Wikipedia

Aditya Birla Group

Aditya Birla Groupis an Indianmultinationalconglomerate,headquartered inMumbai.The group's business interests includemetals,cement,fashion and retail,financial services,renewables,fibre,textiles,chemicals,real estate,trading,mining,andentertainment.[5][6]The group has a presence in 36 nations[7]and a combined annual revenue of US$62 billion,[5]over 50% of which is derived from its overseas operations.[8]

Aditya Birla Group
Company typeCorporate group
IndustryConglomerate
Founded1857;167 years ago(1857)[1]
HeadquartersMumbai,Maharashtra,India
Area served
Worldwide
Key people
Kumar Mangalam Birla(Chairman)[2]
Sushil Agarwal(Group CFO)[3]
Santrupt Misra(Group director)
Products
Revenue$65 Billion[1](2024)
OwnerKumar Mangalam Birla
Number of employees
187,000 (2024)[4]
Subsidiaries
Websitewww.adityabirla

Aditya Birla Group has seven companies that are listed publicly, and their total market capitalisation as of March 2024 is over $100 billion. Notable group companies includeUltraTech Cement,Hindalco,Novelis,Grasim,Aditya Birla Capital,Aditya Birla Fashion and RetailandVodafone Idea.[9][10]

History

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

Ghanshyam Das Birla(1894–1983), born into a business family, he began his career in the family's trading business. He expanded into various industries likejute,cotton,andtextiles.[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 withMahatma 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 inThailand,[18]Malaysia,Indonesia,Philippines,andEgypt.[17][19]Under his leadership, the group diversified into multiple sectors such asmetals,cement,textiles,andtelecom.[18]

Kumar Mangalam Birla(1967-current), 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.[5][21]

Timeline

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  • 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 ofNovelis,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 theDubai-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 (excludingChina).[28]
  • 2011:The group diversified into thepulpandfibreindustry with the acquisition ofDomsjö Fabrikerfor $340 million.[29]
  • 2012:The group expanded the fashion and retail segment with the acquisition ofPantaloons,a branded apparel company, for $437 million.[30][31]
  • 2014:The group acquiredJaypee Cementfor $634 million.[32]
  • 2016:The group acquiredJaiprakash Associatesfor $2.3 billion.[33]
  • 2018:The group acquiredBinani Cementfor $1.1 billion.[34]
  • 2019:The group acquired Century Cement for $1.2 billion.[35]Group companyABFRLannounced strategic partnership with designer brandShantanu and Nikhil.[36][37]
  • 2020:The group purchased the aluminium companyAlerisfor $2.8 billion.[38]
  • 2021:Grasimentered the paints business.[39][40]ABFRL announced strategic partnerships with designer brandsTarun TahilianiandSabyasachi.[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 designerMasaba Guptato build a lifestyle portfolio under brand Masaba.[46]

Affiliated companies

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Company Major Subsidiary Equity Stake
Metals and Mining
Hindalco
  1. Novelis
  2. Aleris
 34.64%
Essel Mining & Industries Limited
  1. N/A
 100%
Cement
UltraTech Cement
  1. N/A
 59.96%
Textile, Fibres and Paints
Grasim Industries
  1. UltraTech Cement
  2. Aditya Birla Capital
  3. Birla Opus
 42.75%
Domsjö Fabriker
  1. N/A
 100%
Real Estate
Aditya Birla Real Estate
  1. Birla Century
  2. Century Pulp and Paper
  3. Birla Estates
 50.21%
Fashion
Aditya Birla Fashion and Retail
  1. N/A
 55.47%
Telecom Services
Vodafone Idea
  1. YOU Broadband Limited
 26%
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

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

Metal:Hindalco founded in 1958. Its first real contribution to the vision of an industrial India occurred four years later, when the late visionary GD Birla set up India's first integrated aluminium facility at Renukoot. In 2007,HindalcoacquiredAtlanta-based aluminum manufacturerNovelis 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 nameUltraTech Cement.[52]

Textiles:Aditya Birla Textiles consists of Textiles (linenandwool),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 inMariettaandTaloja.[55]

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

Financial Services:Aditya Birla Capital manages around Rs. 3.6 trillionAUMand 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:Founded in 2011, Aditya Birla Renewables Limited (ABRL), ABReL is a leading provider of solar, wind, and hybrid power solutions to public and private-sector customers across India. It operates 2.3 GW renewable capacity in 9 Indian states and announced 4.5 GW by FY2026 through utility and commercial projects.[60]

Mining:The group has mineral resource operations through its subsidiary Essel Mining Industries Ltd.[61]

Telecom:The group has a presence in the telecom sector through its joint venture,Vodafone Idea.[62]

Besides these sectors, the group has also ventured into paints, e-commerce for building materials, and DTC retail via TMRW.[63]

Philanthropy

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The Aditya Birla Group's welfare-driven activities are overseen by the Aditya Birla Centre for Community Initiatives and Rural Development, which is chaired byRajashree Birla.[64][65]The group'scorporate social responsibilityinitiatives focus onhealthcare,education,sustainable livelihood programs,infrastructure development, and social reforms through model villages.[66]

The group implemented programs in partnership withNGOsand government agencies, including the Aditya Birla Public Health Initiative, and Project Unnati.[67]

Healthcare

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The group operates 24 hospitals and runs 6,000 medical camps in India.[68][69]

Other contributions

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Kumar Mangalam Birlaand his family ranked fourth on the EdelGive Hurun India Philanthropy List in 2021 and 2022,[70][71]donating INR 377 crore and INR 242 crore respectively.[72][73]The Aditya Birla Group donated INR 500 crore to thePM CARES Fundin 2020.[74]In 2019, Kumar Mangalam Birla created a £15mn scholarship program at theLondon Business Schoolin memory of his grandfather,Basant Kumar Birla.[75]

Government schemes

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The group accesses government schemes like theSarva Shiksha Abhiyan,MGNREGA,Pradhan Mantri Gram Sadak Yojana,[76]Pradhan Mantri Awas Yojana,National Rural Livelihood Mission(NRLM),[77]Swachh Bharat Mission,[78]National Rural Drinking Water Program,Pradhan Mantri Kaushal Vikas Yojana,[79]Renewable Energy Development Program,Integrated Child Development Services,National TB Elimination ProgramandSwarnjayanti Gram Swarojgar Yojana.[67][80]

See also

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References

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