History of Aditya Birla Group

Only available on StudyMode
  • Topic: Aditya Birla Group, Birla family, Retailing
  • Pages : 6 (1801 words )
  • Download(s) : 592
  • Published : March 13, 2013
Open Document
Text Preview
The Aditya Birla Group is an Indian multinational conglomerate headquartered inMumbai, Maharashtra, India.[4] It operates in 33 countries with more than 133,000 employees worldwide.[5] The group interests in sectors such as viscose staple fibre, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilisers, insulators, financial services, telecom, BPO and IT services. The Aditya Birla group is a diversified conglomerate with a total revenue of approximately US$40 billion in year 2012.[2][6] The group was founded by Ghanshyam Das Birla. With a gross revenue of USD 40 Billion (in 2012) it is the third largest Indian conglomerate behindTata Group with revenue of nearly USD 100 Billion and RIL with revenue of USD 67 Billion.

Aditya Birla Group of Companies
Aditya Birla Minacs Worldwide Limited
Samruddhi Cement
Novelis Inc.
Aditya Birla Minerals
Aditya Birla Chemicals (India)Limited
Utkal Alumina International Limited
Dahej Harbour & Infrastructure Limited
Aditya Birla Science and Technology Company Limited
Tubed Coal Mines Limited
Birla Sun Life Asset Management Company Limited
Aditya Birla Finance Limited
Aditya Birla Money Mart Limited
Aditya Birla Money Limited
Aditya Birla Insurance Brokers
Aditya Birla Capital Advisors Private Limited
Idea Cellular Limited
Madura Fashion & Lifestyle
Essel Mining and Industries
Aditya Birla Retail
Thai Rayon
Indo Thai Synthetics
Thai Acrylic Fibre
Thai Carbon Black
Aditya Birla Chemicals (Thailand) Limited
Birla Laos Pulp and Plantations Company Limited
Indo Phil Textile Mills
Indo Phil Cotton Mills
Indo Phil Acrylic Manufacturing Corporation
Pan Century Surfactants Inc.
PT Indo Bharat
PT Elegant Textile Industry
PT Sunrise Bumi Textiles
PT Indo Liberty Textiles
PT Indo Raya Kimia
Swiss Singapore Overseas Enterprises Pte Limited
Alexandria Carbon Black Company SAE
Alexandria Fiber Company SAE
Liaoning Birla Carbon Company Limited
Birla Jingwei Fibres Company Limited
Domsjö Fabriker

The recent announcement of Aditya Birla Nuvo buying into Pantaloons apparel format has set the stage for consolidation in the Indian apparel retail business. On 30th April 2012 Pantaloon Retail announced a stake sale in its Pantaloons apparel format to Aditya Birla Nuvo Ltd (ABNL) to reduce its debt burden and improve profitability. In fact this news had a positive impact on the share price of Pantaloon Retail which shot up by ~9% on the announcement day. But, before analysing what it means for you as investors let’s see what the deal entails: Under the deal, Pantaloons – the apparel retail chain, will be demerged from Pantaloon Retail India Ltd (PRIL), into a separate entity. The Pantaloons format is present in 35 cities with 65 stores and 21 factory outlets covering a total retail space of more than 2 million sq. ft. It is expected to post sales of around Rs. 1,700 Cr. for the year ending June 2012. Further, Aditya Birla Nuvo Ltd (ABNL), that owns Madura Fashion & Lifestyle, will subscribe to debentures amounting to Rs.800 Cr. issued by PRIL. On completion of the demerger process, the debentures will convert into equity in the demerged entity. Apart from this, the demerged entity will carry a debt of Rs.800 Cr. on its balance sheet transferred from PRIL. In-effect this will reduce PRIL’s debt by Rs.1,600 Cr. (800 Cr. of debentures+ 800 Cr. taken over by the demerged entity). This will be followed up by an open offer to acquire 26% stake in the demerged entity by ABNL After the listing of the resulting entity and on conversion of debentures into equity, ABNL’s holding in the company post open offer shall be a minimum of 50.01%. The entity will then become a subsidiary of ABNL. The existing shareholders of PRIL, including its promoters will continue to own shares in the demerged entity. The proposed transaction is likely to be completed within 8 to 10...
tracking img