306-0 43-1

Aditya Birla Group under : Can he Manage the Mandate?

,At ffiefrnr.. He's 38, f,wpr Mavatan Bfula has ateady done rnon than what mosl otiers gel lo do in a transfonpd a h;/iebou7t' anghnenb inb a npdem onnpdities giant thafs g6ally anpetitive. Ihw did tE & iI? By rprl efiry hE age.4 ,tt nny appet as ll the whee! has orne full cirde. But tturnr Birla would puhaps teel that in a nNU gtobalisury envfuonmed, his ioumey has only iud begun-z

Kgmar Mangalam Birla (KM Birla), Chairman of , 's tttird largest conglomerate, became the youngestleaderof treOroupin 1995,affertredeatr of h'sfutrerand fonnerchairmanAdityaVikam Bjrla.Attrattimghe ROity" ain" Croup recorded rarenues worh INR 15,000 crqes.3 Since then, KM Birla has canied out major managerial in and financial reslucturing in he Grouo, which has resulted in the Group recording revenues of INR 33,000 crores 2005.a KM Birfa revolulionized ihe Grciup by disconlinuing tre ageold tadilions such as Babucultres ,Wornbl*btr'b Paha s4elf and poliry of in{rouse recruitnent He implernented varbus naiv prognms lke '}Ve-lti7l-W and ',Hqpi:nessNW , AWoilindex-dgttrebasicchatlengeforKM Birh fiesin mainbinlng fre leadenhip psilions in treGroup's mre'business andbregain ib pmilion as oneoftrebptrrcconglomerabs in hecounty. KM Birla's nextbigfoo.ts's benbr into tre listof Fortune 500 companies. KM Birh said,lVly call'rng is b build an organisalion thatcan createvalue;anyhing ebeb asubsetof tratThereban elementof legaryhere,butldontseemyselfasacatalystof changeassuch, onlychange as a subsetof organbalion building.{

The Birla Legacy

lineage of ttre Aditya Birla Group dates back b 1857, when Seth shiv Narayan Birla sbrted cotton-tsading The -tre the Group, operations in small toun of Pilani in Rajastran, lndia. ln the early 20t century the founding bther of jute lndia dhyanshyamdas Birla (GD Birla), entered into the manufaclrdng sector by sefting up the first mill in Calcuth, set up Kesoram ltSiS; toitoweA byvarious otherfactories for manuhcfuring cotton, sugar and chemicals. ln 19?2.,he dott*.tg"6rtta GD Birla acquired lfnotrsfan Imes in 1927 andesbblished treUppaGanges Sugafactory in 1931- sdt up and ln 1945, he builtSaunastrtra Chemicals at Saurashba, GujaraL ln 1947, (Gnsim)was incorporated as Gunlior Rayon Silk Manufacfuring Co., which commenced with nyon weaving operalions in Gwalior,

.l(|m'r r Suendar T. llig Bcb'. *whlinsruldndadlr Scdsr$6 2F 2004 t Dde Kau** 1s hc aif nntUc mf. w*.hrimqbdatmn Sqtaba l?i ?05 t lbirt I Bah, Crlbn nal wiet fu O#"n! o.dq- IlE! E IUG c m ddcar66 d t/t'on!' llir pdkt mz{ hc afoyca acf dltd sd h. dldra d h. s|phts m grrilcd : Fb' 'r prtr.sldmErnad'rystmfr'rrden*irgirFrco{arndhdartcacrpft*co4ecdtobdgdldDFt3 ' T* orgrizdimMa'. !9.41 7. { r a

306-043.1

Aditya Bida Group under Kumar Mangalarh Birla: Can he Manage'rhe Mandate?

MadhyaPm&sh. Hindalco, Group's aluminum di,,ision, was incorporated in 1958,which shrted production in 1962at-b aluminum complex atRenukmt Uthr Pradesh (UP).

