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ADITYA BIRLA GROUP

OVERVIEWOur Vision"To actively contribute to the social and economic development of the communities in which we operate. In doing so, build a better, sustainable way of life for the weaker sections of society and raise the country's human development index." Mrs. Rajashree Birla,Chairperson -Aditya Birla Centre for Community Initiatives and Rural DevelopmentMaking a difference

Before Corporate Social Responsibility (CSR) found a place in corporate lexicon, it was already textured into our Group's value systems. As early as the 1940s, our founding father Shri G. D. Birla espoused the trusteeship concept of management. Simply stated, this entails that the wealth that one generates and holds, is to be held as in a trust for our multiple stakeholders. With regard to CSR, this means investing part of our profits beyond business, for the larger good of society.

While carrying forward this philosophy, our legendary leader, Mr. Aditya Birla, weaved in the concept of 'sustainable livelihood', which transcended cheque book philanthropy. In his view, it was unwise to keep on giving endlessly. Instead, he felt that channelising resources to ensure that people have the wherewithal to make both ends meet would be more productive.He would say, "Give a hungry man fish for a day, he will eat it and the next day, he would be hungry again. Instead, if you taught him how to fish, he would be able to feed himself and his family for a lifetime."Taking these practices forward, our chairman Mr. Kumar Mangalam Birla, institutionalised the concept of triple bottom line accountability represented by economic success. Our community work is a way of telling the people among whom we operate that We Care.Our strategy

Our projects are carried out under the aegis of the "Aditya Birla Centre for Community Initiatives and Rural Development", led by Mrs. Rajashree Birla. The Centre provides the strategic direction, and the thrust areas for our work ensuring performance management as well.

Our focus is on the all-round development of the communities around our plants located mostly in distant rural areas and tribal belts. All our Group companies Grasim,Hindalco,Aditya Birla NuvoandUltraTechhave Rural Development Cells, which are the implementation bodies.

Our partners in development are government bodies, district authorities, village panchayats and the end beneficiaries the villagers. The Government has, in their 5-year plans, special funds earmarked for human development and we recourse to many of these.At the same time, we network and collaborate with like-minded bilateral and unilateral agencies to share ideas, draw from each other's experiences, and ensure that efforts are not duplicated. At another level, this provides a platform for advocacy.

Project identification mechanism

All projects are planned in a participatory manner, in consultation with the community, literally sitting with them, and gauging their basic needs. We take recourse to "participatory rural appraisal", which is a mapping process. Subsequently, based on a consensus and in discussion with the village panchayats, we prioritise requirements. And thus a project is born. Implementation is the responsibility of the community and our team, as is the monitoring of milestones and the other aspects. Monitoring entails physical verification of the progress and the actual output of the project.

Village meetings are held periodically to elicit feedback on the benefits of our community programmes and the areas where these need to be beefed up. We try and ensure that while in the short term we have to do enormous hand-holding, the projects become sustainable by the beneficiaries over the long haul. Once this stage is reached, we withdraw. In this way we do not build a culture of dependence, instead we make the villagers self-reliant.

Model villagesOne of our unique initiatives is to develop model villages, so each of our major companies is working towards the total transformation of a number of villages in proximity to our plants. Making of a model village entails ensuring self-reliance in all aspects viz., education, health care and family welfare, infrastructure, agriculture and watershed management, and working towards sustainable livelihood patterns. Fundamentally, ensuring that their development reaches a stage wherein village committees take over the complete responsibility and our teams become dispensable.

