Business Case: IMC /05/09 XIMB-Centre for Case Research A V Birla Group: Legacy of Free Enterprise and Diversification Amar K.J.R Nayak© Disclaimer The present case is intended to be used as the basis for class discussion to help raise relevant questions to think and to contextualize management issues rather than to illustrate either effective or ineffective practices. It is neither intended to glorify nor intended to condemn any individual or organization. © Amar K.J.R.Nayak, Ph.D., Strategic Management, Xavier Institute of Management, Bhubaneswar. No part of this publication should be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the author. Author’s contact:
[email protected] <http://www.ximb.ac.in/ccr/> A V Birla Group Legacy of Free Enterprise and Diversification The case of the Birla Group is an amazing story that reveals several aspects of the history of Indian industrial policies, nexus of businessmen-politicians-bureaucrats over the years, ambition to grow among the Indian businessmen, and the journey of a marwari family from small trading of spices and opium to big business over a period of about 140 years. The case highlights the legacy of a business house consisting of some significant businessmen, viz., Ghanashyam Das Birla, Basant Kumar Birla, Aditya Vikram Birla and Kumar Mangalam Birla. It provides a window to peep into the methods and strategy adopted by these business legends for building a business empire and for creating an Indian Multinational as early as by 1980. The case very well depicts diversification as a successful growth strategy in a developing country context with several institutional and policy deficiencies along with the politicians-bureaucrats being prey to business interests.