UNIVERSITY OF MUMBAI

PROJECT ON

LEADERSHIP STRATERGIES OF KUMARMANGLAM BIRLA

MASTERS OF COMMERCE (BUSINESS MANAGEMENT)

SUBJECT: ORGANIZATIONAL BEHAVIOR

SEMESTER III 2013-14

IN PARTIAL FULFILLMENT OF THE REQUIREMENT UNDER SEMESTER BASED

CREDIT AND GRADING SYSTEM FOR POST GRADUATE (PG) PROGRAMME

UNDER FACULTY OF COMMERCE

SUBMTTED BY

ALI JAMAL

ROLL NO 24

PROJECT GUIDE

MS. SHAILASHREE.

K.P.B. HINDUJA COLLEGE OF COMMERCE 315 NEW CHARNI ROAD MUMBAI

400004

M.Com (BUSINESS MANAGEMENT)

3rd SEMESTER

LEADERSHIP STRATERGIES OF KUMAR MANGALAM BIRLA

SUBMITED BY

ALI JAMAL

ROLL NO: 24

CERTIFICATE

This is to certify Mr. ALI JAMAL of M.Com Business Management semester 3 rd 2013-2014 has

successfully completed the project on “LEADERSHIP STRATERGIES OF KUMAR MANGALAM

BIRLA”underthe guidance of Ms. Shailashree.

Project Guide _________________________

Course Coordinator _________________________

Internal Examiner _________________________

External Examiner _________________________

Principal _________________________

Date: ________

Place: Mumbai

DECLARATION

I Mr. ALI JAMAL the student of M.Com Business Management 3rd semester (2013-2014)

hereby declare that I have completed the project on “LEADERSHIP STRATERGIES OF

KUMARMANGLAM BIRLA”

The information submitted is true and original to the best of my knowledge.

ALI JAMAL

(Signature)

ACKNOWLEDGMENT

My sincere Thanks to Ms. Shailashree, K.P.B. Hinduja College of Commerce, Mumbai for her

valuable guidance and support at all time.

Also, I would like to thank and remember my family, friends & colleagues for their effort and

helping hand.

Every effort has been made to enhance the quality of work. However, I owe the sole

responsibility of the shortcoming, if any, in the study.

ALI JAMAL

Roll No : 24

M. Com - II Semester

TABLE OF CONTENT

Sr. No TOPIC PAGE

1 Introduction 1

2 Mission And Vision Statement 6

3 Business Continuity Plan 8

4 Corporate Social Responsibility 9

5 Leadership Strategies 10

6 Traits & Skills 15

7 Achievements of K.M Birla 22

8 Transformational Leader 28

9 Conclusion 31

10 Bibliography 33

INTRODUCTION

Mr. Kumar Mangalam Birla (46) is the Chairman of the US $40 billion

multinational Aditya Birla Group, which operates in 36 countries across six

continents. Over 50 per cent of its revenues flow from its operations outside

India.

Mr. Birla chairs the Boards of the major Group companies in India and

globally. The global companies include Novelis, Columbian Chemicals, Aditya

Birla Minerals, Aditya Birla Chemicals, Thai Carbon Black, Alexandria Carbon

Black, Domsjö Fabriker and Terrace Bay Pulp Mill, among others. In India, Mr.

Birla chairs the Boards of Hindalco, Grasim, Aditya Birla Nuvo, UltraTech,

Idea, Aditya Birla Financial Services and Aditya Birla Retail. 

The Group's businesses are spread across a swath of industries. These

include aluminium, copper, cement, textiles (pulp, fibre, yarn, fabric and

branded apparel), carbon black, insulators, natural resources, power,

agribusiness, telecommunications, financial services, IT/ITeS, retail and

trading. 

Business record

Mr. Birla took over as Chairman of the Group in 1995, at the age of 28, after

the untimely demise of his father. As Chairman, Mr. Birla has taken the

Aditya Birla Group to an altogether higher growth trajectory. In the 17 years

that he has been at the helm of the Group, he has accelerated growth, built

a meritocracy and enhanced stakeholder value.

