DIVERSIFICATION STRATEGY OF ADITYA BIRLA GROUP

PRIYAMBADA PRADHANENROLL ID-4111029029

ABOUT ADITYA BIRLA GROUP Aditya Birla group of companies was formed in the

year 1870. Seth Shiv Narayan Birla launched a trading business

of cotton & Jute in Pilani, in the state of Rajasthan. Entered into speculation business of opium and

gradually moved from speculation of opium to actual trading of opium that had remained exclusively by the English traders.

A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500.

The group operates in 36 countries. It is one of the successful diversified Indian

companies.

BUSINESS SECTORS

COMPANIES IN INDIA Aditya Birla Nuvo   Grasim Industries Limited  Grasim Bhiwani Textiles Limited   Hindalco Industries Limited   UltraTech Cement Limited   Aditya Birla Minacs Worldwide Limited   Aditya Birla Chemicals (India) Limited   Utkal Alumina International Limited   Dahej Harbour & Infrastructure Limited   Aditya Birla Science and Technology Company Limited   Aditya Birla Finance Limited   Aditya Birla Money   Aditya Birla Insurance Brokers   Aditya Birla Capital Advisors Private Limited   Idea Cellular Limited   Madura Fashion and Lifestyle   Essel Mining and Industries  Aditya Birla Retail Limited   Aditya Birla Group Power Projects

FACT FILES The world's largest aluminium rolling company No.1 in viscose staple fibre Biggest producer of primary aluminium in Asia Among the top 10 cement producers globally The No.1 producer of carbon black in the world Fourth-largest producer of insulators in the world Fifth-largest producer of acrylic fibre in the world Among the best energy efficient fertiliser plants 

JOINT VENTURES

CORPORATE STRATEGY AND BUSINESS DEVELOPMENT

BEGINNING OF DIVERSIFYING THE BUSINESS

BUSINESS DIVERSIFICATION STRATEGY

Wide political and industry network from the early days of Seth Baldeodas.

New technological collaborations were undertaken to modernize the existing units. For instance, Hindustan Motors tied up with Lord Nuffield to manufacture the legendary Morris Minor.

Diversification also served the purpose of saving tax and retaining profits within the company.

In-house Training and Internship for Diversification.

the Birlas got eight years of tax holidays, an eight year holiday for business tax (sales tax), eight year holiday for all remittances of royalties and technical know-how fees which normally attract a 20% tax.

LEVERAGING THE INDUSTRIAL POLICY CHANGES SINCE 1991

Birlas swung to action and they diversified into newer sunrise industries like petrochemicals, telecom, retail, insurance and financial services.