Taking India to the World…….

And Organization Structure back to the 19th Century !!

 About the Birlas
 Aditya Birla Group started in 1857.

 Shiv Narayan Birla started cotton trading operations in

the small town of Pilani in Rajasthan.

 Ghyanshyamdas Birla(GD birla)-1919-he set the

manufacturing company.

 Grandson of G.D.Birla is Aditya Vikram

Birla(A.V.Birla)-1964

 Son of A.V.Birla is Kumar Mangalam Birla(K.M.Birla)-

1995. The current Chairman of the Group.
 Some Historical
Achievements in India
 1857 -The foundation of the Birla Group of Companies is laid
by Seth Shiv Narayan Birla – cotton trading operations
commence at Pilani, Rajasthan.

 1947-Grasim is incorporated. (rayon weaving)

 1958 -Hindalco is incorporated. (aluminium)

 1966-The Indian Rayon Corporation Ltd is acquired.

 1986-The Birla Growth Fund is set up. (to finance industrial

equipment, plant and machinery and consumer durables, as
well as for stock market operations)

 1988 -joint venture with Hindustan Petroleum Corporation

Ltd (to set up a three-million-ton refinery, Mangalore
Refineries and Petrochemicals Ltd.

 2000 -Indian Rayon acquires Madura Garments

 2006-Hindalco in a joint venture with Almex USA Inc.

Vision And Mission

VISION MISSION

To be a premium To deliver superior

global conglomerate value to our
with a clear focus on customers,
each business. shareholders,
employees and
society at large.
Group Profile
Group companies International establishments
 Grasim Industries Ltd.
 Hindalco Industries Ltd.  Thailand
 Aditya Birla Nuvo Ltd.
 UltraTech Cement Ltd.  Philippines

Indian companies  Indonesia

 PSI Data Systems
 Aditya Birla Minacs Worldwide Limited  Egypt
 Essel Mining & Industries Ltd
 Idea Cellular Ltd.  China
 Aditya Birla Insulators
 Aditya Birla Retail Limited  Canada
 Bihar Caustic and Chemicals Ltd.
 Australia
Joint ventures
 Birla Sun Life Insurance  Laos
 Birla Sun Life Asset Management
Company Ltd.  North and South America, Europe and
 Birla Sun Life Distribution Company Ltd. Asia
 Tanfac Industries Ltd.
GLOBAL FOOTPRINT:
Some Of The Products
VSF

TEXTILES

GARMENTS
GENERIC STRATEGY
 The Aditya Birla Group’s 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 (ABSTC) 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
Centre.
 Management Hierarchy
Chairman

Chief Executive Officer Chief Financial Officer

Vice President

Assist. Vice President

General Manager

Senior Manager

Manager

Assistant Manager
Low income and
high income
Customers

Premium
Segment

B2B and
Industrial
Customers
Ek Idea Jo Badal De
Aapki Duniya….
Company Overview

 Started on March 14, 1995.

 It was formed as a merger of Birla Communications-
AT&T and Tata Cellular in 2000.
 It is the 4th largest cellular service provider-
98,441,714 customers or 16.09% of the market.
 It is a part of the A V Birla Group. Its Promoters are:
 Aditya Birla Nuvo Limited
 Grasim Industries Limited
 Hindalco Industries Limited
 Birla TMT Holdings Private Limited
Company Structure
Madura Garments

 India’s No1 garment manufacturer

(sales volume)
 MISSION: To deliver superior value
to our customers, shareholders,
employees and society at large.
 VISION: To be a premium global
conglomerate with a clear focus on
each business.
Organizational Structure
A B Nuvo

Textile & Apparels

Division

Viscose Fiber Div. Textile (Yarn Div)

Garment Division

President Strategy & business

(Ashish dixit) excellence

International brand Domestic brand COMMERCIAL FINANCE

DIRECTOR DIRECTOR

Director Director Director Director

Allen Solly Louis Van hausen
Peter England
Philip
Organizational Structure

 Divisional Structures focused on

Products
Divisions
 Domestic
 Peter England

 International
 Louis Philippe

 Van Heusen

 Allen Solly

 Planet Fashion and International trade sales

 Planet Fashion
 ADITYA BIRLA NUVO LTD
It is a US$4 billion, diversified conglomerate and the platform that
has launched many new businesses for Aditya Birla Group.
Aditya Birla Nuvo Ltd has a portfolio of manufacturing as well as
service sector businesses under its umbrella ranging from textiles
to financial services.
It follows a divisional organizational structure.
The different divisions of Aditya Birla Nuvo are:

Textiles
LifeInsurance
Carbon Black
BPO and IT services
Telecom
Financial Services
Viscose Filament Yarn
Apparel
Agri Business
BRANDS

Some of the popular brands are:

Louis Philippe
Van Heusen
Allen Solly
Idea Cellular
Birla Sun Life Insurance
Peter England
Critique – The Past of AV Birla Group
• Was a Proponent of the License Raj. Profited a LOT
•Upon the inevitability of Liberalization, the then
Chairman, Aditya Vikram Birla said:

“ We are not afraid of Global Players coming In.

Global Players should be afraid of Us !!”

On Core Competence:

Tatas’ : STEEL is our Core Competence (1990’s)

Birlas’ : DIVERSIFICATION is our Core Competence

 Critique…..

• A 19th Century Structure for a 21st Century Company ?

• What is “Partha” ??

• Nepotism ??

• Veto Power to just One Person

• What Structure are its Competitors using ?

• When will it become Professionally Managed ??