diversification strategy
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Diversification StrategyTRANSCRIPT
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.
COMPANIES IN INDIA Aditya Birla Nuvo Grasim Industries Limited Grasim Bhiwani Textiles Limited Hindalco Industries Limited UltraTech Cement Limited Aditya Birla Minacs Worldwide Limited Aditya Birla Chemicals (India) Limited Utkal Alumina International Limited Dahej Harbour & Infrastructure Limited Aditya Birla Science and Technology Company Limited Aditya Birla Finance Limited Aditya Birla Money Aditya Birla Insurance Brokers Aditya Birla Capital Advisors Private Limited Idea Cellular Limited Madura Fashion and Lifestyle Essel Mining and Industries Aditya Birla Retail Limited Aditya Birla Group Power Projects
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.