In the process he has raised the Group's turnover from US $2 billion in 1995,

to US $40 billion today. Mr. Birla has restructured the businesses to emerge

as a global/national leader in the sectors in which the Group operates. He

has made 26 acquisitions in 17 years in India and globally, the highest by an

Indian multinational in India.

The acquisition of Novelis, a global metals major, in 2007, the second largest

acquisition ever by an Indian company, led to a new-found respect for Indian

companies and stoked a higher level of interest in the country as well.

Recently, the acquisition of Columbian Chemicals, a US-based company and

the world's third largest carbon black manufacturer positioned the Group as

the No. 1 player in this sector, given its own sizeable carbon black

operations. Likewise, the acquisition of Domsjö Fabriker, a leading Swedish

speciality pulp manufacturer enables the Group's Pulp and Fibre business to

further consolidate its global position.

Besides these, over the years Mr. Birla has acquired manufacturing plants in

Canada, China, Indonesia, plantations in Laos, and mines in Australia, set up

new plants in Egypt, Thailand and China. Alongside, he has expanded

capacities in all of the Group's manufacturing units.

In India as well, he has made major acquisitions, the most notable being the

Cement division of Larsen & Toubro, Indal from Alcan, Madura Garments

from Coats Viyella and the Chlor Alkali division of Kanoria Chemicals.

Under his stewardship, the Aditya Birla Group enjoys a position of leadership

in all the major sectors in which it operates. Over the years, Mr. Birla has

built a highly successful meritocratic organisation, anchored by an

extraordinary force of 136,000 employees belonging to 42 different

nationalities.

In key responsible positions on various regulatory bodies

Mr. Birla has held and continues to hold several key positions on various

regulatory and professional Boards. An erstwhile Director on the Central

Board of Directors of the Reserve Bank of India, he was also Chairman of the

Advisory Committee constituted by the Ministry of Company Affairs and

served on The Prime Minister of India's Advisory Council on Trade and

Industry.

As the Chairman of Securities and Exchange Board of India (SEBI) Committee

on Corporate Governance, he authored the First Report on Corporate

Governance titled "Report of the Kumar Mangalam Birla Committee on

Corporate Governance". Its recommendations were path breaking and

became the basis of corporate governance norms. Furthermore, as the

Convener of the Prime Minister's Task Force on Administrative and Legal

Simplifications, the extensive recommendations made by him in his report,

have been implemented in totality. Mr. Birla also served as Chairman of

SEBI's committee on Insider Trading, which formulated Corporate

Governance principles for Indian corporates.

He is on the National Council of the Confederation of Indian Industry and the

Apex Advisory Council of the Associated Chambers of Commerce and

Industry of India.

On the board of educational institutions

Mr. Birla is deeply engaged with educational institutions. He is the Chancellor

of the renowned Birla Institute of Technology & Science (BITS), with

campuses in Pilani, Goa, Hyderabad and Dubai.

He is a Director of the G. D. Birla Medical Research & Education Foundation.

He serves on the London Business School's Asia Pacific Advisory Board and is

a Honorary Fellow of the London Business School.

Accolades conferred on Mr. Birla

Mr. Birla has won recognition for his exemplary contribution to leadership

processes and institution/systems building. A selective list:

Forbes India Leadership Award – Flagship Award "Entrepreneur of the

Year, 2012"

'Ranked the 3rd Most Powerful CEO (2012)' in the Economic Times'

Corporate India's Definitive Power listing of 100 CEOs

The Degree of Doctor of Science (Honoris Causa) in recognition of his

role in "pioneering great Engineering products involving Multi-disciplinary

Engineering thought processes in the Country" by the Visvesvaraya

Technological University, Karnataka, 2012

NASSCOM's 'Global Business Leader Award', 2012

CNBC – TV18 India Business Leader Award 2012 for "Taking India

Abroad"