Our project operations

The geographic reach, annual spendsThe footprint of our community work straddles 3,000 villages across the length and breadth of our country. We reach out to more than 7 million people annually. Over 60 per cent of these live below the poverty line and belong to scheduled castes and tribes.The Group spends in excess of Rs.250 crore annually, inclusive of the running of 18 hospitals and 42 schools. The Group transcends the conventional barriers of business and reaches out to the marginalised as a matter of duty and to bring in a more equitable society.Our focus areasOur rural development activities span five key areas and our single-minded goal here is to help build model villages that can stand on their own feet. Our focus areas are healthcare, education, sustainable livelihood, infrastructure and espousing social causes.Education Formal and non-formal education, adult education Scholarships for girls, merit scholarships and technical education for boys Distance education Girl child education Digital literacy / computer educationHealth care and family welfare Pulse polio programme Mobile clinics doctors' visits General and multispeciality medical camps, cleft lips Reproductive and child health care, supplementary nutrition / mid-day meal projects Safe drinking water, sanitation household toilets, community hospitals HIV / AIDS, cancer, TB awareness and prevention camps Blood donation Responsible parentingSocial causes Widow re-marriage / dowry-less mass marriages Social security (insurance) Culture and sports Women empowermentInfrastructure development Community centres Schools in villages Health care centres and hospitals Roads Homes for the homeless Rural electrification Irrigation and water storage structuresSustainable livelihood Self-help groups (microfinance for women and farmers) Integrated agriculture development Integrated livestock development Watershed management Microenterprise development Skill development / vocational training through Aditya Birla Technology Park for integratedtraining programme and VT centres at most of our plants in collaboration with ITIsOur partnersWHO, Australia India Council, Bill and Melinda Gates Foundation, Habitat for Humanity, CII, European Union (EU), British Council, City& Guilds (UK), Global Compact Network, International Rotary Club, NSDC, FICCI, NABARD, NACO, CARE, IGNOU, Aide et Action, SEWA, BAIF, MYRADA, Basix, CARD, Art of Living Foundation, Smile Foundation, Maya Foundation, Childline India Foundation, local NGOs, District Development Offices, Central and State governments.ALSO OF INTEREST Padma Bhushan conferred on Mrs. Rajashree Birla 100,000 Homes For The Homeless In India By 2015 Corporate Social Responsibility Policy The Role Of Business In Alleviating Poverty Stories Of Hope CSR Awards And Recognition Making A Difference Our Values Heritage Aditya Birla Scholarships Our Team CSR Video The magic mantra for inclusive growth Giving, Loving and Caring The sunny side of human nature Women Of The Decade Indias triumph over polio celebrated Aditya Birla Hostel for working women Hindustan Chamber Confers Champion of Humanity AwardFACTS The world's largest aluminium rolling companyNo.1 in viscose staple fibreAmongst the largest producers of primary aluminium in AsiaAmong the top 10 cement producers globally The No.1 producer of carbon black in the worldFourth-largest producer of insulators in the worldFifth-largest producer of acrylic fibre in the worldAmong the best energy efficient fertiliser plantsCORPORATE SOCIAL RESPONSIBILITY POLICYFor us in the Aditya Birla Group, reaching out to underserved communities is part of our DNA. We believe in the trusteeship concept. This entails transcending business interests and grappling with the "quality of life" challenges that underserved communities face, and working towards ma king a meaningful difference to them.Our visionis "to actively contribute to the social and economic development of the communities in which we operate. In so doing build a better, sustainable way of life for the weaker sections of society and raise the country's human development index". (Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development).Implementation process: Identification of projectsAll projects are identified in a participator y manner, in consultation with the community, literally sitting with them and gauging their basic needs. We recourse to the participatory rural appraisal mapping process. Subsequently, based on a consensus and in discussion with the village panchayats, and other influentials, projects are prioritised.Arising from this