-Chinaiti Basumatary(18382012)

Binoy Marshall(18382011)
CONGLOMERATE OR UNRELATED
DIVERSIFICATION
 A conglomerate is a large corporation with diversified product lines, owned and
run by the same management.
 Conglomerate diversification occurs when an organization adopts a strategy
which requires taking up those activities which are unrelated to the existing
business definition of any of its business.
REASONS FOR CONGLOMERATE
DIVERSIFICATION
 Spreading business risk
 Maximizing returns
 Leveraging competencies
 Taking advantage of emerging opportunities
 Migrating from business under threat
 Exercising of personal choice.
RISKS OF DIVERSIFICATION
 Complex to formulate and implement.
 Decreasing commitment and diverting to several business.
 Difficulty to reap the benefits of synergies.
 Increase in administrative cost.
FIRMS THAT ADOPTED CONGLOMERATE
DIVERSIFICATION
ADITYA BIRLA GROUP
 Non ferrous metals(Novelis)
 Cement(UltraTech from L&T)
 Carbon Black(Columbian Chemicals Co.)
 Textiles(With Grasim Bhiwani Textiles)
 Fashion(Pantaloons from Future Group)
 Telecom Services(Idea Cellular with AT&T and TATA)
ADITYA BIRLA GROUP
 Azhim