Aditya Birla Group

I!troductio! about Aditya Birla *roup

The roots of ADITYA BIRLA GROUP date back to the 1 th ce!tury i! the pictures"ue to#! of pila!i $ set a%idst the Ra&astha! desert ' It #as here that (eth )araya! Birla started tradi!* i! +otto! i! 1,-.$ layi!* the fou!datio! for the /0ouse of Birlas1' I! 23th ce!tury Gha!shya%das Birla set up i!dustries i! critical sectors such as Te4tiles 5 6ibres $ Alu%i!iu% $ +e%e!t 5 +he%icals The Aditya Birla Group is a %ulti!atio!al co!*lo%erate based i! 7u%bai$ I!dia #ith operatio!s i! 2- cou!tries i!cludi!* Thaila!d$ Dubai$ (i!*apore$ 7ya!%ar$ Laos$ I!do!esia$ Philippi!es$ 8*ypt$ +a!ada$ Australia$ +hi!a$ U(A$ U9$ Ger%a!y$ 0u!*ary$ Bra:il$ Italy$ 6ra!ce$ Lu4e%bour*$ (#it:erla!d$ Ba!*ladesh$ 7alaysia$ ;iet!a% a!d 9orea'

About Birlas

Aditya Birla Group started at 1,-.' (hi< !araya! Birla started cotto! tradi!* operatio! i! the s%all to#! of pila!i i! ra&astha!' Ghya!shya%das Birla=GD birla>?1 1 ?he set the %a!ufacturi!* co%pa!y' Gra!dso! of G'D'Birla is Aditya ;ikra% Birla=A';'Birla>?1 @A? (o! of A';'Birla is 9u%ar %a!*ala% Birla=9'7'Birla>?1 -'

Aditya Birla Companies and Brands.

COMPANY: HINDALCO 8<erlast alu%i!iu% roofi!* sheets 6resh#rapp alu%i!iu% foil 6reshpakk se%i?ri*id co!tai!ers Per%ashield #aterproofi!* Alu%i!iu% foil Aura alloy #heels 0i!dalco e4trusio!s

COMPANY: HINDALCO Birla +opper Birla Gold Birla (il<er

COMPANY: G A#IM Birla (uper UltraTech +e%e!t =for%erly Birla Plus> Birla Ready 7i4 Birla Bhite COMPANY: !LT AT$CH UltraTech ce%e!t

COMPANY: ADITYA BI LA N!"O Birla +arbo!

COMPANY: G A#IM

Birla +ellulose

COMPANY: INDO G!L% Birla (hakti%a! Urea COMPANY: HINDALCO Birla Bal#a!

COMPANY: ADITYA BI LA N!"O Li!e! +lub Pyro*uard Ray O!e 9oloro!e COMPANY: G A#IM Ice Touch U!crushables Purista +lea! 6ab COMPANY: THAI AC YLIC %IB $ Te4la!

COMPANY: ADITYA BI LA N!"O Louis Philippe ;a! 0euse! Alle! (olly Peter 8!*la!d 8sprit

COMPANY: ADITYA BI LA CH$MICAL# 'THAILAND( LTD. Polyp)os* $pote+ Birlasul,-## Birlasul,-#M Birlasul, ./ COMPANY: THAI P$ O0ID$ CO. LTD. $+are $n+are A1ua 0 OCA $ Birlo2 Herlisil

COMPANY: BI LA NG& IN#!LATO # P"T. LTD.

Aditya Birla I!sulators

3ey produ+ts and 4rands

+apa+i +oun ties try

P#I Data #ystems Ltd. =subsidiary of Aditya Birla )u<o Ltd'> IT solutio!s =ba!ki!*$ fi!a!ce a!d i!sura!ce> I!dia

3ey produ+ts and 4rands

+apa+i +oun ties try

Aditya Birla Mina+s 5orld6ide Limited 'su4sidiary o, Aditya Birla Nu7o Ltd.( BPO C IT8( $3, I!dia seats

COMPANY: ID$A C$LL!LA LTD.

Idea

COMPANY: ADITYA BI LA $TAIL LIMIT$D

%ore'

About k'7'Birla

9u%ar 7a!*ala% Birla is a chai%a! of aditya birla #ho is so! of A';'Birla' 9'7'Birla do!e +'A a!d 7BA fro% lo!do! busi!ess school$ at the a*e of 2, take! respo!sibility to#ards busi!ess ha<i!* total re<e!ue of I)R 1-$333 crores #ith assets of I)R 1@$333 crores'It had a stre!*th of .-$333e%ployees a!d @$33$333 shareholders'

9'7'Birla

After taki!* up the cha!*e$9'7'Birla decided to co!solidate e!tire e!tire *roup1s co%pa!ies u!der o!e u%brella of the DAdit)ya8s 4irla 9roup:. 7a!y critics #ere opi!io! that D9'7'Birla #ould u!able to %a!a*e the *roup successfullyE Bhe! k'7'Birla ha!do<ered busi!ess fro% his father i! 1 -$his critics dis%issed hi% as a soft a!d shy perso!' #ho lacked the busi!ess e4pertise a!d asserti<e!ess of his father A';'Birla' A! u!approachable %a!a*e%e!t style a!d %isplaced priorities the result #as the i!<estors started selli!* off their shares 'I! 1 @ the %arket <alue of *roup1s four lar*est co%pa!ies *rasi% $i!dia! rayo! $hi!dalco 5 i!do *ulf fertili:er sudde!ly decreased by F1billio! or G.H' (o 9'7'Birla took se<eral i!itiati<es to pro<e his critics #ro!*'

