birla group

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BIRLA GROUP http://www.theoriginof.com/birla-group.html , http://www.adityabirla.com/our_companies/our_companies.htm By the Birla Group reference is made to one of the foremost business houses in India headed by the Birla family for generations. Its business interests are vast and varied ranging from petrochemicals and textiles to automobiles and Infocom as well as financial services . The story of the Birla Group goes back to 1870 when Seth Shiv Narayan Birla, belonging to the Marwari community of West Rajasthan, set up a cotton and jute trading business in Pilani, Rajasthan. In the 19th century Baldeo Das Birla, son of Shiva Narayana Birla, moved to Calcutta. At that time Calcutta was the hub of activity of the British Empire and consequently the nascent Freedom Movement. The Birlas are proud of their closeness and support to the movement and was very near to Mahatma Gandhi. Even today, about two hundred years after the beginning of the Birla story, the name is identical with not only with wealth and power but also with dignity and respect. Business runs in their veins and each generation has been a credit to the legendary name of Birla. In 1919 the Ghanashyam Das Birla, one of the four sons of Baldeo Das Birla, set up jute mills in West Bengal and thus laid the

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Page 1: BIRLA GROUP

BIRLA GROUP http://www.theoriginof.com/birla-group.html, http://www.adityabirla.com/our_companies/our_companies.htm

By the Birla Group reference is made to one of the foremost business houses in India headed by the Birla family for generations. Its business interests are vast and varied ranging from petrochemicals and textiles to automobiles and Infocom as well as financial services.The story of the Birla Group goes back to 1870 when Seth Shiv Narayan Birla, belonging to the Marwari community of West Rajasthan, set up a cotton and jute trading business in Pilani, Rajasthan. In the 19th century Baldeo Das Birla, son of Shiva Narayana Birla, moved to Calcutta. At that time Calcutta was the hub of activity of the British Empire and consequently the nascent Freedom Movement. The Birlas are proud of their closeness and support to the movement and was very near to Mahatma Gandhi. Even today, about two hundred years after the beginning of the Birla story, the name is identical with not only with wealth and power but also with dignity and respect. Business runs in their veins and each generation has been a credit to the legendary name of Birla.In 1919 the Ghanashyam Das Birla, one of the four sons of Baldeo Das Birla, set up jute mills in West Bengal and thus laid the foundation for the beginning of the Birla industrial empire. In 1947 the Birlas set up Grasim weaving plant and from 1958 added rayon to the list.Aditya Birla, grandson of Ghanashyam Das Birla, continued successfully with the legacy he had inherited. In 1969 he began to take giant strides outside India targeting international expansion. In Thailand the Birlas set up Indo-Thai synthetics. It was followed in 1978 by Carbon Black production also in Thailand. In 1988 Indo-Gulf was formed under the name of Hindalco for production fertilizers. Unfortunately in 1995 Aditya Birla died.The son of Aditya Birla, Kumar Mangalam Birla, picked up the Birla flag. As part of the first step towards streamlining and restructuring AT &T was formed. In 1998 Indo-Gulf copper production

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started. In the same year Birla entered Canada with the purchase of Atholville Pulp Mill in New Brunswick. In 1999 Birla forayed into the financial arena and entered into a joint venture with Canada’s Sun Life. The beginning of the new century saw Birla AT&T merge with Tata Communications. Hindalco acquired Indal. In 2002 Indo Gulf fertilizers started and Anapurna Foils was acquired. In 2003 Nifty copper and Mt. Gordon copper mines in Australia are acquired by Birla. Liaonig Birla was started as the beginning of a joint venture with China in the field of carbon black. Indal merged with Hindalco the following year. A new aluminum venture was started in Orissa in 2005. In the same year St. Anne Nackawic Pulp Mill is acquired in Canada. Plans are now afoot to set up a new viscose stable fiber plant in Laos.The Birla group has aptly laid out its objectives to be a premium international conglomerate with a clear focus on each and every business unit. Birla’s mission is to deliver the very best to its customers, shareholders and employees bearing in mind its commitment to the welfare of society at large. Birla values are all about integrity, commitment, zeal, seamlessness and speed.Kumar Mangalam Birla, born in 1967, the chairman of the Aditya Birla Group, is bearing the Birla torch with credit. Fortune magazine has listed him as the eighth youngest billionaire outside India. He is running major companies such as Grasim, Hindalco, UltraTech Cement, Aditya Biral Nuvo and Idea Cellular. JV’s include Birla Sun Life (financial services) and Birla NGK (Insulators). He is the Chairman of the entire blue chip companies group in India and serves as director on the board of the group’s international companies stretching across Thailand, Indonesia, Malaysia, Philippines and Egypt. The wide circle includes Canada, China, Laos, USA, UK and Australia. Kumar Mangalam Birla is also on the board of G.D. Biral Medical research and education Foundation and member of the Board of the governors of BITS, Pilani. He is a member of London Business School’s Asia Pacific Advisory Board, which counsels on strategy and curriculum. He is honorary fellow of London Business School. The media has not been left behind in heaping him with accolades. Both NDTV and Hindustan Times have voted him as the Businessman of the Year.Aditya Birla Management Corporation is worth $8 billion and operates in more than fifteen countries. It is one of the first of India’s truly multinational corporations. A vast force of 88,000 employees belonging to twenty different nations holds this $12 billion conglomerate together. More than 23% of its revenues come in from operations outside India. Apart from India, the manufacturing units are in countries like Malaysia, Laos, Indonesia, Philippines, Egypt, Australia, China, USA, UK, Germany and Hungary. The listed products are viscose stable fibre, non-ferrous metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, sponge iron, insulators, financial services, telecom. BPO and IT services. The global position of Birla is worth noting. Birla is first in production of viscose stable fiber, third in insulators, fourth in carbon black, eleventh in cement and fourth in aluminum. It claims to be the largest single location of custom copper smelting, and has the most energy efficient fertilized plant amongst fifteen to world’s top BPO companies. In this field India ranks among the top three.