"GQ Business Leader of the Year Award - 2011" from Condé Nast India

Pvt. Ltd., an affiliate of Condé Nast Global

"CNN – IBN Indian of the Year 2010 – Business", "for being the most

outstanding business person and making a success out of most businesses

including the sunrise sector", 2010

The All India Management Association's (AIMA), Managing India Awards

"Business Leader of the Year", 2010

"The AIMA – JRD Tata Corporate Leadership Award", 2008

The Honorary Degree of Doctor of Science (Honoris causa) in

"recognition of his invaluable contribution in the field of Business

Administration" by the G. D. Pant University of Agriculture & Technology,

2008

"For the development of technology and also for the involvement in

the field of Industries in bringing the country at par with other countries in

the field of Industries", the SRM University in Tamil Nadu conferred the

Degree of Doctor of Literature, 2008

The Asia Pacific Global HR Excellence – "Exemplary Leader" Award,

2007

"The Global Indian Leader of the Year" by NDTV Profit in their Business

Leader Awards category, 2007

The Lakshmipat Singhania – IIM, Lucknow "National Leadership Award,

Business Leader", 2006

Represented India at the Ernst & Young World Entrepreneur Award in

Monte Carlo, Monaco in June 2006, where he was inducted as a "Member of

the Ernst & Young World Entrepreneur of the Year Academy"

"The Ernst & Young Entrepreneur of the Year" Award, 2005

"Young Super Performer in the CEO Category" by Business Today, 2005

Chosen by the World Economic Forum (Davos) as one of the "Young

Global Leaders", 2004

"The D. Litt (honoris Causa) Degree" by The Banaras Hindu University,

2004

"Honorary Fellowship" by the All India Management Association, 2004

"The Business Leader of the Year", The Economic Times Awards for

Corporate Excellence 2002-2003

"Business Man of the Year-2003" by Business India

The Rajiv Gandhi Award for "Business Excellence and his contribution

to the country" by the Mumbai Pradesh Youth Congress, 2001

The National HRD Network, "The Outstanding Business Man of the

Year", 2001

The Institute of Directors' "Golden Peacock National Award for Business

Leadership", 2001

Hindustan Times', "The Businessman of the Year", 2001

The Bombay Management Association – "The Management Man of the

Year 1999-2000"

"Among the 10 super Stars of Corporate Finance" – Global Finance,

1998

"Among the top 10 of India's most admired and respected CEOs and

the top CEO of the coming millennium", Business World, 1998

Beyond business: Reaching out to the marginalised sections of the

society

A firm practitioner of the trusteeship concept, Mr. Birla has institutionalised

the concept of caring and giving at the Aditya Birla Group. With his mandate,

the Group is involved in meaningful welfare driven activities that distinctively

impact the quality of life of the weaker sections of society, touching

hundreds of villages that are among the poorest in India, Thailand,

Indonesia, Philippines and Egypt.

In India, the Group is engaged in 3,000 villages, reaching out to seven million

people annually and making a difference to their lives through meticulously

conceived projects focusing on health care, education, sustainable livelihood,

infrastructure and social causes. For instance, the Group runs 42 schools

which provide quality education to 45,000 children. Of these, over 18,000

children receive free education. Additionally, over a 100,000 youngsters

benefit from bridge educational programmes and vocational training. Its 18

hospitals tend to more than a million villagers. In line with the commitment

to sustainable development, a partnership has been formed with the

Columbia University in establishing the Columbia Global Centre's Earth

Institute in Mumbai. To embed CSR as a way of life in organisations, the FICCI

– Aditya Birla CSR Centre for Excellence was set up in Delhi.

Kumar Mangalam Birla is an Indian industrialist and the Chairman of the Aditya Birla Group,

one of the largest conglomerate corporations in India. The groups is India's third largest business

house. He is also the Chancellor of the Birla Institute of Technology & Science

Early life and education

Kumar Mangalam Birla is a fourth generation member of the Birla family from the state of

Rajasthan.  He spent his childhood in Kolkata andMumbai.He has BCom degree from University

of Bombay&CA(Chartered Accountant)(India)from ICAI&MBA from University of

London;London;UK,where he is also an Honorary Fellow

Career

Kumar Mangalam Birla took over as Chairman of the Aditya Birla Group in 1995, at the young

age of 28, after sudden death of his father, Aditya Birla, after whom the group is named. Many

doubts were raised about his ability to lead the group with varied interests in textile and

garments, cement, aluminum,fertilizers etc. but KM Birla not only proved his skeptics wrong,

but also has grown to become one of the most respected industrialists in the country. Under his

leadership the Aditya Birla group has expanded to Telecom, Software, BPO and other areas

while consolidating its position in existing businesses.

