Aditya Birla Group

All you want to know about Aditya Birla Group

Aditya Birla Group
Type Private Conglomerate/Listed Companies.
Founded 1900s
Headquarters Mumbai, India
Key people Flag of India Kumar Mangalam Birla (Chairman)
Industry Metals and several others.
Products Aluminium, Copper, Cement, Fertilizer, Textile, Fibre, etc.
Revenue ▲ $24 billion
Employees 100,000+
Subsidiaries Several.
Website www.adityabirla.com

The Aditya Birla Group is a multinational corporation 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.

A US$ 28 billion conglomerate, with a market capitalization of US$ 31.5 billion, over 50 per cent of its revenues flow from its operations across the world[citation needed]. The group is a major player in all the industry sectors it operates in. The Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007[1]. The origins of the group lie in the conglomerate once held by one of India's foremost industrialists Mr. Ghanshyam Das Birla. He bequeathed most of these companies to his grandson, Mr. Aditya Vikram Birla – the father of the current Chairman of the group, Mr. Kumar Mangalam Birla. Mr. Kumar Mangalam Birla is the grandson of Mr. Basant Kumar Birla, who heads his own independent business conglomerate. Several other members of the Birla Family, own and run their independent business groups.


Contents

Businesses

Aditya Birla is organized into various subsidiaries that operate across different sectors. Among these are viscose staple fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, Modern retail (under the 'More' brand of supermarkets, and also under the Trinethra, and Fabmall brands until recently), fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT services. The Group consists of four main companies, which operate in various industry sectors through subsidiaries, joint ventures, etc. These are Hindalco, Grasim, Aditya Birla Nuvo, and UltraTech Cement.

Non Ferrous Metals

The groups non-ferrous metals are under Hindalco. It is a dominant player in aluminum and copper. Its manufacturing locations are primarily in India, and it owns mines in Australia. On February 11, 2007, the company entered into an agreement to acquire the Canadian company Novelis for U$6 billion, making the combined entity the world's largest rolled-aluminium producer. On May 15, 2007, the acquisition was completed with Novelis shareholders receiving $44.93 per outstanding share of common stock.[2].

Hindalco has also recently acquired Alcan's stake in the Utkal Alumina Project Joint venture in Orissa, India. Hindalco is a Fortune500 company. Hindalco makes alumina chemicals, primary aluminum, rolled products, alloy wheels, roofing sheets, wire rods, cast copper rods, copper cathodes and several other products. But the project has faced massive protests from locals. On 16 Dec 2001 three tribal people were shot dead because they were opposed to the project.

Cement

The Groups cement business is under both Grasim and UltraTech cement. Together the two companies under the group account for a substantial share of the cement market in India. UltraTech cement comprises the cement business of L&T which was acquired by the group. UltraTech announced an increase in sales by 17% and Profit After Tax by 46% for the quarter ending September 30, 2007.[citation needed]

Carbon Black

The Group is the fourth largest manufacturer of Carbon Black worldwide. It operates out of facilities in Egypt, Thailand, India and China. It is a major supplier to several major automobile tyre manufacturers worldwide.

Textile Business

The Aditya Birla Group is the world's largest player in the Viscose Staple Fiber industry. It operates out of India, Laos, Thailand, Malaysia and China. It owns the Birla Cellulose brand. Apart from viscose staple fiber, the group also owns acrylic fiber businesses in Egypt and Thailand, viscose filament yarn businesses and spinning mills at several locations all over India and South East Asia.

The group has pulp and plantation interests in Canada and has recently invested in plantations in Laos The Aditya Birla group is also a major player in the branded garments market in India. Its subsidiary, Madura Garments, is a major producer of textile fabric as well as the brand licensee of Louis Phillipe, Van Heusen and Allen Solly in India[citation needed]. It operates it's own retail outlets in several cities in India and now planning to go to into Pakistan as well.

Telecom Services

Idea Cellular is now owned by Adittya Birla Group itself. Previously Aditya Birla Group held a 98.3% stake in Idea Cellular, a leading telecom operator in India[citation needed]. Idea Cellular started off as a joint venture with the group, AT&T and the Tata Group. However the stakes of the remaining partners was eventually acquired by the group. After an Initial Public Offering on the Indian Stock Markets, Idea Cellular now accounts for a third of the group's market capitalization.

Other Businesses

Apart from the above businesses, the group is a major player in industry sectors like Insulators, Fertilizers, IT (owning PSI Data Systems Limited), ITeS (owning Transworks and the Canadian BPO Firm Minacs), Chemicals, Mining, Sponge Iron, Financial Services (jointly with Sunlife) and more recently, Retail.

Philanthropy

The Group actively involves itself in several community development initiatives - in particular around its manufacturing location. The group also supports development activities in areas like healthcare, education, sustainable livelihood, infrastructure and social causes. The group's philanthropic activities are guided by Mrs Rajashree Birla.

It works in 3700 villages, reaching out to 7 million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development. It runs 45 schools and 18 hospitals. Aditya Birla group has entered into retail in the brand name of MORE.

See also

External links

References

  1. ^ "Best Employers in India 2007", Hewitt Associates Best Employers in India Survey (2007-04-13). Retrieved on 20 September 2007. 
  2. ^ "Birla buys Novelis for $6 bn", The Indian Express (2007-02-12). Retrieved on 12 February 2007. 
Retrieved from "http://en.wikipedia.org/wiki/Aditya_Birla_Group"

No comments have been added.



Your name:

City:

Country:

Your comments:

Security check *
(Please enter the number into adjoining box)

 

  • Ads

           
eXTReMe Tracker