aditya birla

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LETS REACH FOR THE SUN

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Page 1: Aditya birla

LETS REACH FOR THE SUN

Page 2: Aditya birla

The roots of ADITYA BIRLA GROUP date back to the 19th century in the picturesque town of pilani , set amidst the Rajasthan desert . It was here that Seth Narayan Birla started trading in Cotton in 1857, laying the foundation for the ‘House of Birlas’.

In 20th century Ghanshyamdas Birla set up industries in critical sectors such as Textiles & Fibres , Aluminium , Cement & Chemicals

The Aditya Birla Group is a multinational conglomerate based in Mumbai, India with operations in 25 countries including

Thailand, Dubai,Singapore,Myanmar, Laos,Indonesia,Philippines,Egypt,

ADITYA BIRLA GROUP

Canada, Australia, China, USA, UK, Germany, Hungary,

Brazil,Italy,France, Luxembourg, Switzerland, Bangladesh, Malaysia, Vietnam and Korea.

Page 3: Aditya birla

HISTORY

The story of the Birla Group goes back to 1870 when Seth Shiv Narayan Birla, belonging to the Marwari community of West Rajasthan, set up a cotton and jute trading business in Pilani, Rajasthan.

In the 19th century Baldeo Das Birla, son of Shiva Narayana Birla, moved to Calcutta. At that time Calcutta was the hub of activity of the British Empire and consequently the nascent Freedom Movement.

The Birlas are proud of their closeness and support to the movement and was very near to Mahatma Gandhi.

Even today, about two hundred years after the beginning of the Birla story, the name is identical with not only with wealth and power but also with dignity and respect. Business runs in their veins and each generation has been a credit to the legendary name of Birla.

In 1919 the Ghanashyam Das Birla, one of the four sons of Baldeo Das Birla, set up jute mills in West Bengal and thus laid the foundation for the beginning of the Birla industrial empire. In 1947 the Birlas set up Grasim weaving plant and from 1958 added rayon to the list.

Page 4: Aditya birla

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

Grandson of G.D.Birla is Aditya Vikram Birla(A.V.Birla)-1964-1995

Son of A.V.Birla is Kumar Mangalam Birla(K.M.Birla)-1995.

Page 5: Aditya birla

ABOUT K.M.BIRLA

Kumar Mangalam Birla is a chaiman of aditya birla who is son of A.V.Birla. K.M.Birla done C.A and MBA from london business school, at the age of 28 taken responsibility towards business having total revenue of INR 15,000 crores with assets of INR 16,000 crores.It had a strength of

75,000employees and 6,00,000 shareholders.

Page 6: Aditya birla

K.M.BIRLA

After taking up the change,K.M.Birla decided to consolidate entire entire group’s companies under one umbrella of the “Adithya’s birla group”.

Many critics were opinion that “K.M.Birla would unable to manage the group successfully”

When K.M.Birla tookover the business from his father in 1995,his critics dismissed him as a soft and shy person. who lacked the business expertise and assertiveness of his father A.V.Birla.

An unapproachable management style and misplaced priorities the result was the investors started selling off their shares . In 1996 the market value of group’s four largest companies grasim ,indian rayon ,hindalco & indo gulf fertilizer suddenly decreased by $1billion or 37%.

So K.M.Birla took several initiatives to prove his critics wrong.

Page 7: Aditya birla

CHANGES TAKEN BY K.M.BIRLA TO PROVE THAT THE CRITICS ARE WRONG…..

Page 8: Aditya birla

1.RETIREMENT POLICY

He introduced a retirement policy in 1995,on the basis of which around 325 senior emplayees,who were there early 60s,had quit the organization in the next five years .subsequently about 400 young employees replaced them.

Meanwhile ,answering the critics he said, "people in the group about twice my age when I took over as chairman. I had great respect for them personally, but I also feel the need for change”.

Page 9: Aditya birla

2.CORPORATE LOGO

In 1996,he launched for the first time a corporate identity that would serve a corporate logo. The group selected the rising sun as the logo, which signified optimism and served as a unification symbol for the group.

K.M.Birla said, “The new corporate logo helped in bringing various companies of the group together. This helped the organization to reenergize and get started to the path of change”.

Page 10: Aditya birla

3.RECRUITMENT PROCESS

K.M.Birla also changed the group’s policy in house recruitment. In 1996,he also made changes in group’s HR system. He hired professionals from other companies into his management team

Page 11: Aditya birla

4.CHANGE IN DECISION MAKING

The partha system of daily financial reporting which focused mainly on production was replaced with an “Economic value added model”. This model focuses on the aspects of profitability, asset productivity and growth.