When Kumar Manglam Birla took over the reins of the group in 1995, the turnover was only $2

bn and overseas operations accounted for a very small part of the overall business with Egypt,

Thailand and Indonesia being major centers. Under KM Birla's strong leadership the group's

turnover has spiraled to $33bn and it has expanded operations to more than 40 countries

including Australia, Dubai, and reaching out to North America, Canada, Brazil, Germany, Italy,

Spain, Hungary and China. 60 percent of the group's revenues now come from abroad and

130,000 people are being hired globally for their business operations.

Personal life

Birla is married to Neerja Birla.They have three children: Ananyashree, Aryaman Vikram,and

Advaitesha Neerja oversees the Aditya Birla World Academy, a school in Mumbai,

Mr. Kumar Mangalam Birla (46) is the Chairman of the US $40 billion multinational Aditya

Birla Group, which operates in 36 countries across six continents. Over 50 per cent of its

revenues flow from its operations outside India.

Mr. Birla chairs the Boards of the major Group companies in India and globally. The global

companies include Novelis, Columbian Chemicals, Aditya Birla Minerals, Aditya Birla

Chemicals, Thai Carbon Black, Alexandria Carbon Black, Domsjö Fabriker and Terrace Bay

Pulp Mill, among others. In India, Mr. Birla chairs the Boards of Hindalco, Grasim, Aditya Birla

Nuvo, UltraTech, Idea, Aditya Birla Financial Services and Aditya Birla Retail. 

The Group's businesses are spread across a swath of industries. These include aluminium,

copper, cement, textiles (pulp, fibre, yarn, fabric and branded apparel), carbon black, insulators,

natural resources, power, agribusiness, telecommunications, financial services, IT/ITeS, retail

and trading.When Kumar Mangalam Birla inherited his father's vast industrial

group at the young age of 28, many were sceptical about his abilities. A decade later, Birla has

proved more than equal to the challenge. Darrel Philip profiles Birla's endeavours to reshape the

house his fther built.In the ten years since Kumar

Several accolades have been showered on Mr. Birla such as

The Asia Pacific Global HR Excellence ±Exemplary Leader Award

NDTV Global Indian Leader of the year ,́ and Most SociallyResponsible Leader´ by

Outlook Business

Magazine all in 2007.

Earlier, the Lakshmipat Singhania IIM, Lucknow National Leadership Award 2006, Business

Leader, was conferred on Mr. Birla by the Prime Minister.

He also has been named the World Economic Forum Young Global Leader Ernst & Young Entrepreneur

of the year"

The

Ecnomic Times

BUsiness Leader of the year´,

Business India

"Business Man of the year ,́

Business Today

Young Super Performer in the CEO Category´

RECOGNITION & AWARDS

CNBC-TV18 India Business Leader Award 2012' for "taking India abroad".

The Honorary Degree of Doctor of Science (honoris causa) in 'recognition of his invaluable

contribution in the field of business administration' by the G. D. Pant University of Agriculture

& Technology, 2008.

"For the development of technology and also for the involvement in the field of industries in

bringing the country at par with other countries in the field of industries", the SRM University in

Tamil Nadu conferred the Degree of Doctor of Literature, 2008.

'The D. Litt (honoris causa) Degree' by the Banaras Hindu University,2004.

NEWS & ARTICLES OF BIRLA

Birla group he has focused on fine tuning the group's talent pool. If this

meant taking hard decisions Birla

did not shy away. More than 350 senior managers left the

group” 

 "Management means attracting talented people, nurturing them, developing

them, and givingthem space," asserts Birla, "decisions need to be made at

every level and decisions need to bequick. So, we have to spot, incubate and

groom talent at every level of the organization, becausemore people need to

be making high quality decisions

“Birla has created a system based on meritocracy

 

“The group is considered among the top 20 preferred employers in Asia

.

Mission:

Enhance the financial future of our customers including enterprises.To help people mitigate

risks of l ife, accident, health, and money at all stages and under all circumstances.

Values:

Integrity

Commitment

Passion

Seamlessness

Speed

UTILAZTION OF RESOURCES

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500 worldwide.

