ADITYA BIRLA GROUP

CONTENTS• JOURNEY

• GREATEST ACHIVEMENTS

• GROUP PROFILE

• PRODUCTS

• VISION & MISSION

• VALUES

• CONTRIBUTION OF SECTOR TO GROUP TURNOVER

• MAJOR COMPETITORS

• MAJOR SECTORWISE COMPETITORS

• SWOT ANALYSIS

• CORPORATE CLIENT

• CORPORATE STRATEGIES-COOPERATION

• CORPORATE STRATEGIES-DIVERSIFICATION

• BUSINESS STRATEGIES-EXPANSION

• AWARDS

• Type Diversified company / Listed Companies. • Headquarters Mumbai, India • Key people Kumar Mangalam Birla (Chairman) • Industry Metals and several others. • Products Aluminum, Copper, Cement, Fertilizer, Textile,

Fiber, etc.• Revenue ▲ $24 billion• Employees 100,000+ • Aditya Birla Group is in the league of Fortune 500• belonging to 25 different nationalities• Website http://www.adityabirla.com/

INTRODUCTION

JOURNEY• 1857 -The foundation of the Birla Group of Companies is laid by Seth Shiv Narayan Birla –

cotton trading operations commence at Pilani, Rajasthan.

• 1947-Grasim is incorporated. (rayon weaving)

• 1958 -Hindalco is incorporated.(aluminium)

• 1966-The Indian Rayon Corporation Ltd is acquired.

• 1969-set up Indo-Thai Synthetics Company Ltd, (the group's first overseas company)

• 1973-P.T. Elegant Textiles is established.(spun yarn)

• 1975 -The Indo Phil Group of companies, (the first Indo-Filipino joint venture commences production of spun yarn)

• 1977 -Pan Century Edible Oils is incorporated in Malaysia.

• 1978-Thai Carbon Black,( the Group's first carbon black company is incorporated in Thailand)

• 1982 -P.T Indo Bharat Rayon is established. (It is the first producer of Viscose Staple Fibre in Indonesia)

• 1984-Thai Polyphosphates and Chemicals commences production of sodium phosphates in Thailand.

• 1985 –Indo Gulf (India's first gas-based fertilizer plant at Jagdishpur, UP)

• 1986-The Birla Growth Fund is set up.(finance)(to finance industrial equipment, plant and machinery and consumer durables, as well as for stock market operations)

• 1987 -Thai Acrylic Fibre is incorporated (to produce fibre and tow.)

• 1988 -joint venture with Hindustan Petroleum Corporation Ltd (to set up a three-million-tonne refinery, Mangalore Refineries and Petrochemicals Ltd (MRPL), at Mangalore, Karnataka.)

• 1994 -Alexandria Carbon Black is established.( the Group's first joint venture with the Egyptian government)

• 1995-joint venture with AT&T (USA). (telecommunications)

• 1998-The Group forms a 50:50 joint venture company with Tembec Inc. of Canada, (to supply pulp for the Group's VSF operations.)

• Grasim acquires Dharani Cement and Shree Digvijay Cement (to consolidate the group's leadership position in cement.)

• 1999- joint venture with financial services major Sun Life of Canada.

• 2000 -Indian Rayon acquires Madura Garments.

• The Group forays into e-business through a strategic alliance of its software arm, Birla Software and Consultancy Services (BCSS), with Lawson Software (USA).

• 'Gyanodaya', the Institute of Management Learning of the Adiya Birla Group, is inaugurated.

• Hindalco acquires Indal.

• 2001 -Indian Rayon acquires a stake in PSI Data Systems, (in one of the largest cash transactions in the Indian technology sector.)

• 2002-Indal acquires a controlling stake in Anapurna Foils Ltd (AFL), to augment its position in the foil and packaging sectors. Subsequently AFL is merged with Indal.

• 2003-The Group acquires the Mount Gordon Copper mines in Australia, another strategic step in becoming a globally competitive copper player.

• Liaoning Birla Carbon, the Group's first carbon black company in China, is incorporated.

• Indian Rayon acquires Trans Works, a leading Indian ITES / BPO company.

• Birla Copper acquires the Nifty Copper Mines in Australia, as part of a strategic plan to make the company an integrated copper producer, and source raw material for its copper smelter at Dahej, Gujarat.

• Indian Rayon formally launches its insulators joint venture with NGK Insulators Ltd., Japan, christening it as "Birla NGK Insulators Private Limited.

