19-01-2013, 01:25 PM
DIVERSIFICATION STRATEGY OF ADITYA BIRLA GROUP
DIVERSIFICATION STRATEGY.ppt (Size: 1.19 MB / Downloads: 52)
ABOUT ADITYA BIRLA GROUP
Aditya Birla group of companies was formed in the year 1870.
Seth Shiv Narayan Birla launched a trading business of cotton & Jute in Pilani, in the state of Rajasthan.
Entered into speculation business of opium and gradually moved from speculation of opium to actual trading of opium that had remained exclusively by the English traders.
A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500.
The group operates in 36 countries.
It is one of the successful diversified Indian companies.
Fact files
The world's largest aluminium rolling company
No.1 in viscose staple fibre
Biggest producer of primary aluminium in Asia
Among the top 10 cement producers globally
The No.1 producer of carbon black in the world
Fourth-largest producer of insulators in the world
Fifth-largest producer of acrylic fibre in the world
Among the best energy efficient fertiliser plants
Business diversification strategy
Wide political and industry network from the early days of Seth Baldeodas.
New technological collaborations were undertaken to modernize the existing units. For instance, Hindustan Motors tied up with Lord Nuffield to manufacture the legendary Morris Minor.
Diversification also served the purpose of saving tax and retaining profits within the company.
In-house Training and Internship for Diversification.
the Birlas got eight years of tax holidays, an eight year holiday for business tax (sales tax), eight year holiday for all remittances of royalties and technical know-how fees which normally attract a 20% tax.