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  • ADITYA BIRLA NUVO LIMITED

  • Mr. Aditya BirlaWe live by his values.Integrity, Commitment, Passion, Seamlessness and Speed.

    CMYK

    Tho

    mso

    n P

    ress

    ADITYA BIRLA NUVO & ITS SUBSIDIARIES / JOINT VENTURESADITYA BIRLA NUVO & ITS SUBSIDIARIES / JOINT VENTURESADITYA BIRLA NUVO & ITS SUBSIDIARIES / JOINT VENTURESADITYA BIRLA NUVO & ITS SUBSIDIARIES / JOINT VENTURESADITYA BIRLA NUVO & ITS SUBSIDIARIES / JOINT VENTURES

    ADITYA BIRLA NUVO LTD.ADITYA BIRLA NUVO LTD.ADITYA BIRLA NUVO LTD.ADITYA BIRLA NUVO LTD.ADITYA BIRLA NUVO LTD. : Fashion & Lifestyle, Agri-business, Rayon Yarn (Incl.Viscose Filament Yarn, Caustic Soda and AlliedChemicals), Insulators, Textiles (Spun Yarn &Fabrics),*.

    I)I)I)I)I) ADITYA BIRLA FINANCIAL SERVICESADITYA BIRLA FINANCIAL SERVICESADITYA BIRLA FINANCIAL SERVICESADITYA BIRLA FINANCIAL SERVICESADITYA BIRLA FINANCIAL SERVICES

    SubsidiariesSubsidiariesSubsidiariesSubsidiariesSubsidiaries Birla Sun Life Insurance Company Ltd. : Life Insurance

    [JV with Sun Life Financial Inc of Canada] Aditya Birla Financial Services Pvt. Ltd. (ABFSPL) : Investment

    Aditya Birla Money Ltd. : Equity Broking Aditya Birla Commodities Broking Ltd. : Commodities Broking

    Aditya Birla Capital Advisors Pvt. Ltd. : Private Equity Investment, Advisory &Management Services

    Aditya Birla Trustee Company Pvt. Ltd. : Trustee of Private Equity Fund Aditya Birla Customer Services Pvt. Ltd. : General Services Aditya Birla Financial Shared Services Ltd. : Financial & IT enabled services Aditya Birla Insurance Brokers Ltd. : Non-life Insurance Advisory and Broking Aditya Birla Finance Ltd. : NBFC / Fund Based Lending

    Aditya Birla Securities Private Ltd. : Aditya Birla Money Mart Ltd. : Wealth Management & Distribution

    Aditya Birla Money Insurance Advisory Services Ltd. : Life Insurance Advisory Birla Sun Life Asset Management Company Ltd. : Asset Management

    [JV with Sun Life Financial Inc of Canada] Birla Sun Life AMC (Mauritius) Ltd. Aditya Birla Sun Life AMC Ltd., Dubai Aditya Birla Sun Life AMC Pte. Ltd., Singapore India Advantage Fund Limited

    Birla Sun Life Trustee Company Pvt. Ltd. : Trustee of Birla Sun Life Mutual Fund[JV with Sun Life Financial Inc of Canada]

    Aditya Birla Housing Finance Limited. : Housing Finance ABNL Investment Ltd. : Investment

    II)II)II)II)II) IT-ITeS SUBSIDIARIESIT-ITeS SUBSIDIARIESIT-ITeS SUBSIDIARIESIT-ITeS SUBSIDIARIESIT-ITeS SUBSIDIARIES ABNL IT & ITES Limited : Business Process Outsourcing Services

    and Software Services Aditya Birla Minacs Worldwide Ltd. & its subsidiaries

    Aditya Birla Minacs Philippines Inc, Philippines AV Transworks Ltd., Canada Aditya Birla Minacs Worldwide Inc., Canada &

    its subsidiaries Minacs Group, (USA) Inc.

    Bureau of Collection Recovery, LLC Minacs Worldwide S.A. de C.V., Mexico Minacs Ltd, UK Minacs Worldwide GmbH, Germany Minacs Kft., Hungary Bureau of Collection Recovery (BCR) Inc. Aditya Birla Minacs BPO Ltd. UK

    Aditya Birla Minacs BPO Pvt. Ltd., India

    III)III)III)III)III) GARMENTS & OTHERS SUBSIDIARIESGARMENTS & OTHERS SUBSIDIARIESGARMENTS & OTHERS SUBSIDIARIESGARMENTS & OTHERS SUBSIDIARIESGARMENTS & OTHERS SUBSIDIARIES Madura Garments Lifestyle Retail Company Ltd. : Branded Apparel and Accessories Indigold Trade & Services Ltd. : Garments/ Miscellaneous

    Pantaloons Fashion & Retail Ltd. : Branded Apparel and Accessories Aditya Vikram Global Trading House Ltd. : International General Trading Shaktiman Mega Food Park Pvt. Ltd. : Food Park

    IV)IV)IV)IV)IV) TELECOM (JOINT VENTURE)TELECOM (JOINT VENTURE)TELECOM (JOINT VENTURE)TELECOM (JOINT VENTURE)TELECOM (JOINT VENTURE) Idea Cellular Ltd. : Telecommunication Services

    * Having received shareholders approval, the Company is in the process of divesting the Carbon Black Business w.e.f. 1st April 2013.

    NUVO

    CMYK

  • CMYK

    Annual Report 2012-2013 i

    Aditya Birla Nuvo Limited THE CHAIRMANS LETTER TO SHAREHOLDERS

    Dear Shareholders,

    The global scenario

    Across the world in 2012, the economyremained a worry. Global GDP fell to 3.2%compared to 4% in 2011. Many of thesystemic vulnerabilities continued. Amongthese were fiscal fragility, hidden andunknown risks of financial derivativeinstruments and the problems of the weakerEurozone economies. The increasinginstances of political gridlock aggravated thesituation.

    While these are not totally left behind, thereare strong positives. The unwinding offinancial leverage, several rounds of liquidityinjections, with Japan also joining in augur wellfor the global economy. Alongside, continuinglow interest rates, sharp corrections incommodity and energy prices, and a modestrecovery in the US housing market ring in adegree of optimism. Furthermore, the privatecorporate sector seems on the path tostepping up investment outlays. Thankfully,the worst case outcomes have been averted.The US has not fallen off the fiscal cliff.And, despite the recent financial shocks inCyprus, the government bond yields havefallen. The global economy has clearly showna lot of resilience.

    The global economy is now moving on to asurer recovery mode. The IMF projects growth

  • ii Annual Report 2012-2013

    MANAGEMENTS DISCUSSION AND ANALYSIS

    Aditya Birla Nuvo LimitedTHE CHAIRMANS LETTER TO SHAREHOLDERS

    at 3.25% in 2013, increasing to 4.0% in 2014. The GDPgrowth in emerging markets and developing countries isplaced at 5.3% in 2013, increasing to 5.7% in 2014.The US GDP is expected to grow 1.9% in 2013, risingsharply to 3.0% in 2014. Europe will remain a laggard,with de-growth at -0.3% this year, and inching to just over1% in 2014. Chinas growth will scale back from its recentdouble digit levels to 7-8%, which is still respectable.

    Developments on the global front undeniably dentedIndias growth level, besides the issues at home.

    The Indian economy ongoing resilience

    Slow growth, investor diffidence, the rupee falling to anall time low, power outages and a poor monsoon addedto the countrys woes. High commodity prices and supplyconstraints of critical raw material, such as coal and naturalgas, further compounded the problem. Unsurprisinglythen, Indias GDP growth slowed markedly in 2012-13,to 5%, down from 6.2% in the previous year.The manufacturing sector recorded a growth of only1.9% in 2012-13, down from 2.7% in 2011-12. Exportgrowth in 2012-13 was 5.1%, compared to 15.3% in theprevious year.

    There are good signs, as we move into the fiscal201314. There have been some positive policydevelopments in recent months. These include a declinein interest rates and a move towards market-based pricingfor diesel and petrol. If this pricing flexibility persists, itcould make a considerable dent in the subsidy bill. Theexpectation of a normal monsoon is a positive, goingforward.

    In the FY 2013-14, the GDP growth is projected to risemodestly to around 6.0% with much of the improvementlikely only in the second half of the year. Industrial activitywill continue to be adversely affected by regulatorybottlenecks. The recent decline in commodity prices,

    In the face of all these

    odds, for the Financial

    Year 2012-13, your

    Company has posted a

    noteworthy performance.

    Its consolidated revenues

    grew by 17% to

    USD 4.75 billion

    (` 25,490 Crore) and

    EBITDA at USD 767

    million (` 4,142 Crore)

    rose by 27%. Net profit

    is up by 19% at USD 196

    million (` 1,059 Crore).

  • Annual Report 2012-2013 iii

    Aditya Birla Nuvo Limited THE CHAIRMANS LETTER TO SHAREHOLDERS

    particularly of crude oil, and continuing buoyancy of FIIsinflows will pave the way for greater exchange ratestability, and a moderation of inflation. The RBI projects a5.5% increase in the wholesale price index in theFY 2013-14, down from 7.3% in the previous year.

    These developments affect your Companys growth andperformance.

    In the face of all these odds, for the Financial Year2012-13, your Company has posted a noteworthyperformance. Its consolidated revenues grew by 17% toUSD 4.75 billion (` 25,490 Crore) and EBITDA at USD 767million (` 4,142 Crore) rose by 27%. Net profit is up by19% at USD 196 million (` 1,059 Crore). Most of thebusinesses of your Company have done very well.Let me apprise you briefly on each business.

    On the Financial Services business, I am pleased to statethat it has become a significant player in the non-bankingspace with 8 verticals. Its performance has beennoteworthy with consolidated revenue of USD 1.2 billionand EBITDA at an all time high of USD 152 million. Itsmarket share across all its verticals is on a continuousgrowth mode. Financial Services business is the largestcontributor to your Company's profits and generates ahealthy 31% return on average capital employed.