• 2005-The Aditya Birla Group signs a framework agreement to acquire St Anne Nackawic Pulp Mill, Canada.

• 2006-Hindalco in a joint venture with Almex USA Inc.

• TransWorks Information Services announces success of bid to acquire Minacs Worldwide

• Grasim Industries Limited, India; Thai Rayon Public Company Limited, Thailand and P.T. Indo Bharat Rayon, Indonesia form a JV with Hubei Jing Wei Chemical Fibre Company, China, for VSF.

GRATEST ACHIVEMENTS

• No.1 in viscose staple fibre• Among the world's top 15 BPO companies and among

India's top four• The second largest player in viscose filament yarn• The second largest in the chlor-alkali sector• Among the top five mobile telephony companies • A leading player in life insurance and asset

management • Among the top three supermarket chains in the retail

business• A metals powerhouse, among the world's most cost-

efficient aluminium and copper producers• Hindalco-Novelis is the largest aluminium rolling

company. It is one of the three biggest producers of primary aluminium in Asia

GROUP PROFILE• Group companies

• Grasim Industries Ltd.

• Hindalco Industries Ltd.

• Aditya Birla Nuvo Ltd.

• UltraTech Cement Ltd.

• Indian companies

• PSI Data Systems

• Aditya Birla Minacs Worldwide Limited

• Essel Mining & Industries Ltd

• Idea Cellular Ltd.

• Aditya Birla Insulators

• Aditya Birla Retail Limited

• Bihar Caustic and Chemicals Ltd.

• International companies

• Thailand

• Thai Rayon

• Indo Thai Synthetics

• Thai Acrylic Fibre

• Thai Carbon Black

• Aditya Birla Chemicals (Thailand) Ltd.

• Thai Peroxide

• Philippines

• Indo Phil Textile Mills

• Indo Phil Cotton Mills

• Indo Phil Acrylic Mfg. Corp.

• Pan Century Surfactants Inc.

• Indonesia

• PT Indo Bharat Rayon

• PT Elegant Textile Industry

• PT Sunrise Bumi Textiles

• PT Indo Liberty Textiles

• PT Indo Raya Kimia

• Egypt• Alexandria Carbon Black Company S.A.E• Alexandria Fiber Company S.A.E

• China• Liaoning Birla Carbon• Birla Jingwei Fibres Company Limited• Aditya Birla Grasun Chemicals (Fangchengg

ang) Ltd.

• Canada• AV Cell Inc• AV Nackawic Inc

• Australia• Aditya Birla Minerals Ltd.

• Laos• Birla Laos Pulp and Paper Plantation Compa

ny Ltd.

• North and South America, Europe and Asia

• Novelis Inc.

• Joint ventures

• Birla Sun Life Insurance

• Birla Sun Life Asset Management Company Ltd.

• Birla Sun Life Distribution Company Ltd.

• Tanfac Industries Ltd.

PRODUCTS Aluminium

• Freshpakk semi- rigid containers

• Permashield waterproofing

• Aluminium foil

• Aura alloy wheels

• Hindalco extrusions

Copper

• COMPANY: HINDALCO

• Birla Copper

• Birla Gold

• Birla Silver

Cement

• COMPANY: GRASIM

• Birla Super

• UltraTech Cement (formerly Birla Plus)

• Birla Ready Mix

• Birla White

• COMPANY: ULTRATECH

• UltraTech cement

Vsf

• COMPANY: GRASIM

• Birla Cellulose

Fertilizers

• COMPANY: INDO GULF

• Birla Shaktiman Urea

• COMPANY: HINDALCO

• Birla Balwan

Carbon black

• COMPANY: ADITYA BIRLA NUVO

• Birla Carbon

Insulator

• COMPANY: BIRLA NGK INSULATORS PVT. LTD.

• Aditya Birla Insulators

Textiles• COMPANY: ADITYA BIRLA NUVO• Linen Club• Pyroguard• Ray One • Kolorone• COMPANY: GRASIM• Ice Touch • Uncrushables• Purista• Clean Fab• COMPANY: THAI ACRYLIC FIBRE • Texlan

Garments• COMPANY: ADITYA BIRLA NUVO• Louis Philippe• Van Heusen• Allen Solly • Peter England• Esprit

Telecom• COMPANY: IDEA CELLULAR LTD. • Idea

Chemicals• COMPANY: ADITYA BIRLA CHEMICALS

(THAILAND) LTD. • Polyphos® • Epotec• Birlasulf-SS• Birlasulf-SM • Birlasulf 35• COMPANY: THAI PEROXIDE CO. LTD. • Ecare• Encare• Aqua X• OCARE• Birlox• Herlisil

RetailCOMPANY: ADITYA BIRLA RETAIL

LIMITEDMore .