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Business runs through the blood and genes of the Birlas. The family has divided into many branches and of them another prominent name is that of M.P. Birla and his group of companies known as the M.P. Birla Group. M.P. Birla, the son of R.D. Birla, was another grandson of Baldeo Das Birla. This Birla group has over five hundred factories covering a wide range of industries – textiles, man-mad fibers, cables, woolens, automobiles, industrial and textile machines, sugar, paper, shipping, cement, jute, aluminum, copper, fertilizers, chemicals, power plants etc. the M.P. Birla Group carries on forty joint ventures and management contracts with Nigeria, Kenya, England, Philippines, Indonesia, Thailand, Uganda, Ethiopia, The names of the M.P. Birla group of companies are Birla corporation Ltd, Universal Cables Ltd, Vindhya Telelinks Ltd, Birla Ericsson Optical Ltd and Optic Fibre Goa Ltd. These have headquarters in Calcutta, Satna, Rewa Salcete, Bhiwani and Mumbai.Despite unavoidable doses of litigation and friction the Birla name continues to shine doing credit to India.

A US$ 29 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of 130,600 employees, belonging to 40 different nationalities. In the year 2009, the Group was ranked among the top six great places for leaders in the Asia-Pacific region, in a study conducted by Hewitt Associates, RBL Group and Fortune magazine. In India, the Group has been adjudged the best employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall Street Journal Study 2007.

Over 60 per cent of the Group's revenues flow from its overseas operations. The Group operates in 27 countries – Australia, Bahrain, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Singapore, Sri Lanka, Switzerland, Thailand, UAE, UK, USA and Vietnam.

Globally, the Aditya Birla Group is:

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:: A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter

:: No.1 in viscose staple fibre

:: The fourth-largest producer of insulators

:: The fourth-largest producer of carbon black

:: The fifth-largest producer of acrylic fibre

:: The eighth-largest cement producer

:: Among the best energy-efficient fertiliser plants

In India:

:: One of the leading cement producers

:: The top fashion (branded apparel) and lifestyle player

:: The second-largest producer of viscose filament yarn

:: The second-largest in the chlor-alkali sector

:: Among the top four mobile telephony companies

:: Among top 10 Indian BPO companies by revenue size

:: A leading player in life insurance and asset management

:: Among the top three supermarket chains in the retail business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting.

Beyond business Transcending business for over 50 years now, the Group has been and continues to be involved in meaningful welfare-driven initiatives that distinctly impact the quality of life of the weaker sections of society in India, South-East Asia and Egypt.

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In India, the Group's social projects span 2,500 villages. It reaches out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare, education, sustainable livelihood, infrastructure and espousing social causes.

The Group runs 42 schools, which provide quality education to over 45,000 children in India's interiors. Of these, over 18,000 children receive free education. An additional 8,000 students receive merit scholarships. Likewise at its 18 hospitals in India, more than a million patients are given extremely subsidised medical care. To embed corporate social responsibility as a way of life in organisations, the Group has set up the FICCI – Aditya Birla CSR Centre for Excellence, in Delhi.

