Aditya Birla Group

Introduction about Aditya Birla

group
The roots of ADITYA BIRLA GROUP date back to the 19th century in the picturesque town of pilani ,
set amidst the Rajasthan desert . It was here that Seth Narayan Birla started trading in Cotton in 1857,
laying the foundation for the ‘House of Birlas’.
 In 20th century Ghanshyamdas Birla set up industries in critical sectors such as Textiles &
Fibres , Aluminium , Cement & Chemicals
The Aditya Birla Group is a multinational conglomerate based in Mumbai, India with operations in
25 countries including Thailand, Dubai, Singapore, Myanmar, Laos, Indonesia, Philippines, Egypt,
Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,
Switzerland, Bangladesh, Malaysia, Vietnam and Korea.
About Birlas
 Aditya Birla Group started at 1857.
 Shiv narayan Birla started cotton trading operation
in the small town of pilani in rajasthan.
 Ghyanshyamdas Birla(GD birla)-1919-he set the
manufacturing company.
 Grandson of G.D.Birla is Aditya Vikram
Birla(A.V.Birla)-1964-
 Son of A.V.Birla is Kumar mangalam
Birla(K.M.Birla)-1995.
Aditya Birla Companies and Brands.
 COMPANY: HINDALCO
Everlast aluminium roofing sheets
Freshwrapp aluminium foil
Freshpakk semi-rigid containers
Permashield waterproofing
Aluminium foil
Aura alloy wheels
Hindalco extrusions

COMPANY: HINDALCO

Birla Copper

Birla Gold

Birla Silver
COMPANY: GRASIM
Birla Super
UltraTech Cement (formerly Birla
Plus)
Birla Ready Mix
Birla White
COMPANY: ULTRATECH
UltraTech cement

COMPANY: ADITYA BIRLA

NUVO

Birla Carbon
 COMPANY: GRASIM

Birla Cellulose

COMPANY: INDO GULF

Birla Shaktiman Urea

COMPANY: HINDALCO

Birla Balwan
COMPANY: ADITYA BIRLA NUVO
Linen Club
Pyroguard
Ray One
Kolorone
COMPANY: GRASIM
Ice Touch
Uncrushables
Purista
Clean Fab
COMPANY: THAI ACRYLIC FIBRE
Texlan

COMPANY: ADITYA BIRLA NUVO

Louis Philippe
Van Heusen
Allen Solly
Peter England
Esprit
COMPANY: ADITYA BIRLA CHEMICALS
(THAILAND) LTD.
Polyphos®
Epotec
Birlasulf-SS
Birlasulf-SM
Birlasulf 35
COMPANY: THAI PEROXIDE CO. LTD.
Ecare
Encare
Aqua X
OCARE
Birlox
Herlisil

COMPANY: BIRLA NGK

INSULATORS PVT. LTD.

Aditya Birla Insulators

 key products and brands capaciti count
es ry
PSI Data Systems Ltd. (subsidiary of Aditya
Birla Nuvo Ltd.)

IT solutions (banking, finance India

and insurance)

key products and brands capaciti count

es ry

Aditya Birla Minacs Worldwide Limited

(subsidiary of Aditya Birla Nuvo Ltd.)

BPO / ITES 9,089 India

seats
COMPANY: IDEA CELLULAR
LTD.

Idea

COMPANY: ADITYA BIRLA

RETAIL LIMITED

more.
About k.M.Birla
 Kumar Mangalam Birla is a chaiman
of aditya birla who is son of A.V.Birla.
 K.M.Birla done C.A and MBA from
london business school, at the age
of 28 taken responsibility towards
business having total revenue of
INR 15,000 crores with assets of INR
16,000 crores.It had a strength of
75,000employees and 6,00,000 shareholders.
K.M.Birla
 After taking up the change,K.M.Birla decided to consolidate entire
entire group’s companies under one umbrella of the “Adithya’s
birla group”.
 Many critics were opinion that “K.M.Birla would unable to manage
the group successfully”
 When k.M.Birla handovered business from his father in 1995,his
critics dismissed him as a soft and shy person. who lacked the
business expertise and assertiveness of his father A.V.Birla.
 An unapproachable management style and misplaced priorities the
result was the investors started selling off their shares .In 1996 the
market value of group’s four largest companies grasim ,indian
rayon ,hindalco & indo gulf fertilizer suddenly decreased by
$1billion or 37%.
 So K.M.Birla took several initiatives to prove his critics wrong.
Key People
 Mr. Sanjeev Aga
Managing Director, Idea
Cellular Limited and Director,
Aditya Birla Management
Corporation Private Limited