K.M.Birla also established aditya birla management corporation limited, the strategic decision making for ensuring the best practices across the group companies.

K.M.Birla decided to reduce the group’s dependence on fiber based business where its market share was low. Instead he decided to concentrate on non-ferrous metals as there was less competition and hindalco already had a big presence in the aluminum sector

Page 12: Aditya birla

5. SCHOLARSHIPS TO STUDENTS AND AWARDS TO EMPLOYEES

In 1999 K.M.Birla launched the aditya birla scholarship to promote excellence among students community to cultivate the leaders of tomorrow.

He said, "cultivating a new generation of managers and cultivating a participative culture are keys to the increasingly energetic, people centered, and performance focused culture we aspire for”.

He also launched Aditya Birla awards in 1999 where team achievements recognized every year .

Page 13: Aditya birla

6.HAPPINESS AT WORK

Birla had also implemented the organizational health survey by the late 1990s, which measured the “Happiness at work” index. This was carried out to track the employees satisfaction.

Page 14: Aditya birla

7. HIERARCHY BASED ON PERFORMANCE OF EMPLOYEES

K.M.Birla also brought in some managerial changes in the group. Before K.M.Birla took the chairmanship, the hierarchy in the group was determined by seniority instead of merit. He instituted a performance appraisal system. He decided to implement performance management systems,reviwed compensations and accentuated on training to bring meritocracy.

He personally led the recruitment program from business schools.

Page 15: Aditya birla

8.CHANGES IN REPORTING

He also brought about changes in reporting system being followed at the group. The top 20 executives of the group, who had greater responsibilities in the group, could report directly to K.M.Birla, thereby giving them complete freedom to run their businesses and same holding the more accountable for their performance.

Page 16: Aditya birla

ANALYSTS OPINION

Several analysts also praised KM Birla’s style of functioning.

Analysts believed that K.M.Birla has began to think big in recent times. He usually used to focus more on extracting rather than betting big on growth.

Despite remaining profitable the company’s growth has been slower as compared to its peers in the recent past. It has been reflected in the stock market. where its market capitalization of

INR30,000 crores is less than its total turnover.

Page 17: Aditya birla

A metals powerhouse, among the world's most cost-efficient aluminium

and copper producers. Hindalco-Novelis is the largest aluminium rolling

company. It is one of the three biggest producers of primary aluminium

in Asia, with the largest single location copper smelter

No.1 in viscose staple fibre

The fourth largest producer of insulators

The fourth largest producer of carbon black

The 11th largest cement producer globally, the seventh largest in Asia

and the second largest in India

Among the world's top 15 BPO companies and among India's top four

Among the best energy efficient fertiliser plants

GLOBALLY THE ADITYA BIRLA GROUP IS..

Page 18: Aditya birla

IN INDIA: 

A premier branded garments player The second largest player in viscose filament

yarn The second largest in the chlor-alkali sector Among the top five mobile

telephony companies:: A leading player in life insurance and asset

management Among the top three supermarket chains in

the retail business

Page 19: Aditya birla

BEYOND BUSINESS — THE ADITYA BIRLA GROUP IS:

Working in 3,700 villages

Reaching out to seven million people annually through

the Aditya Birla Centre for Community Initiatives and

Rural Development, spearheaded by Mrs. Rajashree

Birla

Focusing on: health care, education, sustainable

livelihood, infrastructure and espousing social causes

Running 42 schools and 18 hospital

Page 20: Aditya birla

ADITYA GROUP - SECTORS

Aluminium  Copper  Cement  Carbon Black  Textiles  Fertilisers Chemicals  Mining 

Fatty alcohol Fatty acids Insulators Software BPO Finance and insurance Telecom Retail

Page 21: Aditya birla

ALUMINIUM

HINDALCO INDUSTRIES LTD. Everlast aluminium roofing sheets Freshwrapp aluminium foil Freshpakk semi-rigid containers Permashield waterproofing Aluminium foil Hindalco extrusions

Page 22: Aditya birla

COPPER

Birla Copper (Hindalco Industries Ltd.)

Hindalco Industries Ltd. (Aditya Birla Minerals Resources Pty. Ltd.) Birla Copper Birla Gold Birla Silver

Page 23: Aditya birla

CEMENT

GRASIM INDUSTRIES LTD.Shree Digvijay

UltraTech Cement Ltd.

