Case Study on Aditya Birla Group and their 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 in every continent in the world and became known as one of the multinational conglomerates that rose from nothing and now became the pinnacle of the business realm. One of the remarkable business families is the Birla Group.

Top Companies likes of Tata’s, Reliance, Birla 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 who 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.


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About Aditya Birla Group

Aditya Birla Group is a massive conglomerate which is engaged in various sectors. Birla Group comes with a great history, Aditya Birla Group is a $48 billion corporation and is in the list of Fortune 500.

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

Growth of Aditya Birla Group's Revenue trend
Growth of Aditya Birla Group's Revenue trend

The company had step 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 showing how eminent business leaders could contribute to the betterment of the nation.

After that, Mr Aditya Vikram Birla achieved this feat the Liberalization of 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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The Inception of Aditya Birla Group

The foundation of Aditya Birla Group laid back in the year 1857. The founder Shiv Narayan Birla had a very wider idea of 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 1,36,000 employees and the company generated a revenue of $40 billion in the fiscal year of 2012, making it the third big company as per revenue generation with the runners up Tata Sons and Reliance India Limited. The business is run majorly in headquarter Mumbai, Maharashtra.

Growth of Aditya Birla Group

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

  • Grasim, one of the Aditya Birla's subsidiaries, which 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 with 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.

Global Conglomeration

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.

About Kumar Mangalam Birla

Kumar 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.

Kumar Mangalam Birla
Kumar Mangalam Birla 

Against all the odds, Kumar 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 the 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.

Conclusion

The Aditya Birla Group broke all the conventional barriers of business and believes the duty to facilitate inclusive growth. They have a peculiar set of policies and strategy 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.

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