Aditya Birla Group

The Aditya Birla Group (ABG) is an Indian multinational Fortune 500 company headquartered in Mumbai, Maharashtra.[5] The group has a presence in 36 nations.[6] As of March 2023, the company's revenue is worth $65 billion[7] and derives over 50% of its revenue from its global operations.[8]

Aditya Birla Group
TypeCorporate group
IndustryConglomerate
Founded1857 (1857)[1]
FounderShiv Narayan Birla
HeadquartersMumbai, Maharashtra, India
Area served
Worldwide
Key people
Kumar Mangalam Birla (Chairman)[2]
Sushil Agarwal (Group CFO)[3]
Dr. Santrupt Misra (Group director)
Products
RevenueIncrease US$65 billion[1] (2023)
OwnerKumar Mangalam Birla
Number of employees
187,000 (2023)[4]
Subsidiaries
Websitewww.adityabirla.com

The group's industries include metals, cement, fashion and retail, financial services, renewables, fibre, textiles, chemicals, real estate, trading, mining, and entertainment.[7]

ABG has seven companies that are listed publicly, and their total market capitalisation as of March 2022 is over $70 billion. The companies include UltraTech Cement, Hindalco, Novelis, Grasim, Aditya Birla Capital, and Aditya Birla Fashion and Retail.[9][10]

History

The Aditya Birla Group is a diversified Indian multinational conglomerate based in Mumbai, India. It operates across six continents and 36 countries.[11] The group's origins are associated with three individuals: Ghanshyam Das Birla (G.D. Birla), Aditya Birla and Kumar Mangalam Birla.[12]

Ghanshyam Das Birla (1894–1983) Born into a business family, G.D. Birla began his career in the family's trading business. He expanded into various industries like jute, cotton, and textiles.[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 with Mahatma 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 in Thailand,[18] Malaysia, Indonesia, Philippines, and Egypt.[17][19] Under his leadership, the group diversified into multiple sectors such as metals, cement, textiles, and telecom.[18]

Kumar Mangalam Birla 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.[7][21]

  • 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 USD $2 billion.
  • 2007: The group made a major move into the metals industry with the acquisition of Novelis, a producer of flat-rolled aluminium products, for USD $6.1 billion.[22][23]
  • 2008: The group ventured into the telecom sector through the acquisition of Spice Communications for a sum of USD $1.8 billion. This strategic move served as the group's entry into the Indian telecommunications industry.[24][25]
  • 2010: Aditya Birla Group's cement arm, UltraTech Cement, acquired the Dubai-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 (excluding China).[28]
  • 2011: The group diversified into the pulp and fibre industry with the acquisition of Domsjö Fabriker for USD $340 million.[29]
  • 2012: The group entered the fashion and retail industry with the acquisition of Pantaloons, a branded apparel company, for USD $437 million.[30][31]
  • 2014: The group further expanded its cement business with the acquisition of Jaypee Cement for USD $634 million.[32]
  • 2016: The group continued its expansion in the cement industry with the acquisition of Jaiprakash Associates for USD $2.3 billion.[33]
  • 2018: The group acquired Binani Cement for USD $1.1 billion.[34]
  • 2019: The group acquired Century Cement for USD $1.2 billion, continuing its expansion in the cement industry.[35] Group company ABFRL announced strategic partnership with designer brand Shantanu and Nikhil.[36][37]
  • 2020: The group made a significant acquisition in the aluminium industry with the purchase of Aleris for USD $2.8 billion.[38]
  • 2021: Grasim, a part of the Aditya Birla Group, entered the paints business, marking the group's entry into a new industry.[39][40] Group company ABFRL announced strategic partnerships with designer brands Tarun Tahiliani and Sabyasachi.[41]
  • 2022: The group's revenue reached USD $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 designer Masaba Gupta to build a lifestyle portfolio under brand Masaba.[46]