It is anchored by an extraordinary force of 100,000employees, belonging to 25 different

nationalities. The group operates in 25countries across six continents – truly India's first

multinational corporation.Aditya Birla Group

BUSINESS ACUMEN

Value Creation & Growth

“Mr . Birla took over as Chairman of the Group in 1995; In the process

he hasraised the Group's turnover from US$ 2 billion in 1995, to US$ 35

billion today

 

“Mr . Birla has restructured the businesses to emerge as a global/national

leader in

the sectors in which the Group

operates” 

 

Execution

“He unified his diverse companies under the Aditya Birla Group

head. "If one were

to encapsulate it (the group strategy) in a single word - the dominant

strategic

theme over the past four years has been consolidation," says Birla

TRAITS

High Energy levels & Stress Tolerance

Physical Vitality & Emotional resilience

“He has made 22 acquisitions in 17 years in India and globally,the highest by

an Indian multinational in India” 

 

Self Confidence & Internal Locus of Control

“Under his stewardship, the Aditya Birla Group enjoys a position

of leadership in all the major sectors in which it operates

Emotional Maturity 

“Birla Group

he has focused on fine tuning the group's talent  pool. If this meant taking

hard decisions Birla did not shy away.

 More than 350 senior managers left the group” 

 Value Based

“The group is considered among the top 20 preferred employers in

 Asia.” 

 

SKILLS

Global mindset 

“Over the years Mr. Birla has acquired manufacturing plants in Canada,

China, Indonesia, plantations in Laos, and mines in Australia, set upnew

plants in Egypt, Thailand and China. Alongside, he has expanded capacities

in all of the Group's manufacturing units

 Attention to Detail 

“Kumar Mangalam Birla works "normal Bombay hours", except that he

is also in office on Saturdays and half of Sundays. On each of those days,he

would like to know how much cash came into his group and how

much went out. Not turnover, not profit. Cash

Interpersonal Skills & Speaking ability 

“People skills are Birla's biggest strength. He has the ability to get 

on with both the old guard and the new turks. Soft spoken and 

insistent Birla likes to be directly involved” 

 Technical Skills

“Mr. Birla has restructured the businesses to emerge as a

global/national leader in the sectors in which the Group operates

Conceptual Skills & Analytical ability 

“Birla is his father's son, but he has gradually developed his own personal 

management style. Commonalities include performance orientation, a

strict eye for detail, close attention to budgets. Differences include more

informal interaction with managers from top to bottom; a greater gap

between

 personal and office life; and a strong emphasis on financial performance” 

 Persuasiveness

“But I was so overawed with his simplicity, his genuineness, and his ability

to explain simple things without trying to sell the job. If I had to take that 

decision all over again I'd do the same.“ 

BEHAVIOUR

The High-High leader (High Performance & High relationship

orientedBehaviour)

“A 360 degree feedback program that allows managers to question even

Birla's own

leadership style and does away with the 'babu culture' prevalent in the

group. But while onone hand Birla nurtures employees, on the other he is

very careful about performance

measures” 

 

 Birla is equally adamant about strict adherence to policies and procedures

that have been

discussed and approved” 

 

Supporting

“He sends individual notes to employees regarding their performance”

Management means attracting talented people, nurturing them,

developing them, and giving them space," asserts Birla, "decisions need to

be made at every level and decisionsneed to be quick. So, we have to spot,

incubate and groom talent at every level of theorganization, because more

people need to be making high quality decisions." 

Birla has created a system based on meritocracy.

His HR initiatives fall under three broad heads: learning and relearning,

performance management and organizationalrenewal. For example

Gyanodaya, the group's learning center falls in the first category. It helps in

the transfer of bestpractices across group companies thus sharpening the

group's competitive edge.

Birla has also instituted 'The Organizational Health Survey (OHS)' which

tracks the satisfaction levels of 8,670 managersacross the group.

The group is considered among the top 20 preferred employers in Asia.

For performance management Birla instituted the Aditya Birla Sun awards an

annual internal awards system. Birla believes that star performers

need appreciation and recognition. "It is very important for people who are

doing well to betold they are doing well," he says.

