Aditya Birla Group

Introduction about Aditya

Birla group
The roots of ADITYA BIRLA GROUP date back to the 19th century in the picturesque town of pilani ,
set amidst the Rajasthan desert . It was here that Seth Narayan Birla started trading in Cotton in
1857, laying the foundation for the ‘House of Birlas’.
 In 20th century Ghanshyamdas Birla set up industries in critical sectors such as Textiles &
Fibres , Aluminium , Cement & Chemicals
The Aditya Birla Group is a multinational conglomerate based in Mumbai, India with operations
in 25 countries including Thailand, Dubai, Singapore, Myanmar, Laos, Indonesia, Philippines,
Egypt, Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,
Switzerland, Bangladesh, Malaysia, Vietnam and Korea.
About Birlas
 Aditya Birla Group started at 1857.
 Shiv narayan Birla started cotton trading
operation 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.
Aditya Birla Companies and
Brands.
 COMPANY: HINDALCO
Everlast aluminium roofing
sheets
Freshwrapp aluminium foil
Freshpakk semi-rigid
containers
Permashield waterproofing
Aluminium foil
Aura alloy wheels
Hindalco extrusions

COMPANY: HINDALCO

Birla Copper

Birla Gold

Birla Silver
COMPANY: GRASIM
Birla Super
UltraTech Cement (formerly
Birla Plus)
Birla Ready Mix
Birla White
COMPANY: ULTRATECH
UltraTech cement

COMPANY: ADITYA BIRLA

NUVO

Birla Carbon
 COMPANY: GRASIM

Birla Cellulose

COMPANY: INDO GULF

Birla Shaktiman Urea

COMPANY: HINDALCO

Birla Balwan
 COMPANY: ADITYA BIRLA NUVO
Linen Club
Pyroguard
Ray One
Kolorone
COMPANY: GRASIM
Ice Touch
Uncrushables
Purista
Clean Fab
COMPANY: THAI ACRYLIC FIBRE
Texlan

COMPANY: ADITYA BIRLA NUVO

Louis Philippe
Van Heusen
Allen Solly
Peter England
Esprit
COMPANY: ADITYA BIRLA CHEMICALS
(THAILAND) LTD.
Polyphos®
Epotec
Birlasulf-SS
Birlasulf-SM
Birlasulf 35
COMPANY: THAI PEROXIDE CO. LTD.
Ecare
Encare
Aqua X
OCARE
Birlox
Herlisil

COMPANY: BIRLA NGK

INSULATORS PVT. LTD.

Aditya Birla Insulators

 key products and capaci coun
brands ties try
PSI Data Systems Ltd. (subsidiary
of Aditya Birla Nuvo Ltd.)

IT solutions (banking, India

finance and insurance)

key products and capaci coun

brands ties try

Aditya Birla Minacs

Worldwide Limited (subsidiary
of Aditya Birla Nuvo Ltd.)
BPO / ITES 9,089 India
seats
 COMPANY: IDEA
CELLULAR LTD.

Idea

COMPANY: ADITYA BIRLA

RETAIL LIMITED

more.
About k.M.Birla
 Kumar Mangalam Birla is a chaiman
of aditya birla who is son of A.V.Birla.
 K.M.Birla done C.A and MBA from
london business school, at the age
of 28 taken responsibility towards
business having total revenue of
INR 15,000 crores with assets of INR
16,000 crores.It had a strength of
75,000employees and 6,00,000 shareholders.
K.M.Birla
 After taking up the change,K.M.Birla decided to consolidate entire
entire group’s companies under one umbrella of the “Adithya’s
birla group”.
 Many critics were opinion that “K.M.Birla would unable to manage
the group successfully”
 When k.M.Birla handovered business from his father in 1995,his
critics dismissed him as a soft and shy person. who lacked the
business expertise and assertiveness of his father A.V.Birla.
 An unapproachable management style and misplaced priorities
the result was the investors started selling off their shares .In
1996 the market value of group’s four largest companies grasim
,indian rayon ,hindalco & indo gulf fertilizer suddenly decreased by
$1billion or 37%.
 So K.M.Birla took several initiatives to prove his critics wrong.
Key People
 Mr. Sanjeev Aga
Managing Director, Idea
Cellular Limited and Director,
Aditya Birla Management
Corporation Private Limited

 Mr. D. Bhattacharya
Managing Director, Hindalco Industries Limited,
Vice Chairman, Novelis Inc. and Director,
Aditya Birla Management Corporation Private
Limited
 Mr. Shailendra K. Jain

Whole-time Director
and President, Grasim
Industries Ltd.

