Aditya Birla Group
TypeCorporate group
IndustryConglomerate
Founded1857 (1857)[1]
FounderShiv Narayan Birla
HeadquartersMumbai, Maharashtra, India
Area served
Worldwide
Key people
Kumar Mangalam Birla (Chairman)[2]
Sushil Agarwal (Group CFO)[3]
Dr. Santrupt Misra (Group director)
Products
RevenueIncrease US$65 billion[1] (2023)
OwnerKumar Mangalam Birla
Number of employees
187,000 (2023)[4]
Subsidiaries
Websitewww.adityabirla.com

The Aditya Birla Group (ABG) is an Indian multinational conglomerate, headquartered in Mumbai.[5] The group has a presence in 36 nations[6] and a combined annual revenue of $65 billion,[7] over 50% of which is derived from its overseas operations.[8] The group's business interests include metals, cement, fashion and retail, financial services, renewables, fibre, textiles, chemicals, real estate, trading, mining, and entertainment.[7]

ABG has seven companies that are listed publicly, and their total market capitalisation as of March 2022 is over $70 billion. Notable group companies include UltraTech Cement, Hindalco, Novelis, Grasim, Aditya Birla Capital, and Aditya Birla Fashion and Retail.[9][10]

History

The group's origins are associated with three individuals: Ghanshyam Das Birla (G.D. Birla), Aditya Birla and Kumar Mangalam Birla.[11][12]

Ghanshyam Das Birla (1894–1983) Born into a business family, G.D. Birla began his career in the family's trading business. He expanded into various industries like jute, cotton, and textiles.[13] G.D. Birla established multiple manufacturing businesses that laid the foundation for the Aditya Birla Group.[14] He was recognized for his charitable acts and his connection with Mahatma Gandhi.[15][16]

Aditya Vikram Birla (1943–1995), the grandson of G.D. Birla, grew the group's operations.[17] At 24, Aditya Birla began establishing businesses abroad. In 1969, he founded 19 companies in Thailand,[18] Malaysia, Indonesia, Philippines, and Egypt.[17][19] Under his leadership, the group diversified into multiple sectors such as metals, cement, textiles, and telecom.[18]

Kumar Mangalam Birla became the chairman of the Aditya Birla Group in 1995, succeeding his late father Aditya Vikram Birla when he was just 28 years old.[19][20] Under his leadership, the group's annual turnover grew from $2 billion in 1995 to $60 billion in 2022.[7][21]

Timeline

  • 1969: At the age of 24, Aditya Birla assumed control of the group. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, the Philippines, and Egypt.[17][19]
  • 1996: The group's revenue was $2 billion.
  • 2007: The group made a major move into the metals industry with the acquisition of Novelis, a producer of flat-rolled aluminium products, for $6.1 billion.[22][23]
  • 2008: The group ventured into the telecom sector through the acquisition of Spice Communications for $1.8 billion.[24][25]
  • 2010: Aditya Birla Group's cement arm, UltraTech Cement, acquired the Dubai-based ETA Star Cement Company for an enterprise value of $380 million.[26][27] This acquisition helped the group become the third-largest cement producer globally (excluding China).[28]
  • 2011: The group diversified into the pulp and fibre industry with the acquisition of Domsjö Fabriker for $340 million.[29]
  • 2012: The group entered the fashion and retail industry with the acquisition of Pantaloons, a branded apparel company, for $437 million.[30][31]
  • 2014: The group acquired Jaypee Cement for $634 million.[32]
  • 2016: The group acquired Jaiprakash Associates for $2.3 billion.[33]
  • 2018: The group acquired Binani Cement for $1.1 billion.[34]
  • 2019: The group acquired Century Cement for $1.2 billion.[35] Group company ABFRL announced strategic partnership with designer brand Shantanu and Nikhil.[36][37]
  • 2020: The group purchased the aluminium company Aleris for $2.8 billion.[38]
  • 2021: Grasim entered the paints business.[39][40] ABFRL announced strategic partnerships with designer brands Tarun Tahiliani and Sabyasachi.[41]
  • 2022: The group's revenue reached $60 billion.[42] The group also launched TMRW, a D2C retail platform,[43][44] and Grasim's B2B e-commerce venture in the building materials segment.[45] ABFRL announced a partnership with designer Masaba Gupta to build a lifestyle portfolio under brand Masaba.[46]

