Aditya Birla Group

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Aditya Birla Group
Company type Corporate group
Industry Conglomerate
Founded1857;167 years ago (1857) [1]
FounderShiv Narayan Birla
Headquarters Mumbai, Maharashtra, India
Area served
Worldwide
Key people
Kumar Mangalam Birla (Chairman) [2]
Sushil Agarwal (Group CFO) [3]
Santrupt Misra (Group director)
Products
RevenueIncrease2.svg US$65 billion [1]  (2023)
Owner Kumar Mangalam Birla
Number of employees
187,000 (2023) [4]
Subsidiaries
Website www.adityabirla.com

The Aditya Birla Group (ABG) is an Indian multinational conglomerate, headquartered in Mumbai. [5] The group has a presence in 36 nations [6] and a combined annual revenue of $65 billion, [7] over 50% of which is derived from its overseas operations. [8] The group's business interests include metals, cement, fashion and retail, financial services, renewables, fibre, textiles, chemicals, real estate, trading, mining, and entertainment. [7]

Contents

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

History

The group's origins are associated with three individuals: Ghanshyam Das Birla (G.D. Birla), Aditya Birla and Kumar Mangalam Birla. [11] [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 (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. [7] [21]

Timeline

Affiliated companies

CompanyMajor SubsidiaryEquity 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 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
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

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

Metal: In 2007, Hindalco 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 and wool), 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 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 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: 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 has mineral resource operations 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's welfare-driven activities are overseen by the Aditya Birla Centre for Community Initiatives and Rural Development, which is chaired by Rajashree Birla. [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 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 in India. [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 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

Related Research Articles

The Birla family is a family connected with the industrial and social history of India.

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<span class="mw-page-title-main">Aditya Birla Fashion and Retail</span> Indian clothing retail company

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