The Grandson of GD Birla, (AV Birla) entered into the business in i964. Hesbrted he Eastern SpinnhgMibard Industies in 1965 in Calcutta. AVBiila acquired a smallspinningmill,lndian RayonCorpn$on Ltd-ir 1966 with an aim to expand the Group's business. However, many of his prcjecb were eiher rejecbd or blocked by fie gwemmentundervarbus prarbions of he'lbense Rf . During he perbd of Lirnse Rry'ln he 1960s and 1 970s, here wae priceresbictions in majorindusties includingfertilizen, sugar, steelandcoal.Alsomany golemment clearances relatedbfoe'gn technology collaboration andimportofcapitalgoods and rawmabdalswererequiredtosbrt any project- Having reahd tratitwould be diffiorltbexpand ib business within frecannby due bredhpism andbureaucncy,AVBirla sbrbdlookhg atothercounbiesforgrowtr opportunites. He tumed h'rs atbniion bwards Souh-EastAsian counbies lke Thailand,Indonesia l/alaysia, and hePhilipplnes.Thefrstglobalexpansion bytreGroupwasin 1969,whenAV Birlaset up Indo-Thd Synthetics Company Limited. The Group furtrer expanded ib intemational presence by establishing P-T. ElegantTex$e in Indonesia (1973) and Pan Century Edible Oils in Malaysia (1977). Duringfie1980s, he Groupfurherdversiled I adding cementandcafton blackb ib prfolio.ln 1980, Birla Coppa, $e copperdvision of Hindalco, was esbblished at Dahej in he Bharuch distictof Gujan[ which b the largest copper smelling plaf ln lndiaro In he same year, the Group set up a carbon bladi plant h Thaihnd. AV Birla also eshblished P.T. IndoBharatRayoninl9S2bbecomefrefrstvbcoseshplefiber(VSF)it poducerinlndonesia.Thrceyearslater,lndia's firstgs$asedferlilizaplantin pimtesecbr; lndoGulf Ferdlisers Limited (lndoGulf)uns eshblshedatJagdishpur, UP.In 1984, Grasimentered hecementbusinessforhelirstlime bysefiing up a plantatJawad,liladhyaPradestr.Afierthe Indbn govanmentfibenlized the petroleum indusfy in 1988, heAditya Birla Group enbred into a jointvenhrre witr H'ndusbn Petoleum Company Limited 12 (HPCL) to set up Mangalore Refineries and Pebociemicah Ltd. (MRPL) at Mangalore, Framabka. In 1988, fte Group esbblished a carbon black plant in Uthr Pndesh followed by anothercarbon black phnt in Alexandria (Egypt) in 1990.

TheGnup conlinuedib oveseas o

Afurhedeah dAVBida in 1995, hisson Kumarfi,bngalam Birla, aCharteredAccarnhntandan MBAfomLoncion BusinessSdtool,atheageof28 bokorerfrereignof theGro.rp tratwas hadngbblrcvenuesof INR 15,000croreswith asseb of INR 16,000 crores. lt had a strength of75,000 employees and 600,000 shareholders"

KumarMangalam Birla: The Catalystof Change

After hking up the charge, Kumar Mangalam Birla (KM Birla) decided to consolidate the entire Group's companies underoneumbrellaof teAditya BirlaGratp.Wtr aviewtofurtrerdivenif theGrurp's business,hedecided toenbrthe telecommunicationssectorthroughajointvenfurewithAmericanTelephoneandTelegnphCorporalion(AT&T)in 1995. However, rnany critics were of tre opinion tratKM Birlawould be unable to manage theGroup successfully.

When KM$rta succeeded his fttrerin 1995, his crilics dismissed him as a softand shyperson,who lackedhe business expertbe and asserliveness of hls taher. He was accused of inconsistent behaviu, an unapproachable nnnagement style and misplaced pdotities. The result was'hat tre invesion shrted selling off theirshares. ln 1996, the marketvalue of the

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Aditya Birla Group under Kumar Mangalam Birla: Can he Manage he Mandate?

Group's fourlargestcompanies-Grasim,lndian Rayon, Hindalco and lndo Gulf Ferlilizer, plunged by$1 billion of37%'r! KM Birla took setrenl initialives to prove his oitics wrong.

