Sunday, May 26, 2019
Aditya Birla Case notes
The Unknown Global Indian Conglomerate Q) After a decade of reform, had the Barilla mathematical group done enough to outpace its rivals , or was in that respect another step It had to take to be Barilla 1? NAS Once Kumar Mangle Barilla withalk over the Barilla group in 1995 after the improper death of his father, he ushered In an era of reforms and mandated the company be among the reach three players In the world or at least in the percentage for any particular Investment. The renewed focus of the group was in making investments in India, acquiring companies outside India fuelling growth.One of his notable acquisition was Novels to make the high-risk atomic number 13 business less vulnerable to price fluctuations on the London Metal Exchange. (Novels was acquired by Handb alone). Mangle Barilla focused on strengthening and consolidating similar businesses unitedly and investing in growth business sectors from the cash generated from the value businesses. His strategy paid o ff and from being a garner with Just US$I . 5 billion in revenues in 1995 it had grown to a business with revenues of approximately US$40 billion in year 2012.Though the group has return a long way It Is still at number three amongst the Indian Conglomerates(Number 1 being Data with revenues of US$OHIO billion as of 2012 and trial with revenues of US$74 billion). In certain businesses the group Is number one Like VS. and cement whereas In certain other sectors like retail It of necessity to work towards establishing itself amongst the top three. The level of competition has increased both at home and abroad and the Barilla group needs to rethink their strategy to be the number one. The Barilla Financial services can play a major role with insurance company and an asset counseling fund.As a conglomerate it should be able to reap the benefits of distributing its costs across similar businesses and achieve cost leadership to gain a competitive advantage over its rivals. The group i s looking at investment opportunities in Africa, South America, East Europe and Central Asia because these geographies present Immense opportunities for the group to do business. The next logical finale of the group would be to Invest in Infrastructure and the group Is actively seeking out opportunities for the same. With the new government In place this might be one of the lucrative business opportunities.The roof is diversified across many sectors but it should be cautious enough not to spread its wings too thin. Recently the group sold off Ditty Barilla Maniacs as the group wanted to exit the business process outsourcing sector because it lacked scale and was not amongst the top three players in the particular region. The capital raised from the deal was invested in other growth sector opportunities in the group. The group has redefined its business strategy and management practices aimed at becoming the foremost firm in India but it still has a long way to go. According to Kuma r Mangle Barilla he has all the large pieces in place.