Affiliated companies

Company Major Subsidiary Equity Stake
Metals and Mining
Hindalco
  1. Novelis
 34.64%
Essel Mining & Industries Limited
  1. N/A
 100%
Cement
UltraTech Cement
  1. N/A
 59.96%
Textile and Fibres
Grasim Industries
  1. UltraTech Cement
  2. Aditya Birla Capital
 42.75%
Century Textile and Industries
  1. Birla Century
  2. Century Pulp and Paper
  3. Birla Estates
 50.21%
Domsjö Fabriker
  1. N/A
 100%
Fashion
Aditya Birla Fashion and Retail
  1. N/A
 55.47%
Telecom Services
Vodafone Idea
  1. YOU Broadband Limited
 17.49%
Media and Film Production
Applause Entertainment
  1. N/A
 100%
Financial Services
Aditya Birla Capital
  1. Aditya Birla Sun Life Asset Management
 69.10%
Renewables
Aditya Birla Renewables
  1. N/A
 100%
Insulators
Aditya Birla Insulators
  1. N/A
 100%
Chemical and Compounds
Aditya Birla Chemicals(Thailand)
  1. N/A
 100%
Thai Peroxide Limited
  1. N/A
 50%
PT Indo Raya Kimla(Indonesia)
  1. N/A
 100%
Birla Carbon
  1. N/A
 100%
Trading
Aditya Birla Global Trading
  1. N/A
 100%

Areas of operation

The Aditya Birla Group operates across 36 countries in Asia, Europe, Africa, and the Americas.[12]

Metal: In 2007, Hindalco acquired Atlanta-based aluminum manufacturer Novelis Inc. for $6 billion.[47] This made Hindalco the world's largest aluminum rolling company and a major producer of primary aluminum in Asia.[48][49] Its subsidiary, Birla Copper, operates Asia's largest single-site copper smelter.[50]

Cement: The group is the third-largest cement producer globally (excluding China) and the largest in India.[51] It operates under the brand name UltraTech Cement.[52]

Textiles: Aditya Birla Textiles consists of Textiles (linen and wool), acrylic fiber, and overseas spinning sectors, with manufacturing units across five countries. Its acrylic fibre business has a capacity of about 125,000 tonnes.[53]

Carbon Black: Birla Carbon produces and supplies carbon black additives for tires, plastics, paints, and electronics.[54] It has manufacturing units in Marietta and Taloja.[55]

Chemicals: Established in 1984, Aditya Birla Chemicals produces chlor-alkali and caustic soda, with 8 units in India and 1 in Thailand.[56]

Financial Services: Aditya Birla Capital manages around Rs. 3.6 trillion AUM and has a lending book of about Rs. 943 billion as of 31 March 2023, through its subsidiaries and joint ventures.[57]

Fashion and Retail: A fashion and lifestyle company headquartered in India, Aditya Birla Fashion and Retail Ltd. (ABFRL) was renamed from Pantaloons in 2015 after Aditya Birla Nuvo acquired major stakes in 2012.[58]

Insulators: Aditya Birla Insulators is India's largest and the world's third-largest insulator manufacturer.[59]

Renewables: Aditya Birla Renewables is a joint venture between Birla Group and Abraaj, with Birla holding 51% and Abraaj 49%.[60] It operates 2.3 GW renewable capacity in 9 Indian states and announced 4.5 GW by FY2026 through utility and commercial projects.[61]

Mining: The group has mineral resource operations through its subsidiary Essel Mining Industries Ltd.[62]

Telecom: The group has a presence in the telecom sector through its joint venture, Vodafone Idea.[63]

Besides these sectors, the group has also ventured into paints, e-commerce for building materials, and DTC retail via TMRW.[64]

