Preview

Going Globally Competitive: Aditya Birla Group Way

Better Essays
Open Document
Open Document
2267 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Going Globally Competitive: Aditya Birla Group Way
Going Globally Competitive:
Aditya Birla Group Way

It was mid-2005, exactly a decade after Kumar Mangalam Birla took over as Chairman of the Aditya Birla Group, that the Business Today, a leading business magazine of India noted, “At 38, Kumar Mangalam Birla has already done more than what most others get to do in a lifetime. He's transformed a hidebound conglomerate into a modern commodities giant that's globally competitive. Today, it racks up Rs 33,000 crore in revenues and boasts of a market cap of nearly Rs 30,000 crore. In that time, he has also pulled off a string of acquisitions at home and abroad, professionalised a group that long placed loyalty over competence, and more importantly geared it to compete in a global marketplace. The Aditya Birla Group today operates on a global scale, with manufacturing operations in nine countries and product sales in over 100. It's a world leader in viscose staple fibre, the world's ninth largest producer of cement, the fifth largest producer of carbon black, Asia's largest integrated Aluminium producer, and also its fastest growing copper company.”
When, after the untimely death of Aditya Birla in 1995, Kumar Mangalam Birla took over as the Chairman of Aditya Birla Group, the Aditya Birla Group had a worldwide turnover of Rs.8500 crore , and diversified lines of business. It was around the same time that the foreign institutional investors had begun hammering Aditya Birla Group scrips, mainly for two reasons. One, over- diversified companies were out of favour in the new focused reform era. And two, Aditya Birla Group companies had diluted their equity – with GDR and domestic issues – far too often for Fll comfort. 1

To mend fences, Kumar responded quickly by withdrawing in January 1997 the $125 million GDR issue that Grasim had planned as early as May 1996. He also aborted all unnecessary and unrelated diversifications. The Flls were impressed though they reserved their final verdict.

2But clearly it was

You May Also Find These Documents Helpful

  • Good Essays

    House of Tata

    • 1221 Words
    • 5 Pages

    |Tata group is the one of India’s largest business houses. |Over Diversification in unrelated product lines from core business such as |…

    • 1221 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    How Global Brands Compete

    • 365 Words
    • 2 Pages

    In the article the authors have conducted a research in 12 countries with 1800 respondents. The authors have tried to find the perceptions of consumers regarding the global brands, the global consumer segments and have suggested the business leaders regarding new opportunities and responsibilities in global arena regarding global brands.…

    • 365 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Starbucks Finance Report

    • 1338 Words
    • 6 Pages

    Today 's business world shows a huge diversification in the shareholders of one company. In most countries, each investor only holds a very small fraction of issued shares by one corporation. This includes also the senior management.…

    • 1338 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    - Manishi Raychaudhuri, Sanjay Mathur and Sonal Gupta, UBS, UBS Investment Research, Indian Strategy, 2007…

    • 2419 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Tata Motors Going Global

    • 1266 Words
    • 6 Pages

    The wave of liberalization, privatization and globalization, which started sweeping India since the early 1990s, gave Tata Motors (established in 1945) a new direction in the path of globalization. The Tata Motors firstly, realized that if it wants to grow then it cannot afford to keep its business connected solely to the fortunes of one country. Secondly, with the dismantling of import restrictions in the near future or it the rupee begins to gain ground then India may not continue to have the low-cost manufacturing advantage which it has enjoyed so far. In that scenario, a transnational presence across countries that could offer greater cost advantages for manufacturing, will pay off. Thirdly, the automotive business is highly competitive and the competitiveness depends on economies of scale, quality and efficiency which could directly improve if the organization enters the foreign markets.…

    • 1266 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    birla

    • 2072 Words
    • 9 Pages

    The Aditya Birla Group is an Indian multinational conglomerate named after Aditya Vikram Birla, headquartered in the Aditya Birla Centre in Worli,Mumbai, India. It operates in 33 countries with more than 136,000 employees worldwide. The group interests in sectors such as viscose staple fibre, metals, cement (largest in…

    • 2072 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    “A Global company is an organization that attempts to standardize and integrate operations worldwide in all functional areas.”…

    • 432 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Hindalco Industries Limited is the flagship company of the Aditya Birla Group. A metals giant with a consolidated turnover of Rs. 72,078 crores (US$ 15.85 billion), Hindalco is the world’s largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its Copper smelter is the world’s largest custom smelter at a single location. Figure 1 shows the various companies owned by Hindalco.…

