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*[[UltraTech Cement]]
*[[UltraTech Cement]]
*[[VI India|Vodafone Idea]]
*[[VI India|Vodafone Idea]]
*[[Mytel Myanmar]]
*[[Mytel]]
*[[U-Mobile]]
*[[U-Mobile]]
*[[Aditya Birla Fashion and Retail]]
*[[Aditya Birla Fashion and Retail]]

Revision as of 15:23, 28 June 2023

Aditya Birla Group
Company typeCorporate group
IndustryConglomerate
Founded1857; 168 years ago (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$60 billion[1] (2022)
OwnerKumar Mangalam Birla
Number of employees
140,000 (2022)[4]
Subsidiaries
Websitewww.adityabirla.com

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 2022, the company's revenue is worth $60 billion[7] and derives over 50% of its revenue from its global operations.[8]

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 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]

Areas of operation

It is one of India's largest corporate houses operating in 26 countries – India, Germany, the United Kingdom, Brazil, Italy, Hungary, United States, Canada, France, Australia, Egypt, Luxembourg, Philippines, the United Arab Emirates, Switzerland, Singapore, Myanmar, China, Thailand, Laos, Bangladesh, Indonesia, Malaysia, Bahrain, Vietnam and South Korea.[47][better source needed] The company is majorly engaged in the business of non-ferrous metals, viscose filament yarn, viscose staple fiber, cement, fertilizers, chemicals, branded apparel, carbon black, sponge iron, telecom, IT services, financial services, insulators, and business process outsourcing.[47][better source needed]

Units and investment areas

Non-ferrous metals

Main articles: Hindalco and Novelis

Cement

Main article: UltraTech Cement

Textile and fibres

Main article: Grasim Industries

The organization operates from India, Indonesia, Laos, Thailand, Malaysia and China. Apart from viscose staple fibre, the group also owns acrylic fibre business in Thailand, viscose filament yarn businesses and spinning mills in India and Southeast Asia. The group has pulp and plantation interests in Canada and Laos. It also owns the Domsjö factory in Sweden which exports viscose. Its two companies i.e. Aditya Birla Nuvo Ltd and Grasim Bhiwani Textiles Ltd which is a subsidiary of Grasim Industries are in textile business. Grasim Industries was recently placed 154th in a list of the world's best regarded firms compiled by Forbes.[48]

Fashion

Main article: ABFRL

Telecom services

Main article: Vodafone Idea

The Aditya Birla group owns 27.4% of the mobile network operator Vodafone Idea, branded as Vi.[49][better source needed]

Idea Cellular was started as a joint venture of Aditya Birla Group with AT&T and the Tata Group, which was widely also known as BATATA (Birla+AT+Tata).[50] The company is headquartered in Mumbai. In August 2019, Idea Cellular merged with Vodafone India.[51]

Financial services

Aditya Birla Capital

Aditya Birla Capital (ABC) is the umbrella brand for all the financial services business of the Aditya Birla Group.[52] Birla Sun Life Asset Management is part of the group.

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.[53][54] The group's corporate social responsibility initiatives focus on healthcare, education, sustainable livelihood programs, infrastructure development, and social reforms through model villages.[55]

The group implemented programs in partnership with various NGOs and government agencies, including the Aditya Birla Public Health Initiative, and Project Unnati.[56]

Healthcare

The group operates 24 hospitals and runs 6,000 medical camps throughout India, providing care to over one million rural residents.[57][58]

Other contributions

Kumar Mangalam Birla and his family ranked fourth on the EdelGive Hurun India Philanthropy List in 2021 and 2022,[59][60] donating INR 377 crore and INR 242 crore respectively.[61][62] 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.[63] In 2019, Kumar Mangalam Birla created a £15mn scholarship program at the London Business School in memory of his grandfather, Basant Kumar Birla.[64]

Government schemes

The group accesses Government Schemes like the Sarva Shiksha Abhiyan, MGNREGA, Pradhan Mantri Gram Sadak Yojana,[65] Pradhan Mantri Awas Yojana, National Rural Livelihood Mission (NRLM),[66] Swachh Bharat Mission,[67] National Rural Drinking Water Program, Pradhan Mantri Kaushal Vikas Yojana,[68] Renewable Energy Development Program, Integrated Child Development Services, National TB Elimination Program and Swarnjayanti Gram Swarojgar Yojana.[56][69]

See also

References

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  3. ^ Gaur, Vatsala (28 May 2019). "Sushil Agarwal elevated as Aditya Birla Group CFO". The Economic Times.
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