Diversification details

In the recent past, the group aggressively ventured into new consumer-facing businesses. In FY25, the paints business, under the Birla Opus brand, completed its first full operational year with a bang; it commissioned five greenfield plants and secured the second position by installed capacity in India’s organised decorative paints market. Today, it accounts for 21% of the country’s organised market, a feat accomplished at breakneck speed.

Simultaneously, the group forayed into India’s booming gems and jewellery sector, launching ‘Indriya’ with a planned investment of ₹5,000 crore. Within a year, 28 flagship stores were launched, generating considerable consumer buzz. In digital commerce, Birla Pivot, the B2B e-retail platform, clocked in a revenue run rate exceeding ₹5,000 crore, underscoring the group’s agility in scaling digital-first ventures.

Furthering financial inclusion, Aditya Birla Capital introduced ABCD, an omni-channel direct-to-consumer (D2C) platform that integrates over 22 financial products and services into a seamless digital experience.

Currently, UltraTech is planning to venture into the manufacturing of wires and cables with an investment of ₹1,800 crore. Its first plant is expected to be commissioned near Gujarat’s Bharuch by December 2026. The proposed entry into the new business segment will be through the building products division and is in line with the company’s strategy to strengthen its position as a comprehensive building solutions provider.

In financial services, Aditya Birla Finance merged into Aditya Birla Capital in April to consolidate the platform into a unified financial powerhouse. The group also participated in India’s largest-ever follow-on public offer with Vi’s (Vodafone Idea) `18,000-crore issue, attracting marquee global investors.

Over the past three years, the group has doubled down on the Indian consumer segment. Today, 20% of its revenue stems from consumer businesses, with projections indicating a rise to 25% in five years, generating $25 billion, surpassing many standalone consumer companies in India.

To streamline the business as competition intensifies from Tata Trent and Reliance Trends, Aditya Birla Fashion and Retail Ltd (ABFRL) demerged the Madura business into Aditya Birla Lifestyle Brands Ltd in May. A successful capital raise by ABFRL followed the demerger.

Similarly, the group divested Century Paper to ITC for ₹3,498 crore, positioning Aditya Birla Real Estate Ltd (ABREL) as a pure-play real estate enterprise.

The group’s venture into jewellery isn’t just opportunistic — it’s strategic. With a market size of ₹6.7 lakh crore in 2024, India’s jewellery market is expected to touch ₹11-13 lakh crore by 2030. Yet, 60% of the sector remains fragmented and largely unorganised, with a few national brands. Wedding jewellery, constituting 55% of total sales, and a youth-heavy demographic offer immense scope for structured, scalable businesses like Indriya.

As for paints, the logic is equally compelling. Though India has a century-old paints industry, per capita consumption stands at 3.5 kg, against an average of 10-25 kg in developed countries. With rising disposable incomes, a booming housing sector, and shorter repainting cycles, the Aditya Birla Group anticipates a “galactic opportunity”: one that complements its decades of experience in building materials.

U.S. expansion

In FY25, the Aditya Birla Group also reinforced its global footprint, particularly in its largest overseas market — the U.S. With over $15 billion invested over 17 years, it is the largest Indian investor in the U.S. A flagship greenfield aluminium plant worth $4 billion — the group’s largest investment globally — in Bay Minette, Alabama, is currently under construction. The plant aims to boost capacity for automotive and beverage can applications. Over 1,000 contractors have already been employed, a figure expected to double soon.

In June, the group made a strategic entry into the U.S. chemicals sector by acquiring Cargill’s 17-acre speciality chemical facility in Dalton, Georgia, via Aditya Birla Chemicals (U.S.A.) Inc. This acquisition aligns with the group’s proven model of scaling advanced manufacturing operations abroad, complementing existing assets such as Novelis and Birla Carbon. The group plans to expand this facility to cater to sectors such as automotive and renewable energy. It has 5,400 people in its U.S. workforce, primarily within Novelis, which alone generates revenues of $18 billion.

Last month, Birla joined the board of directors of the U.S.-India Strategic Partnership Forum (USISPF) as a member of its executive committee. In a statement, Birla said that the U.S.-India partnership was among the most consequential partnerships in the world. “We are very proud to be the largest Indian investor in the U.S.,” he asserted.

No doubt, Birla has fearlessly led the group through the churn of fierce competition. Now, his daughter Ananya and son Aryaman Vikram are at the business front with him to lead the conglomerate. The future calls.

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