    Today, between our Life Insurance and AssetManagement businesses, we manage around USD 20billion of assets making us a top 5 fund manager in thecountry, excluding LIC. The Life Insurance businesscontinues to be in the 5th position. The AssetManagement business, ranked 4th, is one of the fastestgrowing AMC's in the industry. The Lending business hasdoubled its book size. The Broking and WealthManagement business continues to be innovative in itsofferings. The General Insurance Broking business hascontinued to gain market share at a scorching paceof growth.

    On the Financial Services

    business, I am pleased

    to state that it has

    become a significant

    player in the non-banking

    space with 8 verticals.

    Its performance has been

    noteworthy with

    consolidated revenue

    of USD 1.2 billion and

    EBITDA at an all time

    high of USD 152 million.

    Its market share across

    all its verticals is on a

    continuous growth mode.

  • iv Annual Report 2012-2013

    MANAGEMENTS DISCUSSION AND ANALYSIS

    Aditya Birla Nuvo LimitedTHE CHAIRMANS LETTER TO SHAREHOLDERS

    The opening up of the banking sector by the Reserve Bankof India is indeed a forward looking step. For yourCompany, getting into the banking sector is a perfectstrategic fit, given that it completes the bouquet of financialservices that we offer. We are in the process of filing ourapplication and are hopeful of a positive outcome.

    Moving to the Telecom sector, Idea has made significantstrides. Its performance has been amazing. Its revenuewas USD 4.15 billion with an EBITDA of USD 1.13 billion.Idea continues to be the fastest growing major telecomoperator, sustaining a growth rate that is 1.5 times that ofthe sector. It is among the select club of mobile operatorsglobally with about 122 million customers. It is among thetop 10 cellular operators in the world, carrying 1.6 billionminutes of voice calls every day. Besides the voicebusiness, Idea's presence is being increasingly felt in thenew fastest evolving mobile broadband segment.

    Over 20% of its existing subscribers generated global scaleInternet Data Traffic at 3.75 billion mega byte per monthon 'Idea's High Speed Mobile Broadband' network. Witha high proportion of Indian mobile subscribers rapidlyupgrading to the latest smartphones and tablets, Idea's3G overlay network presence augurs a huge futurebusiness potential upside.

    Madura Fashion & Lifestyle outperformed the industry,registering a growth of 15%. Its sale stood atUSD 467 million. It achieved its highest ever EBITDAat USD 45 million, up by 25% over the previous year.Three of its brands - Louis Philippe, Van Heusen andPeter England feature among the top 5 apparel brandsin the country. With over 3,000 stores, Madura Fashion& Lifestyle boasts of the largest distribution networkin the country.

    The acquisition of Pantaloons Fashion business fromFuture Group this year, is in line with our strategic intent

    Idea continues to be the

    fastest growing major

    telecom operator,

    sustaining a growth rate

    that is 1.5 times that

    of the sector. It is among

    the select club of mobile

    operators globally with

    about 122 million

    customers. It is among

    the top 10 cellular

    operators in the world,

    carrying 1.6 billion

    minutes of voice calls

    every day

  • Annual Report 2012-2013 v

    Aditya Birla Nuvo Limited THE CHAIRMANS LETTER TO SHAREHOLDERS

    to be the leader in this segment. It has enabled us tobecome the largest branded fashion player in the countrythrough an extension into fast fashion segment. For thenine months period ending March 2013, the businessreported revenues of USD 238 million.

    In the linen segment, to capitalize on the ever increasingdemand and the marked preference for our linen fabric, acapacity expansion is underway.

    In the BPO sector, revenue of Aditya Birla Minacs grewby 18% to USD 457 million. Minacs has marketed newbusiness of a total contract value of USD 230 million. Ithas transformed its business over the last few years, with40% of its revenues now coming from Non-Voice services.

    In the Agri business, Indo Gulf achieved almost a 40%growth in revenue of USD 542 million (` 2,924 Crore)largely led by doubling of its trading business. Though salesvolume of Birla Shaktiman Urea were at an all time highof 1.23 million metric tons, profitability was affected byannual maintenance shutdown for 20 days and a steepincrease in the capital employed on account of subsidyreceivables from the Government.

    In the light of the Government's recently announced policyrelating to investments in this sector, our plans for1.3 million tons urea expansion at your Company's existingplant in Jagdishpur (Lucknow), have been blue printed.After greater clarity on the allocation of natural gas is speltout, we will roll out the brownfield venture.

    In the Rayon business, I very proudly share the fact thatwe continue to enjoy the stellar position of the largestIndian exporter of Viscose filament yarn - for the 8th yearin a row. The business deserves kudos on its profitabilitynumbers as well.

    The Insulators business witnessed a challenging year dueto cheaper imports from China. Power Projects in the

    Madura Fashion &

    Lifestyle outperformed

    the industry, registering

    a growth of 15%.

    Its sale stood at USD 467

    million. It achieved its

    highest ever EBITDA

    at USD 45 million, up by

    25% over the previous

    year. Three of its brands -

    Louis Philippe,

    Van Heusen and

    Peter England feature

    among the top 5 apparel

    brands in the country.

    With over 3,000 stores,

    Madura Fashion &

    Lifestyle boasts of the

    largest distribution

    network in the country.

  • vi Annual Report 2012-2013

    MANAGEMENTS DISCUSSION AND ANALYSIS

    Aditya Birla Nuvo LimitedTHE CHAIRMANS LETTER TO SHAREHOLDERS

    pipeline at the national level have been deferred and thishas also put the brakes on the Insulator sector's growth.

    With your approval, your Company has decided to exitfrom the Carbon Black business, given the limitation ofscale and sector dynamics. Its divestment as goingconcern is underway.

    Outlook

    Your Company has a very strong balance sheet, robustcash flows, and gearing levels well within reasonablelimits. The proceeds from the divestment of the CarbonBlack business and the remaining equity infusion by yourCompany's promoters will add additional heft.

    As you are aware both Idea Cellular and Birla Sun LifeInsurance have started distributing dividend. This reflectsthe beginning of generating returns on long terminvestments. It bolsters the confidence of our multiplestakeholders.

    From its position of strength, your Company is indeed allset to scale higher peaks.

    To our Teams

    I thank all of our teams. For most of our employees, I cansay with certitude that their commitment towards theirresponsibility to give results has been incrediblyoverwhelming. They have enriched your Company anddetermined its course over the years. I am confident thatas we move into an even higher growth trajectory, ourpeople will continue to rise to the increasing demands oftheir work.

    The Aditya Birla Group in perspective

    Over the last two years, significant changes have impactedthe global and domestic business scenario. Given ourresilience, our Group has managed to weather the storm.

    Your Company has a

    very strong balance

    sheet, robust cash flows,

    and gearing levels well

    within reasonable limits.

    The proceeds from the

    divestment of the

    Carbon Black business

    and the remaining equity

    infusion by your

    Company's promoters

    will add additional heft.

  • Annual Report 2012-2013 vii

    Aditya Birla Nuvo Limited THE CHAIRMANS LETTER TO SHAREHOLDERS

    Our consolidated revenue at US 42 billion dollars ismarginally above that of the last year.

    I believe, that if we have been able to sustain our revenues,it is because of the quality of our 136,000 strong workforcespread over 36 countries and 42 nationalities. The hallmarkof our overall leadership development efforts has beenour belief in taking bets on our people. And it has indeedpaid off.

    Our entrepreneurial DNA also encourages risk takingwhich includes taking risks with people, of course withsafety nets. We believe that people are endowed withimmense capability our task is to spot them, early intheir careers and provide them with suitable opportunitiesto try their hand at and test their skills. Our investment inpeople processes has enabled us have a robust bench-strength of talent. Our entire focus is on ensuring that wealways remain a meritocracy. This pool of talent isdeveloped through a series of planned exposures,assignments and training opportunities, so that they areprepared to take on leadership roles as and when theseemerge.

    Let me elucidate these aspects with an overview of ourtalent management and leadership developmentprocesses.

    Two new programmes, namely, Step UP and TurningPoint have been launched. These aim primarily toprepare Departmental Heads and Functional Heads forthe next stage of their career development as Functionalheads and Cost Centre heads respectively. The first pilotbatches have already undergone the initial rounds oftraining. These programmes will be furtherinstitutionalised.

    Last year, I had alluded to the launch of our P&L LeadersDevelopment Program, called The Cutting Edge.

    Our entrepreneurial DNA

    also encourages risk

    taking which includes

    taking risks with people,

    of course with safety

    nets. We believe that

    people are endowed

    with immense capability

    our task is to spot

    them, early in their

    careers and provide

    them with suitable

    opportunities to try their

    hand at and test their

    skills. Our investment in

    people processes has

    enabled us have a

    robust bench-strength

    of talent. Our entire

    focus is on ensuring

    that we always remain

    a meritocracy.

  • viii Annual Report 2012-2013

    MANAGEMENTS DISCUSSION AND ANALYSIS

    Aditya Birla Nuvo LimitedTHE CHAIRMANS LETTER TO SHAREHOLDERS

    The objective of this programme is to prepare our high-performing functional heads to take on P&L roles.The programme has taken off to a solid start. The firstbatch of participants has been already absorbed in theglobal immersion programme across 4 different countries.The second batch of The Cutting Edge will soon starttheir programme.

    To augment talent on the technical side, we have alsobeen hiring, for the first time, a select set of manufacturingprofessionals directly at the Group level. The first grouphas already moved into our businesses.

    Our in-house learning university Gyanodaya is a globallybench-marked institution. It leverages resources fromaround the world to meet the development needs of ourleadership. Last year, it had 28,000 touch points andpartnered with several external institutions andcorporations for collaborative learning. More than a1,000 executives take courses at Gyanodaya each year.

