sm-aditya birla group edited

8/22/2019 SM-Aditya Birla Group Edited

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Aditya Birla Group

Gagan Bhatia, Prof. Marketing


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Introduction

Aditya Birla Group started at 1857.

Shiv Narayan Birla started cotton trading operation in the small

town of Pilani in Rajasthan.

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

company.

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

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



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Kumar Mangalam Birla

Kumar Mangalam Birla is a chaiman

of Aditya Birla group.

C.A and MBA from

London business schoolAt the age of 28 managing assets of

Rs. 16000 crores

It had a strength of 150000 employees

and 6,00,000 shareholders.



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Globally the Aditya Birla Group

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

aluminum and copper producers. Hindalco-Novelis is the largest

aluminum rolling company.

No.1 in viscose staple fibre

The fourth largest producer ofinsulators

The fourth largest producer ofcarbon black

The 11th largest cementproducer globally, the seventh largest in

Asia and the second largest in India

Among the world's top 15 BPO companies



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In India

A premierbranded garmentsplayer

The second largest player in viscose filament yarn

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



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Cement



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Metals



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Fibres/Textiles



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Garments



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Financial Services



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TELECOM FERTILIZERs



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K.M.Birla(the Reason For Change In

Management Style)

After taking up the charge, K.M.Birla decided to consolidateentire entire groups companies under one umbrella of theAditya Birla Group.

Many critics were opinion that K.M.Birla would unable to

manage the group successfully When K.M.Birla was handed over 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 hisfather A.V.Birla.

In 1996 the market value of groups four largest companiesGrasim ,Indian Rayon ,Hindalco & Indo Gulf Fertilizersuddenly decreased by $1billion or 37%.



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Retirement Policy

He introduced a retirement policy in 1995,on the basis of

which around 325 senior employees, who were in their early

60s, had to 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.



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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.



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Recruitment process

K.M.Birla also changed the groups policy in houserecruitment.

In 1996,he also made changes in groups HR system.

He hired professionals from other companies into hismanagement team



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Change In Decision Making

K.M.Birla also established Aditya Birla ManagementCorporation Limited, the strategic decision making forensuring the best practices across the group companies.

K.M.Birla decided to reduce the groups dependence onfiber based business where its market share was low.

Instead he decided to concentrate on non-ferrous metalsas there was less competition and hindalco already had abig presence in the aluminum sector



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360 Degree Appraisal

K.M.Birla introduced a 360 degree feedback program in1999

Program permitted managers to raise questions over hisleadership style, managerial ability and also personaltraits & vice-versa

After the feedback, he issued each senior manager a sixpage letter mentioning the areas of improvement and hisexpectations.



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Scholarships To Students And Awards ToEmployees

In 1999 K.M.Birla launched the aditya birla scholarshipto promote excellence among students community tocultivate the leaders of tomorrow.

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



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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.



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Hierarchy Based On Performance OfEmployees

Before K.M.Birla took the chairmanship, the hierarchy inthe group was determined by seniority instead of merit.

He instituted a performance appraisal system.

He decided to implement performance managementsystems, reviewed compensations and focused ontraining as a tool for development

He personally led the recruitment program frombusiness schools.



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Changes in reporting

He also brought about changes in reporting system beingfollowed at the group.

The top 20 executives of the group, who had greaterresponsibilities in the group, could report directly toK.M.Birla, thereby giving them complete freedom to runtheir businesses & holding them more accountable fortheir performance.



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Awards and Achievement

Kumar Mangalam Birla has won several honors.Major among them include

The Business Leader of the Year (2003) by The

Economic Times Business Man of the Year - 2003 by Business India

The Ernst & Young Entrepreneur of the Year - Indiain 2005.



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CSR Activities

Education

Healthcare & family welfare

Espousing social causes

Sustainable livelihood encompassing agriculturedevelopment

Women empowerment process



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THANK YOU

sm-aditya birla group edited

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