About the Birla's

 The Aditya Birla group is an Indian multinational conglomerate named after

Aditya vikram Birla, Headquartered in the Aditya Birla Centre in Worli, Mumbai,
India.
 Aditya Birla Group Started in 1857.
 Shiv Narayan Birla Started cotton trading operations in the small town of Pilani in
Rajasthan. Laying the foundation for the House of Birla’s
 Ghanshyamdas Birla (G.D Birla) – 1919 set the manufacturing company.
 Grandson of G.D Birla is Aditya Vikram Birla (A.V Birla)
 The legacy was forwarded by Mr. Aditya vikram Birla putting India on world map
long back 1969 before globalization
 Son of Aditya Birla is Kumar mangalam Birla ( the current chairman of the group)
 It operates in 40 countries with more than 1,20,000 employees worldwide
 Introduction

• The roots of Aditya Birla Group date back to the 19 th century in

the picturesque town of pilani, in Rajasthan.
• Seth Narayan Birla started trading in Cotton in 1857, laying the
foundations for the ‘House of Birla’s.
• In 20th Century Ghanshyam Das Birla set up Industries in Critical
sectors such as Textiles& Fibres, Aluminum, Cement &
Chemicals.
Globally the Birla's group
The largest aluminum rolling company
The No. 1 producer of carbon black
The 4th largest producer of insulators
The 5th largest producer of acrylic fiber
The 3rd Largest cement producer
globally( excluding china)
Among the world’s Largest telecom
company
The largest Indian MNC with
manufacturing operations in the USA
The largest single producer of viscose
staple fibre
One of the 3 biggest producers of
primary aluminum in Asia
position In India of Birla's group
The No. 1 in white cement
The largest producer in the chlor – alkali
sector
No. 1 in ready mix concrete
No. 1 in fashion retail
The top fashion premium branded
apparel and lifestyle player
The largest manufacturer of linen fabric
Among the leading telecom players
A leading agri solutions provider
 BUSINESS SECTORS
metals CHEMICALS
ADITYA BIRLA CHEMICAL
ALUMINIUM (HINDALCO, NOVELIS)
• 50 manufacturing units across 11 countries anchored
by a 37,000 strong workforce
• World’s largest producer of Flat Rolled products
• Leading producer of Primary Aluminum in Asia
World’s largest recycler of aluminum
• Serving core industry sectors of automatives, building
& construction, electricals, packaging, among others
• Around 76% of total sales are outside India