KM Birla discontinued various ancient pnclices and porryer cenbrs witrin tre Gro:p. He hhoduced a relirernent pollry in 1995, on tre basis of l.rhich around325 senioremployees,whowerein the{rearly60s, had to quitthe uganizalion in t}re next five yean. Subsequently about 400 young executives replaced them. With this, Bida reduced $e average o{ the employees in tre Group from 54 years in 1996 to less than 40 years in 2000. Meanwhile, answering tre crilics he said, 'Peoplein the Groupwere aboutfuvice myagewhen lbokoveraschairman.lhad greatrespectforhem personally, but

I also felt he need for change"rT

In 1996, helaunchedfortrefntlime acorporate identityttratrmrldserveas acorprablogo. TheGroupselectedthe 'Rrsingsur/ as the logo, v*rich signifiedoplimism andswedas aunifralion symbolfortreGroup. KM Birh said,"During trat psio4 wlren tre organisaton r,rns gc.,ing trrur gh trnnoil due b he deah of AV Birla, tre new cuporate logo helped in bringing trevariouscompanies of theGroupbgeher.This helpedtreorganisalion toreanergizeandgetshrted bthe pah ofchange."lr

KM Birla also changed ttre Group's poficy of in*rouse recruitnent- In 1996, he also made changes in tre Group's This Human Resource ftlR)systenr. He hired professionalsfiomobercornpanies intohis managementteam [Erhibit 1]. removed he earlier nolion trat people, who dd not find jobs elsaartrere, joined he B:irla companies. KM Birla said, lne of the trings I got to know early ttrat helped me know myself betteruas rny ovtn stengths and weaknesses. lt was very imporhntfor me to get people who are much brighter tlran me, ndjust peopie who have experience. Thafs what keeps me challenged.'re He canied outvarbus bdrer changes as well-

The Parfia System of daily fnancial reporling which foctsed mainly on production was replaced 'sith an Economb VdueAddedmodep. In September 1998, while implementing fre'WeWillMn'grogramfaemployees, KM Birla sai4 "l . do believe trat our sustainable advanbge will come from consbnfr r+invenling he Group and putting more and more people on the board who can think outof-h+box.'21 KM Birla also established Aditya Birla Management Corporafon Limitdd (ABIrc1) modeled after GE Capibl, tre sfategic decisionmaking bodyfor ensuring the best praclices acrms the Gro.rp companies.

In 1998, hecanied outa numberof restuctudng likeconsolidatim of its cement manufachrring dMsion of Ind'tian Rayon andGrasiminba single division cf Gnsim.This mergerwasftebiggstrestucturing caniedoutby any corpoi-ateentity in Inda.a ln 1998, he Grorp also made ib enty into Canada by setting up a 5050 pulp milljoini venture company with Ternbec lnc.a of Canada. This was underhken in order to supply pulp for he Group's VSF opentons. lt also decided to tie up with Sunlife Financ'Blof Canada, a financial services compatry, wih a vie,rr to expand ib financial seruices business in 1999. Another landmark restructudng by KM Birla vras tlre decision to consolidate IndoGulfs copper business witlt Hindalco. This was underbken with an objeclfue of unifiing the Group's non-fenous mebls businesses, and bansforming Hindalcointoa ghballymrnpelilive non-fens;s mebb porerho:saHedecided bfocuson tre aspecb of marketleadership and size. With an aim to remain among ttre top three playens in ib business, KM Bida decided to reduce the Goup's dependence on fiber-based business where ib market share::esbw. lnstead he decided to concenbate on non-fenous metals as hererrras less compelition and Hi'rdalm already had atrig presence in the aluminumsecbr.

KM Birfa also brotght in oher key chaoges. In order to do away with the customary'babu+ulfurd, he inhoduced a 360-degree feedback program in 1999 trat permitted managers to raise questions over his leadership style, managedal ability and also personal baib. According to tris feedback, the verdbt of he managas v,as trat he delegated tre uork well and also had a vision. But he could notcleafy de{ine what he expected fom his employees. He, soon afier the feedback, issued each senior manager a sixjage letta mentioning the areas of imprwementand his expecbtions.?a In 1999, KM

tan he son fll p?a's *rocs at 8|ida 7, w,iv.asiabuinssveek con rbi4 8ih' r|m lbngdm'Tradorndic w dchai* lom edrry pqy'c" whcsztrEgs'€trt DeEmbB 200+'bdrtt 2005 1r fftrg': Gambt'. tt r Esqi Tw. wa$dirb.cq, lrat 27r 2005 Tlitnodd bq!6m-t alt}t !?cd. of FenabilV..sdtddnlt ad goilfr 'Ata n lrcia'titg {zt t: bcm r ddr b hc hg'. s*cmridnahdafncroq Sdctt&slF 2|)03 rilr,.dt bih.m Tcnrbcciirla*r9i{car&dffi prodEbw?ry d6trtEdhlbhAncdn.d Frncah2004r'th sle olepminaclf 9lblinrd3m ll,000oCstcc{lQrrdEd m 50 mld pu$, prpc nd mod pdwf rnftduitrgd3 frmg.|rst hl$t Iltr End of lhr$loTort?', fttattrircsdoernaC' Odobc f 20O {ffi ' Aditya Birla Group under Kumar Mangaiam Birla: Can ,. ""r*:;:;lr:rJ