Philanthropy

The Aditya Birla Group's welfare-driven activities are overseen by the Aditya Birla Centre for Community Initiatives and Rural Development, which is chaired by Rajashree Birla.[65][66] The group's corporate social responsibility initiatives focus on healthcare, education, sustainable livelihood programs, infrastructure development, and social reforms through model villages.[67]

The group implemented programs in partnership with NGOs and government agencies, including the Aditya Birla Public Health Initiative, and Project Unnati.[68]

Healthcare

The group operates 24 hospitals and runs 6,000 medical camps in India.[69][70]

Other contributions

Kumar Mangalam Birla and his family ranked fourth on the EdelGive Hurun India Philanthropy List in 2021 and 2022,[71][72] donating INR 377 crore and INR 242 crore respectively.[73][74] The Aditya Birla Group donated INR 500 crore to the PM CARES Fund in 2020.[75] In 2019, Kumar Mangalam Birla created a £15mn scholarship program at the London Business School in memory of his grandfather, Basant Kumar Birla.[76]

Government schemes

The group accesses government schemes like the Sarva Shiksha Abhiyan, MGNREGA, Pradhan Mantri Gram Sadak Yojana,[77] Pradhan Mantri Awas Yojana, National Rural Livelihood Mission (NRLM),[78] Swachh Bharat Mission,[79] National Rural Drinking Water Program, Pradhan Mantri Kaushal Vikas Yojana,[80] Renewable Energy Development Program, Integrated Child Development Services, National TB Elimination Program and Swarnjayanti Gram Swarojgar Yojana.[68][81]

