Aditya Birla - BCG matrix

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a study about various SBUs of Aditya birla group and their positions in BCG matrix

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ADITYA BIRLA GROUPADITYA BIRLA GROUP

Abhishek Mhatre(1) Caroline Pereira(11) Karen Quodros(21) Nikhil Zine(31) Sagar Dhake(41) Tushar Gortekar(51)

St. Francis Institute of Management & Research

Introduction Introduction

Type PrivateIndustry ConglomerateFounded 1857Founder Ghanshyam Das BirlaHeadquater Mumbai, MaharashtraKey People Kumar Mangalabirla(chairman)Revenue Us $ 40 Billion (2012)Employee 136,000(2012)

HistoryHistoryStarted in 1919 with a Jute Manufacturing Company.

Group's founding father, Ghanshyamdas Birla.

The legacy was forwarded by

Mr. Aditya Vikram Birla , putting

India on World Map long back

1969, long before globalization.

•VisionTo be a premium global conglomerate with a clear focus

on each business.

•MissionTo deliver superior value to our customers, shareholders, employees and societal large.

MAJOR SECTORS:

CementCompanies - Grasim, Ultratech Cement Ltd

Non-Ferrous MetalsCompanies- Hindalc Industries Ltd., Noveli Inc., Aditya Birla Minerals Ltd, etc

TextileCompanies-Aditya Birla Nuvo, Grasim, Thai Acrylic Fiber

TelecommunicationCompanies-Idea cellular limited

ChemicalsCompanies-Aditya Birla chemical limited(Thailand) & Thai Peroxide co.

Brands- Polyphos, Epotech, Birol ex, Ecare etc

Insulators

Companies-Aditya Birla Insulator Pvt. Limited

AgribusinessCompanies-Aditya Birla Nuvo

Financial ServicesCompanies - Birla a Sun Life Insurance Company Ltd, Aditya Birla Finance Ltd.

Brands - Financial Services

MiningCompanies - Essel Mining and Industries Ltd

Brands - Iron Ore

GarmentsCompanies -Aditya Birla Nuvo

RetailCompanies - Aditya Birla Retail Limited

Brands - More (Supermarket)

Carban BlackCompanies - Aditya Birla Nuvo

IT-ITeSCompanies - Aditya Birla Minacs Worldwide Limited

Brands - IT-ITeS

Product Portfolios chosen for AnalysisProduct Portfolios chosen for Analysis

Industry Company

Telecom Idea Cellular

Cement Ultratech

IT-ITeS Aditya Birla Minacs

Aluminium Hindalco

Insurance Birla Sun Life Insurance

Asset Management Birla Sun Life Asset Management

Chemical Aditya Birla Chemicals (India)

Chemical TANFAC Industry Ltd

Retail Aditya Birla Retail (More)

Financial Services Aditya Birla Money

Portfolio Analysis Table

Sr No SBU Revenue of

SBURevenue

%Market

Leader/CompetitorRevenue of

ML/Competitor RMS MGR

1 Idea Cellular 12852.5 26.12 Airtel 41588.3 0.309 20

2 Ultra Tech 12246 24.88 ACC 8376 1.462 12

3 Aditya Birla Minacs 1431 2.91 TCS 6025 0.238 13

4 Hindalco 12142.7 24.67 NALCO 3298.78 3.681 13

5 Birla Sun Life Insurance 361 0.73 LIC 4395.38 0.082 20

6 Aditya Birla Retail 817 1.66 Reliance Retail 19140.3 0.043 19

7 Birla Sun Life Asset Management 4996.98 10.15 UTI Asset Management 4998.67 1 12

8 Aditya Birla Chemicals (India) ltd 809.9 1.65 Tata Chemicals 4011.87 0.202 15

9 TANFAC Industry Ltd 574.5 1.17 Tata Chemicals 4011.87 0.143 15

10 Aditya Birla Money 2981.7 6.06 HDFC Mutual Funds 5859.19 0.509 17

  Total 49213.28          

(Rs. In Crores)

