Management Discussion & Analysis FY2021-22: Key Highlights In India, Hindalco’s aluminium manufacturing units comprise

the full value chain, from bauxite mining, alumina refining, coal
Hindalco Industries Limited, the metals flagship of the Aditya Consolidated
mining, captive power generation and aluminium smelting to
downstream value addition of Aluminium rolling, extruding
Birla Group, is the world’s largest aluminium rolling and and foil making. Hindalco’s copper facility in India comprises
recycling company, a major copper player and one of Asia’s
`1,95,059 CR ( 48%) a world-class custom copper smelter at a single location with
Revenue downstream facilities, a fertiliser plant and a captive jetty.
largest producers of primary aluminium. Hindalco was named Hindalco is one of the largest suppliers of Copper to the Indian
the world’s Most Sustainable Aluminium Company in the Dow `30,056^ CR ( 59%)
Railways.

Jones Sustainability Indices (DJSI) in 2020 and 2021. EBITDA Guided by its purpose of building a greener, stronger,
smarter world, Hindalco provides innovative solutions for
a sustainable planet. Today, Hindalco’s global footprint
`13,730 CR ( 294%) spans 50 manufacturing units across 10 countries. Its wholly-
owned subsidiary Novelis is the world’s largest producer of
PAT
aluminium beverage can stock and the largest recycler of used
beverage cans (UBCs). Novelis provides innovative solutions
to its customers in the beverage cans, automobile, aerospace
Novelis
and high-end speciality markets such as foil packaging,

3,858 KT US$530 BN certain transportation products, architectural, industrial, and

consumer durables. Novelis operates an integrated network
Overall shipments Record Yearly adjusted of technically advanced rolling and recycling facilities across
EBITDA/ton North America, South America, Europe and Asia. Novelis, which
has recycling operations in 15 operating facilities across the

US$2.045 BN (
world, recycles over 82 Billion cans a year, enough to circle the
19%) globe more than 160 times.
Record Adjusted EBITDA (excluding metal price lag)
In FY2021-22, the Company delivered its best financial and

US$1,018 BN (
operational performance, reporting its highest ever profits.
122%) This stellar showing was driven by favourable macros, higher
Record Net Income from continuing operations volumes, strategic product mix, lower input costs, stability
in operations and improved performance of downstream
business in India and overseas. Novelis reported its best-ever
India Business adjusted EBITDA, adjusted EBITDA per ton, overall shipments
and Net Income in FY2021-22. On a consolidated basis,
1,294 KT 1,302 KT 3,235* KT Hindalco continued to maintain its strong balance sheet in
FY2021-22, resulting in a 1.36x Net Debt-to-EBITDA of at the
Aluminium metal Aluminium Alumina end of the year against 2.59x in the previous year.
production metal sales production

359 KT 405 KT 82 BN
Copper Cathode Copper Metal Total cans recycled in
production Sales FY2021-22

Aluminium value-added products (VAP)

349 KT 348 KT
Production Sales

* includes Utkal, the wholly-owned subsidiary;

Copper value-added product (Copper Rods)
^ Exceptional Income / (Expenses) for the ended 31 March 2022 exclude `418

259 KT 262 KT Crore which represents the principal portion of (a) PIS/COFINS related
tax credit income in Brazil of `358 Crore (net of litigation cost of `9 Crore)
and (b) tax rebates for sales to Manaus, Brazilian Free Trade Zone and
Production Sales
`60 Crore, as it is included in the results of Novelis segment (part of EBITDA).

Integrated Annual Report 2021-22 165

 Corporate Overview Strategic Overview Our Capitals Statutory Reports Financial Statements

Management Discussion & Analysis

Key initiatives during the year China, South Korea, Germany, and Brazil will cater to the Primary Production (in Million MT)
entire portfolio of offerings. Of the estimated range of total
Hindalco India has taken several cost optimisation initiatives investments, ~USD 3 Billion is expected to be invested in

29
across the value chain to improve efficiency and reduce

28
the US.

28

28
27
the overall cost of production at all its facilities. The Utkal

27
Expansion providing low-cost alumina, better coal mix and Hindalco retained its position as the Aluminium Industry Leader
operational efficiencies has helped the Company to reduce for its sustainability performance in the 2021 edition of the S&P
it cost of production. As a result, Utkal Alumina continues Dow Jones Sustainability Indices (DJSI) Corporate Sustainability
to remain in the first quartile of the global cost curve in Assessment (CSA). Industry Leaders are the top-performing
FY 2021‑22. companies in the Index. Hindalco was again featured in the
S&P Global Gold Class category as ‘Sustainability Leaders of
Hindalco sustainable business model and the downstream 2022’ in the Dow Jones Sustainability Yearbook 2022.
strategy of product expansion in India will nearly double its

36

36

35

39
32

37
existing downstream capacity in the next five to six years. Through LEAD (Leverage, Efficient, Augment and Digital CY16 CY17 CY18 CY19 CY20 CY21
Hindalco has recently completed acquisitions of Hydro’s Savvy), Hindalco’s digital transformation initiative, we are
Kuppam Extrusions facility in India and Copper CCR facility trying to arm our employees with the analytics and insights to China World Excluding China
of Polycab (Ryker Base) expanding overall capacities in the take decisions with speed and confidence. LEAD will help us
value‑added segment during the year. In FY2021-22, Utkal Primary Consumption (in Million MT)
capture benefits across the entire manufacturing value chain— Global Aluminium Prices ($/MT)
Aumina refinery successfully completed expansion via increasing production capacity, reducing material losses,
debottlenecking of 500 kt taking its total capacity to 2.1 Million improving customer service and delivery times and reducing
MT. Further debottlenecking is planned at Utkal Alumina

29
environmental impact. These gains are expected to strengthen

29

28

25
29
by 350 kt to take the capacity to around 2.5 Million MT by

28
Hindalco’s competitive position.
FY 2023-24.
1. Industry analysis 2,480
In line with its growth strategy of organic expansions,
Hindalco has recently announced investments in Downstream 1.1 Aluminium Segment and Industry Review 2,111
and Upstream spread over next five years in the businesses 1,969
In CY2021, the global economy witnessed a post pandemic 1,792
1,704
of Aluminium, Copper, Specialty Alumina and Resource rebound to 6.1%. In CY2021, the Global Production of 1,661 1,605
Securitisation through new commercial coal mines between Aluminium grew 4% yoy to 67.4 Million MT while global
FY23 and FY27. These investments are expected to be in the consumption rebounded sharply by 10% to ~69 Million MT due

