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Aditya Birla Group Marketing Case Study

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The Aditya Birla Group is an Indian multinational conglomerate headquartered in Mumbai, Maharashtra, India. It operates in 33 countries with more than 136,000 employees worldwide. Following are the various businesses under this group:
1. Cement (largest in India)
2. Telecom (third largest in India)
3. Branded apparel
4. Financial services
5. BPO and IT services
6. Others like viscose staple fiber, metals, viscose filament yarn, chemicals, fertilizers, insulators
It is the third largest Indian private sector conglomerate behind Tata Group with revenue of just over USD 100 Billion and RIL with revenue of USD 74 Billion.
For the BCG analysis we have focused on few of the SBU’s of Aditya Birla group. Based on the market share of the BSU in its sector and on the total market growth we have divided those selected BSU’s under various heads – Star, Question mark, Cash Cows, Dogs. Following are the focused BSU’s for the assignment:
Birla Sunlife Insurance: Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the
Aditya Birla Group and Sun Life Financial Inc, leading international financial services organization from Canada. The AUM of BSLI stood at 21062crore as on March 31, 2012, while the company has a robust capital base of Rs. 2450crore. Birla Sunlife market share in India is 2.46%. The biggest competitor in Life insurance market is LIC with 63.47%.

Idea Cellular Limited: Idea Cellular is a telecommunication sector company dealing in cellular services.Idea is a pan-India integrated GSM operator offering 2G and 3G services. With revenue in excess of $4 billion; revenue market share of nearly 15%; and subscriber base of over 121 million in FY 2013, Idea is India’s 3rd largest mobile operator.
The telecommunication sector is having an increase of about 39% in its subscriber base every year. The total revenue generated for Aditya Birla group from this SBU is of Rs.15399crore for the fiscal year 2011-2012.The market share in terms of value is 13.2% in fiscal year 2011-12. Also the market share in terms of subscribers is around 11.02%.

Essel Wind Division (EMIL): It is an SBU of Essel Mining & Industries Limited (EMIL) in the power sector that generates green energy from renewable resources. The major output is in the form of electricity. The installed Capacity of Wind Power in India is 13000 MW out of which Essel Mining produces 75 MW. An additional of 300 MW of capacity is added in the year 2011. The overall growth of the wind energy sector is 23.08%. The market share of EMIL in the wind division is 0.58%. It lies in the question mark group of the BCG matrix. The major player in this segment is Suzlon Energy.

Aditya Birla Chemicals Ltd.: Aditya Birla Chemicals Ltd. is a leading manufacturer of bulk and speciality chemicals and viscose filament yarn. The chemical business manufactures a wide range of products using advanced technology and ensuring stringent quality control. The product portfolio includes: chlor-alkali, sulphates, peroxides, chlorine derivatives, viscose filament resin, fluorine chemicals, phosphates and phosphoric acids.
Its Major competitors are Tata Chemicals Ltd., United phosphates Ltd., Gujrat alkali, Kanoria chemicals, standard alkali Ltd. Etc. Its revenue for FY 2010-2011 for the company is Rs. 1013Cr.The total revenue for FY 2010-2011 for the industry is Rs. 14438Cr. Market share of Aditya Birla Group is 7.02% in FY 2011.

More Retail Stores: It is a pan-India retail chain operated by the Aditya Birla Group company, Aditya Birla Retail Ltd. Currently it has 509 supermarkets and 15 hypermarkets across the country. It plans to increase it to 1,300 supermarkets and 65 hypermarkets respectively by 2016.
Percentage Growth of Retail Industry: 45-50% annually. By the year 2013, the organized sector is expected to grow at a CAGR of 40%. Its market share is 11.7% .The overall market leader is Pantaloon Retail with a market share of 45.11%.

Aditya Birla Money: It is a single brand offering the combined products and services of Aditya Birla Money Limited and Aditya Birla Money Mart Limited.

Aditya Birla Money Limited is a broking and distribution player, offering Equity and Derivative trading through NSE and BSE and Currency derivative on MCX-SX. It is registered as Depository Participant with both NSDL and CDSL and also provides commodity trading on MCX and NCDEX through its subsidiary company.

These offerings are delivered through a strong pan India distribution network of about 1000 own and franchisee branches, a robust online and offline model with a strong technology backbone to a large customer base, in excess of 4 lakhs.
Aditya Birla Nuvo IT: The company has strategic business unit (S.B.U) called Aditya Birla Minacs Worldwide Ltd. It is a leading business solutions company that partners with global corporation in the manufacturing, retail, telecom, technology, media and entertainment, banking, insurance, healthcare and public sectors.
Major players in IT sector in India are TCS, Wipro, Infosys, Cognizant and HP. Its market share in IT-ITES services is 0.49% in FY 2012.
Aditya Birla Nuvo Unit-Indo Gulf: It works in the Agribusiness vertical and produces fertilizers, seeds, agrochemicals. Birla Shaktiman, the flagship brand of the company is the market leader in the Indo Gangetic plains.
It has 2.6% market share in the agribusiness industry far behind the market leader Coromandel Int having market share of 15.93%. Other major players in the agribusiness industry are Nat Fert (12.11%), ZuariInds (11.56%). RashtriyaChem (11.55%).The agribusiness market is growing at the rate of 36%. It made revenue of Rs. 1243.53cr in FY 11 while the entire Industry made revenue worth Rs. 47780.05cr for the same financial year.
Aditya Birla Nuvo Unit-Carbon Black: The Aditya Birla Group is the No.1 producer of carbon black in the world and second largest producer of carbon black in India, covering 48.4 % of the domestic market share just behind its competitor Philip carbon whose market share is 51.6%. The carbon black market is growing at the rate of 29%.
Hindalco Industries: It is a subsidiary of the Aditya Birla Group and is the leader in aluminium manufacturing. Its headquarters is at Mumbai, Maharashtra. It is one of the world's largest aluminium rolling companies and one of the biggest producers of primary aluminium in Asia. It made 4271crore worth revenue in 2012.
It enjoys market share of 17.97% way ahead of its next challenger Novelis which has only 12% market share. The industry grew by 9.1%.

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