Adiyta Birla Group
Diversification strategy of Aditya Birla Group
5th to 9th para
Aditya Birla group of company was formed in the year 1870, when Seth Shiv Narayan Birla launched a trading business of cotton & Jute in Pilani, in the state of Rajasthan. His son, Baldeo Das Birla, had moved to Calcutta which was the hub of business activity and over there Baldeo Das Birla’s son Ghanshyamdas Birla started up a jute mill. Thus in 1919 the family's industrial holdings were established. Then just after India’s independence, in the year 1947, Grasim weaving plant was started. Although Grasim was started as a textile manufacturing company it has diversified itself into various other industries like Viscose Staple Fiber (VSF), cement, chemicals and sponge iron (Refer Exhibit 3a). Now, Grasim Industries Ltd has become one of the Indian companies to make to the list of Forbes Asia's Fabulous 50 award winners. In 1958 rayon was added to the list of Grasim production list which had cotton and jute fiber. Rayon being a cellulose fiber has a high luster quality and was an emerging trend. It helped Grasim industries to increase its customer base as rayon fibers can be engineered to have a range of properties so that different demands of a wide variety of end customers can be met.
Up till now Birla group had diversified and expanded in the textile industry. This was the strategy of “Growth diversification”. In 1958, Birla group diversifierd to spread risk and thereby reduce it by establishing Hindalco - An aluminium facility at Renukoot in eastern Uttar Pradesh. To add value, acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, were done. This strengthened the position of Hindalco in Aluminium and Cooper industry. The aluminium operation extends from mining of bauxite to the production of not only primary aluminium but also the value added downstream products such as flat rolled products (FRP), extrusions and also customized consumer
5th to 9th para
Aditya Birla group of company was formed in the year 1870, when Seth Shiv Narayan Birla launched a trading business of cotton & Jute in Pilani, in the state of Rajasthan. His son, Baldeo Das Birla, had moved to Calcutta which was the hub of business activity and over there Baldeo Das Birla’s son Ghanshyamdas Birla started up a jute mill. Thus in 1919 the family's industrial holdings were established. Then just after India’s independence, in the year 1947, Grasim weaving plant was started. Although Grasim was started as a textile manufacturing company it has diversified itself into various other industries like Viscose Staple Fiber (VSF), cement, chemicals and sponge iron (Refer Exhibit 3a). Now, Grasim Industries Ltd has become one of the Indian companies to make to the list of Forbes Asia's Fabulous 50 award winners. In 1958 rayon was added to the list of Grasim production list which had cotton and jute fiber. Rayon being a cellulose fiber has a high luster quality and was an emerging trend. It helped Grasim industries to increase its customer base as rayon fibers can be engineered to have a range of properties so that different demands of a wide variety of end customers can be met.
Up till now Birla group had diversified and expanded in the textile industry. This was the strategy of “Growth diversification”. In 1958, Birla group diversifierd to spread risk and thereby reduce it by establishing Hindalco - An aluminium facility at Renukoot in eastern Uttar Pradesh. To add value, acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, were done. This strengthened the position of Hindalco in Aluminium and Cooper industry. The aluminium operation extends from mining of bauxite to the production of not only primary aluminium but also the value added downstream products such as flat rolled products (FRP), extrusions and also customized consumer