the focus areas that have emerged are Education, Health care, Sustainable livelihood, Infrastructure development, and espousing social causes. All of our community projects are carried out under the aegis of The Aditya Birla Centre for Community Initiatives and Rural DevelopmentIn Education, our endeavour is to spark the desire for learning and knowledge at everystage through Formal schools Balwadis for elementary education Quality primary education Aditya Bal Vidya Mandirs Girl child education Adult education programmesIn Health care our goal is to render quality health care facilities to people living in the villages and elsewhere through our Hospitals Primary health care centres Mother and Child care projects Immunisation programmes with a thrust on polio eradication Health care for visually impaired, and physically challenged Preventive health through awareness programmes.In Sustainable Livelihood our programmes aim at providing livelihood in a locally appropriate and environmentally sustainable manner through Formation of Self Help Groups for women empowerment Vocational training through Aditya Birla Rural Technology Parks Agriculture development and better farmer focus Watershed development Partnership with Industrial Training Institutes.In Infrastructure Development we endeavour to set up essential services that form the foundation of sustainable development through Basic infrastructure facilities Housing facilities Safe drinking water Sanitation & hygiene Renewable sources of energy.To bring about Social Change we advocate and support Dowryless marriage Widow remarriage Awareness programmes on anti social issues De-addiction campaigns and programmes Espousing basic moral valuesActivities, setting measurable targets with timeframes and performance management.Prior to the commencement of projects, we carry out a baseline study of the villages. The study encompasses various parameters such as health indicators, literacy levels, sustainable livelihood processes, population data below the poverty line and above the poverty line, state of infrastructure , among others. From the data generated, a 1- year plan and a 5-year rolling plan are developed for the holistic and integrated development of the marginalised. These plans are presented at the Annual Planning and Budgeting meet. All projects are assessed under the agreed strategy, and are monitored every quarter, measured against targets and budgets. Wherever necessary, midcourse corrections are affected.Organisational mechanism and responsibilitiesThe Aditya Birla Centre for Community Initiatives and Rural Development provides the vision under the leadership of its Chairperson, Mrs. Rajashree Birla. This vision underlines all CSR activities. Every Manufacturing Unit has a CSR Cell. Every Company has a CSR Head, who reports to the Group Executive President (Communications & CSR) at the Centre. At the Company, the Business Director takes on the role of the mentor, while t he onus for the successful and time bound implementation of the projects is on the various Unit Presidents and CSR teams. To measure the impact of the work done, a social satisfaction survey / audit is carried out by an external agency.PartnershipsCollaborative partnerships are formed with the Government, the District Authorities, the village panchayats, NGOs and other like-minded stakeholders. This helps widen the Company's reach and leverage upon the collective expertise, wisdom and experience that these partnerships bring to the table.In collaboration with FICCI, we have set up Aditya Birla CSR Centre for Excellence to make CSR an integral part of corporate culture.The Company engages with well established and recognised programmes and national platforms such as the CII, FICCI, ASSOCHAM to name a few, given their commitment to inclusive growth.BudgetsA specific budget is allocated for CSR activities. This budget is project driven.Information disseminationThe Company's engagement in this domain is disseminated on its website, annual reports, its house journals and through the media.Management CommitmentOur Board of Directors, our Management and all of our employees subscribe to the philosophy of compassionate care. We believe and act on an ethos of generosity and compassion, characterised by a willingness to build a society that works for everyone. This is the cornerstone of our CSR policy.Our Corporate Social Responsibility policy conforms to the Corporate Social Responsibility Voluntary Guidelines spelt out by the Ministry of Corporate Affairs, Government of India in collaboration with FICCI (2009).CSR AWARDS AND RECOGNITION

