Aditya Birla Group

From Wikipedia, the free encyclopedia

Aditya Birla Group

Type	Private Conglomerate/Listed Companies.
Founded	1900s
Headquarters	Mumbai, India
Key people	Kumar Mangalam Birla (Chairman)
Industry	Metals and several others.
Products	Aluminium,Copper,Cement,Textile Fibre etc.
Revenue	▲ $24 billion
Employees	100000+
Subsidiaries	Several.
Website	www.adityabirla.com

The Aditya Birla Group is a multinational corporation based in Mumbai, India and operations in 20 countries including Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malaysia and Korea.

A US$ 24 billion conglomerate, with a market capitalization of US$ 23 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].

Globally the Aditya Birla Group is: • A metals powerhouse, among the world’s most cost-efficient aluminium and copper producers. Hindalco, from its fold, is a Fortune 500 Company. It is also the largest aluminium rolling company and one of the 3 biggest producers of primary aluminium in Asia, with the largest single location copper smelter. • No. 1 in viscose staple fibre. • The 3rd largest producer of insulators. • The 4th largest producer of carbon black. • The 11th largest cement producer globally and the 2nd largest in India. • Among the world’s top 15 BPO companies and among India’s top 3. • Among the best energy efficient fertilisers plants.

In India: • A premier branded garments player. • The 2nd largest player in viscose filament yarn. • The 2nd largest in the Chlor-alkali sector. • Among the top 5 mobile telephony companies. • A leading player in Life Insurance and Asset Management.

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.

1 Businesses
2 Non Ferrous Metals
3 Cement
4 Carbon Black
5 Textile Business
6 Telecom Services
7 Other Businesses
8 Philanthropy
9 See also
10 External links
11 References

[edit] 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.

[edit] 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. Pro company police, administration and goons have cause massive repression in the area and gross human rights violations.

[edit] 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 erstwhile 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]}

[edit] 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.

[edit] 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 Phillip, Van Heusen and Allen Solly in India^{[citation needed]}. It operates company owned retail outlets in several cities in India.and now planning to go to Pakistan as well.

[edit] Telecom Services

Aditya Birla Group holds 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.

[edit] Other Businesses

Apart from the above businesses, the group is a major player in industry sectors like Insulators, Fertilizers, IT (It owns PSI Data Systems Limited - http://www.psidata.com), ITeS (It owns Transworks and recently acquired the Canadian BPO Firm Minacs), Chemicals, Mining, Sponge Iron, Financial Services (A joint venture with Sunlife) and more recently, Retail.

[edit] Philanthropy

The Group actively involves itself in several community development initiatives -in particular around its manufacturing locations . The group also supports development activities in areas like healthcare, education, sustainable livelihood, infrastructure and social causes.The group's philanthrophic 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.