    Furthermore, we have institutionalised global careerpathsdriven both by the individual and the organisationsneeds. To a great extent, this allows an individual to takecharge of his own career. We leverage vacancies acrossthe Group and stimulate talent mobility by identifying andmoving leaders across geographies and functions and intonew roles as part of their career development.Development for us, today, means providing peopleopportunities to learn from their work rather than takingthem away from their work to learn.

    Let me give you some statistics relating to fast tracking oftalent. Since April 2011, from our management cadre,comprising of 37,600 colleagues, 15%, i.e. 5,824 havebeen promoted; 18% i.e. 6,481 have moved roles; and12%, i.e. 4,543 have moved location.

    Additionally, we seek feedback in an institutionalised wayand conduct conversations with our people across the

    Our in-house learning

    university Gyanodaya

    is a globally bench-

    marked institution.

    It leverages resources

    from around the world

    to meet the development

    needs of our leadership.

    Last year, it had

    28,000 touch points and

    partnered with several

    external institutions and

    corporations for

    collaborative learning.

    More than a 1,000

    executives take

    courses at Gyanodaya

    each year.

  • Annual Report 2012-2013 ix

    Aditya Birla Nuvo Limited THE CHAIRMANS LETTER TO SHAREHOLDERS

    Group to gauge their engagement with our Group.We call it Vibes. The Vibes survey is carried out by aglobal reputed external HR research agency. This year,94% of our 35,000 Executives participated in the Vibessurvey, which is an indication of their engagement withthe Group. It was very heartening for me to see that 92%of employees have an overwhelming sense of pride inour Group. More than 80% are engaged employees and,again, over 90% say that they understand the connectbetween their work and goals of business.

    Today, we are reckoned as an Employer of Choice thatoffers a World of Opportunities for talent.

    I take great pride in sharing with you that our Group (AdityaBirla Group) has topped Nielsens Corporate Image Monitor2012-13. An extract from their media release wouldinterest you

    Aditya Birla Group has emerged as the Number1 corporate, the Best in Class across all the six pillars ofCorporate Image, according to the annual Corporate ImageMonitor 2012-13, conducted by Nielsen, a leading globalprovider of insights and information into what consumerswatch and buy. The six pillars of Corporate Image compriseof Product and Service Quality, Vision and Leadership,Workplace Management, Financial Performance,Operating Style and Social Responsibility.

    Nielsens Corporate Image Monitor measures thereputation of the 40 leading companies in India acrosssectors and serves as an important indicator of thestrength of the corporate brand.

    The survey was conducted among policy makers, thefinancial media, financial analysts, investors, professionalsfrom the corporate sector and the general public across7 metros. The 40 corporates covered in this survey wereselected using The Economic Times-500 and the Business

    It was very heartening

    for me to see that 92%

    of employees have an

    overwhelming sense of

    pride in our Group.

    More than 80% are

    engaged employees and,

    again, over 90% say

    that they understand

    the connect between

    their work and goals

    of business.

    Today, we are reckoned

    as an Employer of

    Choice that offers a

    World of Opportunities

    for talent.

    I take great pride in

    sharing with you that

    our Group (Aditya Birla

    Group) has topped

    Nielsens Corporate

    Image Monitor 2012-13.

  • x Annual Report 2012-2013

    MANAGEMENTS DISCUSSION AND ANALYSIS

    Aditya Birla Nuvo LimitedTHE CHAIRMANS LETTER TO SHAREHOLDERS

    Today-500 list of listed companies. Nielsen is a globalmarket research company, headquartered in New York andoperating in 60 countries.

    In sum

    Let me conclude that we have strong Balance Sheets,robust cash-flows and gearing levels well withinreasonable limits. The global presence of our Group andthe experience of operating in 36 countries invests us withthe strength to acquire assets or grow organicallyanywhere in the world in different business environments.

    And finally, our indomitable strength of running low cost,highly efficient and vastly productive operations, throughour embedded culture of continuous improvement andinnovation, will see us through good times as well astough times.

    Yours sincerely,

    Kumar Mangalam Birla

    Our indomitable strength

    of running low cost,

    highly efficient and

    vastly productive

    operations, through our

    embedded culture of

    continuous improvement

    and innovation, will see

    us through good times

    as well as tough times.

  • * As on 29th May 2013

    A premium conglomerate having leadership position

    across businesses Aditya Birla Nuvo is a USD 4.75 billion premium conglomerate.It commands leadership position in India across its Financial Services, Fashion & Lifestyle, Telecom, IT-ITeS and Manufacturing businesses. The Company has built many large scale businesses from scratch. Mergers and acquisitions have also played a key role in the Companys transformational journey from a manufacturing company in late nineties to a premium conglomerate today.

    During this journey, the consolidated revenue of Aditya Birla Nuvo has risen 20 times to ` 25,490 Crore and its market capitalisation has grown 23 times to ` 13,000 Crore (USD 2.4 billion)*.

    Today, the Company touches lives of about 125 million Indians. It offers varied products and services through more than 30 popular brands to meet their life assurance, investment, consumption, agri and fashion & lifestyle needs. Idea Cellular, Louis Philippe, Van Heusen, Allen Solly, Peter England, Pantaloons, Linen Club, Birla Sun Life Insurance, Birla Sun Life Mutual Fund, Birla Shaktiman are among the most trusted and admired brands in India.

    The Company is trusted by more than 146,000 shareholders and is anchored by a talented human asset of over 69,000 employees.

    Supported by a strong balance sheet, an experienced management team, salient brand equity and leadership position across the businesses, Aditya Birla Nuvo will continue to tap growth opportunities and create value for all the stakeholders.

    Aditya Birla Nuvo is proud to be part of the Aditya Birla Group. A USD 42 billion multinational headquartered in India, Aditya Birla Groups operations are spread over 36 countries across 6 continents.

  • Aditya Birla Financial Services ranks among the top 5 fund managers in India, excluding LIC. With a wide presence across the life insurance, asset management, NBFC, private equity, broking, wealth management and general insurance advisory businesses, it serves the end-to-end financial services needs of its retail and corporate customers.

    Funds under management of ` 107,560 Crore (USD 20 billion)Lending book of more than ` 8,000 Crore (USD 1.5 billion)Revenue of ` 6,390 Crore (USD 1.2 billion) Trusted by about 5 million customersA nationwide presence through about 1,550 branches/ touch points and 160,000 agents / channel partners

    Among the top 5 fund managers

    Financial Services

  • Fashion & Lifestyle business of Aditya Birla Nuvo is the largest branded apparel player in India, selling one branded apparel every second and redefining fashion & style quotient of millions of Indians.

    Marquee Brands: Louis Philippe, Van Heusen, Allen Solly, Peter England, Planet Fashion, Collective, People, Pantaloons, Linen ClubNationwide presence through 1,443 exclusive brand outlets / stores across 3.7 million sq.ftReaching customers through more than 4,750 multi brand outlets and departmental storesAnnualised revenue of USD 1 billion

    Madura revolutionised Indias branded apparel retail market and is synonymous with panache and modernity.

    Louis Philippe and Van Heusen are the best selling brands in India

    Focusing on Fresh Fashion, Pantaloons has emerged as a strong brand in the fashion industry over past two decades.

    About 4 million loyalty card members - one of the largest in the sector

    Jaya Shree Textiles led the successful journey of linen from a commodity product to a lifestyle symbol.

    The largest manufacturer of Linen Yarn and Linen Fabric in India

    The largest branded apparel player

    Fashion & Lifestyle

  • Idea Cellular, the telecom venture of Aditya Birla Nuvo, is the 3rd largest cellular operator in India with 121.6 million subscribers as on 31st March 2013. It has been the biggest revenue market share gainer in India since past four years.

    Ranks among the top 10 cellular operators in the world with 1.6 billion minutes of voice usage per dayA USD 8 billion (about ` 45,000 Crore as on 29th May 2013) company by market capitalisation A USD 4.2 billion (About ` 22,400 Crore) company by revenue sizeCommands the highest active subscribers ratio in the IndustryOutperforming the industry as a Mobile Number Portability provider Holds a 16% stake in Indus towers, the worlds largest tower company

    The fastest growing telecom major

    Telecom

  • Aditya Birla Minacs is a business process outsourcing solutions provider that partners with global corporations and works towards enhancing clients revenue, profitability and quality of customer service.

    Ranks 6th among Indian BPO companies by revenue sizeRevenue reached ` 2,500 Crore (USD 457 million) markServing several Fortune 500 clients 20,500 experts delivering superior business value to clientsGlobal delivery capabilities across 3 continents and 35 centers spanning Canada, Germany, Hungary, India, Jamaica, Philippines, the UK and the USA

    A global business solution provider

    IT-ITeS

  • `

    Agri

  • The largest Indian VFY exporter

    Rayon

  • Insulators are used in power generation, transmission and distribution. Global clientele of Aditya Birla Insulators include ABB, Areva, Siemens, leading power utilities, Power Grid Corporation of India etc.

