Defence for participation in the First World War campaigns. During the military campaign, duralumin completely proved Junkers calculations: The metal reliably protected the pilot from bullets and shells. Junk J.1 airplanes were named flying tanks. There is a recorded case when duralumin sustained 480 bullet shots on the wings and

fuselage, and the airplane not only completed the combat mission, but also successfully landed at base.

The success of the first J.7 and Junk J.1 airplanes predetermined the breakthrough in the development of German military aviation. Duralumin became the favourite of Junkers design department. Germany won the battle for the sky, however its rivals were not going to surrender, and developments of ultra-strong aluminium alloys were in full swing in the USSR and USA. In 1918, on the insistence of the manufacturer A.N. Tupolev and Professor of Moscow State University N.E. Zhoukovsky, the Central Aerohydrodynamics Institute (CAHI) was established, where development of new models of airplanes and metal alloy studies were started. CAHI worked in collaboration with some smelters, which allowed them to promptly receive and test new metals. However, for as many as four years the efforts of the researchers were in vain: The created alloys could not pass the strength test. At that time, developments of wooden airplanes were underway in Soviet Russia, many of which were quite successful. The government of the country treated the idea of launching metal into the sky half heartedly: Aluminium was imported into the country, and the German manufacturers devoutly guarded the secret of duralumin. In Spring 1922, a significant event happened at CAHI: The fuselage of a shot-down Junkers D.I fighter a priceless trophy from the viewpoint of domestic aviation was delivered to the Institute. A separate Material Testing Division group was organised, in order to study the composition of the airplane metal covering. The researchers did not just determine the formula of duralumin but managed to develop a stronger alloy modification, able to compete with foreign developments. The results of their work were sent to the Brass and Copper-Rolling Plant of Kolchougin Co. and the Leningrad plant Krasny Vyborzhets.

The first to master the production of this domestic know-how were the metallurgists of the Kolchougin plant: In late 1922, the plant started production of kolchougaluminium the first Soviet high-strength alloy. And as soon as the following year, Tupolevs design department was provided with the complete aircraft set: sheet, corrugated, and shaped kolchougaluminium. Work was started to create a competitor to Junkers, the Soviet airplane AN-2, which was presented on May 28th, 1924. Aluminium played an important role during the Second World War. The invaluable contribution in establishing the defence power of the Soviet Army was made by the Urals Aluminium Smelter (UAZ). The first stage of UAZ was commissioned in September 1939. On the eve of the war, 36% of aluminium produced in the country was produced there. High-strength duralumin sheets and slabs served as the main material for airplane covering. Complex-preformed blocks were produced from them to make component parts of airplane engines, propellers, the chassis, and the fuselage frame. Soft low-alloy duralumin and aluminium-magnesium alloys were used for rolling wire for rivets, covering connective elements; sheets of aluminium-manganese alloy were used for welding fuel tanks. Without magnesium and aluminium powders, it was impossible to produce bombs, shells, and flares. At present, aluminium is used in the aviation industry everywhere in the world. From two thirds to three quarters of a passenger planes dry weight, and from one twentieth to half of a rockets dry weight accounts for the share of aluminium in airborne craft. The casing of the first Soviet satellite was made of aluminium alloys. The body casing of American Avantgarde and Titan rockets used for launching the first American rockets into the orbit, and later on spaceships, was also made of aluminium alloys. They are used for manufacturing various components of spaceship equipment: brackets, fixtures, chassis, covers and casing for many tools and devices. 2xxx, 3xxx, 5xxx, 6xxx, and 7xxx series alloys are widely used in aviation. The 2xxx series is recommended for operation at high working temperatures and with high destruction viscosity rates. 7xxx series alloys for operation at lower temperatures of highly-loaded parts and for parts with high resistance to corrosion under stress. For less loaded components, 3xxx, 5xxx, and 6xxx series alloys are used. They are also used in hydraulic, oil and fuel systems. Aluminium alloys have a certain advantage for creating space equipment units. High values of specific strength, and the specific rigidity of the material enabled the tanks, inter-tank and casing of the rocket to be manufactured with high longitudinal stability. The advantages of aluminium alloys (2219 etc.) also include their high performance under cryogen temperatures in contact with liquid oxygen, hydrogen, and helium. The so-called cryogen reinforcement happens in these alloys, i.e. the strength and flexibility increase parallel to the decreasing temperature.

Engineers and manufacturers never cease to study the properties of aluminium, developing more and more new alloys for construction of aircraft and spaceships. Who knows, maybe, what the modern science-fiction books write about will be realised very soon.