Affiliated companies
Company Major Subsidiary Equity Stake
Metals and Mining
Hindalco
  1. Novelis
 34.64%
Essel Mining & Industries Limited
  1. N/A
 100%
Cement
UltraTech Cement
  1. N/A
 59.96%
Textile and Fibres
Grasim Industries
  1. UltraTech Cement
  2. Aditya Birla Capital
 42.75%
Century Textile and Industries
  1. Birla Century
  2. Century Pulp and Paper
  3. Birla Estates
 50.21%
Domsjö Fabriker
  1. N/A
 100%
Fashion
Aditya Birla Fashion and Retail
  1. N/A
 55.47%
Telecom Services
Vodafone Idea
  1. YOU Broadband Limited
 17.49%
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

The Aditya Birla Group operates across six continents and in 36 countries.[11] These countries span various regions including Asia, Europe, Africa, and the Americas. The group has a diverse portfolio that spans multiple industry sectors.

Metal: In 2007, Hindalco, part of Aditya Birla Group, acquired Atlanta-based aluminum manufacturer Novelis 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 name UltraTech Cement.[52]

Textiles: Aditya Birla Textiles consists of Textiles (Linen & Wool), Acrylic Fibre, 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 in Marietta and Taloja.[55]

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

Financial Services: Aditya Birla Capital manages around Rs. 3.6 trillion AUM and has a lending book of about Rs. 943 billion as of March 31, 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: Aditya Birla Renewables is a joint venture between Birla Group and Abraaj, with Birla holding 51% and Abraaj 49%.[60] It operates 2.3 GW renewable capacity in 9 Indian states and announced 4.5 GW by FY2026 through utility and commercial projects.[61]

Mining: The group operates as a major diversified global mineral resource company in India through its subsidiary Essel Mining Industries Ltd.[62]

Telecom: The group has a presence in the telecom sector through its joint venture, Vodafone Idea.[63]

Besides these sectors, the group has also ventured into paints, e-commerce for building materials, and DTC retail via TMRW.[64]

Philanthropy

The Aditya Birla Group is involved in welfare-driven activities both in India and overseas. These activities are carried out as part of the group's corporate social responsibility (CSR) initiatives, which are overseen by the Aditya Birla Centre for Community Initiatives and Rural Development. This apex body provides strategic guidance to all group companies and is chaired by Rajashree Birla. Collectively, the group operates in 9,000 villages, engaging with a total of 11 million individuals across India and various other regions worldwide.[65][66] The group's corporate social responsibility initiatives focus on healthcare, education, sustainable livelihood programs, infrastructure development, and social reforms through model villages.[67]

The group implemented programs in partnership with various NGOs and government agencies, including the Aditya Birla Public Health Initiative, and Project Unnati.[68]

Healthcare

The group operates 24 hospitals and runs 6,000 medical camps throughout India, providing care to over one million rural residents.[69][70]

Other contributions

Kumar Mangalam Birla and his family ranked fourth on the EdelGive Hurun India Philanthropy List in 2021 and 2022,[71][72] donating INR 377 crore and INR 242 crore respectively.[73][74] The Aditya Birla Group invested over INR 5 billion in CSR initiatives globally in FY21 and donated INR 500 crore to the PM CARES Fund in 2020.[75] In 2019, Kumar Mangalam Birla created a £15mn scholarship program at the London Business School in memory of his grandfather, Basant Kumar Birla.[76]

Government schemes

The group accesses Government Schemes like the Sarva Shiksha Abhiyan, MGNREGA, Pradhan Mantri Gram Sadak Yojana,[77] Pradhan Mantri Awas Yojana, National Rural Livelihood Mission (NRLM),[78] Swachh Bharat Mission,[79] National Rural Drinking Water Program, Pradhan Mantri Kaushal Vikas Yojana,[80] Renewable Energy Development Program, Integrated Child Development Services, National TB Elimination Program and Swarnjayanti Gram Swarojgar Yojana.[68][81]

See also

References
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