40
34

36

36

38
32
range of $3.0-$3.3 Billion, though certain projects are under to pent up demand. Hence, global markets were in deficit of
appraisal. These investments are mainly targeted towards ~1.6 Million MT in CY2021. On a region-wise split in CY2021,
CY16 CY17 CY18 CY19 CY20 CY21
downstream capacity expansions in Aluminium, Copper and production in China increased by 5% yoy to 38.5 Million MT led China World Excluding China
Specialty Alumina to cater the growing demand in domestic by increases in Yunnan, Inner Mongolia, and Henan. Aluminium CY15 CY16 CY17 CY18 CY19 CY20 CY21
markets. The Company’s intent is to build a larger value-added intake in China was primarily driven by a sharp increase in Table 1: Global Production and Consumption
product portfolio over the next few years. This investment demand for electric vehicles and solar. The demand Aluminium (in Million MT) Table 2 : Sector Wise Domestic Consumption for
indicates confidence in the economic revival, which will raise in China was subdued in the building and construction and
the demand for downstream value-added products. In Million MT CY2019 CY2020 CY2021 FY2019-20 vs FY2021-22 and FY2020-21 vs FY2021-22
auto segments. Hence, overall consumption in China grew by
~6% to ~40 Million MT in CY2021 resulting in a market deficit Production 63.3 64.7 67.4 Growth (%)
Novelis‘ acquisition of Aleris in 2020 has been highly accretive of ~1.6 Million MT. In the Rest of the World, production grew by Consumption 64.6 62.9 69.0
FY2021-22 vs. FY2021-22 vs.
in terms of market positioning and synergies. Novelis has 3% yoy to ~29 Million MT led by production increase in Middle Surplus -1.4 1.8 -1.6 Sector FY2020-21 FY2019-20
identified more than $220 Million in synergies, exceeding East, Central & South America and India. Low base effect and
its original estimate at time of acquisition of achieving The average value of premiums was also volatile. By the end of Electrical 0 to 10% -15 to -5%
solid demand from packaging segment helped consumption
approximately $150 Million. Through 31st March, 2022, Novelis CY 2021, Spot Main Japanese Port (MJP), European Rotterdam Building and construction 20 to 30% -5 to 5%
rebound by 14% yoy to 29 Million MT. Hence, the ROW markets
has achieved $112 Million of run rate cost synergies. Ingot duty and US Midwest premium was $156/t, $268/t and
were balanced. Auto 20 to 30% 5 to 15%
$ 27 cents/lb, respectively versus $86/t, $129/t and $12 Cents/
lb, respectively in CY 2020. Industrial and Defence 5 to15% 20 to 30%
Novelis remains committed to all its organic growth expansion As the Global markets remained in deficit, the inventory
projects. Novelis launched a multi-year strategy to transform Print 30 to 40% -20 to -30%
levels continued to decline from 11 Million MT to 9.4 Million
and improve the profitability its business through significant As economic activity resumed, domestic consumption Packaging 10 to 20% 10 to 20%
MT. In CY2021, the prices averaged at $2,480 as against
investment in new capacity and capabilities. Future investment saw significant improvement across all sectors over the
$ 1,704 in CY2020. In Q1 CY2022, the global aluminium prices Consumer Durables 15 to 25% 15 to 25%
opportunities in new capacities and facilities, between FY2023 year. Domestic consumption is likely to grow by 15% yoy in
continued to grow to $3,280/ton. The rally in aluminium prices Others 0 to 10% 0 to 10%
and FY2027, is expected to be more than $4.5 Billion, funded FY 2021‑22 and 6% over Pre-COVID levels. Imports continue to
in Q1 CY2022 was driven by Russia-Ukraine geopolitics and
by stable cash flow generation. These new facilities in US, be a concern for domestic players. Overall imports, including Overall India Consumption 15% 6%
depleting global inventories.
scrap, touched ~2.3 Mt in FY2021-22 from ~2.1 Mt in FY2020-21.
Source: Company Estimates

166 HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2021-22 167

 Corporate Overview Strategic Overview Our Capitals Statutory Reports Financial Statements

Management Discussion & Analysis

1.1.1 Outlook: scrap, continue to remain a major concern for domestic On a yearly basis, domestic market demand increased by 8% to
Global growth is likely to moderate to 3.6% in CY2022 from aluminium producers. Over the last few years the domestic 612 kt in FY2021-22 from 567 kt in FY2020-21. The market share
6.1% in CY2021. War-induced commodity price increases and rolled and foil products industries have been hit by increased of imports declined 5% to 26% (157 kt) in FY2021-22 from 31%
broadening price pressures have led to CY 2022 inflation dumping of imports, especially from China and FTA countries. (178 kt) in FY2020-21.
projections of 5.7% in advanced economies and 8.7% in Some of this has been countered through ‘trade remedial
emerging market and developing economies. Overall, in CY measures’ to combat the surge of imports. The CY 2022 Annual Tc/Rc benchmark was finalised at 65/6.5
2022, primary demand is likely to grow by 1% to ~69 Million (16.7 c/lb), which is a 9% improvement over the CY 2021
MT. Production is expected to be around ~70 Million MT. Hence 1.2 Copper - Industry Review & Outlook benchmark of 59.5/5.95 (15.26 c/lb). With the ramp-up of
the market is likely to be balanced. Production in the world In CY2021, on a yearly basis, refined copper consumption key large-scale mining projects and new mines like QB2 &
excluding China is expected to increase by ~1% to ~29 Million globally saw an increase of 6% to 24.4 Million MT against Quellaveco getting operational in CY 2022, the concentrate
MT. Primary aluminium supply in China is likely to grow by 5% 23.0 Million MT in CY2020. Copper intake in China grew by 5%, market is looking at a likely surplus of ~250 kt in CY 2022
to ~40 Million MT. Consequently, the inventories are likely to whereas in the World Ex China, it increased by 7%. against a deficit of ~ 299 kt during CY 2021, which should allow
remain stable at 9.0 Million MT by the end of CY2022. spot Tc/Rc terms to recover. Accordingly, Tc/Rc is expected to Demand for aluminium automotive sheet began to be
improve for the rest of this year as well as next year. impacted by the semiconductor shortage in the automotive
Demand Drivers for World Ex China industry at the start of FY2022, and we expect uneven demand
1.2.1 Outlook to continue in the CY2022. The demand for auto sheets has
World Ex China Demand Drivers Refined Copper Production Global demand for refined copper is expected to increase by been primarily driven by the benefits that result from using
~2.4% in CY 2022. China is expected to grow by ~2.1% and lightweight aluminium in vehicle structures and components,
Government provides purchase incentives to
Transport the rest of world is expected to grow by ~2.8%. Demand for as automakers respond to stricter government regulations
the buyers of electric vehicles
Refined Copper in India is likely to improve and recover to regarding emissions and fuel economy, while maintaining or
pre‑COVID levels in FY2022-23 of 750kt. improving vehicle safety and performance. We are also seeing

14.0
13.9
Stable residential demand in key region
Construction and re-opening of economies post COVID- increased demand for aluminium for electric vehicles as the
related lockdown. In the medium-term, the risks to mine supply have increased metal’s lighter weight can result in extended battery range.