See also

References

  1. 1 2 "Indian business families that are shifting control to their next generation". Business Standard. 7 February 2023.
  2. ↑ "Meet Kumar Mangalam Birla: A CA By Profession, Chairman Of Aditya Birla Group With Net Worth Of USD 13.2 Billion". TimesNow. 21 April 2023.
  3. ↑ Gaur, Vatsala (28 May 2019). "Sushil Agarwal elevated as Aditya Birla Group CFO". The Economic Times.
  4. ↑ "Birla kids to join board of group thinktank, fashion business". The Times of India. 31 January 2023.
  5. ↑ Das, Vipul (6 January 2023). "Aditya Birla Fashion & Retail to raise ₹500 Cr via NCDs". mint. Retrieved 9 May 2023.
  6. ↑ "Birla kids to join board of group thinktank, fashion business". The Times of India. 31 January 2023. ISSN 0971-8257. Retrieved 9 May 2023.
  7. 1 2 3 "Biz cycles shortening, ensuring continuous reinvention a challenge before Aditya Birla Group: KM Birla". The Times of India. 24 January 2023. ISSN 0971-8257. Retrieved 9 May 2023.
  8. ↑ "Aditya Birla Group's revenue crosses Rs 2.5 lakh crore". Business Today. 31 August 2015. Retrieved 9 May 2023.
  9. ↑ "Birla, The Commodity King". Fortune India. Retrieved 9 May 2023.
  10. ↑ "Initiating Coverage Grasim Industries Ltd" (PDF). hdfcsec.
  11. ↑ "Aditya Birla Sun Life Mutual Fund – Asset Management Company in India". Suger Mint. 1 April 2020. Retrieved 27 April 2021.
  12. 1 2 "Vodafone Idea appoints Kumar Mangalam Birla as non-executive director". cnbctv18.com. 20 April 2023. Retrieved 19 June 2023.
  13. ↑ "Pilani passes into history". The Times of India. 5 August 2005. ISSN 0971-8257. Retrieved 19 June 2023.
  14. ↑ "I have been a student all my life: G.D. Birla". India Today. Retrieved 19 June 2023.
  15. ↑ "B.K. Birla: The conscious capitalist with nationalism at heart". www.fortuneindia.com. 5 July 2019. Retrieved 19 June 2023.
  16. ↑ "From the India Today archives (1983): G.D. Birla: A legend in his lifetime". India Today. Retrieved 19 June 2023.
  17. 1 2 3 Hazarika, Sanjoy (3 October 1995). "Aditya Vikram Birla, 51, A Leading Indian Businessman". The New York Times. ISSN 0362-4331. Retrieved 19 June 2023.
  18. 1 2 "As companies go 'regional', 'globalization' has made way for 'slowbalisation': Kumar Mangalam Birla". Business Today. 14 January 2020. Retrieved 10 June 2023.
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  24. ↑ Anand, Sameera. "India's Idea Cellular buys Spice Communications". FinanceAsia. Retrieved 19 June 2023.
  25. ↑ "Idea acquires 41% in Spice Communications". Financialexpress. 9 July 2008. Retrieved 19 June 2023.
  26. ↑ Kalesh, Joel Rebello & Baiju (2 August 2010). "UltraTech to buy around 80% stake in Dubai's Star Cement". mint. Retrieved 19 June 2023.
  27. ↑ "India's UltraTech to buy Dubai's ETA Star Cement". Reuters. 29 April 2010. Retrieved 19 June 2023.
  28. ↑ "UltraTech Cement buys ETA Star Co of Dubai". The Times of India. 30 April 2010. ISSN 0971-8257. Retrieved 19 June 2023.
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  31. ↑ "Aditya Birla to merge Madura Fashion with Pantaloon - ET Retail". ETRetail.com. Retrieved 19 June 2023.
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  36. ↑ "Aditya Birla Fashion & Retail to acquire 51% stake in 'Finesse International Design'". www.business-standard.com. 15 July 2019. Retrieved 19 June 2023.
  37. ↑ "Aditya Birla Fashion to acquire 51% stake in retail firm of designer Shantanu & Nikhi". The Economic Times. 15 July 2019. ISSN 0013-0389. Retrieved 19 June 2023.
  38. ↑ "Hindalco completes Aleris deal for $2.8 billion". www.thehindubusinessline.com. 14 April 2020. Retrieved 19 June 2023.
  39. ↑ Thomas, Tanya (22 January 2021). "Grasim set to enter paints biz with ₹5,000 crore investment". mint. Retrieved 19 June 2023.
  40. ↑ Dilipkumar, Bhavya (22 January 2021). "Aditya Birla Group's Grasim to enter paints business with Rs 5,000 crore investment". The Economic Times. ISSN 0013-0389. Retrieved 19 June 2023.
  41. ↑ "ABFRL announces strategic partnership with designer Tarun Tahiliani". www.thehindubusinessline.com. 24 February 2021. Retrieved 19 June 2023.
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  43. ↑ "Aditya birla group get into house of brands format with 'TMRW'". www.business-standard.com. 1 June 2022. Retrieved 19 June 2023.
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  50. ↑ "Hindalco signs pact with Hindustan Copper". BusinessLine. 17 September 2020. Retrieved 9 August 2023.
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  52. ↑ "AV Birla takes over L&T cement firm". Business Standard.
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  55. ↑ "Royal Enfield's CKD plant in Thailand begins operations". Autocar Professional. Retrieved 12 August 2023.
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  63. ↑ "Vodafone-Idea announce merger to create India's biggest telecom company". The Times of India. 20 March 2017. ISSN 0971-8257. Retrieved 12 August 2023.
  64. ↑ Malviya, Sagar (1 June 2022). "Aditya Birla Group enters direct to consumer business, sets up a new firm TMRW". The Economic Times. ISSN 0013-0389. Retrieved 12 August 2023.
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  66. ↑ "CSR Compendium 2020 | ADITYA BIRLA GROUP | Economic Times". The Economic Times. Retrieved 24 May 2023.
  67. ↑ Venkatachalam, Pritha (10 July 2018). "Create an articulated social vision and embed it in the business vision". mint. Retrieved 24 May 2023.
  68. 1 2 Madaik, Devyani (7 March 2023). "International Women's Day Special: Celebrating The Work Of Women In India Who Are Helping The Country Achieve Its Sustainable Development Goals". NDTV-Dettol Banega Swasth Swachh India. Retrieved 24 May 2023.
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  72. ↑ "EdelGive Hurun India Philanthropy List 2021: Here are India's 10 most generous individuals". India Today. Retrieved 24 May 2023.
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  76. ↑ "AB Group announces £15 mn scholars programme". The Hindu. 11 July 2019. ISSN 0971-751X. Retrieved 24 May 2023.
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