Corporate social responsibility is an integral part of the Aditya Birla Group's value systems. Today, the footprint of the Group's social work spans 3,000 villages in India, reaching out to seven million people annually.2013 Madura Clothing won the 2013 Golden Peacock Award for Corporate Social Responsibility UltraTech wins Intel-AIM Corporate Responsibility Award Governance and Society: Asian CSR Awards 2013, for its work among the underprivileged and highest standards of governance Asian Centre Awards 2012 Awards for Corporate Governance, Sustainability & Leadership' commended the Aditya Birla Group as the 'Company with Best CSR and Sustainability Practices2011 Mrs. Rajashree Birla was presented the All India Management Association (AIMA) Managing India Award 2011 for 'Corporate Citizen of the Year'. The award was presented by Mr. P. Chidambaram, India's Union Minister for Home Affairs. The Government of India has bestowed the Padma Bhushan Award on Mrs. Rajashree Birla for her exemplary contribution in the area of 'Social Work'.The Padma Bhushan is among the highest civilian awards in India and was conferred on Mrs Birla at a special ceremony on 01 April 2011.2010 Indian Rayon, Veraval (a division of Aditya Birla Nuvo) is awarded The Rajiv Gandhi Environment Award for Clean Technologies by The Ministry of Environment and Forests, Government of India. Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development receives 'Hello Hall of Fame' award for 'Exemplary Philanthropist of the year' from Worldwide Media Goup's 'Hello' celebrity journal. Ultratech's 'Concern for Health' project awarded the Asian Corporate Social Responsibility Award by the Asian Institute of Management Centre for Corporate Social Responsibility. Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development, awarded the Global Golden Peacock Life Time Achievement Award for Community Development for the year 2010 for "Outstanding Contribution Towards Community Development and Social Welfare". Hindalco and Birla White declared winners in the Golden Peacock Awards for Corporate Social Responsibility 2010 by an eminent international jury, headed by Justice P.M. Bhagwati, the erstwhile Chief Justice of India. The Aditya Birla Centre for Community Initiatives and Rural Development teams up with Columbia University's research centre, the Columbia Global Centers' Earth Institute in Mumbai, to become its principal partner. The Earth Institute's goal is to help achieve sustainable development primarily by expanding people's understanding of the earth as one integrated system. Hindalco wins Amity International Business School's, 'Amity Corporate Excellence Award for Corporate Social Responsibility'2009 Grasim's pulp and fibre division wins the highly prestigious Asian CSR Award. The Asian CSR Awards, Asia's Premier CSR Awards program, is a project of the Asian Institute of Management, Manila. Rajiv Gandhi Award for Eminence in Social Field, 2009 conferred on Mrs. Rajashree Birla by Mr. Jyotiraditya Scindia (Union Minister of State, Commerce & Industry) on 19 August 2009. The award recognises Mrs. Birla's pathbreaking work among the poor, more so in India's villages, carried out through the Aditya Birla Centre for Community Initiatives and Rural Development. Vikram Cement and Aditya Cement wins the Federation of Indian Mineral and Industries' "Social Awareness Award for the year 2008-09". Reader's Digest Pegasus Star Award conferred on Hindalco in recognition of work that truly exemplifies the highest values of society and corporate leadership for social responsibility and sustainable development initiatives. Mrs. Rajashree Birla, who spearheads all the Group's social projects, received this much coveted award on behalf of Hindalco from Mr. Arun Jaitley, MP, Rajya Sabha, on 21 January 2009 in Delhi.2008 The President of India, Mrs. Pratibha Patil confers the much coveted Rotary International Polio Eradication Champion Award on Mrs. Rajashree Birla in an elegant function at the Rashtrapati Bhavan (Delhi), attended by the Chairman, select Rotarians and WHO officials.2007 The Aditya Birla Group honoured with the India Today Group's Readers Digest Gold award in recognition of the work that truly exemplifies the highest values of society as well as those of Reader's Digest. The award was received by Mrs. Rajashree Birla, Chairperson, Aditya Birla Center for Community Initiatives and Rural Development, at the Pegasus Corporate Social Responsibility Awards 2007 function. Hindalco awarded the CII - Sorabji Green Business Centre "National Award for Excellence in Water Management 2007".2006 Hindalco awarded the Greentech Safety Silver Award for its outstanding safety performance during 2005-06.2004 Grasim, Nagda, receives the FICCI Annual Award 2003-2004 in recognition of corporate initiaitve in rural development. Aditya Birla Chemicals (India) Limited, Rehla, Jharkhand, receives the FICCI Annual Award 2003-2004 in recognition of corporate initiative in family welfare. Indal wins FICCI Award 2002-2003 for 'Corporate Initiative in Rural Development'.2003 The Group is ranked 16th in India's first ever survey of 'Great places to work in', published in Business World magazine. The Group's joint venture concern, Birla Sun Life Insurance, is ranked 9thin the same study. The Group is ranked 20th in a study on the 'Best Employers in India', conducted by Hewitt Associates and Business Today. Hindalco receives the Asian CSR Award for its "Rural Poverty Alleviation Programme". The Asian CSR Awards are Asia's premier awards programme on corporate social responsibility.2002 The Group receives The Economic Times' "Corporate Citizen" of the year award.2000 The Group announces its intention to launch a 450 MW 'Green Power Project' in Karnataka .