Page 24: Aditya birla

CEMENT

GRASIM INDUSTRIES LTD.BRANDS

Birla SuperUltraTech Cement (formerly Birla Plus)

Birla White

Page 25: Aditya birla

CEMENT

ULTRATECH CEMENT LTD.BRANDS

UltraTech cementUltraTech Concrete

Page 26: Aditya birla

CEMENT

Shree DigvijayBRANDKAMAL

Page 27: Aditya birla

CARBON BLACK

Aditya Birla Nuvo Ltd (Hi-Tech Carbon)

Thai Carbon Black Co. Ltd. (THAILAND)

Alexandria Carbon Co. S.A.E (EGYPT)

Liaoning Birla Carbon Co. Ltd. (CHINA)

PRODUCTBIRLA CARBON

Page 28: Aditya birla

TEXTILES

Pulp Grasim Industries Ltd. AV Cell Inc. (CANADA) AV Nackawic Inc. (CANADA)

Page 29: Aditya birla

TEXTILES

Fibre Grasim Industries Ltd. Thai Rayon Public Company Ltd.

(THAILAND) PT Indo Bharat Rayon (INDONESIA) Thai Acrylic Fibre (THAILAND) Alexandria Fiber Company, S.A.E

(EGYPT)

Page 30: Aditya birla

TEXTILESYarn

Aditya Birla Nuvo Ltd. Aditya Birla Nuvo Ltd. (Jaya Shree

Textiles) PT Indo Liberty Textiles (INDONESIA) PT Elegant Textile Industry PT Sunrise Bumi Textiles Indo Phil Acrylic Manufacturing

Corporation Indo Phil Textiles Mills Inc Indo Phil Cotton Mills Inc Indo Thai Synthetics Co. Ltd.

Page 31: Aditya birla

TEXTILES

Fabrics Grasim Industries Ltd. Aditya Birla Nuvo Ltd.

Page 32: Aditya birla

TEXTILESBranded apparel

Aditya Birla Nuvo Ltd. (Madura Garments)

Louis PhilippeVan Heusen

Allen SollyPeter England

EspritThe Collective

Page 33: Aditya birla

TEXTILESSuppliers to

Aditya Birla Nuvo Ltd. (Madura Garments)

Marks & Spencer’sPolo

Tommy Hilfiger& several international companies

Page 34: Aditya birla

FERTILISERS

Indo GulfBirla Shaktiman Urea

HINDALCO INDUSTRIES LTD.Birla Balwan

Page 35: Aditya birla

CHEMICALS

Grasim Industries Ltd. Aditya Birla Nuvo Ltd. Tanfac Industries Ltd. Aditya Birla Chemicals (India) Limited Aditya Birla Chemicals (Thailand) Ltd. Thai Peroxide Co. Ltd. PT. Indo Raya Kimia

Page 36: Aditya birla

MINING

Essel Mining & Industries LtdIron and Manganese ore

FATTY ALCOHOL & FATTY ACIDS

Pan Century Surfactants Inc. (PHILIPPINES)

FATTY ACIDSFATTY ALCOHOL

GLYCERIN

Page 37: Aditya birla

INSULATORS

Aditya Birla Insulators

Aditya Birla Minacs IT Services Ltd.(subsidiary of Aditya Birla Nuvo Ltd.)

Aditya Birla Minacs Worldwide Limited(subsidiary of Aditya Birla Nuvo Ltd.)

SOFTWARE

BPO

Page 38: Aditya birla

FINANCE & INSURANCE

Aditya Birla Finance Ltd. Birla Sun Life Insurance Company Ltd. Birla Sun Life Asset Management

Company Ltd. Aditya Birla Money Mart Limited Birla Insurance Advisory and Broking

Services Ltd Aditya Birla Capital Advisors Private

Limited

Page 39: Aditya birla

TELECOM

Idea Cellularover 47.1 million subscribers

Page 40: Aditya birla

more.

SUPERMARKETLaunched in May, 2007, Currently, there are 640 

more. SUPERMARKETS across the country.

HYPERMARKETMore. MEGASTORE

Launched in March 2008, Currently, five hypermarkets operate under the brand more.MEGASTORE in

Mysore, Vadodara, Aurangabad, Indore and Bengaluru. 

RETAIL

Page 41: Aditya birla

RECRUITMENT PROCESS

Requisition for vacancy as per org’s

chart

HRData Bank,Recruitment Agency.

Short Listing

Scheduling the

InterviewInterview

Selection & Negotiation

Offer Letter

Joining InductionTraining &

Development

Page 42: Aditya birla

CULTURE

Making bright minds shine brighter.