9ey People

Mr. #an;ee7 A9a

Managing Director, Idea Cellular Limited and Director, Aditya Birla Management Corporation Private Limited

Mr. D. B)atta+)arya
Managing Director, Hindalco Industries Limited, Vice Chairman, Novelis Inc and Director, Aditya Birla Management Corporation Private Limited

Mr. #)ailendra &. <ain

!hole"time Director and President, #rasim Industries Ltd

Dr. #antrupt Misra

Director, Aditya Birla Management Corporation Private Limited

Dr. B)arat &. #in9)

Director, Aditya Birla Management Corporation Private Limited

Mr. &. &. Ma)es)6ari

Head, #lo$al Chemical Business, #lo$al %rading Business and Management &ervices Division Aditya Birla #roup

Mr. "i3ram

ao

Director, Aditya Birla Management Corporation Private Limited

Changes taken by K.M.Birla to prove that the critics are wrong..

1'Retire%e!t policy

0e i!troduced a retire%e!t policy i! 1 -$o! the basis of #hich arou!d G2- se!ior e%playees$#ho #ere there early @3s$had "uit the or*a!i:atio! i! the !e4t fi<e years 'subse"ue!tly about A33 you!* e%ployees replaced the%' 7ea!#hile $a!s#eri!* the critics he said$ Ipeople i! the *roup about t#ice %y a*e #he! I took o<er as chair%a!' I had *reat respect for the% perso!ally$ but I also feel the !eed for cha!*eE'

2'+orporate lo*o

I! 1 @$he lau!ched for the first ti%e a corporate ide!tity that #ould ser<e a corporate lo*o' The *roup selected the risi!* su! as the lo*o$ #hich si*!ified opti%is% a!d ser<ed as a u!ificatio! sy%bol for the *roup' 9'7'Birla said$ DThe !e# corporate lo*o helped i! bri!*i!* <arious co%pa!ies of the *roup to*ether' This helped the or*a!i:atio! to ree!er*i:e a!d *et started to the path of cha!*eE'

G'Recruit%e!t process

9'7'Birla also cha!*ed the *roup1s policy i! house recruit%e!t' I! 1 @$he also %ade cha!*es i! *roup1s 0R syste%' 0e hired professio!als fro% other co%pa!ies i!to his %a!a*e%e!t tea%

A'+ha!*e i! decisio! %aki!*

The partha syste% of daily fi!a!cial reporti!* #hich focused %ai!ly o! productio! #as replaced #ith a! D$+onomi+ 7alue added model:. This %odel focuses o! the aspects of profitability$ asset producti<ity a!d *ro#th' 9'7'Birla also established aditya birla %a!a*e%e!t corporatio! li%ited$ the strate*ic decisio! %aki!* for e!suri!* the best practices across the *roup co%pa!ies' 9'7'Birla decided to reduce the *roup1s depe!de!ce o! fiber based busi!ess #here its %arket share #as lo#' I!stead he decided to co!ce!trate o! !o!?ferrous %etals as there #as less co%petitio! a!d hi!dalco already had a bi* prese!ce i! the alu%i!u% sector

-'(cholarships to stude!ts a!d A#ards to e%ployees

I! 1 9'7'Birla lau!ched the aditya birla scholarship to pro%ote e4celle!ce a%o!* stude!ts co%%u!ity to culti<ate the leaders of to%orro#' 0e said$ Iculti<ati!* a !e# *e!eratio! of %a!a*ers a!d culti<ati!* a participati<e culture are keys to the i!creasi!*ly e!er*etic$ people ce!tered$ a!d perfor%a!ce focused culture #e aspire forE' 0e also lau!ched Aditya Birla a#ards i! 1 #here tea% achie<e%e!ts reco*!i:ed e<ery year '

@'0appi!ess at #ork

Birla had also i%ple%e!ted the or*a!i:atio!al health sur<ey by the late 1 3s$ #hich %easured the DHappiness at 6or3E i!de4' This #as carried out to track the e%ployees satisfactio!'

.'0ierarchy based o! perfor%a!ce of e%ployees

9'7'Birla also brou*ht i! so%e %a!a*erial cha!*es i! the *roup' Before 9'7'Birla took the chair%a!ship$ the hierarchy i! the *roup #as deter%i!ed by se!iority i!stead of %erit' 0e i!stituted a perfor%a!ce appraisal syste%' 0e decided to i%ple%e!t perfor%a!ce %a!a*e%e!t syste%s$re<i#ed co%pe!satio!s a!d acce!tuated o! trai!i!* to bri!* %eritocracy' 0e perso!ally led the recruit%e!t pro*ra% fro% busi!ess schools'

,'+ha!*es i! reporti!*

0e also brou*ht about cha!*es i! reporti!* syste% bei!* follo#ed at the *roup' The top 23 e4ecuti<es of the *roup$ #ho had *reater respo!sibilities i! the *roup$ could report directly to 9'7'Birla$ thereby *i<i!* the% co%plete freedo% to ru! their busi!esses a!d sa%e holdi!* the %ore accou!table for their perfor%a!ce'

A!alysts opi!io!

(e<eral a!alysts also praised 97 Birla1s style of fu!ctio!i!*' A!alysts belie<ed that 9'7'Birla has be*a! to thi!k bi* i! rece!t ti%es' 0e usually used to focus %ore o! e4tracti!* rather tha! betti!* bi* o! *ro#th' Despite re%ai!i!* profitable the co%pa!y1s *ro#th has bee! slo#er as co%pared to its peers i! the rece!t past' It has bee! reflected i! the stock %arket' #here its %arket capitali:atio! of I)RG3$333 crores is less tha! its total tur!o<er'

By ;'Laksh%i$ P'Pra<allika