    Indias largest and Worlds 4th largest manufacturer of porcelain InsulatorsDelivering world-class quality by leveraging more than four decades of the technical expertise

    Largest manufacturer of insulators

    Insulators

  • The fourth largest asset

    management company in India

    Among the top six Indian

    BPO companies

    Among the top ive private life

    insurers in India

    The third largest cellular

    company in India

    A leading NBFC in India

    The largest producer of linen

    yarn and linen fabric in India

    Evolve Everyday

    Indias #1 premium lifestyle brand

    for men, women and youth

    Indias leading super premium

    lifestyle brand for men

    Famous for creating the concept of

    Friday Dressing and premium casual wear

    BrandscapeBrandscapeBrandscapeBrandscapeBrandscapeBrandscapeBrandscapeBrandscapeBrandscapeBrandscape

    Annual Report 2012-2013

  • A complete agri solutions provider

    to farmers

    The largest exporter and

    second largest manufacturer of

    viscose ilament yarn in India

    Indias largest and worlds fourth

    largest manufacturer of Insulators

    Private equity investmentadvisor and manager

    A leading broking and

    wealth management player in India

    A leading general insurance

    advisory company in India

    Indias irst luxury lifestyle

    concept storeIndias most loved menswear brand

    Among the top two large format

    fashion retailers in India

    Annual Report 2012-2013

  • CMYK

    Aditya Birla Nuvo Limited

    Annual Report 2012-2013

    BOARD OF DIRECTORS

    Clock-wise:

    Mr. Kumar Mangalam Birla - Chairman,Mrs. Rajashree Birla - Non-Executive Director, Dr. Rakesh Jain - Managing Director,

    Mr. Lalit Naik - Dy. Managing Director, Mr. Sushil Agarwal - Whole - Time Director & CFOMr. B. L. Shah - Non-Executive Director, Mr. G. P. Gupta - Independent Director,Ms. Tarjani Vakil - Independent Director, Mr. P. Murari - Independent Director,

    Mr. S. C. Bhargava - Independent Director, Mr. T. Chattopadhyay - Independent (Nominee) Director,Mr. B. R. Gupta - Independent Director.

  • Aditya Birla Nuvo Limited

    Annual Report 2012-2013

    CORPORATE INFORMATION

    MANAGING DIRECTOR

    Dr. Rakesh Jain

    DEPUTY MANAGING DIRECTOR

    Mr. Lalit Naik

    WHOLE-TIME DIRECTOR &

    CHIEF FINANCIAL OFFICER

    Mr. Sushil Agarwal

    COMPANY SECRETARY

    Mr. Devendra Bhandari (upto 31st July, 2013)Mrs. Hutokshi Wadia (w.e.f 1st August, 2013)

    ADITYA BIRLA FINANCIAL SERVICES

    Mr. Ajay Srinivasan Chief Executive Officer

    Mr. Pankaj Razdan Dy. Chief Executive Officer

    RAYON

    Mr. Lalit Naik Business DirectorDr. Bir Kapoor President

    AUDITORS

    Khimji Kunverji & Co.S.R Batliboi & Co. LLP

    OTHER BRANCH AUDITORS

    K. S. Aiyar & Co.Deloitte Haskins & Sells

    TELECOM

    Mr. Himanshu Kapania Business Head

    IT-ITeS

    Dr. Rakesh Jain Business DirectorMr. Deepak Patel Chief Executive Officer

    FASHION & LIFESTYLE

    Mr. Pranab Barua Business Head(Branded Apparels)

    Mr. Ashish Dikshit Chief Executive Officer(Madura Fashion & Lifestyle)

    Mr. Shital Mehta Chief Executive Officer(Pantaloons Fashion)

    Mr. Thomas Varghese Business Head (Textiles)

    Mr. S. Krishnamoorthy President - Jaya Shree Textiles

    AGRI & INSULATORS

    Dr. Rakesh Jain Business Director

    Mr. Lalit Naik Business Head

    Mr. Raj Narayanan Chief Executive Officer

    SOLICITORS

    Amarchand & Mangaldas & Suresh A. Shroff & Co.Mulla & Mulla and Craigie, Blunt & Caroe

    SENIOR MANAGEMENT TEAM

  • Aditya Birla Nuvo LimitedCONTENTS

    Annual Report 2012-2013

    1 Notice

    13 Aditya Birla Nuvo : A Snapshot

    18 Financial Highlights

    20 Management Discussion and Analysis

    50 Directors Report

    65 Business Responsibility Report

    73 Corporate Governance Report

    83 Shareholders Information

    93 Social Report Towards Inclusive Growth

    97 Environment Report Sustainable Development

    99 Standalone Financial Statements

    157 Consolidated Financial Statements

    223 Form of Proxy & Attendance Slip

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    NOTICE is hereby given that the FIFTY-SIXTHAnnual General Meeting of the Members ofADITYA BIRLA NUVO LIMITED will be held atthe Registered Office of the Company at IndianRayon Compound, Veraval - 362 266, Gujarat, onFriday, the 6th September, 2013, at 11.30 a.m. totransact, with or without modification(s), as maybe permissible, the following businesses :

    ORDINARY BUSINESS:

    1. To receive, consider and adopt the AuditedBalance Sheet as at 31st March, 2013, and theStatement of Profit and Loss for the yearended 31st March, 2013, and the Report of theDirectors and Auditors thereon.

    2. To declare dividend on the Equity andPreference Shares of the Company for the yearended on 31st March, 2013.

    3. To appoint a Director in place of Mr. KumarMangalam Birla, who retires from office byrotation and, being eligible, offers himself forre-appointment.

    4. To appoint a Director in place of Mr. G. P. Gupta,who retires from office by rotationand, being eligible, offers himself forre-appointment.

    5. To appoint a Director in place of Mr. T.Chattopadhyay, who retires by rotation and,being eligible, offers himself for re-appointment.

    6. To consider and, if thought fit, to pass thefollowing resolution as an Ordinary Resolutionrelating to the appointment and remunerationof Statutory Auditors of the Company :RESOLVED THAT in conformity with theprovisions of Section 224 and other applicableprovisions, if any, of the Companies Act, 1956,M/s. Khimji Kunverji & Co., CharteredAccountants (Reg. No. 105146W), andM/s. S. R. Batliboi & Co. LLP, CharteredAccountants (Reg. No. 301003E), the retiringAuditors, be and are hereby, re-appointed asthe Joint Statutory Auditors of the Company,to hold office as such from the conclusion ofthis Annual General Meeting until theconclusion of the next Annual General Meetingof the Company, at such remuneration to eachof them, as may be decided by the Board/AuditCommittee of the Board, plus reimbursementof out-of-pocket expenses as may be incurredin the performance of their duties (excludingService Tax, if any).

    7. To consider and, if thought fit, to pass thefollowing resolution as an Ordinary Resolutionrelating to the appointment and remunerationof Branch Auditors of the Company :

    (i) RESOLVED THAT pursuant to theprovisions of Section 228 and otherapplicable provisions, if any, of theCompanies Act, 1956, M/s. KhimjiKunverji & Co., Chartered Accountants,(Reg. No. 105146W) the retiring BranchAuditors, be and are hereby, re-appointedas the Branch Auditors of the Company toaudit the accounts in respect of theCompanys Hi-Tech Carbon Division,Renukoot, Hi-Tech Carbon Division,Gummidipoondi, Hi-Tech Carbon Division,Patalganga, Aditya Birla Insulators, Rishra,and Aditya Birla Insulators, Halol, to holdoffice as such from the conclusion of thisAnnual General Meeting upto theconclusion of the next Annual GeneralMeeting of the Company, at suchremuneration, as may be decided by theBoard/Audit Committee of the Board, plusreimbursement of out-of-pocket expensesas may be incurred in the performance oftheir duties (excluding Service Tax, if any).

    (ii) RESOLVED THAT pursuant to theprovisions of Section 228 and otherapplicable provisions, if any, of theCompanies Act, 1956, M/s. Khimji Kunverji& Co., Chartered Accountants (Reg. No105146 W) and M/s. K.S. Aiyar & Co.,Chartered Accountants (Reg. No 100186W), the retiring Joint Branch Auditors, beand are hereby, re-appointed as the JointBranch Auditors of the Company to auditthe accounts in respect of the CompanysIndian Rayon Division at Veraval, to holdoffice as such from the conclusion of thisAnnual General Meeting until theconclusion of the next Annual GeneralMeeting of the Company, at suchremuneration to each of them, as may bedecided by the Board/Audit Committee ofthe Board, plus reimbursement of out-of-pocket expenses as may be incurred in theperformance of their duties (excludingService Tax, if any).

    (iii) RESOLVED THAT pursuant to theprovisions of Section 228 and otherapplicable provisions, if any, of theCompanies Act, 1956, M/s. S. R. Batliboi& Co. LLP, Chartered Accountants (Reg.No. 301003E), the retiring BranchAuditors, be and are hereby, re-appointedas Branch Auditors of the Company toaudit the accounts in respect of theCompanys Jaya Shree Textiles Division,Rishra, and Indo Gulf Fertilisers,

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    Jagdishpur, to hold office as such fromthe conclusion of this Annual GeneralMeeting until the conclusion of the nextAnnual General Meeting of the Company,at such remuneration, as may be decidedby the Board/Audit Committee of theBoard, plus reimbursement of out-of-pocket expenses as may be incurred inthe performance of their duties (excludingService Tax, if any).

    (iv) RESOLVED THAT pursuant to theprovisions of Section 228 and otherapplicable provisions, if any, of theCompanies Act, 1956, M/s. Deloitte,Haskins & Sells, Chartered Accountants(Reg. No 008072S), the retiring BranchAuditors, be and are hereby, re-appointedas Branch Auditors of the Company to auditthe accounts in respect of the CompanysMadura Fashion & Life Style, Bangalore,to hold office as such from the conclusionof this Annual General Meeting until theconclusion of the next Annual GeneralMeeting of the Company, at suchremuneration, as may be decided by theBoard/Audit Committee of the Board, plusreimbursement of out-of-pocket expensesas may be incurred in the performance oftheir duties (excluding Service Tax, if any).