The Group transcends the conventional barriers of business and reaches out to the marginalised because of its conviction of bringing in a more equitable society.

companies

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Aditya Birla Nuvo Limited is a US$ 3.5 billion diversified conglomerate with manufacturing and service sector businesses ranging from textiles to financial services. The company is the platform through which many new age businesses for the Aditya Birla Group have been launched.

The razor-sharp focus on each business has made it a leading player in most segments, including viscose filament yarn, carbon black, branded garments, agri business, textiles and insulators. Over the past few years, Aditya Birla Nuvo, through its subsidiaries and joint ventures, has made successful forays into life insurance, asset management and other financial services, telecom, business process outsourcing (BPO) and IT services.

Powered by an intellectual capital of over 50,000 employees and an optimum mix of revenue and profit streams, the company is in a strong position to invest in growth businesses to maximise long-term shareholder gains.

As a leading player, Aditya Birla Nuvo ranks as:

:: India's second-largest producer of viscose filament yarn

:: The country's largest premium, branded apparel company

:: The second-largest producer of carbon black in India

:: Largest manufacturer of linen fabric in India

:: Among the most energy-efficient fertiliser plants

:: India's largest and the world's fourth-largest manufacturer of insulators

Among Aditya Birla Nuvo’s joint ventures and subsidiary companies are:

:: Idea Cellular Limited, which is among the top five cellular operators in India

:: Birla Sun Life Insurance Co. Ltd., which is among the top five private sector life insurance

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companies in India

:: Birla Sun Life Asset Management Co. Ltd., which is among the top five asset management companies in India

:: Aditya Birla Minacs Worldwide Limited, which is among the top 10 Indian BPO companies

For further information, go to www.adityabirlanuvo.com

companies

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Grasim Industries Limited is a global leader in viscose staple fibre and ranks among India's largest private sector companies with a consolidated net revenue of Rs.202 billion and a consolidated net profit of Rs.27.6

billion (FY2010).

Starting as a textiles manufacturer in 1948, Grasim's businesses today comprise viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute over 90 per cent of its revenues and operating profits at a consolidated level.

The Aditya Birla Group is the world's largest producer of VSF, commanding a 24 per cent global share. Grasim, with an aggregate capacity of 333,975tpa has a global share of 11 per cent. It is also the second-largest producer of caustic soda (which is used in the production of VSF) in India.

In cement, Grasim along with its subsidiary, UltraTech Cement Limited has a capacity of 49 million tpa and is a leading cement player in India. In July 2004, Grasim acquired a majority stake and management control in UltraTech Cement Limited. One of the largest of its kind in the cement sector, this acquisition catapulted the Aditya Birla Group to the top of the league in India.

The cement business of the Group is being restructured in a phased manner. In the first phase, Grasim's cement business is being demerged into Samruddhi Cement Limited, a subsidiary of Grasim. In the second phase, Samruddhi Cement Limited will amalgamate with UltraTech. Upon completion of the restructuring, the cement business will be consolidated in UltraTech, a pure play cement company.

HINDALCO

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An industry leader in aluminium and copperAn industry leader in aluminium and copper, Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a single location.

Established in 1958, we commissioned our aluminium facility at Renukoot in eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our position in value-added alumina, aluminium and copper products.

The acquisition of Novelis Inc. in 2007 positioned us among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India. Today we are a metals powerhouse with high-end rolling capabilities and a global footprint in 12 countries. Our consolidated turnover of USD 13 billion (60,000 crore) places us in the Fortune 500 league.

Hindalco's businesses — Creating superior valueHindalco is one of the leading producers of aluminium and copper. Our aluminium units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream rolling, extrusions, foils, along with captive power plants and coal mines.

Our copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers.

Our units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several units have gone a step further with an integrated management system (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business excellence model. We have been accorded the Star Trading House status in India. Hindalco's aluminium metal is accepted for delivery

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under the High Grade Aluminium Contract on the London Metal Exchange (LME). Our copper quality standards are also internationally recognised and registered on the LME with Grade A accreditation.

AluminiumHindalco's major products include standard and speciality grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil.

The integrated facility at Renukoot houses an alumina refinery and an aluminium smelter, along with facilities for the production of semi-fabricated products, namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation power unit and a 742 MW captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations.

A strong presence across the value chain and synergies between operations has given us a dominant share in the value-added products market. As a step towards expanding the market for value-added products and services, we have launched various brands in recent years — Everlast roofing sheets, Freshwrapp kitchen foil and Freshpakk semi-rigid containers.

CopperBirla Copper, Hindalco’s copper unit, is located at Dahej in Gujarat, India. The unit has the unique distinction of being the largest single-location copper smelter in the world. The smelter uses state-of-the-art technology and has a capacity of 500,000 tpa.