10.4
due to several factors, including western sanctions on Russia
Packaging Substitution against PET bottles in Europe 9.5
which will probably hit the development of mine projects in that The long-term demand for building and construction and other
and North America. Aluminium Beverage country, increased social conflict in Peru and continued regulatory specialty products is expected to grow on account of increased
Foil stock cans replacing PET and glass bottles.
uncertainty in Chile. At the same time, China will continue to invest customer preference for lightweight, sustainable materials.
in new smelter capacity, though at a reduced scale. COVID-19 The requirement for aluminium plates in Asia is set to grow,
related lockdowns in China disrupting manufacturing activities driven by the development and expansion of industries serving
China Outlook: will be a passive factor in the supply-demand trend. aerospace, rail and other technically demanding applications.

China Demand Drivers 1.3 Novelis – Global FRP Industry Review and Aerospace demand which was muted in FY2021-22 due to
China World Ex
Significant aluminium demand over the next Outlook pandemic-induced air travel restrictions, intake is expected to
3 years due to rising sales of EVs (auto body CY20 CY21
The global demand for aluminium and rolled products improve to pre-COVID levels by the end of fiscal 2023. In the
Transport sheet, battery foil). Light weighting supported longer-term, significant aircraft industry order backlogs for
remains strong, driven by economic growth, material
by stringent national emission standards and key OEMs, including Airbus and Boeing, would translate into
achieve dual control target. substitution and sustainability considerations including
Refined Copper Consumption increased environmental awareness around polyethylene growth and our multi-year supply agreements have positioned
Construction Reducing loan prime rate to support demand terephthalate plastics. Although the early months of FY2021 us to benefit from future demand.
were negatively impacted by a short-term reduction in
Packaging Novelis experienced some inflationary cost pressures in
Stable demand from food and demand for aluminium rolled products particularly in the
pharmaceutical sectors FY2021-22 resulting from global supply chain disruptions
13.3

Foil Stock automotive and aerospace markets, pandemic-related demand

12.7

disruptions have since been in check. However, it is difficult to impacting the availability and price of materials and services
State grid to build "24 AC and 14 DC" Ultra including freight, energy, coatings and alloys. Rising geo-
11.1
10.4

predict impacts of the ongoing pandemic on future demand.

Electrical High Voltage projects involving >30,000 km political instability, which had aggravated inflationary cost
Economic growth, material substitution, and sustainability
transmission lines pressures in the fourth quarter of FY2021-22, are expected to
considerations including increased environmental awareness
Consumer around polyethylene terephthalate (PET) plastics continue to continue in the foreseeable future. Novelis is well positioned
Strong domestic and export demand to maintain current production levels and service its customers
Durables support long-term increasing global demand for aluminium
and rolled products. without disruptions in the near term. While Novelis’ near-term
Machinery & Good industrial production and investment results are being negatively impacted by higher input costs, it
Equipment growth to support growth has been able to mitigate some of it through a combination of
Except for China, where can sheet overcapacity and strong
competition remains, favourable market conditions and hedging, cost passthrough to customers, favourable pricing
The domestic market is likely to see a broad-base recovery increasing customer preference for sustainable packaging environments and increased recycling benefits.
China World Ex
across all sectors. Imports of aluminium products, including options is driving higher demand for recyclable aluminium For a region-wise detailed business overview, please refer to the 10K filed by
CY20 CY21
beverage cans and bottles. Novelis Inc. dated May 11th , 2022 for the year ended March 31, 2022.

168 HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2021-22 169

 Corporate Overview Strategic Overview Our Capitals Statutory Reports Financial Statements

Management Discussion & Analysis

2. Business Segment Review Copper

2.1 Hindalco – SWOT Analysis
Strengths Weakness Opportunities Threats
India Aluminium •  balanced portfolio of
A • Dependence on imported • Immense headroom for • Mine Disruptions
revenue streams to tide Copper concentrate growth due to lower •  uties & Free Trade
D
through volatile market consumption vs global Agreement and trade politics
Strengths Weakness Opportunities Threats average
•  ecured concentrate supply
S
•  ully Integrated business
F •  ommodity product
C • I mmense headroom for a • L ME, Forex and raw material via long-term contracts with •  trong Demand of
S
model (upstream) growing market in India; price volatility miners Copper particularly in the
•  ominant player in India
D •  maller market share in
S Per Capita Aluminium •  ompetition from China in
C EV segments
consumption in India at 1/4th •  ocus on VAP like Copper
F
across upstream and Extrusions and Foils the downstream Rods and Inner Grooved
downstream of global average
•  pstream business linked to
U • Rising imports of scrap Tubes (IGT)
•  tkal - among the world’s
U LME volatility •  ising Aluminium
R
Consumption in the end use • I ncreasing imports of
most economical and VAP from the Free Trade
efficient Alumina producers; segments like Building &
Construction, Automotive, Agreement (FTA) countries.
with capacity expansion of
Packaging, and Consumer •  omestic availability/
D
2.2 Operational Performance and Financial Review
500 kt Utkal capacity reached
2.1 Mt in FY2021-22 Durables shortage of resources Financial Table: Standalone & Consolidated (` Crore)
•  ubstitution opportunity
S (mainly coal)
• I ncreased focused on Value HIL Standalone Consolidated
Added Products (VAP) will versus steel, uPVC, wood,
Description FY2021-22 FY2020-21 FY2021-22 FY2020-21
lead the company to be among others.
delinked from LME • Light-weighting initiatives
Revenue from Operations 67,653 42,701 1,95,059 1,32,008