    SPECIAL BUSINESS:

    8. To consider and, if though fit, to pass thefollowing resolution as a Special Resolution:RESOLVED THAT pursuant to the provisionsof Section 260 and other applicable provisionsof the Companies Act, 1956 (the Act), andthe Articles of Association of the Company,Mr. Lalit Naik, who was appointed as anAdditional Director of the Company by theBoard of Directors of the Company and whoholds office as such only upto the date of thisAnnual General Meeting, and in respect ofwhom the Company has received a notice, inwriting along with a deposit of 500/- pursuantto the provisions of Section 257 of the Act, froma Member signifying his intention to proposeMr. Lalit Naik as a candidate for the office ofDirector of the Company, be and is herebyappointed as a Director of the Company, notliable to retire by rotation.RESOLVED FURTHER THAT pursuant to theprovisions of Sections 198, 269, 309 and 314read with Schedule XIII and other applicableprovisions, if any, of the Companies Act,1956 (including any statutory modification(s)or re-enactment(s) thereof, for the time being

    in force), the relevant provisions of Articles ofAssociation of the Company, consent of theCompany be and is hereby accorded to theappointment and terms of remuneration ofMr. Lalit Naik as Whole-time Director of theCompany designated as Deputy ManagingDirector of the Company, for a period of fiveyears, with effect from 1st January, 2013, onthe terms and conditions set out below:A. Period : 5 Years w.e.f. 1st January, 2013,

    with the liberty to either party to terminatethe appointment on three months noticein writing to the other.

    B. Remuneration:

    (a) Basic Salary: ` 7,04,340/- (RupeesSeven Lakh Four Thousand ThreeHundred Forty Only) per month withsuch increment(s) as the Board/Chairman may decide from time totime, subject, however, to a ceiling` 12,00,000/- (Rupees Twelve LakhOnly) per month as Basic Salary.

    (b) Special Allowance: ` 6,51,580/-(Rupees Six Lakh Fifty-oneThousand Five Hundred Eighty Only)per month with such increment(s) asthe Board/Chairman may decidefrom time to time, subject, however,to a ceiling of ` 16,00,000/- (RupeesSixteen Lakh Only) per month. Thisallowance, however, will not betaken into account for calculation ofbenefits such as Provident Fund,Gratuity, Superannuation and LeaveEncashment.

    (c) Annual Performance Bonus:Performance Bonus linked to theachievement of targets, as may bedecided by the Board/Chairmansubject to a maximum of` 1,50,00,000/- (Rupees One Croreand Fifty Lakh Only) per annum.

    (d) Long-term Incentive Compensation(LTIC)/Employee Stock Options asper the plan applicable to the SeniorExecutives of the Company/AdityaBirla Group including that of anyparent/subsidiary company and asmay be decided by the Chairman/Board.

    C. Perquisites, Allowances and Other

    Benefits:

    (a) Housing : Free furnishedaccommodation or HRA in lieu ofCompany provided accommodation.

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    (b) Reimbursement of expenses onactual, pertaining to electricity, gas,water, telephone and otherreasonable expenses for the upkeepand maintenance in respect of suchaccommodation.

    (c) Medical Expenses Reimbursement:Reimbursement of all expensesincurred in India for self and family,at actuals (including domiciliary andmedical expenses and insurancepremium for medical andhospitalisation policy, as applicable).

    (d) Leave Travel Expenses: Leave TravelExpenses for self and family inaccordance with the Rules of theCompany.

    (e) Club Fees: Fees of one CorporateClub in India (including admission andmembership fee).

    (f) Personal Accident InsurancePremium for self and family as perthe Rules of the Company.

    (g) Companys Contribution towardsProvident Fund and SuperannuationFund, on Basic Salary, as per theRules of the Company.

    (h) Gratuity calculated on Basic Salary asper the Rules of the Company.

    (i) Two cars for use on CompanysBusiness as per the policy of AdityaBirla Group.

    (j) Leave and Encashment of Leave inaccordance with the Rules of theCompany.

    (k) Reimbursement of entertainment,travelling and all other expensesincurred for the business of theCompany as per the Rules of theCompany. Travelling expenses ofspouse accompanying the DeputyManaging Director on any officialoverseas or inland trip will begoverned as per the Rules of theCompany.

    (l) Other Allowances/Benefits,Perquisites: Any other allowances,benefits and perquisites as per theRules applicable to the SeniorExecutives of the Company, and/orwhich may become applicable in thefuture, and/or any other allowance,perquisites as the Board from timeto time decide.

    (m) Mr. Lalit Naik may get the sitting feespaid/payable to other directors forattending meetings of the Board ofDirectors/Committee of Subsidiariesof the Company or Companiespromoted by Aditya Birla Group.

    D. Subject as aforesaid, the DeputyManaging Director shall be governed bysuch other Rules as are applicable to theSenior Executives of the Company fromtime to time.

    E. For the purposes of Gratuity, ProvidentFund, Superannuation and other likebenefits, if any, the services of Mr. LalikNaik, Deputy Managing Director, will beconsidered as continuous service with theCompany from the date of his joining theAditya Birla Group.

    F. Minimum Remuneration :RESOLVED FURTHER THAT

    notwithstanding anything herein abovestated, wherein any financial year closingon or after 31

    st March, 2013, the Company

    incurs a loss or its profits are inadequate,the Company shall pay to Mr. Lalit Naik,the remuneration by way of salary,perquisites and all other allowances asaforesaid in accordance with theapplicable provisions of Schedule XIII ofthe Companies Act, 1956 (includingany statutory modification(s) orre-enactment(s) thereof, for the timebeing in force), and subject to the approvalof the Central Government, whereverrequired.RESOLVED FURTHER THAT the termsand conditions of the appointment and/orremuneration of Mr. Lalit Naik may bealtered or varied from time to time by theBoard and/or Committee thereof as itmay, in its discretion deem fit, or anyamendments made hereafter in thisregard in such manner as may be agreedto between the Board and Mr. Lalit Naik,subject to such approvals as may berequired.

    9. To consider and, if thought fit, to pass thefollowing resolution as a Special Resolution :RESOLVED THAT in accordance with theprovisions of Sections 81(1A) and all otherapplicable provisions, if any, of the CompaniesAct, 1956 (the Act), including any statutorymodification(s) or re-enactment(s) thereof, forthe time being in force, the Memorandum andArticles of Association of the Company, the

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    provisions of the Securities and ExchangeBoard of India (Employee Stock OptionsScheme and Employee Stock PurchaseScheme) Guidelines, 1999, as amended fromtime to time (the SEBI Guidelines), theListing Agreements entered into by theCompany with the stock exchanges where thesecurities of the Company are listed, any rules,guidelines and regulations issued by theReserve Bank of India and any other applicablelaws for the time being in force and subject tosuch approvals, consents, permissions andsanctions, as may be required, and furthersubject to such terms and conditions as maybe prescribed while granting such approvals,consents, permissions and sanctions andwhich may be agreed to and accepted by theBoard of Directors (hereinafter referred to asthe Board which term shall be deemed toinclude any Committee, including the ESOSCompensation Committee constituted by theBoard to exercise its powers conferred by thisResolution) consent of the Company be andis hereby accorded to introduce and implementthe Aditya Birla Nuvo Limited EmployeeStock Options Scheme 2013 (the Scheme2013), the salient features of which arefurnished in the explanatory statement to theNotice; consent be and is hereby accorded tothe Board to create, grant, offer, issue and allotat any time, in one or more tranches, to or forthe benefit of such person(s) who are inpermanent employment of the Company in themanagement cadre, whether working in Indiaor outside India, including any managing orwhole-time director(s) of the Company(hereinafter referred to collectively asemployees, selected on the basis of criteriadecided by the Board or ESOS CompensationCommittee thereof under the Scheme 2013,such number of stock options (comprising ofoptions and/or restricted stock units)exercisable into not more than 3,50,000 equityshares of ` 10/- each, at such price, in one ormore tranches and on such terms andconditions as may be fixed or determined bythe Board in accordance with the SEBIGuidelines or other provisions of the law asmay be prevailing at that time.

    RESOLVED FURTHER THAT in case of anycorporate action(s) such as rights issues, bonusissues, merger and sale of division or otherre-organisation of capital structure of theCompany, as applicable from time to time, if any,additional equity shares are issued by theCompany for the purpose of making a fair and

    reasonable adjustment to the Stock Optionsgranted earlier, the above ceiling of 3,50,000equity shares shall be deemed to beincreased to the extent of such additionalequity shares issued.

    RESOLVED FURTHER THAT in case theequity shares of the Company are either sub-divided or consolidated, then the number ofequity shares to be issued and allotted onexercise of stock options granted under theScheme 2013 and the exercise price of stockoptions granted under the Scheme 2013 shallautomatically stand augmented or reduced, asthe case may be, in the same proportion asthe present face value of ` 10/- per equityshare bears to the revised face value of theequity shares of the Company after such sub-division or consolidation, without affecting anyother rights or obligations of the employeeswho have been granted stock options underthe Scheme 2013.

    RESOLVED FURTHER THAT withoutprejudice to the generality of the above butsubject to the terms as may be approved bythe Members of the Company, the Board isauthorised to formulate, evolve, decide uponand implement the Scheme 2013 anddetermine the detailed terms and conditionsof the aforementioned Scheme 2013 andincluding but not limited to the quantum ofthe stock options to be granted per employee,the number of stock options to be granted ineach tranche, the terms or combination ofterms subject to which the said stock optionsare to be granted, the exercise period, thevesting period, the vesting conditions,instances where such stock options shall lapseand to grant such number of stock options, tosuch employees of the Company, at par or atsuch other price, at such time and on suchterms and conditions as set out in the Scheme2013 and as the Board may in its absolutediscretion think fit.

    RESOLVED FURTHER THAT the Board or anycommittee there of be and is hereby authorisedto issue and allot equity shares upon exerciseof stock options from time to time in the manneraforesaid, and such equity shares shall rank paripassu in all respects with the then existingequity shares of the Company.

    RESOLVED FURTHER THAT the Board beand is hereby authorised to take necessarysteps for listing of the equity shares allottedunder the Scheme 2013 on the stock

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    exchanges where the securities of theCompany are listed in accordance with theprovisions of the listing agreement with theconcerned stock exchanges, SEBI guidelinesand other applicable laws and regulations.