VISION & MISSION

VISION

To be a premium global conglomeratewith a clear focus on each business.

MISSION

To deliver superior value to our customers, shareholders, employees and society at large.

VALUES

Integrity: Honesty in Every Action Commitment: Deliver on the Promise Passion: Energised Action Seamlessness: Boundary Less in Letter and Spirit Speed: One Step Ahead Always

MAJOR COMPETITORS

• RELIANCE INDUSTRY• TATA• HINDUJA GROUP• GODREJ

SECTORWISE COMPETITORS

Textiles Copper aluminum CementTelecommunicatio

n

Reliance Vedant group Ambuja Bharti airtel

Reymond Essar Unitech Reliance

Mayur Sail Vodafone

Tata BSNL

CORPORATE CLIENT

ASIA-PACIFIC EUROPE AMERICA

ABN Amro bank Land Securities Citibank

AXA Insurance Robobank carreker

Thai Chemicals Royal Air Force RCM Technogolies

United Bank Of India WTO XL Capital

SWOT ANALYSIS

STRENGTHS: Strong brand recognition

Internet sales

Growing international presence

Superior research and development department

Strong financial returns

Strong sense of culture in the working

environment

Successful experience being competitive

Effective Leadership

Cost leadership

Prestigious Client Base

Customer Loyalty

Diversified Business Product innovation capabilities Technological excellence. Good corporate image.

WEAKNESSES:

• Complexity of operation

• Lengthy processing chain

OPPORTUNITIES:

• Growth of core sector industries

• Rapid integration with global economy

• Booming construction business in asia

• Growing e-commerce’s business.

• Increasing urbanization

THREATS:

• Entry of global players

• Take over possibilities

• Political threats

• The impact of foreign currency fluctuation and interest rates.

• Loss of sales to substitutes

CORPORATE STRATEGIES-COOPERATION

Joint Ventures• The Indo Phil Group of companies, Filipino.• Hindustan Petroleum Corporation Ltd,

Mangalore.• AT&T, USA.• Tembec Inc.,Canada.• Sun Life of Canada.• NGK Insulators Ltd., Japan.• Hindalco in a joint venture with Almex USA Inc.

Acquisitions• The Indian Rayon Corporation Ltd• Grasim acquires Dharani Cement and Shree Digvijay

Cement• Indian Rayon acquires Madura Garments.• Lawson Software (USA)• Hindalco acquires Indal. • Indian Rayon acquires a stake in PSI Data Systems.• Mount Gordon Copper mines in Australia• Indian Rayon acquires TransWorks• Birla Copper acquires the Nifty Copper Mines in

Australia• Nackawic Pulp Mill, Canada. • Minacs Worldwide

CORPORATE STRATEGIES-DIVERSIFICATION

BUSINESS STRATEGIES-EXPANSION

GRASIMTextiles AluminumFertilizer Software

Power Banking

AWARDS• 2002-The Group receives The Economic Times' "Corporate Citizen" of the year award.

• The Best Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times and Wall Street Journal Study 2007.

• 2003-Mr. Kumar Mangalam Birla, Chairman of the Group, is selected as Business India's Businessman of the Year - 2003.

• Mr. Kumar Mangalam Birla is selected as The Economic Times' Business Leader of the year.

• 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 9th in 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.

• Birla Copper, a strategic business unit of Hindalco, is accorded London Metal Exchange (LME) registration. Its copper cathodes are approved as 'Grade A' copper brand by LME.

• 2004-Grasim, Nagda, received the FICCI Annual Award 2003-2004 inrecognition of corporate initiaitve in rural development.

• Bihar Caustic and Chemicals Ltd., Rehla, Jharkhand, has received theFICCI Annual Award 2003-2004 in recognition of corporate initiative in family welfare.

• Hindalco recieves India CFO Award 2004 for excellence in finance in a large corporate.

• Deming Award for Indo Gulf.

• Indal wins FICCI Award 2002-2003 for 'Corporate Initiative in Rural Development'.

• 2006-Hindalco awarded the Greentech Safety Silver Award for its outstanding safety performance during 2005-06.

• 2007-The Aditya Birla Group was 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".

• 2008- The President of India, Mrs. Pratibha Patil conferred 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