 Dr. Santrupt Misra

Director, Aditya Birla

Management Corporation
Private Limited
 Dr. Bharat K. Singh

Director, Aditya Birla

Management
Corporation Private
Limited

 Mr. K. K. Maheshwari
Head, Global Chemical Business,
Global Trading Business and
Management Services Division
Aditya Birla Group
 Mr. Vikram Rao
Director, Aditya Birla
Management Corporation
Private Limited
Changes taken by K.M.Birla to prove that the critics are wrong…..
1.Retirement policy
 He introduced a retirement policy in 1995,on the
basis of which around 325 senior emplayees,who
were there early 60s,had quit the organization in
the next five years .subsequently about 400
young employees replaced them.
 Meanwhile ,answering the critics he said, "people
in the group about twice my age when I took over
as chairman. I had great respect for them
personally, but I also feel the need for change”.
2.Corporate logo
 In 1996,he launched for the first time a corporate
identity that would serve a corporate logo. The
group selected the rising sun as the logo, which
signified optimism and served as a unification
symbol for the group.
 K.M.Birla said, “The new corporate logo helped in
bringing various companies of the group
together. This helped the organization to
reenergize and get started to the path of
change”.
3.Recruitment process
 K.M.Birla also changed the group’s policy in
house recruitment. In 1996,he also made
changes in group’s HR system. He hired
professionals from other companies into his
management team
4.Change in decision
making
 The partha system of daily financial reporting which focused
mainly on production was replaced with an “Economic value
added model”. This model focuses on the aspects of
profitability, asset productivity and growth.
 K.M.Birla also established aditya birla management corporation
limited, the strategic decision making for ensuring the best
practices across the group companies.
 K.M.Birla decided to reduce the group’s dependence on fiber
based business where its market share was low. Instead he
decided to concentrate on non-ferrous metals as there was less
competition and hindalco already had a big presence in the
aluminum sector
5.Scholarships to students and
Awards to employees
 In 1999 K.M.Birla launched the aditya birla scholarship to
promote excellence among students community to
cultivate the leaders of tomorrow.
 He said, "cultivating a new generation of managers and
cultivating a participative culture are keys to the
increasingly energetic, people centered, and
performance focused culture we aspire for”.
 He also launched Aditya Birla awards in 1999 where
team achievements recognized every year .
6.Happiness at work
 Birla had also implemented the organizational
health survey by the late 1990s, which
measured the “Happiness at work” index. This
was carried out to track the employees
satisfaction.
7.Hierarchy based on
performance of employees
 K.M.Birla also brought in some managerial
changes in the group. Before K.M.Birla took the
chairmanship, the hierarchy in the group was
determined by seniority instead of merit. He
instituted a performance appraisal system. He
decided to implement performance management
systems,reviwed compensations and accentuated
on training to bring meritocracy.
 He personally led the recruitment program from
business schools.
8.Changes in reporting
 He also brought about changes in reporting
system being followed at the group. The top 20
executives of the group, who had greater
responsibilities in the group, could report directly
to K.M.Birla, thereby giving them complete
freedom to run their businesses and same
holding the more accountable for their
performance.
Analysts opinion
 Several analysts also praised KM Birla’s style of
functioning.
 Analysts believed that K.M.Birla has began to think big
in recent times. He usually used to focus more on
extracting rather than betting big on growth.
 Despite remaining profitable the company’s growth
has been slower as compared to its peers in the recent
past. It has been reflected in the stock market. where
its market capitalization of INR30,000 crores is less
than its total turnover.
By V.Lakshmi, P.Pravallika