    RESOLVED FURTHER THAT the Board beand is hereby authorised to make anymodifications, changes, variations, alterationsor revisions in the Scheme 2013, as it maydeem fit, from time to time or to suspend,withdraw or revive the Scheme 2013 fromtime to time in conformity with the provisionsof the Act, the SEBI Guidelines and otherapplicable laws unless such variation,amendment, modification or alteration isdetrimental to the interest of the employeeswho have been granted stock options underthe Scheme 2013.

    RESOLVED FURTHER THAT for the purposeof giving effect to the above Resolution, theBoard be and is hereby authorised to do allsuch acts, deeds, matters and things as it may,in its absolute discretion, deem necessary,expedient or proper and to settle all questions,difficulties or doubts that may arise in relationto formulation and implementation of theScheme 2013 at any stage including at thetime of listing of the equity shares issuedherein without requiring Board to secure anyfurther consent or approval of the Membersof the Company to the end and intent that theyshall be deemed to have given their approvalthereto expressly by the authority of thisResolution.

    10. To consider and, if thought fit, to pass thefollowing resolution as a Special Resolution :

    RESOLVED THAT in accordance with theprovisions of Section 81(1A) and all otherapplicable provisions, if any, of the CompaniesAct, 1956 (the Act), including any statutorymodification(s) or re-enactment(s) thereof, forthe time being in force, the Memorandum andArticles of Association of the Company, theprovisions of the Securities and ExchangeBoard of India (Employee Stock OptionsScheme and Employee Stock PurchaseScheme) Guidelines, 1999, as amended fromtime to time (the SEBI Guidelines), theListing Agreements entered into by theCompany with the stock exchanges wheresecurities of the Company are listed, any rules,guidelines and regulations issued by theReserve Bank of India and any other applicablelaws for the time being in force and subject tosuch approvals, consents, permissions and

    sanctions, as may be required, and furthersubject to such terms and conditions as maybe prescribed while granting such approvals,consents, permissions and sanctions andwhich may be agreed to and accepted by theBoard of Directors (hereinafter referred to asthe Board which term shall be deemed toinclude any Committee, including the ESOSCompensation Committee constituted by theBoard to exercise its powers conferred by thisResolution) consent of the Company be andis hereby accorded to the Board, to extendthe benefits and coverage of the Aditya BirlaNuvo Limited Employee Stock OptionsScheme 2013 (the Scheme 2013), referredto in the Resolution under Item No. 9 of thisNotice, also to such persons who are inpermanent employment of any present andfuture holding/subsidiary companies of theCompany in the management cadre, whetherworking in India or outside India, including anymanaging or whole-time director(s) of theholding/subsidiary companies of the Companyunder the Scheme 2013 in the mannermentioned in the Resolution under Item No.9 of this Notice, as may be decided by theBoard or ESOS Compensation Committeethereof in accordance with the SEBIGuidelines or other provisions of the law asmay be prevailing at that time.RESOLVED FURTHER THAT for the purposeof giving effect to the above Resolution, theBoard be and is hereby authorised to do allsuch acts, deeds, matters and things as it may,in its absolute discretion, deem necessary,expedient or proper and to settle anyquestions, difficulties or doubts that may arisein relation to formulation and implementationof the Scheme 2013 at any stage including atthe time of listing of the equity shares issuedherein without requiring the Board to secureany further consent or approval of theMembers of the Company to the end andintent that they shall be deemed to have giventheir approval thereto expressly by theauthority of this Resolution.

    By Order of the Board

    Devendra Bhandari

    Jt. President & Company Secretary

    Place: MumbaiDate: 29th May, 2013

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    1. A MEMBER ENTITLED TO ATTEND AND

    VOTE AT THE 56TH

    ANNUAL GENERAL

    MEETING (THE MEETING) IS ENTITLED

    TO APPOINT A PROXY TO ATTEND AND

    VOTE INSTEAD OF HIMSELF AND THE

    PROXY NEED NOT BE A MEMBER OF THE

    COMPANY.

    THE INSTRUMENT APPOINTING PROXY

    SHOULD, HOWEVER, BE DEPOSITED AT

    THE REGISTERED OFFICE OF THE

    COMPANY NOT LESS THAN FORTY-EIGHT

    HOURS BEFORE THE COMMENCEMENT OF

    THE MEETING.

    2. Corporate Members, intending to depute theirauthorised representatives to attend theMeeting, are requested to send to theCompany a duly certified true copy of theBoard Resolution/Power of Attorneyauthorising their representatives to attend andvote on their behalf at the Meeting.

    3. The relative Explanatory Statements, pursuantto Section 173 of the Companies Act, 1956(the Act), in respect of the business underItem Nos. 8 to 10 of the Notice set out above,is annexed hereto.

    4. The Register of Members and Share TransferBooks of the Company will remain closed fromSaturday, 31st August, 2013 to Friday,6th September, 2013 (both days inclusive), forthe purpose of payment of dividend, if any,approved by the Members.

    5. The Annual Report of the Companyfor the year 2012-13, circulated to themembers of the Company, will be madeavailable on the Companys website(www.adityabirlanuvo.com).

    6. Subject to the provisions of Section 206A ofthe Companies Act, 1956, dividend asrecommended by the Board, if declared atthe Annual General Meeting, will be paid tothose equity shareholders whose namesappear:

    (a) As Member in the Register of Membersof the Company after giving effect to allvalid share transfers in physical form,

    which are lodged with the Company, onor before 30th August, 2013; and

    (b) In respect of the shares in electronic formon the basis of beneficial ownershipfurnished by National SecuritiesDepositories Ltd. (NSDL) and CentralDepositories Services (India) Limited(CDSL) for this purpose as at the end of30th August, 2013.

    Dividend will be paid within a period of30 days from the date of approval by theshareholders in this meeting.

    7. In terms of the provisions of the Sections205A(5) and 205C of the Act, the amount ofdividend, which has remained unclaimed andunpaid for a period of 7 years from its duedate of payment, is required to be transferredto the Investor Education and Protection Fund(IEPF), constituted by the CentralGovernment. No claim by the shareholdershall lie against IEPF or the Company inrespect of the said unclaimed or unpaiddividend amount.

    The details of unpaid/unclaimed dividend forthe year 2005-06 onwards are as under :

    Year Amount Due Date of

    Transfer

    2005-06 ` 31,19,985/- 14.09.2013

    2006-07 ` 34,90,294/- 18.04.2014

    2007-08 ` 38,77,012/- 16.08.2015

    2008-09 ` 31,41,924/- 17.08.2016

    2009-10 ` 40,80,940/- 13.09.2017

    2010-11 ` 47,17,977/- 05.10.2018

    2011-12 ` 56,91,192/- 08.09.2019

    8. Members holding shares in electronic form arerequested to intimate any changes in theiraddress, e-mail id and signature to theirrespective Depository Participants, with whomthey are maintaining their demat accounts.Members holding shares in Physical form arerequested to intimate such changes to theInvestor Service Centre, Indian RayonCompound, Veraval - 362 266.

    9. Reserve Bank of India has initiated NationalElectronic Clearing Service (NECS) for credit of

    NOTES FOR MEMBERS ATTENTION :

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    dividend directly to the bank account ofMembers. Members are requested to registertheir Bank Account Details (Core BankingSolutions enabled account number, 9 digitMICR and 11 digit IFS code), in respect ofshares held in dematerialised form with theirrespective Depository Participants and inrespect of shares held in physical form withthe Company.

    10. In terms of circulars issued by SEBI, it is nowmandatory to quote Permanent AccountNumber (PAN) for participating in thesecurities market. Therefore, Membersholding shares in dematerialised form arerequested to submit the PAN details to theirdepository Participants, whereas Membersholding shares in physical form are requestedto submit the PAN details to the InvestorService Centre, Indian Rayon Compound,Veraval - 362 266.

    11. Documents referred to in the accompanyingNotice and Explanatory Statements areopen at the Registered Office of theCompany on all working days, exceptSaturdays, between 10.00 a.m. and 12.00noon up to the date of the Annual GeneralMeeting.

    12. Members/Proxies should bring theirAttendance Slip sent herewith, duly filled in,for attending the meeting.

    By Order of the Board

    Devendra Bhandari

    Jt. President & Company Secretary

    Place: MumbaiDate: 29th May, 2013

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    ANNEXURE TO THE NOTICE

    The following Explanatory Statements, pursuant toSection 173 of the Companies Act, 1956, set thematerial facts relating to the business mentionedin Item Nos. 8 to 10 of the accompanied Noticedated 29th May, 2013.

    Item No. 8

    Mr. Lalit Naik was appointed by the Board ofDirectors as an Additional Director with effect from1st January, 2013, and holds office up to the date ofthis Annual General Meeting. Mr. Lalit Naik is aB.Tech. in Chemical Engineering from the IndianInstitute of Technology (IIT), Kanpur, and Master ofBusiness Administration from IIM, Ahmedabad. Hehas been with the Aditya Birla Group sinceNovember 2009, and has more than two and a halfdecades of rich professional experience and hasworked in leadership positions in many companies.Considering the vast and diverse experience ofMr. Lalit Naik, the Board feels that it is in the interestof the Company to continue to avail of his servicesas a Director of the Company.The resolution as set out in Item No. 8 of this Noticeis accordingly commended for the approval of theMembers.None of the Directors other than Mr. Naik areinterested in the Resolution at Item No. 8.

