Managing Price Risk at Hindalco

Abstract

Hindalco, one of the industry leaders in the aluminum and copper segments, had adopted a conservative risk management policy framework that enabled them to navigate through the turbulent times. As the financial health of the company improved, the company wondered if there was a need to revisit its risk management framework. The primary issue was to identify whether different business segments required different risk management strategies. It was important to understand the linkages between business models and risk management policies. It was also interesting to observe how financial leverage played a critical role in defining the policy.