Aditya Birla Group Case Study | Inception & Growth Strategy

Vibhavari Madki Vibhavari Madki
Jul 20, 2022 6 min read
Aditya Birla Group Case Study | Inception & Growth Strategy

There are several huge business tycoons in India, who have made their mark on a global level. Post-independence in India, these massive organizations set their claws on every continent in the world and became one of the multinational conglomerates that rose from nothing and now reached the pinnacle of the business realm. One of the remarkable business families is the Birla Group.

Top Companies like Tata group and Reliance Industries gave the nation a level of recognition on an international platform. These companies started acquiring the domestic business establishments of the countries, where they ventured to do business and also started expanding their business vast.

Aditya Birla Group is a firm that takes corporate responsibility very seriously. Son of Aditya Birla, Kumar Birla makes the revenue of $41 billion in the company, a commodities empire with interests in cement, aluminium, telecom industry, and finance. It also backed the 19th position in Asia's Richest Families, 2017.

Aditya Birla Group - About
Aditya Birla Group - Inception
Aditya Birla Group - Growth
Aditya Birla Group - Acquisitions
Aditya Birla Group - Global Conglomeration
Aditya Birla Group - Kumar Mangalam Birla

Aditya Birla Group case study

Aditya Birla Group - About

Aditya Birla Group is a massive conglomerate that is engaged in various sectors. Birla Group comes with a great history, Aditya Birla Group is a $50 billion corporation and is on the list of Fortune 500.

It also has a number of achievements which includes the tag as a Global leader in Aluminium Rolling and Carbon Black. Aditya Birla Group ranks second in Telecom sector. It is the leader in Telecom and Cement Industry in India. The company has its struggle to achieve the positions.

The company had stepped into the Cotton industry initially which then expanded rapidly in the 20th Century. The company dealt tremendously in critical sectors like textiles and fibre, aluminium, cement, and chemicals under the leadership of Ghanshyam Das Birla. He was involved in the freedom struggle of India with Gandhiji and showed how eminent business leaders could contribute to the betterment of the nation.

After that, Mr Aditya Vikram Birla achieved this feat in the Liberalization of the Indian Economy in 1991. After him, his very capable son, Kumar Mangalam Birla had taken up the role of leadership in 1995 and the Group’s annual turnover was around $3.3 Billion.


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Aditya Birla Group - Inception

The foundation of Aditya Birla Group was laid back in the year 1857. The founder Shiv Narayan Birla had a very wider idea of the future in mind. After his death, the venture was carried forward by the next generation of the family.

Currently, it has become a multinational conglomerate with an important global existence. It deals in the field of various trades such as metals, chemicals, textiles, agriculture, mining, carbon black, telecommunications, insulators, cement, finance, retail, IT, trading solutions, etc.

There are almost a total of 1,40,000 employees and the company generated a revenue of $46 billion in the fiscal year of 2020, making it the third big company per revenue generation with the runners-up Tata Sons and Reliance India Limited. The business is run majorly in Mumbai, Maharashtra.

Aditya Birla Group - Growth

Aditya Birla's group turnover in 2020 was around $46 billion. Aditya Birla Fashion and Retail Limited (ABFRL) is one of the major wings of the Group and has brought good growth to the conglomerate.

ABFRL Revenue Growth
ABFRL Revenue Growth

Aditya Birla Forays into B2b Ecommerce

Aditya Birla Group announced that it will launch a B2B eCommerce platform that will deal with building materials, as per reports dated July 19, 2022. Some of the startups that are recognised as B2B eCommerce startups now are Infra. Market and OfBusiness both of which are included among the unicorn startups of India. With this, Aditya Birla also declared that it would be infusing close to Rs 2000 crore into the platform over the course of the next 5 years.

The building materials and the digital segment, both offers tremendous opportunities for growth, mentioned Aditya Birla Group Chairman Kumar Mangalam Birla. Β 

Aditya Birla has earlier taken numerous such decisions that made it conquer segment after segment in the Indian market. Ultratech Cement, an Aditya Birla subsidiary, is the largest cement producer in India. Besides, it has also forayed into the paint space.

Aditya Birla Group - Acquisitions

Aditya Birla Group is a holding and service provider company with almost more than 72+ manufacturing and services subsidiaries across India, Thailand, Indonesia, Malaysia, Australia, China, Egypt, Philippines, and Canada.

  • Grasim, one of Aditya Birla's subsidiaries, is the world's leading producer of fibre, and a manufacturer of rayon-grade pulp, sponge, iron, textiles, cement, and chemicals.
  • Hindalco is a producer of aluminium and copper, and UltraTech Cement is a producer of portland cement and other products.
  • Birla NGK Insulators, which is a joint venture with Japan, is the world's leading producer of insulators.
  • Idea Cellular Limited is a mobile service provider owned by Indian conglomerate Tata Industries jointly.

The Group also produces IT and software services and operates a number of financial subsidiaries. Birla Sun Life Insurance Co. is the 2nd largest private sector insurance company in India, and Birla Sun Life Asset Management Co. is the 4th largest assets manager.

To sum the growth up, the company claims to be the world's 8th largest producer of cement and the 4th largest producer of carbon black globally. These operations generate revenues of around $7.6 billion per year.

Some other popular subsidiaries of Aditya Birla Group are:

  • Aleris Corporation
  • Columbian Chemicals Company
  • Novelis Inc
  • Cement business of L&T
  • Louis Philippe, Allen Solly, Peter England and more.

Aditya Birla Group - Global Conglomeration

The Global conglomerate, Aditya Birla Group is the 2nd largest venture and is an extraordinary force of more than 140,000 employees belonging to 100 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 Aditya Birla Group's revenues flow from overseas operations which include 36 countries in Africa, Asia, and North and South America.

Aditya Birla Group - Kumar Mangalam Birla

Kumar Mangalam Birla
Kumar Mangalam Birla 

Kumar Mangalam Birla inherited the family business in 1995 at the tender age of 28 when his father Aditya Birla died and left his son with a lot of pressure to live up to his father.

Against all the odds, Kumar Mangalam Birla proved everyone wrong and took the company to newer heights. The company grew by 16 times under his leadership. He proves to be an inspiration for all of the aspiring entrepreneurs who works under tremendous pressure and make it a strength.

The complete renovation of the new operations and procedures was done by Kumar Birla. He was determined to evolve everything and bring the company to modernization. He is known to be the Best CEO of Aditya Birla Group of Companies.


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Conclusion

The Aditya Birla Group broke all the conventional barriers of business and believes in the duty to facilitate inclusive growth. They have a peculiar set of policies and strategies to retain their employees. The group owns one of the top three telecom companies in India, the nation’s largest cement manufacturer, and one of its top retailers.

FAQs

When was Aditya Birla Group founded?

Aditya Birla Group was founded in 1857 by Seth Shiv Narayan Birla.

How many companies are there under Aditya Birla Group?

Aditya Birla Group subsidiary companies are:

  • Grasim Industries
  • Vodafone Idea
  • Essel Mining & Industries Limited
  • Aditya Birla Fashion and Retail
  • Domsjo Fabriker
  • Hindalco Industries

How many employees are there in Aditya Birla Group?

Aditya Birla Group has around 140,000 employees belonging to 100 different countries.

What is Aditya Birla group turnover?

Aditya Birla's group turnover was US$46 billion (2020).

Who is the richest Birla?

Kumar Mangalam Birla is the richest Birla with an estimated net worth of US $17.5 billion, as of 2022.

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