DELIVERING RESULTS

Managing Conflict

“People skills are Birla's biggest strength. He has the ability to get on

with both the old guard and the new turks. Soft spoken and insistent 

 Birla likes to be directly involved” 

 Managing across organizational boundaries

“Over the years, Mr. Birla has built a highly successful meritocratic

organization, anchored by an extraordinary force of 133,000 employees

belonging to 42 different nationalities”

Aditya Birla Financial Services Group(ABFSG),

Birla group has a strong presence across various financial services

verticalst h a t   i n c l u d e   l i f e   i n s u r a n c e ,   f u n d   m a n a g e m e n t ,   d i s t r i b u t i o n   &   w e a l t

h management, security based lending, insurance broking, private equity andretail broking. The

seven companies representing ABFSG are Birla Sun LifeInsurance Company, Birla Sun Life

Asset Management Company, Birla SunLife Distribution Company, Birla Global Finance

Company, Birla InsuranceAdvisory & Broking Services, Aditya Birla Capital Advisors

and Apollo Sindhoori Capital Investment. In FY 2008-09, the consolidated revenues of ABFSG

from these businesses crossed Rs. 4763 crores, registering a growthrate of

36%.Sun Life Financial   is  a leading international  financial  serviceso r g a n i s a t i

o n   p r o v i d i n g   a   d i v e r s e   r a n g e   o f   p r o t e c t i o n   a n d   w e a l t h accumulation

products and services to individuals and corporate customers.Chartered in 1865, Sun Life

Financial and its partners today have operationsin key markets worldwide, including Canada, the

United States, the UnitedKingdom, Ireland, Hong

Kong, the Philippines, Japan, Indonesia, India,China and Bermuda. As of December 31,

2008, the Sun Life Financial groupof companies had total assets under management of $381

billion.Mangalam Birla took the reins of his father Aditya Birla's business empire.

Business Continuity Plan

Birla Sun Life Insurance is one of the few Indian companies to have a fullyoperational Business

Continuity Plan (BCP) to ensure minimal impact to theorganisation, its people, and most

importantly, its customers. Our BusinessContinuity Planning (BCP) Program is a response plan

which would ensuret h a t i n t h e e v e n t o f a d i s a s t e r w e w o u l d b e a b l e t o r e s t o r e

a n d r e c o v e r   operations for crit ical  processes within a predetermined time after   t

he disaster.

BSLI’s Business Continuity Management Policy

T o   h a v e   a   p l a n n e d   r e s p o n s e   i n   t h e   e v e n t   o f   a n y   c o n t i n g e n c y   e n s u r i n g

recovery of crit ical  activities  at  agreed levels  within agreed timeframe

thereby complying with various regulatory requirements and minimizing the potential

business impact to BSLI. Additionally to create a system that fosters continuous

improvement of business continuity management

Business Continuity Management System Objectives (BCMS):

The objectives of BSLI's BCMS are as follows Ensuring a Proactive response to any contingency

Ensuring recovery of identified critical activities with in agreed time frame.Ensuring that

we adhere to our clients, contractual, legal& regulatory requirements.

Programme Overview

As part of our Business Continuity Plan, we have a documented crisis response

and recovery procedure for quick response and stabilization of the situation, and a

business continuity procedure to ensure recovery. Highlights of our Plan Document :Crisis

Management & incident response Data back-up, data and

system recoveryRecovery of all  mission-crit ical  business functions and supporting

systems Alternate recovery sites if primary location

is unavailableCommunication with customers,  employees and other stakeholders

Assurance to customers that they will continue to receive optimum customer services at all

times

Our Commitment

R i s k   A s s e s s m e n t   &   B u s i n e s s   I m p a c t   A n a l y s i s   ( B I A ) annually.Business

Continuity Plan for HO & its Critical branches.Crisis Management Plan & Pandemic

Response Plan at acorporate Level.Business Continuity Plan Testing ensuring viability of

allits plans.The activities set forth above may evolve as business andregulatory needs

require.

