Question

Select one of the long-lasting family businesses that you discovered and write a one-page summary of the business, what it does, how it handles the issue of management succeed for so long

Answer 1

Ans. The Aditya Birla Group is one of the oldest business groups of India. It had its modest beginning in the year in 1857 by Seth Shiv Narayan Birla. Today it is one of the most diversified business groups in India with interests in sectors such as viscose staple fibre, metals, cement (largest in India), viscose filament yarn, branded apparel, carbonblack, chemicals, fertilisers, insulators, financial services, telecom, BPO and IT services.

The Aditya Birla Group is the third largest business conglomerate with revenues of 43 billions dollars as per the estimates of year 2015. The groups businesses are organised as follows:

The non-ferrous metals business is organised under Hindalco Industries. Hindalco makse Alumina chemicals, primary aluminium, alloy wheels, copper cathodes etc. The cement business of the group is under the company called Ultratech cement which is the largest cement company in India.

The group has textile business and presence in fashion business too. Aditya Birla Nuvo is the company which has presence in textile business.In the fashion domain it has retail stores by the name "Planet Fashion". It also operates a multi brand fashion chain by the name of Pantaloons.

Aditya Birla Group has presence in the telecom sector too. It owns the company called Idea Cellular which is the third largest telecom company in India. Afitya Birla Financial Services Group is the umbrella brand for all the financial businesses the company has presence in.

The group is presently run under the stewardship of Kumarmangalam Birla. He took over the business in 1995 when his father Aditya Birla dies of cancer. Under aditya Birla the group had grown by leaps and bounds. Nowadays, Kumarmangalam is assisted by his professional team in running the group companies. The group has been successful as succession has been smooth and transparent in the group. There has never been any big tussle between the family members which could have effected the overall productivity of the group. In fact Kumarmangalam Birla reached out to help is cousin Yash Birla when his group was growing thriugh troubled times.

The group promotes strong value system which makes it a desired group to work for. The attrition rate is low. It has very sound Human Resource policies which helps the group attract good talent and retain it too.