•  arket leadership in Flat

M in commercial vehicles, Earning Before Interest, Tax and Depreciation (EBITDA)
Rolled Products personal mobility, etc.
leading to a higher Aluminium Novelis* 15,229 12,727
adoption in the country. Aluminium (Including Utkal) 13,025 5,441
•  LI scheme for White Goods
P
Copper (Including DHIL) 1,390 869
and proactive trade measures
by the Government to help in Other Segments 26 26
import substitution.
Unallocable Income/(Expense) - (Net) & GAAP Adjustments 386 (167)
Total EBITDA 11,828 4,884 30,056 18,896
Depreciation & Amortisation (including impairment) 1,847 1,848 6,884 6,766
Novelis Finance Cost 1,417 1,469 3,768 3,738
Earning before Exceptional Items, Tax & Share in Profit/(Loss) in Equity
Strengths Weakness Opportunities Threats 8,564 1,567 19,404 8,392
accounted Investments
•  iverse, high-value product
D •  apacity constrained next
C •  ey end markets - Can and
K •  upply chain disruption and
S
portfolio with unmatched 2-3 years until capacity Auto - growing faster than high cost inflation Share in Profit/(Loss) in Equity Accounted Investments (Net of Tax) - - 6 5
global presence and scale expansion projects underway GDP growth due to strong •  eo-political instability,
G Earning before Exceptional Items and Tax 8,564 1,567 19,410 8,397
•  ery stable customer base
V are complete recycling and sustainability increasing tariffs,
value proposition offered by Exceptional Income/(Expenses) (Net)# (107) 7 164 (492)
locked in long-term contracts • L ong-term contracts while protectionist measures and
providing volume stability Aluminum cybersecurity risks
•  bility to grow pricing in
A Profit Before Tax (After Exceptional Items) 8,457 1,574 19,574 7,905
capacity constrained and high but create time lag between •  uild on existing
B • I ncreasing competition for
inflation and ability to pass sustainability leadership Tax Expense 2,950 581 5,373 2,723
growth end markets scrap input materials
on higher costs to customers by expanding recycling Profit/(Loss) from Continuing Operations 5,507 993 14,201 5,182
•  arket leader in a more
M capabilities
recession resistant beverage Profit/(Loss) from Discontinued Operations - - (471) (1,699)
packaging end-market •  igitalising the value chain,
D
including implementing a Profit/(Loss) After Tax 5,507 993 13,730 3,483
• L eading recycling capabilities ‘Plant of the Future’ operating
with ~60% recycled content model to drive efficiency * As per US GAAP
and growing hence driving gains and overall operational #P
 ertians to the Consolidated Exceptional Income / (Expenses) for the year ended March 31, 2022, `418 Crore, which represents the principal portion of (a)
sustainability and providing excellence PIS/COFINS related tax credit income in Brazil of `358 Crore (net of litigation cost of `9 Crore) for FY22 and (b) tax rebates for sales to Manaus, Brazilian
cost competitiveness Free Trade Zone `60 Crore for FY22, as it is included in the results of Novelis segment.

170 HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2021-22 171

 Corporate Overview Strategic Overview Our Capitals Statutory Reports Financial Statements

Management Discussion & Analysis

Hindalco Aluminium Business Review The graphs show the trend of total alumina production and 2.3 Copper Business Review 2.3.2 Financial Overview
aluminium production and sales in last five years: 2.3.1 Operational Overview Copper segment revenue for FY2021-22 was at `36,723* Crore
2.2.1 Operational Overview – Aluminium
Copper smelters ran optimally during FY2021-22 and delivered (vs. `22,446* Crore in FY2020-21), up 64% on account of higher
The Company delivered a strong financial and operational Alumina Production (in Million MT) global prices of copper and higher volumes in this financial
consistent production. The copper cathode production was
performance in its aluminium business in FY2021-22 year. EBITDA was at `1,390 Crore (vs. `869 Crore in FY2020-21)
359 kt in FY2021-22, up 37% against the previous year. Copper
primarily due to favourable macros, higher volumes, better up 60% yoy, on account of higher volumes, better operational
rod production was at 259 kt in FY2021-22 versus 235 kt in
operational efficiencies and improved performance of

3.2
FY2020-21. efficiency and improved by-product realisations in FY2021-22.
downstream business despite headwinds from higher input

2.9
2.9

2.7
*The above numbers are without elimination of Inter-segment revenue

2.7
costs. The production of aluminium stood at 1.294 Million MT
Total copper metal sales were at 405 kt in FY2021-22 up by
in FY 2021-22 versus 1.229 Million MT in the corresponding
29% compared to 313 kt in the previous year in line with better (` Crore)
year. The overall alumina production stood at 3.235 Million

1.0
1.4

1.2
1.3

1.1
production and market demand. The sales of Copper VAP Description FY2021-22 FY2020-21 % Change
MT versus 2.699 Million MT in FY2020-21. This includes the
(Copper Rods) were up by 13% at 262 kt in FY2021-22 versus
additional volumes from 500 kt brownfield Utkal Expansion, Revenue 36,723 22,446 64%
233 kt in the previous year. The share of VAP (CC Rods) to total
commissioned during the second half of FY2021‑22. Utkal 1,390 869 60%
metal sales was 64% in FY2021-22, from 74% in the previous year. EBITDA
Alumina recorded production of 2.048 Million MT in FY2021‑22
and continues to be the most economical and efficient alumina
On 3rd November, 2021 Hindalco acquired Ryker Base Pvt Ltd

2.0
1.6

1.6
1.5

1.7
producer globally, running at maximum capacity to produce
(Ryker), a 225 kt copper rod manufacturing facility of Polycab
2.1 Million MT of world-class alumina and providing strong FY18 FY19 FY20 FY21 FY22
Ltd., taking the total capacity of CCR to around 540 kt currently.
support to most of Hindalco’s India smelting facilities, leading
Utkal Other Refineries of Hindalco
to better cost optimisation and quality input (alumina).
The graphs show the trend of total cathode production and Copper Metal and Value Added (CC Rods) sales volume
The overall metal sales in all forms were at 1.302 Million MT in Metal Production (in Million MT) in the last five years:
FY2021-22 against 1.250 Million MT in FY2020-21, up by 4% yoy
on account of market recovery and higher value-added sales in Cathode Production (kt) Copper VAP - CC Rod Sales (kt)
1.29

FY2021-22. Production of VAP was higher by 30% yoy, at 349 kt

1.29
1.29

1.31

1.23
in FY2021-22 vs 269 kt in FY2021-22.