Minds are constantly in motion researching, innovating and creating ideas that push as many as 19 industries, forward. 

Create an ambience where people have the tools and the freedom to deliver their commitments and take great pride in their work.

Provide a career that is personally rewarding and professionally enriching.

Performance is at the heart of ABG’s work culture.

Page 43: Aditya birla

VALUESTheir path to excellence. 

Increasingly diverse. Yet, bound by five values:

Integrity: Honesty in Every Action

Acting and taking decisions in a manner that these are fair, honest, following the highest standards of professionalism and are also perceived to be so. 

Commitment: Deliver on the Promise

On the foundation of Integrity, doing whatever it takes to deliver value to stakeholders.

Passion: Energised Action

A missionary zeal arising out of emotional engagement with the organisation that makes work joyful and inspires each one to give his or her best.

Page 44: Aditya birla

VALUESTheir path to excellence. 

Increasingly diverse. Yet, bound by five values:

Seamlessness: Boundary Less in Letter and Spirit

Thinking and working together across functional silos, hierarchies, businesses and geographies.

Speed: One Step Ahead AlwaysContinuously seeking to crash timelines and choosing the right rhythm to optimise organisational efficiencies. 

Page 45: Aditya birla

MERITOCRACY

Performance Management process is transparent and uniform across the Group. Its key features include: 

• Well defined Goals and KRAs ensure that employees have clarity on what is expected of them

• A mid - year review

• An annual performance appraisal process which includes self assessment, supervisor assessment and a skip - level review

• Assessment of the individual on values compliance and demonstration

• Documentation of career aspirations along with developmental requirements to achieve those aspirations

Page 46: Aditya birla

RECOGNITION

You do. You get.

1) Aditya Birla Awardsa) Individual Awards

 Chairman's Awards for Individual ExcellenceThis prestigious award felicitates individual efforts at all levels. Each year, the Chairman personally selects the winners and presents the awards amidst much pomp and splendour at the Group’s awards ceremony.

Page 47: Aditya birla

RECOGNITION

You do. You get.

b) Team Awards

The Aditya Birla Awards for Outstanding

Achievement    These awards presented biennially, recognize superior teamwork, outstanding achievement (benchmarked internationally), and the long-term inspirational value exhibited.

Page 48: Aditya birla

RECOGNITION

You do. You get.

2) PRIDE Awards

    Performance Recognition in Delivering Excellence (PRIDE) is a monetary recognition program to reward and recognize outstanding contributions in businesses and corporate functions. These awards can be awarded for individual as well as team excellence.

Page 49: Aditya birla

CORPORATE SOCIAL RESPONSIBILITY

ABG’S vision is “to actively contribute to the social and economic development of the communities in which we operate. In so doing build a better, sustainable way of life for the weaker sections of society and raise the country’s human development index.”

Page 50: Aditya birla

CORPORATE SOCIAL RESPONSIBILITY

In Education ABG’S endeavour is to spark the desire for learning and knowledge at every stage through

• Formal schools• Balwadis for elementary education • Quality primary education• Aditya Bal Vidya Mandirs• Girl child education• Adult education programmes.

Page 51: Aditya birla

CORPORATE SOCIAL RESPONSIBILITYIn Health care our goal is to render quality health care facilities to people living in the villages and elsewhere through our Hospitals. Primary health care centres Mother and Child care projects Immunization programmes with a thrust on polio

eradication Health Care for visually impaired, and physically

challenged Preventive health through awareness

programmes.

Page 52: Aditya birla

CORPORATE SOCIAL RESPONSIBILITY

In Sustainable Livelihood ABG’S programmes aim at providing livelihood in a locally appropriate and environmentally sustainable manner through

• Formation of Self Help Groups for women empowerment

• Vocational training through Aditya Birla Rural Technology Parks

• Agriculture development & better farmer focus • Watershed development • Partnership with Industrial Training Institutes.

Page 53: Aditya birla

CORPORATE SOCIAL RESPONSIBILITY

To bring about Social Change, ABG propounds and supports

Dowryless marriage Widow remarriage Awareness programmes on anti social issues De-addiction campaigns and programmes Espousing values.

Page 54: Aditya birla

CORPORATE SOCIAL RESPONSIBILITY

In Infrastructure Development ABG endeavours to set up essential services that form the foundation of sustainable development through

Basic infrastructure facilities Housing facilities Safe drinking water Sanitation & hygiene Renewable sources of energy.