If you ask school kids about their favorite subject, you’re unlikely to get history as an answer. However I loved it growing up, especially the business history. It is filled with examples of leadership skills, innovative ideas, futuristic visions and out of the box thinking. Yet only few businesses manage to stand the test of time and remain successfully operational for more than 50 years. Only a handful have ever managed to make it to 100 years. And then there is the Birla group which has been growing and scripting success stories for more than 150 years.
By 1947, the group had come a long way from its origin as a cotton trading operation founded in 1857. Despite a hostile establishment, Ghanshyam Das Birla, founding father of the group managed to expand into critical sectors like textiles and fibre, aluminium, cement, and chemicals. While achieving business goals, he also made significant contributions towards India’s freedom struggle. His actions were a lesson in Corporate Social Responsibility in a time when such a concept was alien to most businesses.
By the end of 1960s, Aditya Birla, grandson of G.D. Birla was placed in charge of key companies of the group such as Grasim, Hindalco and Indian Rayon. He realized the importance of international relations. He established subsidiaries in Thailand followed by Philippines, Malaysia and Indonesia. He was the torch bearer for multi nationalization of Indian businesses. He also started diversification of group’s companies and entered sectors like Cement. His vision ensured that the structure of growth was already in place and intact when Indian economy underwent liberalization.
Under the leadership of Kumar Mangalam Birla, the group underwent further diversification and restructuring. All the businesses were grouped under a single umbrella holding, Aditya Birla Group Limited. Under the new leadership, company entered new sectors like Telecommunication, IT services, Financial services, Fashion and retail, etc. Today Aditya Birla group consists of 36 companies operating in 16 sectors. It is a USD 44.3 billion enterprise employing 120000 people. Today it is almost impossible to find anyone in India who hasn’t directly or indirectly used a product or a service offered by Aditya Birla Group.
However the real differentiating factor for Aditya Birla Group is their commitment towards social responsibility. Building on the values and principles of G.D. Birla, group has continuously contributed towards social and economic development of communities by building and funding educational institutes, scholarships, social research, hospitals, museums, and so on.
In my opinion, study of the history, conduct and business strategy of Aditya Birla Group is a must for every aspiring business leader.