Taking India to the World…….And Organization Structure back to the 19th Century !!

About the Birlas

Aditya Birla Group started in 1857.

Shiv Narayan Birla started cotton trading operations in the small town of Pilani in Rajasthan.

Ghyanshyamdas Birla(GD birla)-1919-he set the manufacturing company.

Grandson of G.D.Birla is Aditya Vikram Birla(A.V.Birla)-1964

Son of A.V.Birla is Kumar Mangalam Birla(K.M.Birla)-1995. The current Chairman of the Group.

Some HistoricalAchievements in India

1857 -The foundation of the Birla Group of Companies is laid by Seth Shiv Narayan Birla – cotton trading operations commence at Pilani, Rajasthan.

1947-Grasim is incorporated. (rayon weaving)

1958 -Hindalco is incorporated. (aluminium)

1966-The Indian Rayon Corporation Ltd is acquired.

1986-The Birla Growth Fund is set up. (to finance industrial equipment, plant and machinery and consumer durables, as well as for stock market operations)

1988 -joint venture with Hindustan Petroleum Corporation Ltd (to set up a three-million-ton refinery, Mangalore Refineries and Petrochemicals Ltd.

2000 -Indian Rayon acquires Madura Garments

2006-Hindalco in a joint venture with Almex USA Inc.

Vision And Mission

VISION

To be a premium global conglomeratewith a clear focus on

each business.

MISSION

To deliver superior value to our customers,

shareholders, employees and society at large.

Group ProfileGroup companies Grasim Industries Ltd. Hindalco Industries Ltd. Aditya Birla Nuvo Ltd. UltraTech Cement Ltd.

Indian companies PSI Data Systems Aditya Birla Minacs Worldwide Limited Essel Mining & Industries Ltd Idea Cellular Ltd. Aditya Birla Insulators Aditya Birla Retail Limited Bihar Caustic and Chemicals Ltd.

Joint ventures Birla Sun Life Insurance Birla Sun Life Asset Management

Company Ltd. Birla Sun Life Distribution Company Ltd. Tanfac Industries Ltd.

International establishments

Thailand

Philippines

Indonesia

Egypt

China

Canada

Australia

Laos

North and South America, Europe and Asia

GLOBAL FOOTPRINT:

Some Of The ProductsVSF

GARMENTS

TEXTILES

GENERIC STRATEGY

The Aditya Birla Group’s strategy has been to diversify into capital-intensive businesses and become a cost-leader by leveraging on its various strengths.

• It forms a significant part of the group's strategy to actively develop its own technology and create institutional knowledge that can set it apart from the competitors and develop cost leadership in its business ventures.

They are able to pursue this strategy because they have access to the capital required to make a significant investment in production assets, skill in designing products for efficient manufacturing and efficient distribution channels

Aditya Birla group formally launched the Aditya Birla Science & Technology Company (ABSTC) at Taloja, on the outskirts of Mumbai, it was the culmination of a decade-long dream of the company to unify the group's Research & Development initiatives.

With this, the group has emerged as the first Indian conglomerate to launch a Corporate R&D Centre.

Management HierarchyChairman

Chief Executive Officer

Vice President

Assist. Vice President

General Manager

Senior Manager

Chief Financial Officer

Manager

Assistant Manager

Low income and high income Customers

Low income and high income Customers

Premium SegmentPremium Segment

B2B and Industrial Customers

B2B and Industrial Customers

Ek Idea Jo Badal De Aapki Duniya….

Company Overview

Started on March 14, 1995. It was formed as a merger of Birla Communications-

AT&T and Tata Cellular in 2000. It is the 4th largest cellular service provider-

98,441,714 customers or 16.09% of the market. It is a part of the A V Birla Group. Its Promoters are:

Aditya Birla Nuvo Limited Grasim Industries Limited Hindalco Industries Limited Birla TMT Holdings Private Limited

Company Structure

Madura Garments

India’s No1 garment manufacturer (sales volume)

MISSION: To deliver superior value to our customers, shareholders, employees and society at large.

VISION: To be a premium global conglomerate with a clear focus on each business.

Organizational Structure A B Nuvo

Textile & Apparels

Division

Garment Division

COMMERCIALDIRECTOR

DirectorAllen Solly

President (Ashish dixit)

International brand Domestic brand FINANCEDIRECTOR

Director Peter England

Viscose Fiber Div. Textile (Yarn Div)

Strategy & business excellence

Director Louis Philip

Director Van hausen

Organizational Structure

Divisional Structures focused on Products

Divisions Domestic

Peter England International

Louis Philippe Van Heusen Allen Solly

Planet Fashion and International trade sales Planet Fashion

ADITYA BIRLA NUVO LTDIt is a US$4 billion, diversified conglomerate and the platform that has launched many new businesses for Aditya Birla Group.Aditya Birla Nuvo Ltd has a portfolio of manufacturing as well as service sector businesses under its umbrella ranging from textiles to financial services.It follows a divisional organizational structure.The different divisions of Aditya Birla Nuvo are:

TextilesLife InsuranceCarbon Black

BPO and IT servicesTelecom

Financial ServicesViscose Filament Yarn

ApparelAgri Business

BRANDS

Some of the popular brands are:Louis PhilippeVan HeusenAllen SollyIdea CellularBirla Sun Life Insurance Peter England

Critique – The Past of AV Birla Group

• Was a Proponent of the License Raj. Profited a LOT•Upon the inevitability of Liberalization, the then Chairman, Aditya Vikram Birla said:

“ We are not afraid of Global Players coming In.Global Players should be afraid of Us !!”

On Core Competence:

Tatas’ : STEEL is our Core Competence (1990’s)

Birlas’ : DIVERSIFICATION is our Core Competence

Critique…..

• A 19th Century Structure for a 21st Century Company ?

• What is “Partha” ??

• Nepotism ??

• Veto Power to just One Person

• What Structure are its Competitors using ?

• When will it become Professionally Managed ??