COPPER (BIRLA COPPER) INSULATORS

• One of the world's largest single-location custom
copper smelter
Leading producer of Copper Cathodes and Continuous
Cast Copper Rods
• Catering to wire, cable, transformer industries
• Also manufactures fertilizers and precious metals
ADITYA BIRLA INSULATORS
• World’s fourth largest and India’s largest
manufacturer
• High performance Porcelain and Composite
insulators for Transmission & Distribution sector
• Insulators support transmission of electricity in 70
countries
CEMENT
ULTRATECH
 Global Leader in cement
Largest producer of grey cement, white cement and ready-
mix concrete in India
 Operations in five countries—India, UAE, Bahrain,
Bangladesh and Sri Lanka
 Major brands: UltraTech Cement, UltraTech Concrete and
Birla White
FASHION&RETAIL
ADITYA BIRLA FASHION AND RETAIL (ABFRL)
• India’s No.1 fashion lifestyle entity - a combination of Madura F&L,
India’s leading menswear player and Pantaloons, India’s leading
womenswear player
• Madura F&L: largest distribution network in India - 2052 stores, retail
footprint of about 3 million sq. ft.
• Pantaloons: a complete value fashion shopping destination with 209
stores in 97 cities.
• Spans the fashion spectrum from formals to semi-formals and
casuals; and from luxury apparel to fast fashion and value fashion
. • Largest-selling and most iconic men’s fashion brands in India - Louis
Philippe, Van Heusen, Allen Solly and Peter England.
TEXTILES
GRASIM
• Presence across entire value chain from pulp to
apparel
• Global leader in Viscose Staple Fibre - 7
manufacturing locations with world class
manufacturing facilities in India, Indonesia, China,
Thailand and pulp plants in Canada, Sweden &
India
• Strong focus on Research & Development
(R&D), with state-of the- art facilities in India
• 100% Natural – Man Made & Biodegradable
fibers having 360 degree sustainable green goals
• Market Ready Innovations in Products like Birla
Sunshades, Birla Modal, Birla Excel and Exotic
Fibres like Antibacterial, Flame Retardant Fibres
and Optical White Fiber
• Major producer of yarn and acrylic fibre - Plants
in India, Thailand, Philippines and Indonesia
• Largest Linen Yarn and fabric producer in India
• Largest wool combing operations in India
Here is a glimpse of key operations that led to the success of the Aditya Birla Group  –
 In 1870, Seth Shiv Narayan Birla started a cotton and jute-trading business in the town of Pilani, in Rajasthan, India.
 In 1919, his grandson, Shri Ghanshyam das Birla started a jute mill, to diversify industry holdings.
 In 1947, the group started the Grasim weaving plant, later adding production of rayon.
 In 1958, the company founded Hindalco and engaged their operations in the production of aluminum.
 In 1966, the Indian Rayon Corporation was established.
 In 1969, under the guidance of Shri Aditya Birla, the company entered into international expansion, founding Indo Thai Synthetics in
Thailand.
 In 1988, a new subsidiary in the form of Indo Gulf was established for the production of fertilizers under Hindalco.
 In 1995, the operations were passed on to Mr. Kumar Mangalam Birla, who is responsible for a major streamlining and restricting of the
business. In the same year, a joint venture of the Birla group, AT & T was formed.
 In 1998, Indo Gulf started its copper production. Moreover, the group enters the premises of Canada with the purchase of Athol Ville
Pulp Mill in New Brunswick.
 In 2000, Birla AT&T merged with Tata Communications and entered the telecom sector.
 In 2002, Indo Gulf’s copper business was merged with Hindalco, creating a non-ferrous metals powerhouse.
 In 2003, Liaoning Birla Carbon, Aditya Birla Group’s first carbon black company in China, was incorporated. In the same year, Aditya
Birla Group Board was reconstituted with Mr. Kumar Mangalam Birla taking over as Chairman.
 In 2015, Aditya Birla Fashion and Retail Limited, ABFRL, was born after the consolidation of the Group’s branded apparel businesses
of Madura F&L and Pantaloons.
 In 2018, merger of Idea Cellular and Vodafone India was completed to create India’s largest telecom service provider – Vodafone Idea
Limited.
 In 2019, merger of cement business of Century Textiles and Industries Limited with Ultratech Cement. Ultratech Cement became one of
the leading cement producers globally, and the only cement company globally (outside of China) to have more than 100 million tonne
capacity in one country.
 VISION
To be a premium global conglomerate with a clear
focus on each business

mission
To deliver superior value to customers, shareholders, employees and society at large

value
Integrity commitment passion seamless speediness

Strength
Strong brand recognitions
Internet sales
Growing international presence
Strong financial returns
Effective Leadership
Technological excellence
Swot analysis
Threats
The impact of foreign currency
fluctuation and interest rates.
Weaknesses
Complexity of operation
Lengthy processing chain
Opportunities
Growth of core sector industries
Growing e- commerce’s business
Increasing urbanization
FINANCIAL ANALYSIS OF BIRLA’S GROUP SUBSIDARIES
 GENERIC STRATEGY
 The Aditya Birla Groups Strategy has been to diversify into capital intensive
businesses and become a cost leader by leveraging on its various strengths.
 It forms a significant part of the group’s strategy to actively develop its own
technology and create institutional knowledge that can set it apart from the
competitors and develop cost leadership in its business ventures.
 They are able to pursue this strategy because they have access to the capital
required to make a significant investment in production assets, skill in designing
products for efficient manufacturing and efficient distribution channels.
 Aditya Birla group formally launched the Aditya Birla Science & Technology
company at Taloja, on the outskirts of Mumbai, it was the culmination of a
decade long dream of the company to unify the group’s research &
Development initiatives
 With this the group has emerged as the first Indian conglomerate to launch a
corporate R&D center.
 Capital limited