    Item Nos. 9 & 10

    Stock options in the hands of the employees havelong been recognised as an effective instrumentto align the interests of the employees with thatof the Company and its shareholdings, providingan opportunity to the employees to share thegrowth of the Company and to create wealth inthe hands of the employees. Accordingly, theCompany intends to reward, attract, motivate andretain employees and directors of the Company,its holding and subsidiary companies for their highlevels of individual performance, their efforts toimprove the financial performance of the Companyand their loyalty to the Company, by offering themequity shares by way of an employee stock optionsscheme. The eligible employees shall be grantedemployee stock options in the form of Options(Options) and/or Restricted Stock Units(RSUs). Options and RSUs are collectivelyreferred to as Stock Options, which will beexercisable into equity shares upon such terms andconditions applicable to the Stock Options, as thecase may be.

    The Board of Directors (the Board) of theCompany at its meeting held on 29th May, 2013,resolved to introduce the Aditya Birla Nuvo LimitedEmployee Stock Options Scheme 2013 (hereinafterreferred to as the Scheme 2013), subject to theapproval of the Members and the provisions of theSecurities and Exchange Board of India (EmployeeStock Options Scheme and Employee StockPurchase Scheme) Guidelines 1999 as amendedfrom time to time (the SEBI Guidelines) andauthorised the ESOS Compensation Committee toformulate the detailed terms and conditions of theScheme 2013 and once formulated to administerand implement the Scheme in accordance with theSEBI Guidelines.

    The Members are informed that the Companyintends to offer not more than 3,50,000 equityshares of ` 10/- each under the Scheme 2013 byway of grant of Stock Options.

    Your approval is being sought for issue of StockOptions to eligible employees of the Company,including its Managing and/or Whole-time Director(s)and that of its holding and/or subsidiary companiesby the introduction of the Scheme 2013.

    The Scheme 2013 is being formulated inaccordance with the ESOP Guidelines. The salientfeatures of the Scheme 2013 are as follows:

    (i) Total number of Stock Options to be granted

    The total number of Stock Options(comprising of Options and RSUs) that mayin the aggregate be granted shall be suchnumber that will entitle the grantees toacquire, in one or more tranches, such equityshares of the Company not exceeding3,50,000 equity shares of ` 10/- each. Theaggregate number of RSUs proposed to begranted under the Scheme 2013 shall not beexercisable into more than 50% of the overallceiling of equity shares (as stated inResolution No. 9 & 10 of the Notice) to beissued under the Scheme 2013 (whichnumber shall be adjusted in lieu ofadjustments/re-organisation of capitalstructure of the Company from time to time).

    One Stock Option entitles the grantees to oneequity share (i.e., one Option will entitle thegrantee to one equity share and one RSU willentitle the grantee to one equity share).

    In case of any corporate action(s) such asrights issues, bonus issues, merger and sale

  • Annual Report 2012-2013 9

    NO

    TIC

    E

    Aditya Birla Nuvo Limited NOTICE

    of division split or consolidation and others,a fair and reasonable adjustment needs to bemade to the Stock Options granted.Accordingly, if any additional equity shares areissued by the Company to the grantees formaking such fair and reasonable adjustment,the ceiling of 3,50,000 shall be deemed tobe increased to the extent of such additionalequity shares issued.

    Stock Options not vested due to non-fulfilmentof the vesting conditions, vested StockOptions which the grantees expressly refuseto exercise, Stock Options (vested and notexercised and unvested) which have beensurrendered and any Stock Options grantedbut not vested or exercised within thestipulated time due to any reasons, shall lapseand these Stock Options or the underlyingequity shares will be available for grant underthe present Scheme 2013 or under a newscheme, subject to compliance with theprovisions of the Applicable Law.

    (ii) Identification of classes of employees entitledto participate in the Scheme 2013Persons who are permanent employees ofthe Company in the management cadre,working out of India, including managing orwhole-time director(s) of the Company, andthat of the holding and/or subsidiarycompanies, as may be decided by the Boardor the ESOS Compensation Committee, shallbe eligible to be granted Stock Options underthe Scheme 2013.The following category of employees/directorsshall not be eligible to participate in theScheme 2013:(a) a Promoter or belonging to the promoter

    group;(b) an Independent Director and Non-

    Executive Director; and(c) a Director, who either by himself or

    through his relatives or through any bodycorporate, directly or indirectly, holdsmore than 10% of the outstanding equityshares of the Company.

    (iii) Requirements of vesting and period of vestingThe Board and/or the ESOS CompensationCommittee may, at its discretion, lay downcertain criteria including, but not limited to,performance metrics on the achievement ofwhich the granted Stock Options would vest.

    The detailed terms and conditions relating tosuch criteria for vesting, the period over whichand the proportion in which the Stock Optionsgranted would vest would be subject to theminimum and maximum vesting period asspecified below.

    Vesting period for Options:The Options would vest not earlier thanone year and not later than five years fromthe date of grant of Options or such otherperiod as may be determined by the Boardand/or the ESOS CompensationCommittee. The vesting schedule (i.e.,exact proportion in which and the exactperiod over which the Options would vest)would be determined by the Board and/or the ESOS Compensation Committee,subject to the minimum vesting period ofone year from the date of grant ofOptions. The Options granted under theScheme 2013 shall vest in one or moretranches.

    Vesting period for RSUs:The RSUs would vest not earlier than oneyear and not later than three years fromthe date of grant of RSUs or such otherperiod as may be determined by the Boardand/or the ESOS CompensationCommittee. The vesting schedule (i.e.,exact proportion in which and the exactperiod over which the RSUs would vest)would be determined by the Board and/or the ESOS Compensation Committee,subject to the minimum vesting period ofone year from the date of grant of RSUs.The RSUs granted under the Scheme2013 shall vest in one or more tranches.

    (iv) Exercise price or pricing formulaExercise price for Options: The equity sharesmay be issued at such price that the Boardand/or ESOS Compensation Committee maydetermine on the date of the grant of StockOptions under the Scheme 2013 and specifiedin the relevant grant documents provided thatthe exercise price per Option shall not be lessthan the face value of the equity share of theCompany.

    Exercise price for RSUs: The RSUs may beissued at face value or as be determined bythe Board and/or the ESOS CompensationCommittee.

  • 10 Annual Report 2012-2013

    NO

    TIC

    EAditya Birla Nuvo LimitedNOTICE

    (v) Exercise period or process of exerciseThe Exercise period would commence fromthe date of vesting and will expire oncompletion of five years from the date ofvesting of Stock Options or such other periodas may be determined by the Board and/orthe ESOS Compensation Committee.

    The Stock Options will be exercisable by theemployees by a written application to theCompany accompanied by payment of theExercise Price in such manner and onexecution of such documents, as may beprescribed by the Board and/or ESOSCompensation Committee from time to time.The Stock Options will lapse if not exercisedwithin the specified exercise period.

    (vi) The Appraisal process for determining theeligibility of employees

    The appraisal process for determining theeligibility of the employee will be specifiedby the Board and/or the ESOS CompensationCommittee, and will be based on criteria,such as role/criticality of the employee, lengthof service with the Company, workperformance, technical knowledge,managerial level, future potential and suchother criteria that may be determined by theBoard and/or ESOS CompensationCommittee at its sole discretion.

    The Board and/or the ESOS CompensationCommittee may decide to extend the benefitsof the Scheme to new entrants or to existingemployees on such basis as it may deem fit.

    (vii) Disclosure and accounting policies

    The Company shall comply with suchapplicable disclosure and accounting policiesas prescribed by the SEBI Guidelines andprescribed by the concerned authorities fromtime to time.

    (viii) Maximum number of Stock Options to beissued per employee and in aggregate

    The maximum number of Stock Options to begranted to any employee shall be decided bythe Board and/or ESOS CompensationCommittee. However, the number of StockOptions that may be granted to a singleemployee under the Scheme 2013 shall notexceed 0.2% of the paid-up equity share

    capital at the time of grant of Stock Options(which shall be adjusted in lieu of adjustments/re-organisation of capital structure of theCompany from time to time).

    The aggregate of all such Stock Options shallnot result into more than 3,50,000 equityshares of the Company, which shall beadjusted in lieu of adjustments/re-organisationof capital structure of the Company from timeto time.

    (ix) Method of Stock Options Valuation

    To calculate the employee compensation cost,the Company shall use the Intrinsic ValueMethod for valuation of the Stock Options. Thedifference between the employeecompensation cost so computed and the costthat shall have been recognised, if it had usedthe Fair Value of the Stock Options, shall bedisclosed in the Directors Report and also theimpact of this difference on profits and onEarnings per Share of the Company shall alsobe disclosed in the Directors Report.

    (x) Transferability of Stock Options

    The Stock Options granted to an employee willnot be transferable to any person and shall notbe pledged, hypothecated, mortgaged orotherwise alienated in any manner. However,in the event of the death of a Stock Optionholder while in employment, the right toexercise all the Stock Options granted to himtill such date shall be transferred to his legalheirs or nominees.

    (xi) Other TermsThe Board and/or ESOS CompensationCommittee shall have the absolute authority tovary or modify the terms of the Scheme 2013in accordance with the regulations andguidelines prescribed by Securities andExchange Board of India or regulations that maybe issued by any appropriate authority, fromtime to time, unless such variation, modificationor alteration is detrimental to the interest of theemployees who have been granted stockoptions under the Scheme 2013.As the Scheme would entail issue of furthershares to persons other than the existingMembers, in terms of Section 81(1A) of theCompanies Act, 1956, as amended, consent

  • Annual Report 2012-2013 11

    NO

    TIC

    E

    Aditya Birla Nuvo Limited NOTICE

    of the Members is being sought by passing aspecial resolution in general meeting.Additionally, in accordance with SEBIGuidelines, a separate resolution is requiredto be passed as a special resolution byMembers of the Company, if benefits of theScheme 2013, as stated in Resolution No. 9of this Notice, are being extended to theemployees of holding and/or subsidiarycompanies. Therefore, a separate resolutionas stated in Resolution No. 10 is proposed toextend the benefits of the Scheme to thepermanent employees (in the managementcadre) including managing or whole-timedirector(s) of the holding and/or subsidiarycompanies of the Company.