ACHIEVEMENTS OF KUMAR MANGALAM BIRLA

The world's largest aluminum rolling company

No.1 in viscose staple fibre

No.1 in carbon black

Biggest producer of primary aluminum in Asia

The fourth-largest producer of insulators

The fifth-largest producer of acrylic fibre

Among the top 10 cement producers

Among the best energy-efficient fertiliser plants

The largest Indian MNC with manufacturing operations in the USA

A top fashion (branded apparel) and lifestyle player

The second-largest player in viscose filament yarn

The largest producer in the chlor-alkali sector

Among the top three mobile telephony companies

A leading player in life insurance and asset management

Leadership - Analysis

Business Acumen

Traits & Characteristic

Skills & Abilities

Behaviour

Vision of LEADERSHIP:

To be a l eader and ro le mode l in a b road based and in tegra ted

f inanc ia l services business

Mission:

Enhance the financial future of our customers including enterprises.To he lp peop le

mi t iga te r i sks o f l i f e , acc iden t , hea l th , and money a t a l l stages and under

all circumstances.

Values:

Integrity

Commitment

Passion

Seamlessness

Speed

THEIR VISION OF WORKING

To be a premium global conglomerate with a clear focus on each business K M Birla is a leader who has a

clear vision and drives his followers toachieve that Employee oriented Introduced Organizational Health

Survey covering almost 10,000workers in 95 locations Is the barometer of the 'happiness at work' index

in the group Authentic Leader Hailed from a family with a foundation on values ,which was and isrespected

by the country Brought great changes in the organization without compromising onthe believed values.

Believed in less power distance.³Leadership at all levels in the organisation as much as leadership at thetop.

It is about plugging in to the minds and hearts of people´.

Aditya Birla group

When inherited business from his father in 1995,his critics dismissed himas a soft and shy person. who

lacked the business expertise andassertiveness of his father A.V.Birla and would be unable to manage

thegroup successfully.An unapproachable management style and misplaced priorities the resultwas the

investors started selling off their shares .In 1996 the market valueof group¶s four largest companies

Grasim ,Indian rayon ,Hindalco & Indo-gulf fertilizer suddenly decreased by $1billion or 37%.

So K.M.Birla took several initiatives to prove his critics wrong.

TRANSFORMATIONAL LEADER

He said "The illiterate of the 21st century will not be those who cannot readand write, butthose

who cannot learn, unlearn, and relearn."From a commodity-based organization steeped in

Babu culture it istransformed into an aggressively modern multicultural transnational withmore than

72,000 people drawn from twenty different nationalities.

Brought in radical changes, changed business strategies, professionalizedthe entire group and

replaced internal systems

Made the business more focused, making each company concentrate on itskey strengths

Launched a feedback programme, first of its kind, that allowed managers toquestion even his leadership

style.

He also threw age-old financial practices out of the window and revamped power centers.

Under his leadership, the Aditya Birla Group, apart from consolidating its position in existing businesses,

also ventured into sunrise sectors likecellular telephony, asset management, software and BPO.

KM Birla believed in constant learning, humble and a visionary.

The result of his leadership style has increased the revenues five folds sincehe took charge.

Mr. K.M. Birla, has been an ardent follower of the humane values thatGandhiji and Mr. G.D. Birla espoused.

CSR initiatives are focused on five areas ²education, healthcare andfamily welfare, sustainable

livelihood, infrastructure support and socialcauses.

He has brought in order, new management processes and technology andstreamlined the Group's social

initiatives.

Kumar substantially expanded the scope of the Group's CSR initiative ² over Rs.150 crore is spent in

hundreds of projects in 3,700 villages,touching the lives of 7mn people every year in some way or the

other few would have foreseen the changes he would implement. No one would have thought that

the callow 28-year-old Kumar, grappling with the complexities of the $1.8 billion conglomerate

after his father's sudden death, would step into his shoes with such dexterity.Armed with an

MBA from the prestigious London Business School, but still wetbehind the ears, the

responsibility of running an industrial empire that spanned several countries in Asia was thrust

upon thisbabe-in-the-corporate-woods. At first, theyoung Birla's soft and shy approach ledcritics

to comment that he lacked the business acumen and aggressiveness of hisfather.But over the

years, he has proved heisn't the soft target he was believed to be.He has made the business more

focussed,making each company concentrate on itskey strengths, and has pushed up sales in the

far flung conglomerate, India's firsttrue multinational, to $7.6 billion, with amarket cap of $7

billion.In the ten years he has been at thehelm, Birla has pulled off a string of acquisitions at

home in a global marketplace.As a result of theconsolidationofitsoverseas business, the Aditya

Birla grouptoday operates on a global scale, with manufacturing operations in nine countries and

product sales in over 100. It is a world leader in viscose staple fibre, the world's ninth largest

producer of cement, the fifth largest producer of carbon black, Asia's largest integrated

aluminium producer and also its fastest growing copper company.