262
410

257
243

233
359
2.2.2 Financial Overview

347

321
Aluminium

262

164
Revenue for Hindalco’s aluminium segment was up 57%,
rising to `32,169* Crore in FY2021-22 from `20,518* Crore
in FY2020‑21 on account of higher global aluminium prices.
EBITDA was up 139% at an all-time high of `13,025 Crore versus
`5,441 Crore a year earlier on account of favourable macros,
higher volumes, better operational efficiencies and improved
performance of downstream business offset by higher input FY18 FY19 FY20 FY21 FY22
costs. The EBITDA margins were at 40.5% in FY2021-22, one of
FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22
the best in the industry.
Metal Sales in All Forms (in Million MT)
*The above numbers are without elimination of Inter-segment revenue.
Copper Metal Sales in all forms (kt)
(` Crore)
1.29
1.30

1.30
1.27

1.25

Description FY2021-22 FY2020-21 % Change

405
407
Revenue 32,169 20,518 57%

359
EBITDA 13,025 5,441 139%

335

313
Note: In the consolidated financial statements, within the aluminium segment,
the significant entities are Hindalco and Utkal Alumina International Ltd. Utkal
Alumina is a wholly-owned subsidiary of Hindalco and supplies a substantial
quantity of its production to Hindalco hence we have analyzed the combined
performance of Hindalco’s aluminium business along with Utkal Alumina.

FY18 FY19 FY20 FY21 FY22

FY18 FY19 FY20 FY21 FY22

172 HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2021-22 173

Management Discussion & Analysis

2.4 Novelis Business Review FRP Shipments (kt) and Adjusted EBITDA per ton ($/t)
2.4.1 Operational Overview

530
Novelis Inc., is the global leader in flat-rolled aluminium

474
450
products and the world’s largest recycler of aluminium.

418
381
Driven by its purpose of shaping a sustainable world, Novelis
works alongside its customers to provide innovative solutions

3,858
3,613
to the beverage can, automotive, aerospace and speciality

3,188

3,274

3,273
markets (which include foil packaging, certain transportation
products, architectural, industrial, and consumer durables). The newest NFL super
Novelis operates an integrated network of technically stadium, SoFi Stadium,
advanced rolling and recycling facilities across North America, in Inglewood,
South America, Europe, and Asia, and leverages its global FY18 FY19 FY20 FY21 FY22 California, uses
manufacturing and recycling footprint to consistently deliver Novelis aluminium in
critical structures
high-quality products around the world. Shipments Adjusted EBITDA per ton

Novelis reported its best-ever financial performance in With Novelis’ thrust on sustainability and recycled aluminium,
FY2021‑22, despite semiconductor chip shortage in automotive, the share of recycled inputs was at 57% in FY2021-22. The
slowly reviving aerospace segment and some short-term Company has invested significantly in recycling initiatives and 3. Consolidated Financial Statements 3.2 EBITDA
operational challenges in quarter four of FY2021-22. In developed high-tech recycling capabilities over the years. Its Consolidated EBITDA for FY2021-22 was higher by 59% to
3.1 Revenue
FY2021‑22, Novelis recorded its best-ever adjusted EBITDA new 100 kt rolling, casting, and recycling expansion projects `30,056 Crore from `18,896 Crore in the previous year. This
in Pinda, Brazil commissioned during FY2021-22, added to Hindalco’s consolidated revenue was up 48% at `1,95,059
and EBITDA per ton mainly driven by its portfolio optimisation, was due to higher EBITDA in the aluminium business in India
Novelis’ overall rolling capacity which reached 4.0 Million MT Crore in FY2021-22 compared to `1,32,008 Crore in FY2020‑21,
better cost efficiency, favourable product mix, innovations, and best-ever performance by Novelis in FY2021-22. The
at the end of FY2021-22. primarily driven by higher global aluminium prices and
customer centricity and favourable demand for lightweight, EBITDA margin in FY2021-22 was at 15.4% compared to 14.3%
local market premiums. The graphs below show the split of
sustainable aluminium solutions across end markets. Novelis in FY 2020-21. The graphs below show the consolidated EBITDA
2.4.2 Financial Overview Consolidated Revenues by businesses in FY2021-22 and the
leveraged its extensive recycling footprint and favourable split by businesses in FY2021-22 and trends over the past
trend of revenues over the past five years.
market conditions to utilise high levels of recycled content in its Novelis’ total revenue in FY2021-22 were at $17.1 Billion, up 40%, five years.
shipments in FY 2021‑22. mainly driven by higher average global aluminium prices, local
market premiums and record shipments in every product end Consolidated Revenue split by Business for FY2021-22: Consolidated EBITDA split by Business: FY2021-22
In FY2021-22, total shipments were up by 7% over the last year market. Adjusted EBITDA stood at a record high of US$ 2.045 (%) (%)
to 3.858 Million MT, driven by strong demand for sustainable, Billion, up 19%, on the back of higher volume, favourable
flat rolled aluminium sheet and recovery from COVID-related product mix and strong environment benefiting pricing,
production shutdowns early in the previous financial year. partially offset by high inflation and operational disruptions. 16

Share of beverage can sheet shipments were 58% in Novelis reported adjusted free cash flow from continuing
FY 2021‑22, automotive body sheet shipments were at operations of $649 Million, after absorbing more than 43
65 19
17% in FY2021-22, despite challenges on account of global $ 400 Million of increased working capital pressure from 52
semi‑conductor chip shortages. The specialities and aerospace rising aluminium prices, net of metal price lag compared with Aluminium
Aluminium
shipments were 23% and 2% respectively in FY2021-22. $ 740 Million as the end of previous financial year. Copper
Copper
Novelis
5 Novelis
Novelis operates in four key geographies: North America, Driven mainly by higher adjusted EBITDA, Net Income (without
Europe, Asia and South America. In North America, in special items) from continuing operations is up 66% yoy at
FY‑2021‑22, total shipments were at 1,466 kt. In Europe, the $ 934 Million in FY2021-22 against $561 Million in FY2020-21. Consolidated Revenue (` Crore) Consolidated EBITDA (` Crore)
Company shipped 1,048 kt across product categories in ($ Million)
FY 2021‑22. In Asia, Novelis shipped 737 kt of rolled products

1,95,059
Description FY2021-22 FY2020-21 % Change

30,056
in FY2021-22 versus 740 kt in FY2020-21. In South America,
Revenue 17,149 12,276 40%
Novelis shipped 617 kt in FY2021-22, up from 577 kt in the

