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$ 3.5 billion as on 30 September 2014, ABNL is present across Financial Services, Telecom, Fashion and Lifestyle and Manufacturing businesses. Anchored by about 49,000 employees, ABNL touches the lives of more than 145 million Indians. 

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



 
   

 

delivered robust earnings growth in 2013-14
Revenue reached Rs.25,893 crore
Posted highest ever EBITDA at Rs.4,927 crore – Grew by 19% year on year
Achieved highest ever Net Profit at Rs.1,143 crore - Grew 8% over the previous year.
Aditya Birla Nuvo Ltd. commands leadership position in India across its businesses:
Aditya Birla Financial Services ranks among top 5 fund managers in India (excl. LIC), with an AUM of USD 23.1 billion as on 30th September 2014 & having annual revenue size of over USD 1.1 billion (2013-14). Trusted by 5 million customers & anchored by 13,000 employees, it has a nationwide presence through over 1,500 points of presence & about 130,000 agents / channel partners. It posted EBITDA of USD 133 million and ROACE of 25% in FY14.
  Birla Sun Life Insurance (BSLI) is a 74:26 joint venture between ABNL and Sun Life Financial, Canada. BSLI improved its market positioning to rank 6th among private players in terms of new business premium with an enhanced market share of 7.7% in H1FY15. It reported Embedded Value of Rs.3,225 Crore as on 31st March 2014 and VNB margin at 16.2%. It is managing AUM of ~USD 4.6 billion as on 30th September 2014.
  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 9.69% with an AUM of ~USD 18.4 billion as on 30th Sep'14.
  Aditya Birla Finance, the NBFC arm, has grown at a 77% CAGR since March 2010 to reach a lending book size of USD 2.3 billion as on 30th September 2014.
  A prominent player in Private Equity, Wealth Management, Broking & General Insurance Advisory space.
  Expanded its horizon across the spectrum of Financial Services Business in India by foraying in the Housing Finance business which commenced operations in October, 2014 and signing MoU with MMI Holdings Ltd. (a leading South African insurance-based financial services group), to enter the Health Insurance Business in India.
     
ABNL holds 23.29% in Idea Cellular, a ~USD 10 billion company by market cap as on 30th September 2014. It posted revenue of ~USD 4.4 billion in FY14. Idea is the 3rd largest cellular operator in India with revenue market share at 17.1% (Q1FY14) and it has been the highest gainer of revenue market share since past five years. Idea ranks among top 6 cellular operators in the world with about 1.77 billion minutes of usage per day. Serving a large customer base of over 143 million subscribers, Idea holds 16% in Indus towers, the world's largest tower company. Aditya Birla Group holds 42.29% in Idea Cellular. Idea has the highest 101.3% active subscribers' ratio in industry and has a leadership position in net subscribers' gainers post launch of mobile number portability in India.
  ABNL's Fashion & Lifestyle business is the largest premium branded apparel player in India selling one branded apparel every second. It posted revenue at USD 1 billion, EBITDA at USD 100 million & ROACE at 28% in FY14.
  Madura, a division of ABNL, retails leadership brands viz., Louis Philippe, Van Heusen, Allen Solly and Peter England through 1,631 exclusive brand outlets spanning across 2.4 million square feet area besides a chain of MBO's and departmental stores.
  Pantaloons Fashion & Retail Ltd. is among the top 3 large format retailers in India with 87 stores and 27 factory outlets spread over 2 million sq. ft. It is a subsidiary of ABNL, wherein ABNL owns 72.62% holding as on Sep'14.
  Jaya Shree, a division of ABNL, is the largest manufacturer of linen yarn and fabric in India
     
With combined revenue of ~USD 615 million in FY14, manufacturing businesses posted EBIDTA of USD 64 Million.
  Among the best 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

ABNL divested its Carbon Black business w.e.f. 1st April'13 and IT & ITeS business w.e.f. 9th May'14 to ensure greater focus on other businesses. Led by realisation of subsidy in Agri business coupled with cash flow from operations, Net Debt to annualised EBITDA improved from 2.6 times in FY14 to 1.9 times in H1FY15.

To sum up, most of the businesses are contributing to the profitable growth of the Company and are competitively well positioned. Going forward, the thrust is on capturing growth opportunities across the businesses to achieve the next higher level of growth.

For analysts coverage on ABNL click here

 


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