Corporate Social Responsibility Policy For us in the Aditya Birla Group, reaching out to underserved communities is part of our DNA. We believe in the trusteeship concept. This entails transcending business interests and grappling with the quality of life challenges that underserved communities face, and working towards making a meaningful difference to them. Our vision is to actively contribute to the social and economic development of the communities in which we operate. In so doing build a better, sustainable way of life for the weaker sections of society and raise the countrys human development index. (Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural Development). Implementation process: Identification of projects All projects are identified in a participatory manner, in consultation with the community, literally sitting with them and gauging their basic needs. We recourse to the participatory rural appraisal mapping process. Subsequently, based on a consensus and in discussion with the village panchayats, and other influentials, projects are prioritised. Arising from this the focus areas that have emerged are Education, Health care, Sustainable livelihood, Infrastructure development, and espousing social causes. All of our community projects are carried out under the aegis of The Aditya Birla Centre for Community Initiatives and Rural Development. In Education, our endeavour is to spark the desire for learning and knowledge at every stage through Formal schools Balwadis for elementary education Quality primary education Aditya Bal Vidya Mandirs Girl child education Adult education programmes. Page | 1 In Health care our goal is to render quality health care facilities to people living in the villages and elsewhere through our Hospitals Primary health care centres Mother and Child care projects Immunisation programmes with a thrust on polio eradication Health care for visually impaired, and physically challenged Preventive health through awareness programmes. In Sustainable Livelihood our programmes aim at providing livelihood in a locally appropriate and environmentally sustainable manner through Formation of Self Help Groups for women empowerment Vocational training through Aditya Birla Rural Technology Parks Agriculture development and better farmer focus Watershed development Partnership with Industrial Training Institutes. In Infrastructure Development we endeavour to set up essential services that form the foundation of sustainable development through Basic infrastructure facilities Housing facilities Safe drinking water Sanitation & hygiene Renewable sources of energy. To bring about Social Change, we advocate and support Dowryless marriage Widow remarriage Awareness programmes on anti social issues De-addiction campaigns and programmes Espousing basic moral values. Activities, setting measurable targets with timeframes and performance management. Prior to the commencement of projects, we carry out a baseline study of the villages. The study encompasses various parameters such as health indicators, literacy levels, sustainable livelihood processes, population data below the poverty line and above the poverty line, state of infrastructure, among others. From the data generated, a 1- year plan and a 5-year rolling plan are developed for the holistic and integrated development of the marginalised. These plans are presented at the Annual Planning and Budgeting meet. All projects are assessed under the agreed strategy, and are Page | 2 monitored every quarter, measured against targets and budgets. Wherever necessary, midcourse corrections are affected. Organisational mechanism and responsibilities The Aditya Birla Centre for Community Initiatives and Rural Development provides the vision under the leadership of its Chairperson, Mrs. Rajashree Birla. This vision underlines all CSR activities. Every Manufacturing Unit has a CSR Cell. Every Company has a CSR Head, who reports to the Group Executive President (Communications & CSR) at the Centre. At the Company, the Business Director takes on the role of the mentor, while the onus for the successful and time bound implementation of the projects is on the various Unit Presidents and CSR teams. To measure the impact of the work done, a social satisfaction survey / audit is carried out by an external agency. Partnerships Collaborative partnerships are formed with the Government, the District Authorities, the village panchayats, NGOs and other like-minded stakeholders. This helps widen the Companys reach and leverage upon the collective expertise, wisdom and experience that these partnerships bring to the table. In collaboration with FICCI, we have set up Aditya Birla CSR Centre for Excellence to make CSR an integral part of corporate culture. The Company engages with well established and recognised programmes and national platforms such as the CII, FICCI, ASSOCHAM to name a few, given their commitment to inclusive growth. Budgets A specific budget is allocated for CSR activities. This budget is project driven. Page | 3 Information dissemination The Companys engagement in this domain is disseminated on its website, annual reports, its house journals and through the media. Management Commitment Our Board of Directors, our Management and all of our employees subscribe to the philosophy of compassionate care. We believe and act on an ethos of generosity and compassion, characterised by a willingness to build a society that works for everyone. This is the cornerstone of our CSR policy. Our Corporate Social Responsibility policy conforms to the Corporate Social Responsibility Voluntary Guidelines spelt out by the Ministry of Corporate Affairs, Government of India in collaboration with FICCI (2009).