Aditya Birla Capital Limited (ABCL) is the holding company of all the financial services businesses of the Aditya
Birla Group. Through its subsidiaries and joint ventures, it manages aggregate assets worth more than Rs3000
billion and has a lending book of Rs 601 billion (including housing) of December 31, 2019. ABCL is among the
top five private diversified NBFCs in India. It is also one of the largest private life insurance companies, asset
management companies and general insurance brokers in the country. The company has undertaken various
internal and external sustainability efforts to be a sustainability leader in its sector. The company has also
received a license from Reserve Bank of India to set up an asset reconstruction company.
A sustainable business is one that can live within the constraints of a degree sustainable world. A business that
can reduce its impact on the externalities as required by the shrinking legal space within which it must operate
as well as one that can adapt to external factors that are driven by global megatrends that will inevitably affect
it.
Rather than choosing the geography first and then exploring opportunities in that
geography, Birla's identify the opportunities first and then choose the right geography.
For example, when the Birla Group identified opportunities in copper, it chose Australia
for copper mines. Similarly, a geography that offers cheap gas is chosen to set up
aluminum smelter or acrylic fiber plant as they are energy intensive businesses. On the
other hand, its telecom, financial services and retail businesses are India centric since
India offers tremendous growth opportunities and they saw no justification to
internationalize them at this point, particularly when Birla is sitting on ‘good 20% margins
in several businesses and the top line is growing at 10% per annum’ ABG chose the
acquisition route to expand its aluminum business in North America (Novelis), copper
mines in Australia, business process outsourcing (BPO) business in Canada (Minacs) and
chemicals business in Columbia as these acquisitions offered ‘‘big and sticky clients with
marquee names.
 Foreign trade policy

The foreign trade is the exchange of goods and services between nations. Goods can be defined as
finished products as intermediate goods used in producing other goods or as agricultural products and
foodstuffs. Under the FTP, the government offers incentives under various import-linked export
schemes such as Duty Free Import Authorization (DFIA) and Export Promotion Capital Goods (EPCG).

Under EPCG, exporters can import certain amounts of capital goods at zero duty for upgrading
technology related with exports while DFIA allows them to import certain goods at zero duty.
 International expansion

internationalization was (initially) driven by the logic that growth opportunities in India were strangled has happened because of
the need for businesses to become global. In the case of copper mines or pulp units, it is integrating backward into owning their
own raw material. Novelis became the vehicle for forward integration – coming closer to the customer, acquiring high-end
technology and acquiring a market leader. Now in view internationalization largely on account of the fact that the world is
becoming much smaller place so internationalization is so much more important and is driven by economics of cost, of where the
customer is, of where you can get technologies and so on also increasingly believe that internationalization is a good de-risking
strategy. For a conglomerate with a large stake in India
ABG’s international entry strategy in terms of whether to set up Greenfield operations from the scratch or to acquire local
companies also depends on individual circumstances. For instance, when Carbon Black business entered Mexico they did not
want acquisition because there was nothing worth acquiring and so, they built the plant on their own’ whereas ‘in the case of
Novelis (acquisition), they wanted to get into downstream aluminum business (outside of India) and there was no way they were
ever going build something like Novelis.
ABG’s strategy to focus on harnessing the ‘strategic sweet spot’ of mid-tech and mature technologies through frugal engineering skills
have yielded handsome results as evidenced by the fact that today majority of its turnover comes from international markets ABG has
effectively deployed the linkage– leverage–learning approach in its quest for internationalization. For example, Kumar quotes a senior
executive of the company emphasizing how the acquisition of Novelis brought in not only the assets but also the talent ‘‘referring to
many of the senior Novelis executives as ‘‘institutions’’ in their specific areas of excellence’’. At the same time, they augmented the
newly acquired strategic strengths with their own in-house expertise by bringing in a risk-management expert from their headquarters
to institutionalize the process at Novelis.
 Joint ventures
 The Indo Phil Group of companies,
Filipino.
 Hindustan Petroleum Corporation
Ltd, Mangalore
 AT& T, USA
 Tembec Inc, Canada
 Sun life of Canada
 NGK Insulators Ltd, Japan
 Hindalco in a joint venture with
Almex USA Inc.
 Birla sun life asset management
Acquisitions MERGERS
 Nifty copper Mine, Novelis,  Indal with Hindalco
Alcan by Hindalco
 Jayashree Textile with Indian Rayon
 Mount Gordon Copper Mine  ABIL with ABNL
by ABML
 Aluminum Rolling Mill and
wire rods Facility from ARCIL
 Indian Rayon
 PSI Data Systems by Indian
Rayon
 Market analysis

The goal of the market analysis is to understand the evolving opportunities and threats in the market

The Global conglomerate, Aditya Birla Group is the 2nd

largest venture and is an extraordinary force of more than
120,000 employees belonging to 42 nationalities, it is built
on a strong foundation of stakeholder value creation.
It is responsible for business powerhouses in a wide range
of sectors. Currently, 50% of Group revenues flow from
overseas operations which include 36 countries in Africa,
Asia, North and South America.