1,32,008
1,30,542
1,15,820

1,18,144

18,896
previous year. Adjusted EBITDA 2,045 1,714 19%

16,627

15,536
15,025
Net Income/ (loss) w/o 934 561 66%
In FY2021-22, Novelis reported a record overall adjusted Exceptional Item*
EBITDA/MT of $530, up from $474/MT in the last year,
*Tax-effected special items may include restructuring & impairment, metal
reflecting strong and consistent performances year after year. price lag, gain/loss on assets held for sale, loss on extinguishment of debt,
loss/gain on sale of business
FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22

174 HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2021-22 175

 Corporate Overview Strategic Overview Our Capitals Statutory Reports Financial Statements

Management Discussion & Analysis

3.3 Finance Cost 3.8 Consolidated Net Debt to EBITDA (iv) Current Ratio
Novelis’ aluminium
facades help
Finance Cost decreased 1% and was at `3,768 Crore in The consolidated balance sheet continued to remain strong The Consolidated Current/Liquidity Ratio as on 31st March,
create striking and FY2021‑22 from `3,738 Crore in FY2020-21 due to lower interest with the Net Debt to EBITDA at 1.36 times at the end of March 2022 stands at 1.28x versus 1.39x at the end of 31st March, 2021
sustainable structures cost of long-term loans in India and refinancing of term loans 2022 versus 2.59 times at the end of March 2021. (Net Debt reflecting the Company’s strengthening of liquidity or solvency
that last for decades by Novelis. Novelis refinanced 5.875%, $1.5 Billion Senior to EBITDA = Consolidated Business EBITDA/Consolidated position compared to the last year.
Notes due in September 2026 via 3.250%, $750 Million senior Net Debt)
notes due in November 2026 and a 3.875%, $750 Million senior (v) Debt to Equity Ratio
notes due in August 2031. The 2017 term loan of $1.8 Billion was 3.9 Key Financial Ratios (Consolidated) The Consolidated Debt to Equity Ratio as on 31st March, 2022
fully repaid by Novelis before maturity in FY2021-22.
(i) Debtors Turnover (Days) stands well below 1.0x at 0.81x versus 0.99x as on 31st March,
The Consolidated Debtors Turnover Days on 31st March, 2022 2021. This reflects the Company’ strong balance sheet and
3.4 Depreciation and Amortisation (Including net
was 32 days compared to 31 days at the end of 31st March, 2021. ability to meet its current short-term obligations.
impairment loss/(reversal) of non-current assets)
This shows consistency in managing its credit with customers
Depreciation and amortisation (including net impairment (vi) Return in Net Worth (RONW)
and this also reflects the Company’s strong financial position
loss/(reversal) of non-current assets) increased to `6,884
with respect to most of its customers. The Debtor Turnover The Consolidated Return on Net Worth as on 31st March, 2022
Crore in FY2021-22 from `6,766 Crore in FY2021-22 mainly on
(days) is calculated as Average Debtors/Total Consolidated stands at 18.97% compared to 5.58% on 31st March, 2021. This
account of capitalisation and certain reclassifications as per the
Sales multiplied by 365 days. was higher compared to the previous year due to the higher
accounting standards and exchange impact.
profits in FY2021-22. This is Calculated based on PAT/Average
(ii) Inventory Turnover (Days) Net Worth.
3.5 Exceptional Income/(Expense)
The Consolidated Inventory Turnover Days on 31st March, 2022
In FY2021-22, total exceptional income stands at `164 Crore (vii) Operating Margins
was at 79 days versus 80 days at the end of 31st March, 2021.
excluding `418 Crore of principal portion of PIS/COFINS related
This shows how the Company managed its inventory levels The Consolidated Operating margins in FY2021-22 stands at
tax credit income in Novelis Brazil (`358 Crore and net of
during the year. The Inventory (days) is calculated as Average 14.61% versus 13.41% in FY2020-21 reflecting higher operating
litigation cost of `9 Crore) and tax rebates for sales to Manaus,
Inventory /Cost of Goods Sold (Cost of Sales + Depreciation) profit in FY2021-22 compared to the previous year. (Operating
Brazilian Free Trade Zone of `60 Crore included in the results of
multiplied by 365 days. Margin = Operating Profit/Net Sales).
Novelis segment.
(iii) Interest Coverage Ratio: (viii) Net Profit Margins
3.6 Taxes
The Consolidated Net Interest Coverage Ratio on 31st March, The Consolidated Net profit margins in FY2021-22 stands at
Provision for the tax was at `5,373 Crore in FY2021-22 against
2022 stands at 7.87 times versus 5.06 times at the end of 7.04% versus 2.64% in FY2020-21. This was higher on account
`2,723 Crore in FY2020-21. This increase in taxes was due to
31st March, 2021. This is higher over the previous year because of higher consolidated profits recorded in FY2021-22. (Net Profit
higher taxes in Novelis and higher profitability of the Company
of higher earnings (EBIT) and refinancing of long-term loans in Margin = Net Profit/Net Sales).
in FY2021-22.
Novelis. This ratio reflects the Company’s ability and strength
to meet its interest obligations.
3.7 Profit/(Loss) After Tax
Profit After Tax (PAT) in FY2021-22 was at an all-time high of
`13,730 Crore compared to `3,483 Crore a year ago, up 294%
yoy. The net profit margin in FY2021-22 stood at 7.04% versus
2.64% in FY2020-21. The PAT for Continuing operations for
FY2021-22 was up 174% yoy at `14,201 Crore versus `5,182 in
FY2020-21.

