Jamnalal Bajaj Institute of Management Studies, as is rightly said : “The CEO Factory” or “The Black IIM” is not just about the academic rigor or the grilling placement seasons, it’s a fully-fledged package of a lot of other factors, namely, peers, lectures, canteen stories, competitions, festivals and much more.
One of my personal favorite memories at JBIMS is the heavy Mumbai monsoons! Heavy rains had flooded the Mumbai streets and the railway tracks where all the Mumbaikars were stuck while either going home or while trying to reach any nearby safe house. A similar incident had happened to me where I and a couple of my friends were stuck at the college due to the heavy rainfall. I live at a distance of about 35kms from my place of residence. Out of options, we decided to spend the rest of the night at the college campus. Understandably, the guards took no objection for the same and allowed us to stay overnight on the campus. Hence without any mattress or pillow, we decided to sleep on the ground with just the newspapers spread all over the floor.
Although we didn’t even feel a pinch of it, it was one of the memorable days at JBIMS that I had spent.
Talking about the interest regarding the Aditya Birla Group, the company that attracts my attention the most is Aditya Birla Capital. This business of Aditya Birla Cap is the cream business of the organisation in coming years as Aditya Birla Group is also having a license for opening payments bank. Mutual funds, insurance, are insurance, investments business and payments bank will be categorized under this business. I believe that the Insurance Business is set to be disrupted and LIC’s Supply chain moat will be destroyed as people turn toward buying Insurance Policies online. LIC is losing market share and this trend is expected to continue for the foreseeable future. The horse which is leading this trade is HDFC Life and ICICI Prudential Life. Max Life Insurance acquisition deal with HDFC Life happened at 4.3x Embedded value whereas ICICI Prudential trades at 4.10x FY2017 Embedded value. Birla Sun Life Insurance has been an underperformer in the Insurance space and is losing market share. Birla Sun Life has embedded value of 3400 Crores in FY2017, and this business is valued at 3x FY2017 Embedded value, a discount of 30% from its peers due to slower growth and small player discount. Aditya Birla Capital has 51% Stake and its value of 51% Stake is clocked at 5200 Crores.
Hence a bright future complemented with shining opportunities can be foreseen at Aditya Birla Capital where a couple of Business Graduates can loop in and make the stones turn in their favor.
- Tej Rajani
MMS - II, JBIMS