    None of the Directors of the Company is inany way, concerned or interested in theresolution, except to the extent of Stock

    Options that may be offered to them underthe Scheme 2013. The Stock Options to begranted under the Scheme 2013 shall not betreated as an offer or invitation made to thepublic for subscription in the securities of theCompany.

    The Board recommends Resolution Nos. 9and 10 for approval of the Members of theCompany.

    By Order of the Board

    Devendra Bhandari

    Jt. President & Company Secretary

    Place: MumbaiDate: 29th May, 2013

  • 12 Annual Report 2012-2013

    NO

    TIC

    EAditya Birla Nuvo LimitedNOTICE

    Nam

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  • CMYK

    A SNAPSHOTAditya Birla Nuvo Limited

    Annual Report 2012-2013 13

    A S

    NA

    PS

    HO

    TADITYA BIRLA NUVO: VISION & MISSION

    TRANSFORMATION FROM A MANUFACTURING COMPANY TO A PREMIUM CONGLOMERATE

    Vision

    To be a premium conglomerate building leadership in businesses

    and creating value for all the stakeholders

    Mission

    Investing in the promising sectors

    Building leadership in businesses

    A platform to drive synergy of resources

    Delivering best value to all the stakeholders

    To be a responsible corporate citizen

    Invested about USD 1.5 billion over these years to support growth

    2013 : Acquisition of Pantaloons

    2006 : Became largest shareholder in Idea

    2005 : Merger of Agri and other Financial Services in ABNL

    2000 : Foray in Fashion & Lifestyle business through acquisition of international brands

    2001 : Foray in Life Insurance business through JV with Sun Life Canada

  • CMYK

    A SNAPSHOT

    14 Annual Report 2012-2013

    Aditya Birla Nuvo Limited

    A S

    NA

    PS

    HO

    T

    NUVO

    Agri*

    Rayon*

    Insulators* Textiles*

    * Represent Divisions; ^Represent Subsidiaries; $Represent Joint Ventures; @JV with Sun Life Financial, Canada; #Listed, Aditya Birla Group holds 45.88%Note 1: Post open offerNote: Percentage figures indicated above represent ABNLs shareholding in its subsidiaries / JVs

    A USD 4.75 BILLION PREMIUM CONGLOMERATE

    Leadership position in India

    Leader

    Top 3

    Top 5

    Financial

    Services

    Telecom$ #

    (25.27%)

    IT-ITeS^

    (99.85%)

    Fashion &

    Lifestyle

    Manufacturing

    Madura*

    Pantaloons^

    (67.95%)1Asset Management^

    (51%)@

    Life Insurance^

    (74%)@

    NBFC^

    Private Equity^

    Broking (75%)^

    Wealth Management^

    General Insurance

    Advisory (50%)^

    CONSOLIDATED EARNINGS MIX - 2012-13

    Revenue` 25,490 Crore

    Segment EBIT` 2,270 Crore

    Financial Services 31%

    Telecom28%

    Fashion & Lifestyle13%

    IT-ITeS7%

    Manufacturing17%

    Financial Services 25%

    Manufacturing16%

    CarbonBlack8%

    Carbon Black 4%

    IT-ITeS10%

    Fashion & Lifestyle19%

    Telecom22%

    Note : Manufacturing includes Agri, Rayon and Insulators businesses. Having received the shareholders' approval, the Company is in the processof divesting the Carbon Black business w.e.f. 1st April 2013

  • CMYK

    A SNAPSHOTAditya Birla Nuvo Limited

    Annual Report 2012-2013 15

    A S

    NA

    PS

    HO

    T

    GROWTH SUPPORTED BY STRONG STANDALONE BALANCE SHEET

    More than 50% of standalone capital employed is deployed in long term investments. With Idea and Birla SunLife Insurance declaring dividend, ABNL has started generating return on its long-term investments.

    Going forward, the Company's balance sheet will be further strengthened and growth plans will be supported by:

    o Proceeds from divestment of Carbon Black business

    o Balance equity infusion of ` 671 Crore by promoters on conversion of remaining 9.82 million warrants

    o Distribution of dividend by Idea and Birla Sun Life Insurance

    Standalone Capital Employed

    (` Crore)Standalone Ratios

    2012-132011-122010-112009-102008-09

    4,9825,436 5,424 5,598

    3,767 3,044 3,4374,696

    5,857

    5,157Fixed Assets &Working Capital

    Long TermInvestments

    0.0

    0.2

    0.4

    0.6

    0.8

    1.0

    Net Debt/Equity (LHS)

    2012-132011-122010-112009-102008-090

    2

    4

    6

    8

    Net Debt/EBITDA (RHS)

    5.8

    4.13.3 3.3

    0.87

    0.74

    0.58 0.53

    3.6

    0.66

    CONSOLIDATED FINANCIAL SNAPSHOT

    Earnings are growing at a robust CAGR All the businesses are contributing to the profitable growth

    Note: The Profit & Loss Account for 2010-11, 2011-12 and 2012-13 has been prepared as per the revised Schedule VI of the Companies Act, 1956

    Revenue

    (` Crore)EBITDA

    (` Crore)Net Profit

    (` Crore)

    14,33115,523

    18,188

    21,840

    25,490

    2012-132011-122010-112009-102008-09

    CAGR 15

    %

    2012-132011-122010-112009-102008-09

    867

    1,686

    2,685

    3,259

    4,142CAG

    R 48%

    2012-132011-122010-112009-102008-09

    (436)

    155

    822 8901,059

  • CMYK

    A SNAPSHOT

    16 Annual Report 2012-2013

    Aditya Birla Nuvo Limited

    A S

    NA

    PS

    HO

    T ROBUST REVENUE GROWTH ACROSS THE BUSINESSES

    Revenue

    (`Crore)

    Note1 : Including full figures of Asset Management business. As per AS27, Asset Management business has been proportionately [email protected] 50% in ABNL's financials, being a 50:50 Joint Venture till 9th October 2012. Thereafter it is consolidated as a subsidiary since Aditya BirlaFinancial Services holds 51% w.e.f. 10th October 2012.

    Note2 : Full financial numbers of Idea Cellular. Being a Joint Venture, Idea Cellular has been consolidated at 31.78% from 10th March 2007 upto12th August 2008, at 27.02% upto 1st March 2010 and at ~25.3% thereafter, as per AS27.

    Note3 : Represents Branded Apparels & Accessories (Madura Fashion & Lifestyle and Pantaloons Fashion & Retail Ltd.) and Textiles businesses.In 2012-13, nine months financials of Pantaloons are included pursuant to its acquisition w.e.f. appointed date 1st July 2012.

    Note4 : Represents Agri, Rayon and Insulators businesses.Note5 : Having received the shareholders' approval, the Company is in the process of divesting the Carbon Black business w.e.f. 1st April 2013.

    2012-132011-122010-112009-102008-09

    TelecomTelecom2

    10,131

    12,398

    15,438

    19,489

    22,407

    2012-132011-122010-112009-102008-09

    Fashion & LifestyleFashion & Lifestyle3

    1,6881,826

    2576

    3,281

    4,930

    2012-132011-122010-112009-102008-09

    IT-ITeSIT-ITeS

    1,7771,530

    1,692

    2,082

    2,466

    2012-132011-122010-112009-102008-09

    ManufacturingManufacturing4

    2,2121,988

    2,327

    3,255

    4,155

    2012-132011-122010-112009-102008-09

    Financial ServicesFinancial Services1

    4,778

    5,8716,313 6,550 6,390

    2012-132011-122010-112009-102008-09

    Carbon BlackCarbon Black5

    1,096 1,161

    1,588

    1,943 2,036

  • CMYK

    A SNAPSHOTAditya Birla Nuvo Limited

    Annual Report 2012-2013 17

    A S

    NA

    PS

    HO

    TSOUND GROWTH IN PROFITABILITY ACROSS THE BUSINESSES

    EBITDA

    (`Crore)

    Note1 : Including full figures of Asset Management business. As per AS27, Asset Management business has been proportionately [email protected] 50% in ABNL's financials, being a 50:50 Joint Venture till 9th October 2012. Thereafter it is consolidated as a subsidiary since Aditya BirlaFinancial Services holds 51% w.e.f. 10th October 2012. Interest cost of NBFC business, being an operating expense as per AS17,is deducted from EBITDA.

    Note2 : Full financial numbers of Idea Cellular. Being a Joint Venture, Idea Cellular has been consolidated at 31.78% from 10th March 2007 upto12th August 2008, at 27.02% up to 1st March 2010 and at ~ 25.3% thereafter, as per AS27.

    Note3 : Represents Branded Apparels & Accessories (Madura Fashion & Lifestyle and Pantaloons Fashion & Retail Ltd.) and Textiles businesses.In 2012-13, nine months financials of Pantaloons are included pursuant to its acquisition w.e.f. appointed date 1st July 2012.

    Note4 : Represents Agri, Rayon and Insulators businesses.Note5 : Having received the shareholders' approval, the Company is in the process of divesting the Carbon Black business w.e.f. 1st April 2013.

    2012-132011-122010-112009-102008-09

    Financial ServicesFinancial Services1

    -586

    -231

    544

    661819

    2012-132011-122010-112009-102008-09

    TelecomTelecom2

    3,0513,621

    3,903

    5,135

    6,091

    2012-132011-122010-112009-102008-09

    Fashion & LifestyleFashion & Lifestyle3

    -104

    66

    235339

    466

    2012-132011-122010-112009-102008-09

    IT-ITeSIT-ITeS

    4

    105

    193 189

    251

    2012-132011-122010-112009-102008-09

    ManufacturingManufacturing4

    474426 420 406

    446

    Carbon BlackCarbon Black5

    50

    253 257204

    132

    2012-132011-122010-112009-1