Birla Copper also produces precious metals, fertilisers and sulphuric and phosphoric acid. The unit has captive power plants for continuous power generation and a captive jetty to facilitate

logistics and transportation.

Birla Copper upholds its longstanding reputation for quality copper cathodes and continuous cast copper rods by assuring its management processes meet the highest standards. It has acquired certifications such as ISO-9001:2000 (Quality Management Systems), ISO-14001:2004 (Environmental Management System) and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).

Mines Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003. The Birla Nifty copper mine consists of an underground mine, heap leach pads and a solvent extraction and electrowinning (SXEW) processing plant, which produces copper cathode.

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The Mt. Gordon copper operation consists of an underground mine and a copper concentrate plant. Until recently, the operation produced copper cathode through the ferric leach process.

In 2004, a copper concentrator was commissioned to provide concentrate for use at Hindalco's operations in Dahej. During FY2009, Mt. Gordon produced 17,815 tonnes of copper in concentrate.

Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement with Hindalco for supply of copper concentrate to the copper smelter at Dahej.

Cornerstones of growth Our well-crafted growth and integration hinges on the three cornerstones of cost competitiveness, quality and global reach. We are also committed to the triple bottom line accountability of economic, environment and social factors. Care for the community around our operating units is best exemplified by our deep-rooted social commitment.

ULTRATECH CEMENT The Aditya Birla Group is the eighth-largest cement producer in the world

Incorporated on 24 August 2000 as L&T Cement Limited

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Cement business of Larsen & Toubro Limited demerged and vested in company in 2004

Grasim acquired management control in July 2004

Together with Grasim, one of the largest cement producers in India

Name changed to UltraTech Cement Limited with effect from 14 October 2004 Narmada Cement Company Limited amalgamated with UltraTech in May 2006 Cement business of Grasim demerged and vested in Samruddhi Cement Limited in May 2010 Samruddhi Cement Limited amalgamated with UltraTech Cement Limited in July 2010 UltraTech Cement Middle East Investments Limited, a wholly owned subsidiary of the Company has acquired management control of ETA Star Cement together with its operations in the UAE, Bahrain and Bangladesh in September, 2010

UltraTech Cement Limited has an annual capacity of 52 million tonnes. It manufactures and markets Ordinary Portland Cement, Portland Blast Furnace Slag Cement and Portland Pozzalana Cement. It also manufactures ready mix concrete (RMC).

The company has 11 integrated plants, one white cement plant, one clinkerisation plant in UAE, 15 grinding units – 11 in India, 2 in UAE, one in Bahrain and Bangladesh each and and five terminals — four in India and one in Sri Lanka .

UltraTech Cement is the country’s largest exporter of cement clinker. The export markets span countries around the Indian Ocean, Africa, Europe and the Middle East.

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UltraTech's subsidiaries are Dakshin Cements Limited, Harish Cements Limited, UltraTech Ceylinco (P) Limited and UltraTech Cement Middle East Investments Limited

Details of UltraTech's production capacities

Location of units Name of Plants

A Composite plants

Tadipatri (Andhra Pradesh) APCW

Hirmi (Chhattisgarh) HCW

Jafrabad (Gujarat) JFD

Kovaya (Gujarat) GCW

Awarpur (Maharashtra) ACW

Reddipalyam (Tamil Nadu) RDCW

Adityapuram (Rajasthan) AC

Neemuch (Madhya Pradesh) VC

Rawan (Chhattisgarh) RWCW

Malkhed (Karnataka) RC

Kotputli (Rajasthan) KCW

B Grinding units

Magdalla (Gujarat) MGD

Ginigera (Karnataka) GICW

Ratnagiri (Maharashtra) RTN

Jharsuguda (Orissa) JCW

Arakkonam (Tamil Nadu) ARCW

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Durgapur (West Bengal) WBCW

Hotgi (Maharashtra) HOCW

Bathinda (Punjab) BCW

Panipat (Haryana) PCW

Aligarh (Uttar Pradesh) ALCW

Dadri (Uttar Pradesh) DCW

Ajman (UAE)

Abu Dhabi, UAE

Bahrain

Bangladesh

C White Cement 0.6 million tpa

Kharia Khangar (Rajasthan) BW

D Clinker Plant

Ras Al Khaimah, UAE RAK

E Bulk terminals

Navi Mumbai (Maharashtra)

Mangalore (Karnataka)

Shankarpally (Andhra Pradesh)

Dodaballpur (Karnataka)

Colombo (Sri Lanka)

F Ready-mix concrete plants (73) 9.5 million cubic metres

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