Aluminium in shipbuilding
Light, strong, and corrosionresistant aluminium is the ideal metal for shipbuilding. It was first used for building a steam passenger boat in 1891. The boat named Le Migron was designed in Switzerland on the order of Alfred Nobel and was intended to carry 8 passengers. This was the first boat partially made of aluminium, which confirmed the very opportunity of using aluminium in shipbuilding. It is notable that just three years later, in 1894, the Scottish shipbuilding yard Yarrow & Co presented a 58-m motor torpedo boat made of aluminium. This boat named Falcon was manufactured for the navy of the Russian Empire. The boat reached a speed of 32 knots, a record for those times. A year later, the aluminium boat Defender won one of the most prestigious regattas in America (The Americas Cup), which was final proof of the advantage of the new metal. But in 1895 the cost of aluminium was 35 higher than the cost of steel, which hampered active use of the light metal. Another shortcoming was discovered later on: corrosion. Although it sounds strange today, it turned out that the yachts made of aluminium at the beginning of the century were exposed to severe corrosion in salt water. The service life of all these vessels turned out to be significantly less than that of similar vessels made of steel. Imperfect manufacturing processes and a lack of understanding of all aluminium properties and its capabilities hampered wide dissemination of this metal in shipbuilding. Engineers faced a complex problem which they managed to solve only a few decades later. Throughout the years, steel was the most popular material in shipbuilding, leaving no alternative, due to its strength and low cost. Though steel has many advantages, its major drawback is its considerable weight. Construction of vessels with more and more carrying capacity made them bulky and led to poor control. For example, during the past century since 1910 the maximum weight of vessels increased more than twice: from 46,000 t (Titanic) to 109,000 (Golden Princess). The weight factor is very important in shipbuilding, because finally it determines the vessel speed and the transported payload weight. And the faster the vessels and the more weight

they carry, the faster the return of investments in construction and the more profits received by ship owners. This was what motivated the studying of aluminium and its capabilities. It is known that using the light metal allows reducing the ship weight by over 50%. The first studies of aluminium alloy properties were initiated in the very beginning of the century, but only by the forties did the researchers who studied the issue of aluminium corrosion in seawater discover that adding a small amount of magnesium and silicon, made aluminium resistant to salt water. Alloy 5083 is considered the base alloy of the shipbuilders; it was registered by the Aluminium Association in 1954. Although this alloy is often called the shipbuilding alloy, it is also widely used in many other industries. Alloy 5083 initially won popularity in shipbuilding thanks to its properties, such as high strength, corrosion resistance, good mouldability, and excellent welding characteristics. By the 1960s, improvements in the technology, as well as reduction of the cost of aluminium led to extensive use of the light metal in shipbuilding. Aluminium was used in manufacturing the shells of yachts, superstructure, masts, and port infrastructure. In the seventies, high-speed passenger vessels first appeared in Scandinavia - catamarans made of aluminium. Being light and quick, they proved their profitability and speed advantage, and became standard for passenger transportation for many years. At present, aluminium alloys used in shipbuilding corrode 100 times slower than steel. During the first year of operation, steel corrodes at a speed of 120 mm/year, while aluminium at a speed of 1 mm/year. Therefore, aluminium vessels do not require such extensive care as steel vessels, which has an impact on the cost of their maintenance. As a rule, all sports vessels are made of aluminium, from the shell to the superstructures, which provides a significant gain in speed; shells of higher-capacity vessels are made of steel, while superstructures and other auxiliary equipment is made of aluminium alloys, reducing the total weight of the vessel and increasing its carrying capacity. Until recently, alloy 5083 virtually had no competitors among other aluminium alloys. In 1995, Pechiney Co. (France) registered aluminium alloy 5383, which is an improved version of alloy 5083. The corrosion resistance of the metal was increased, and its impact strength was increased by 10%. These improvements potentially allow for a considerable reduction in the mass of welded vessels, and include the increase of the yield point of welded constructions by 15%. Together with the characteristics dealing with shaping, fold, cutting, and weldability, which are at least equal to the characteristics of alloy 5083, they make alloy 5383 very attractive for manufacturers of larger and high-speed vessels.

In 1999, Corus Aluminium Walzprodukte GmbH (Koblenz, Germany) registered aluminiumbased alloy 5059 with the American Aluminium Association, which was called Alustar. This new alloy proved that aluminium can be stronger than steel. The alloy has the values of ultimate strength and yield point comparable with the corresponding values of low-alloy steel S235, AlCu4SiMg (AA2014). This alloy developed for the shipbuilding industry also has considerably improved strength characteristics compared to the traditional alloy 5083. The yield point before welding is increased by 26% and by 28% after welding (welding of heat-treated sheets H321/H116 made of AA5059 alloy grade). Studies continue, and probably, very soon the scientists will present us even lighter and stronger aluminium alloys, which will allow manufacturers to create vessels and structures of the new generation.

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