Metal Sales in all forms (in Million MT)

1.30
1.29

1.25
1.30
1.27

Novelis is the
world’s largest
aluminium recycler

FY18 FY19 FY20 FY21 FY22

176 HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2021-22 177

 Corporate Overview Strategic Overview Our Capitals Statutory Reports Financial Statements

Management Discussion & Analysis

3.10 Consolidated Cashflow: 4. Business Outlook Our initiatives and performance are detailed in the ‘Our Capitals’
section of this report.
Cash generated from operations for Hindalco Consolidated stands at `16,838 Crore in FY2021-22 versus `17,232 Crore in FY2020-21.
Hindalco’s relentless focus is on product innovation, better
The table below shows the comparative movement of Cash flows: efficiencies, complete digitalisation and organic expansions
6. Sustainability
with a diversified product mix and cost competitiveness.
(` Crore)
Timely completion of 500 kt expansion project at Utkal At Hindalco sustainability is our core priority, enabling us to
Consolidated Alumina refinery is helping the company to reduce the overall create value out of revenue streams that are planet and people
Year ended integrated cost of production. The Company continues to focus positive. Our strong commitment to ESG is proven by our
Particulars 31-03-2022 31-03-2021 on cash conservation while maintaining adequate liquidity stellar showing in the DJSI CSA assessments which recognised
A. CASH FLOW FROM OPERATING ACTIVITIES and deliver sustained performance while catching up with us as the Most Sustainable Aluminium Company in the World.
Operating Cashflow before working capital changes 29,726 17,648 the market recovery. The Company’s long-term strategic We believe in the power of collaboration and we actively
investments in Novelis and the India downstream expansion engage with stakeholders across the value chain to address
Changes in working capital (9,132) 1,520
projects will enhance its capabilities across the FRP and the critical sustainability issues and try to resolve them seamlessly.
Cash generated from operations before Tax 20,594 19,168 Extrusion segments in India. In addition, the acquisition of This helps us gain the trust of stakeholders and allows us to
(Payment)/Refund of Direct Taxes (3,773) (1,256) Hydro’s Kuppam Extrusions facility and Polycab’s Ryker CCR grow in synergy with them.
Net Cash generated/(used) -Operating Activities - Continuing Operations 16,821 17,912 facility in FY2021-22 is aimed at expanding its presence in the
upper-end of the value-added market and further strengthen Sustainability at Hindalco is driven at the top level by the Apex
Net Cash Generated/(Used) - Operating Activities - Discontinued Operations 17 (680)
the Company’s long-term sustainable business model. Sustainability Committee, chaired by the Managing Director
Net Cash Generated/(Used) - Operating Activities (a) 16,838 17,232 ensuring implementation and monitoring of sustainability
B. CASH FLOW FROM INVESTMENT ACTIVITIES Domestic copper demand is driven largely by rods which is initiatives across the organisation. We have task forces and
Net Capital Expenditure (5,355) (5,517) the downstream product for the copper business. Hindalco’s ESG SPOCs from all functions working together to bring about
strategy of enhancement of Copper VAP capacity through positive change in the organisation. The task forces are made
Disposal of Investments in Subsidiaries (Net) 66 -
Copper Rods and Copper Inner grooved tubes will help the for ensuring ground level implementation of environment
(Purchase)/Sale of Other instruments (Net) 4,226 (2,775) Company drive a larger market share and meet the growing initiatives. There are Risk Champions to assess potential risks
Acquisition of business, net of cash acquired (412) (19,524) demand for copper in the domestic market. including those related to ESG. The ESG SPOCs in corporate
Investment in equity accounted investees (1) - functions take up projects to further the cause of ESG
Global demand for lightweight, highly recyclable aluminium implementation in the organisation.
Loans & Deposits (given)/received back (Net) (6,209) (261)
beverage packaging which is the largest share of Novelis’
Interest and dividends received 239 228 shipment product portfolio, remains strong in all the regions. We have developed a roadmap to attain net carbon neutrality
Purchase/Sale of Investment in Equity Shares at FVTOCI (Net) 363 (43) Demand for aluminium sheet across specialties markets, by 2050. We have already put up 100 MW of renewable
Lease payments received from finance lease 9 10 including electronics, electric vehicle battery enclosures, energy capacity and we plan to scale it up to 300 MW by
painted products, container foil and building and construction 2025. These efforts are being reinforced by various energy
Net Cash Generated/(Used) - Investing Activities - Continuing Operations (7,074) (27,882)
markets, also remains strong. While long-term demand efficiency projects and pilot demonstrations of technologies
Net Cash Generated/(Used) - Investing Activities - Discontinued Operations - 2,245 trends are intact, the current global semiconductor shortage in the pipeline. We are boosting freshwater conservation by
Net Cash Generated/(Used) - Investing Activities (b) (7,074) (25,637) impacting the automotive industry has resulted in temporary augmenting the use of water from other sources like treated
C. CASH FLOW FROM FINANCING ACTIVITIES automotive customer shutdowns and has reduced near-term water and rainwater. We are aiming for overall water positivity
demand for automotive aluminium sheet. In aerospace, some by 2050, with a sub-target of making our downstream and
Equity Raised/Debentures Redeemed 3 -
improvement is seen in order bookings because of a slow and mining operations water positive by 2025. Our efforts on
Treasury shares acquired & Proceeds from Shares Issued by ESOP Trust (79) 2 uneven recovery in demand for aerospace sheet for through circularity include extracting value out of waste generated and
Net Debt inflows/Outflows (2,772) (968) FY2022-23. increasing material recycling.
Interest & Finance Charges paid (3,250) (3,678)
Hindalco’s strategic priorities and its capital allocation We aim to be zero waste to landfill by 2030, ensuing that waste
Dividend Paid (including Dividend Distribution Tax) (667) (222)
framework which is targeted towards value enhancing organic is being put to good instead of ending up in the landfill. Our
Net Cash generated/(Used) - Financing Activities - Continuing Operations (6,765) (4,866) growth and ESG commitments will bolster the Company’s work in protecting biodiversity, which was initiated alongside
Net Cash Generated/(Used) - Financing Activities - Discontinued Operations - (16) position as the Sustainability Leader in the Industry. IUCN, has led to the development of BMPs for critical sites.
Net Cash Generated/(Used) - Financing Activities (c) (6,765) (4,882) These are now under implementation and will help us attain
Net Increase/(decrease) in Cash and Cash Equivalents (a)+(b)+(c) 2,999 (13,287) 5. Price Risk Management our target of no net loss by 2050. Our Sustainable Mining
Charter and KPIs for implementing the charter under seven
Hindalco’s financial performance was significantly impacted thematic areas is another key step to make our mining vertical
by fluctuations in aluminium prices as well as exchange rates more sustainable. Our subsidiary Novelis is the largest
and interest rates. The Company takes a structured approach aluminium recycler in the world.
to identify, quantify and hedge such risks by using derivatives
in commodity and currency, which are driven by the Company’s
comprehensive risk management policy.