Today the group has four major companies in India — aluminium and copper major Hindalco,

Grasim the conglomerate with businesses as diverse as cement, sponge iron, viscose and textiles,

Indian Rayon which concentrates on yarn, fabrics and garments, and IndoGulf which makes

fertilisers. The group has recently ventured into fast growing industries like telecom,finance and

insurance, software and BPO. In addition, its international businesses range from copper mines

to carbon black to palm oil to chemicals to viscose staple fibre and fabric. There are ten

companies in Thailand which manufacture a diversified mix from fabrics to carbon black to

chemicals, two palm oil and derived chemical companies in Malaysia, two copper mines in

Australia, a wood pulp unit in Canada,three yarn companies in Philippines, another five

companies in Indonesia, and two carbon black companies in Egypt and another in China. Almost

half its turnover comes from its international operations.Though much of these operations were

already in place when Birla took over, the copper mines in Australia and the wood pulp unit in

Canada were acquired recently.Birla's eyes are now fixed on the growing global opportunities.

He is expandingthe overseas presence to become a global conglomerate in the next few years.

“Thefocus has been on placing larger bets on fewer businesses. It's a portfolio issue andit's a

much tighter portfolio today. We have taken hard decisions on exiting businesses, but I am glad

we did. We are on a cleaner wicket now,” says Birla.In order to do away with the bureaucratic

culture prevalent at Birla companies,Birla launched a feedback programme that allowed

managers to question even hisleadership style. This was unprecedented in family-run

businesses.He also threw age-old financial practices out of the window and revamped power

centres.

BUSINESS RECORD

Mr. Birla took over as Chairman of the Group in 1995, at the age of 28, after the untimely

demise of his father. As Chairman, Mr. Birla has taken the Aditya Birla Groupanaltogetherhigher

growth trajectory. In the 17 years that he has been at the helm of the Group, he has accelerated

growth, built a meritocracy and enhanced stakeholder value.

In the process he has raised the Group's turnover from US $2 billion in 1995, to US $40 billion

today. Mr. Birla has restructured the businesses to emerge as a global/national leader in the

sectors in which the Group operates. He has made 26 acquisitions in 17 years in India and

globally, the highest by an Indian multinational in India.

The acquisition of Novelis, a global metals major, in 2007, the second largest acquisition ever by

an Indian company, led to a new-found respect for Indian companies and stoked a higher level of

interest in the country as well. Recently, the acquisition of Columbian Chemicals, a US-based

company and the world's third largest carbon black manufacturer positioned the Group as the No.

1 player in this sector, given its own sizeable carbon black operations. Likewise, the acquisition

of Domsjö Fabriker, a leading Swedish speciality pulp manufacturer enables the Group's Pulp

and Fibre business to further consolidate its global position.

Besides these, over the years Mr. Birla has acquired manufacturing plants in Canada, China,

Indonesia, plantations in Laos, and mines in Australia, set up new plants in Egypt, Thailand and

China. Alongside, he has expanded capacities in all of the Group's manufacturing units.

In India as well, he has made major acquisitions, the most notable being the Cement division of

Larsen & Toubro, Indal from Alcan, Madura Garments from Coats Viyella and the Chlor Alkali

division of Kanoria Chemicals.

Under his stewardship, the Aditya Birla Group enjoys a position of leadership in all the major

sectors in which it operates. Over the years, Mr. Birla has built a highly successful meritocratic

organisation, anchored by an extraordinary force of 136,000 employees belonging to 42 different

nationalities.

BIBLIOGRAPHY

www.aditya birla .com/businesses/.../aditya- birla -group-power- projects

adityabirla.com/Businesses/Profile/Projects-under-Hindalco

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