    • 2164 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Adiyta Birla Group

    • 1244 Words
    • 5 Pages

    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…

    • 1244 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    ADVANTA INDIA LIMITED 1 © This is a licensed product of Ken Research and should not be copied T ABLE OF CONTENTS 1. Executive Summary: Advanta India Limited 2. Advanta India Limited Business Overview Introduction Expertise Product 2.1 2.2 Major Investments in the Company Evolution 2.3 Ownership Structure 2.4 3.…

    • 3851 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Marketing in the Global Firm

    • 3127 Words
    • 13 Pages

    17. Marke4ng in the global firm Dr. Holger Siemons 17. Marke4ng in the global firm  IKEA case study on global marke4ng  Global marke4ng strategy  Targe4ng customer segments and posi4oning  Standardiza4on and adapta4on  Global branding …

    • 3127 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Almeida, H., Campello, M., 2007. Financial constraints, asset tangibility, and corporate investment. Review of Financial Studies 20, 1429–1460. Almeida, H., Campello, M., Weisbach, M.S., 2004. The cash flow sensitivity of cash. Journal of Finance 59, 1777–1804. Alti, A., 2003. How sensitive is investment to cash flow when financing is frictionless? Journal of Finance 58, 707–722. Bae, K., Goyal, V.K., 2009. Creditor rights, enforcement, and bank loans. Journal of Finance 84, 823–860. Berkowitz, D., Pistor, K., Richard, J., 2003. Economic development, legality, and the transplant effect. European Economic Review 47, 165–195. Brown, J.R., Petersen, B.C., 2009. Why has the investment–cash flow sensitivity declined so sharply? Rising R&D and Equity Market Developments. Journal of Banking and Finance 33, 971–984. Chen, H.F., Chen, S.J., 2012. Investment–cash flow sensitivity cannot be a good measure of financial constraints: evidence from the time series. Journal of Financial Economics 103, 393–410. Chen, K.C.W., Chen, Z.H., Wei, J.K.C., 2009. Legal protection of investors, corporate governance, and the cost of equity capital. Journal of Corporate Finance 15, 273–289. Cho, M.H., 1998. Ownership structure, investment, and the corporate value: an empirical analysis. Journal of Financial Economics 47, 103–121. Claessens, S., Djankov, S., Lang, L.H.P., 2000. The separation of ownership and control in East Asian corporations. Journal of Financial Economics 58, 81–112. Degryse, H., De Jong, A., 2006. Investment and internal finance: asymmetric information or managerial discretion? International Journal of Industrial Organization 24, 125–147. Djankov, S., La Porta, R., Lopez de Silanes, F., Shleifer, A., 2008. The law and economics of self-dealing.…

    • 10277 Words
    • 42 Pages
    Satisfactory Essays
  • Powerful Essays

    Global Competitiveness

    • 4584 Words
    • 19 Pages

    Business today is in a global environment. This environment forces companies, regardless of location or primary market base, to consider the rest of the world in their competitive strategy analysis. Firms cannot isolate themselves from or ignore external factors such as economic trends, competitive situations or technology innovation in other countries, if some of their competitors are competing or are located in those countries. Companies are going truly global with Supply-chain Management (SCM). A company can develop a product in the United States, manufacture in India and sell in Europe. Companies have changed the ways in which they manage their operations and logistics activities. Changes in trade, the spread and modernization of transport infrastructures and the intensification of competition have elevated the importance off low management to new levels.…

    • 4584 Words
    • 19 Pages
    Powerful Essays
  • Powerful Essays

    Recruitment Process

    • 8560 Words
    • 35 Pages

    As with all great pioneers, there is more than one unique way of describing the true genius of Dhirubhai: The corporate visionary, the unmatched strategist, the proud patriot, the leader of men, the architect of India’s capital markets and the champion of shareholder interest. But the role Dhirubhai cherished most was perhaps that of India’s greatest wealth creator. In one lifetime, he built, starting from the proverbial scratch, India’s largest private sector enterprise.…

    • 8560 Words
    • 35 Pages
    Powerful Essays
  • Good Essays

    Talent Management Activities

    • 13685 Words
    • 55 Pages

    Recently words like attrition, retention and job switch is back with a bang as the Indian economy is booming. Indian job market is expected to grow in line with economic growth and double at Rs 2000 crore within 5 years (with 20 percent growth per annum). Retaining the star performers of the company is need of the day now. Aditya Birla Group’s foray into the Retail sector began in 2006 with the acquisition of Trinethra, the South Indian based chain of stores. May 2007 saw Aditya Birla Retail launching its own brand of stores ‘MORE’. The stores are in 2 formats: Supermarkets and Hypermarkets. As on Dec 2011, 891 Supermarkets and 11 Hypermarkets are operational across the country.…

    • 13685 Words
    • 55 Pages
    Good Essays