178 HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2021-22 179

 Corporate Overview Strategic Overview Our Capitals Statutory Reports Financial Statements

Management Discussion & Analysis

A good safety culture depends heavily on the participation workmen against harassment and discrimination. We have
of line function employees. Which is why we have devised made focused efforts to enhance employee productivity
safety taskforces and six safety sub-committees at each unit through various tailored programmes focusing on their
for employees to participate in safety programmes. Each wellbeing. By investing in people and culture we continue to
member of each task force and sub-committee is deemed a inspire our workforce to go above and beyond and deliver
safety officer and contributes to the safety of the units and consistent superior performance in the most challenging times.
mines at every level.
Details of our initiatives and performance are provided in the ‘Our Capitals’
In 2020, we completed Qualitative Exposure Assessment section of this report.
(QIEA) and Quantitative Exposure Assessment (QnEA) studies 9. Internal Controls & their Adequacy
of all our manufacturing facilities and mining operations.
By the end of FY2021-22, we were able to implement more than A strong culture of internal controls is pervasive throughout the
80% of recommendations and we are making good progress Group. Regular internal audits at all locations are undertaken
in implementing the remaining recommendations that came to ensure that the highest standards of internal control
out of these studies. are maintained. The effectiveness of a business’ internal
control environment is a component of senior management
In FY2021-22, the Company continued to offer psychological performance appraisals. The principal aim of the internal
safety training sessions to employees. Each unit also ran a control system is the management of business risks with a
comprehensive wellness programme recognising the value of view to enhance shareholder value and safeguard the Group’s
good physical and mental health of employees, their families, assets. It provides reasonable assurance on the internal control
and the community. environment and against material misstatement or loss.
The Company has in place a robust mechanism to deal with
Hindalco has an active Crisis Management Plan using which the Internal audit that involves having a dedicated Assurance &
On the people front, we are deeply committed to build safer While there were no fatalities among Company employees, Company ensures an appropriate response to all crisis, natural Control function having personnel specialised in the field of
workplaces and a high performance work culture to keep we lost two contract workmen to work-related injuries. disasters or other emergencies, including COVID-19 corporate the subject and having two internal auditors duly appointed by
our employees motivated. Over the years we have taken We regret the loss of these valuable lives and shall continue level at all units and mines. the Audit Committee and Board., viz. M/s. Ernst & Young for
various initiatives in the area of organisation effectiveness to to strengthen our safety culture to make Hindalco a the Aluminium Business and M/s. Suresh Surana & Associates
increase productivity of our workforce. Mental and physical “Zero Harm” organisation. for the Copper business. The Audit Committee discusses audit
8. Human Capital
health programmes have also helped our people to navigate plans, findings and observations made by the internal auditors
through these challenging times. We actively engage with During the year, we introduced a uniform Contractors’ Safety Our 40,000 employees across the globe are our biggest at its meetings. The findings made by the internal auditors are
local communities to ensure that they prosper alongside Management procedure across Hindalco. The Serious Injuries asset in the journey towards building a Greener, Stronger and reviewed and suggestions implemented.
us. We implement programmes to cater to the needs of our and Fatality (SIF) prevention programme, which was introduced Smarter future. In recognition of our efforts towards building a
communities in the areas of Education, Healthcare, Livelihood, last year, has started showing some early promise. With High-Trust, High-Performance culture, Hindalco was certified as
a ‘Great Place to Work’ in 2021. Hindalco was also recognised Cautionary Statement
Infrastructure, and Social Reforms. We believe in inclusive these programmes/standards, we have now nine technical
as one of the ‘Best Employers among Nation Builders’ by the Statements in this “Management Discussion and Analysis”
growth and deploy our resources to bring about a positive safety standards, nine administrative safety standards and 4
Great Place to Work Institute in 2022. describing the Company’s objectives, projections,
impact on the areas we operate in and on society at large. occupational health standards. Our standards and procedures
estimates, expectations or predictions may be “forward
provide a consistent approach to managing major hazards
Through employee-centric systems and processes and looking statements” within the meaning of applicable
Details of our initiatives and performance are provided in the across our operations. To meaningfully implement the
capability and capacity building initiatives, we ensure the securities laws and regulations. Actual results could differ
‘Our Capitals’ section of this report. standards, we developed 82 new subject matter experts (SME).
holistic development of our employees. Keeping in mind our materially from those expressed or implied. Important
This is addition to 1,166 SMEs developed over last few years.
strategic priority of value enhancing growth and to stay relevant factors that could make a difference to the Company’s
7. Safety operations include global and Indian demand supply
We audit our entire operations every year against our in today’s fast-changing world, investing in talent development
As a responsible corporate citizen, Hindalco is fully dedicated and transforming key elements of culture has been our focus conditions, finished goods prices, feedstock availability
standards and require our businesses to meet their health and
to human health and safety. Our plants and mines follow in the past few years. Our Shillim movement, now in its fifth and prices, cyclical demand and pricing in the Company’s
safety performance requirements and targets. In FY 2021-22,
occupational health and safety management standards that edition, focuses on further strengthening a contemporary principal markets, changes in the government regulations,
all 15 manufacturing sites of Hindalco were audited virtually
integrate occupational health, hygiene and safety responsibilities culture that is centred around ownership, openness, inclusion, tax regimes, economic developments within India
using “Real-Ware” due to COVID. In FY2023, we carried out
into everyday business. A strong safety culture is required to collaboration, and meritocracy. Given the competitive job and the countries within which the Company conducts
physical audits.
prevent fatalities and achieve good safety performance. With environment, we have further strengthened our talent retention business and other factors such as litigation and labour
focused efforts to further strengthen our safety culture, our strategy through various initiatives to retain our top best negotiations. The Company assumes no responsibility
Despite limitations on classroom safety training due to
safety performance this year has been the best ever. There was performing employees. Our multi-pronged talent management to publicly amend, modify or revise any forward looking
COVID in the early part of the year, we were able to invest
a 29% drop in loss time injuries, a 18% fall in recordable injuries strategy focuses on hiring young talent, creating structured statements, on the basis of any subsequent development,
more than three manhours of classroom safety training per
and a 53% reduction in first aid injuries. Because of this, there is training and development initiatives, promoting gender information events or otherwise.
person (including direct employees and contract workmen)
a 29% reduction in Loss Time Injuries Frequency Rate (LTIFR) and this year also. The focus was more on-the-job training wherever diversity, and building technical and specialist capability. Our
Recordable Injuries Frequency Rate. There is a 38% drop on a yoy possible, as a result we invested 37% more man‑hours on human rights policy safeguards our employees and contractual
basis in Loss Time Injuries Severity Rate (LTIFR) in FY2021-22. training than the previous year.

180 HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2021-22 181