0.010.1110

0

5

10

15

20

25

Idea Cellular

Ultra Tech Aditya Birla Minacs Hindalco

Birla Sun Life Insurance

Aditya Birla Retail

Birla Sun Life Asset Management

Aditya Birla Chemicals (India) ltd

TANFAC Industry Ltd

Aditya Birla Money

BCG Matrix of Aditya Birla Group

Relative Market Share

Mar

ket

Gro

wth

Rat

e

High Low

Hig

hL

ow

Portfolio CategorizationPortfolio Categorization

Stars Category• Hindalco• Ultra Tech• Birla Sun Life Asset

Management

Question Mark Category• Idea Cellular• Birla Sun Life Insurance• Aditya Birla Money• Aditya Birla Retail• Aditya Birla Chemicals

(India) Ltd• TANFAC Industry Ltd• Aditya Birla Minacs

Strategic ObjectivesStrategic Objectives

Stars

Market growing rapidly

High Market Share.

Stars are to be protected as they are cash cows of future when the growth of market declines

Question Marks

Market is growing high.

Market share is low.

ChoicesChoices

For Question Mark Increase investment Withdraw

► by harvesting or► by divesting or► by identifying a niche

market

For Stars Maintain the status and keep

improving

ReferencesReferences

• http://www.ibef.org/download/retail-august-2013.pdf

• http://www.ibef.org/industry/telecommunications.aspx

• http://www.ibef.org/industry/cement-india.aspx

• http://www.ibef.org/download/financial-services-august-2013.pdf

• http://www.ibef.org/download/it-ites-august-2013.pdf

• http://www.ibef.org/industry/science-and-technology.aspx

• http://www.marketresearch.com/Business-Monitor-International-v304/India-Mining-Q1-7903196/

• http://www.ultratechcement.com/images/downloads/Results_Q3FY14.pdf

• http://insurance.birlasunlife.com/Lists/LIUSPublicDisclosure/Attachments/766/Form-L-2.pdf

• http://www.ideacellular.com/wps/wcm/connect/7688eb00417f5c19b913ffdc1af04cc7/QR_Q2FY14.pdf?MOD=AJPERES&CACHEID=7688eb00417f5c19b913ffdc1af04cc7

• http://www.hindalco.com/investors/downloads/Hindalco_Q2FY13-14_Results.pdf

• http://www.pantaloons.com/images/financials_financialstatements/FY%202013-14Q2%20results.pdf

• http://www.moneycontrol.com/stocks/company_info/print_main.php

• http://mutualfund.birlasunlife.com/MFUSFormDownloads/AUM-AMC-website-Sep-13.pdf

• http://www.adityabirlanuvo.com/investors/downloads/Nuvo_Q2FY14_presentation.pdf

• https://tanfac.com/content/TANFAC_Nov_2013_Eng.pdf

• http://articles.economictimes.indiatimes.com/2013-12-27/news/45626860_1_chemical-industry-chemical-engineers-president-pranab-mukherjee

• http://www.adityabirlamoney.com/downloader.asp?file=Uploads/aboutUs/FinancialResults/ABML%20Standalone%20Financial%20Results%2030th%20Sept%202013_3110131207.pdf

• http://business.mapsofindia.com/finance/top-asset-management-companies.html

• http://www.hdfcfund.com/CMT/Upload/ArticleAttachments/HDFC_Balance%20Sheet_%20-%20Sep%2030%202013.pdf

• http://www.tcs.com/investors/Documents/Financial%20Statements/TCS_IndianGAAP_Q3_14.pdf

• http://www.acclimited.com/newsite/finance/Standalone23102013.pdf

• http://www.airtel.in/wps/wcm/connect/8787de99-32fb-4503-97ba-67532e01cd34/Quarterly-Report-Q2-FY14.pdf?MOD=AJPERES

• http://www.sbilife.co.in/sbilife/images/File/documents/disclosures/2013_Q2/L1.pdf

• http://www.moneycontrol.com/stocks/company_info/print_main.php

• http://www.nalcoindia.com/investor/Q2_Results.pdf