 Mr. D. Bhattacharya
Managing Director, Hindalco Industries Limited,
Vice Chairman, Novelis Inc. and Director,
Aditya Birla Management Corporation Private
Limited
 Mr. Shailendra K. Jain

Whole-time Director
and President, Grasim
Industries Ltd.

 Dr. Santrupt Misra

Director, Aditya Birla

Management Corporation
Private Limited
 Dr. Bharat K. Singh
Director, Aditya Birla
Management
Corporation Private
Limited

 Mr. K. K. Maheshwari
Head, Global Chemical Business,
Global Trading Business and
Management Services Division
Aditya Birla Group
 Mr. Vikram Rao
Director, Aditya Birla
Management Corporation
Private Limited
Changes taken by K.M.Birla to prove that the critics are wrong…..
1.Retirement policy
 He introduced a retirement policy in 1995,on the basis of
which around 325 senior emplayees,who were there early
60s,had quit the organization in the next five years
.subsequently about 400 young employees replaced them.
 Meanwhile ,answering the critics he said, "people in the group
about twice my age when I took over as chairman. I had great
respect for them personally, but I also feel the need for
change”.
2.Corporate logo
 In 1996,he launched for the first time a corporate identity that
would serve a corporate logo. The group selected the rising
sun as the logo, which signified optimism and served as a
unification symbol for the group.
 K.M.Birla said, “The new corporate logo helped in bringing
various companies of the group together. This helped the
organization to reenergize and get started to the path of
change”.
3.Recruitment process
 K.M.Birla also changed the group’s policy in house
recruitment. In 1996,he also made changes in group’s HR
system. He hired professionals from other companies into his
management team
4.Change in decision making
 The partha system of daily financial reporting which focused
mainly on production was replaced with an “Economic value
added model”. This model focuses on the aspects of
profitability, asset productivity and growth.
 K.M.Birla also established aditya birla management
corporation limited, the strategic decision making for ensuring
the best practices across the group companies.
 K.M.Birla decided to reduce the group’s dependence on fiber
based business where its market share was low. Instead he
decided to concentrate on non-ferrous metals as there was less
competition and hindalco already had a big presence in the
aluminum sector
5.Scholarships to students and Awards
to employees
 In 1999 K.M.Birla launched the aditya birla scholarship to
promote excellence among students community to cultivate
the leaders of tomorrow.
 He said, "cultivating a new generation of managers and
cultivating a participative culture are keys to the increasingly
energetic, people centered, and performance focused culture
we aspire for”.
 He also launched Aditya Birla awards in 1999 where team
achievements recognized every year .
6.Happiness at work
 Birla had also implemented the organizational health survey
by the late 1990s, which measured the “Happiness at work”
index. This was carried out to track the employees
satisfaction.
7.Hierarchy based on performance of
employees
 K.M.Birla also brought in some managerial changes in the
group. Before K.M.Birla took the chairmanship, the hierarchy
in the group was determined by seniority instead of merit. He
instituted a performance appraisal system. He decided to
implement performance management systems,reviwed
compensations and accentuated on training to bring
meritocracy.
 He personally led the recruitment program from business
schools.
8.Changes in reporting
 He also brought about changes in reporting system being
followed at the group. The top 20 executives of the group,
who had greater responsibilities in the group, could report
directly to K.M.Birla, thereby giving them complete freedom
to run their businesses and same holding the more accountable
for their performance.
Analysts opinion
 Several analysts also praised KM Birla’s style of functioning.
 Analysts believed that K.M.Birla has began to think big in
recent times. He usually used to focus more on extracting
rather than betting big on growth.
 Despite remaining profitable the company’s growth has been
slower as compared to its peers in the recent past. It has been
reflected in the stock market. where its market capitalization
of INR30,000 crores is less than its total turnover.
By V.Lakshmi, P.Pravallika