Aditya Birla Nuvo: A US$4 billion Conglomerate
Business-wise capacity and Distribution Network
Management team
Beyond business
Corporate Social Responsibility Policy
milestones
global footprint
Code of conduct for board members and senior management
Aditya Birla Group
 
 
 
 
 
Aditya Birla Nuvo: A US$4 billion Conglomerate

Aditya Birla Nuvo Ltd. (ABNL) is a US$ 4 billion premium conglomerate. It is part of the Aditya Birla Group, a US$ 40 billion Indian multinational operating in 36 countries in six continents.

Vision
To be a premium conglomerate building leadership in businesses and creating value for all the stakeholders.

Mission
Investing in promising sectors
Building leadership in businesses
A platform to drive synergy of resources
Delivering best value to all the stakeholders
To be a responsible corporate citizen

With a market cap of ~US$ 3 billion as on 31 May 2014, ABNL is present across Financial Services, Telecom, Fashion and Lifestyle, IT-ITeS and Manufacturing businesses. Anchored by about 49,000 employees, ABNL touches the lives of more than 135 million Indians. 

Over the years, Aditya Birla Nuvo has transformed itself from a manufacturing company to a diversified conglomerate. 


 

 
 

note : revenue and ebit mix is without carbon black business. having received shareholders? approval, abnl is in the process of divesting the carbon black business

delivered robust earnings growth in 2012-13
Revenue crossed Rs.25,000 Crore mark
Posted highest ever EBITDA at Rs.4,142 Crore – Grew by 27% year on year
Achieved highest ever Net Profit at Rs.1,059 Crore - Grew 19% over the previous year.



Aditya Birla Nuvo Ltd. commands leadership position in India across its businesses:
Aditya Birla Financial Services ranks among the top 5 fund managers in India (excl. LIC), with AUM (assets under management) of ~USD 20 billion and having an annual revenue size of over USD 1.2 billion (2012-13). Trusted by ~5 million customers and anchored by about 14,750 employees, it has a nationwide presence through more than 1,550 points of presence and about 160,000 agents / channel partners.
 
Birla Sun Life Insurance (BSLI) is a 74:26 joint venture between ABNL and Sun Life Financial, Canada. BSLI ranked 5th among private players with a market share of 8 per cent in FY13. It reported Embedded Value of Rs.4,015 crore as on 31st March 2012 and VNB margin at 22.8 per cent. It is managing AUM of Rs.22,929 crore as on 31st March 2013. It sells one life insurance policy every minute. BSLI has one of the best persistency ratios in the industry @ 81 per cent. o                Life Insurance business recorded strong growth in profit and declared an interim dividend of Rs.197 Cr @ 10 per cent of its paid up capital in 2012-13. 
 

Birla Sun Life Asset Management (BSAMC) is a 51:49 joint venture with Sun Life Financial, Canada. BSAMC improved its all India ranking to 4th and market share to 9.4 per cent in Q4FY13 with an AUM of (Rs.83,451 crore) as on 31st March 2013.

 
Aditya Birla Finance, the NBFC arm, doubled its book size y-o-y to ~USD 1.5 billion (Rs.8,000 Cr) as on 31st March 2013. 
 

A prominent player in Private Equity, Wealth Management, Broking & General Insurance Advisory space.

ABNL holds 25.27 per cent in Idea Cellular, a USD 8.5 billion company by market cap as on 23 July 2013. It posted revenue of ~USD 4 billion in FY12. Idea is the 3rd largest cellular operator in India with revenue market share at 15.7per cent (Q4FY13) and it has been the highest gainer of revenue market share since past four years. Idea ranks among the top 10 cellular operators in the world with about 1.6 billion minutes of usage per day. Serving a large customer base of over 121.6 million subscribers, Idea holds 16 per cent in Indus towers, the world’s largest tower company. Aditya Birla Group holds 45.88 per cent in Idea Cellular. Idea has the highest 98.4 per cent active subscribers’ ratio (28 February 2013) in the industry and is the leading net subscribers’ gainers post launch of mobile number portability in India. Idea is generating strong cash profit and has a sound balance sheet to support its growth plans. The Board of Directors of Idea has also proposed a maiden dividend.

ABNL’s Fashion & Lifestyle business is the largest branded apparel player in India selling one branded apparel every second. With the acquisition of Pantaloons, its annual revenue has reached USD 1 billion. Louis Philippe and Van Heusen are the best selling brands in India.  The nation-wide reach of Madura, Pantaloons and Jaya Shree Textiles, combined together, stands expanded to 1,443 exclusive brand outlets / stores spanning across 3.7 million square feet besides more than 4,750 departmental stores and multi brand outlets. The business generated return on operating capital employed of 25% driven by strong earnings and working capital management. While Madura and Jaya Shree are divisions of ABNL, Pantaloons Fashion & Retail Ltd. is a listed subsidiary in which ABNL holds 67.95%. Its shares are listed on BSE and NSE.

Aditya Birla Minacs is the 6th largest Indian BPO company with revenue size of over USD 450 million in FY13 (Rs.2,466 crore). Minacs has global delivery capacities serving several Fortune 500 clients through 35 centres and ~20,500 employees. In FY13, its net profit surged by 80 per cent from Rs.70 crore to Rs.125 crore. It is generating steady cash profit to fund its capex and working capital requirements. ABNL holds 99.85 per cent in Aditya Birla Minacs.
Manufacturing businesses (Agri, Rayon and Insulators) posted combined revenue of USD 770 million (Rs.4,155 crore) in FY13.
 
Among the most energy efficient fertiliser plants in India
 
India’s largest and the world’s fourth largest manufacturer of insulators
 
Second largest manufacturer of viscose filament yarn in India
 

Considering the Carbon Black Business scenario, both in the Indian and the global context, ABNL has decided to divest its Carbon Black Business, subject to the requisite approvals, on a going concern basis, by way of slump sale for a lump sum consideration of Rs. 1,451 Crore as an enterprise value, subject to the adjustment for net working capital. Having received the shareholders’ approval, the Company is in the process of divesting the Carbon Black Business. The cash inflow from the divestment will strengthen the Company’s balance sheet.

Aditya Birla Nuvo, as a premium conglomerate, is progressing well on the growth path to tap sector opportunities. To meet its growth capital requirements, the Company had issued 16.5 million warrants in May 2012 to Promoters / Promoter Group on a preferential basis after being approved by the shareholders. Of the planned equity infusion of about Rs.1,500 Crore, a sum of Rs. 376 Crore has already been received as 25% application money in May 2012 itself. A sum of Rs.456 Crore was received towards the balance 75% amount payable on conversion of 6,680,000 warrants, in March 2013. In terms of the Issue, the balance 9,820,000 warrants are to be converted for Rs. 671 Crore on or before 9th November, 2013. The equity infusion will not only strengthen the financial position of your Company but also act as a seed capital for capturing the next level of growth.

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The razor sharp focus on each business has made Aditya Birla Nuvo a leader in most segments