Birla launched 0pAdityaBirlaScholanhips to promote s

In the yea2000, be Group entered into ebusiness iirough an alliance of ib softv'rare division, Birla Softurare and Ccrsulbncy Savices (BCSSI y/itr La son Sofiraet (USA) The Group's aluminum dMsion Hindalco acqrired ahrminum maker lndal in 2000 to stenghen its psition as tre ma*etleader. The Gioup's telecom dvision SirlaAT&T irined hands wih TabGrory'n 2000wihan ideaof making telemnrmunizdon onedhecorebusinesses dheGroup.ln tre sameyear, theGrup's nmtdvesifiedmngbmeratq Indian Rayon,acquired MadunGannenb orerseas brand righbforinbmalbnal brands like Louis Phillipe, \hn Heusen and Allen Soliy. Ail trese acquisitions made Indian Rayon ihe market leader in branded apparels in lndia-2r

The Goup also acqrired PSI Dah Systems, a softran nnjor, fom Groupe Bullt of Fnnce in 2001. In 2002, lndan Rayon,hehsrdabrdlvbbnoflndianRayon,entercdintoa50:S0jcintvenfurewitrNGKil dJapanbgainaccessbnanr productand manuhctdng bchnology and fur[rerstrengfrened Group's leadership posilion. KM Birlaalso divesbd tre Grorp'sshkeinlr/angloreRefineriesandPehochemic*Ltd.(MRPL)bOilandNatunlGasCorponlion(ONGC)stto ralionalizeibbus'nnessporffCio.According toanalysb, frbsfategyindicated fratKM Birlawanted b gdoutof businesses where he Groupuas snnllplayen and sFengthen he businesses where $e Group had core competencies and had to consofidatefurfier.il ln 208, tre Group inco'pcrabd Liaafng tsir,la Carbon in China, expanding ib inbmalional business furha. The Grup pusued backward inbgratlon as part ofib consdidalion sfabgy. lt acquired both Nifly mines and Mount Gordon oppamlnes ofAustal'a b source rarmatsriialfu'lts mppersneltaatDahej, Gujaratand become acompetlive copper playerin he global arena. In 2004, the Group acquired contolling shke in the cement business of Larsen and Toubro3 b brm a nar conrpany Ult'a Tech CemenL

In2005,theGrotpbecamelndia'slargestexprterofcementandclinker-x Cementsectorof fieGroupconiributed around 16.'lo,6of he Group's totaitrmwerin 20O5 lExhibit2l. KM Birla also merged IndoGulf and Birla GlobalFinance Ltd.5 with Indian Rayon to createAdi$a Birla Nuvo. This was done to reduce he cross-holdings across the different companies dfteGroup.TheGrorpalso decided tosetupawodd+lass aluminum projectin Orissa ln aderbconsolidate ib position asoneof thelargestaluminum producers inAsia [Exhibit3J. Gaining ma*et leadership, productivity gains, economies ofscaleand operalionaleffciencies were tTemerjorfacton behindtheconsolidalion process.Aditya BidaGroup also became Indn's fiini hrgestconglomerate behind ReFance andTab Grarp, wifr rwenues ofoyer[,,1R 33,000 crores in 20O5.$

KMBirla alsobratghtinsomemanagerialchangesin treGroup. Before KM Birla boktrechairnnmhip, trehienrctry in the Grotp was detarnined by senioity instead of mait fle changed trb by abotbh ngheGratp's\tunb$4ornb polbl and instifuteda performance appnisalsysiem. He decidedto implementperfornnnce managernentslnbms, rwiewed compensatiom and accenfuabd on taining to bring in maitocncy. He also shrbd a prognm to dwelop high-potenlial managers hatcompbedof dwelqping skills trrough inter+nithansferandoverseas assignmenb. Hepenonallyled tre recruibrent pngram ftom business schools. He also brought abofichanges in hereporting system being followed at tre Grotp.

lfan-gcm"rf in Asic Thc Erd of ltbmb{oTomb?', op. :( Th's ale& idtdcd avrards llc llc lmc adricvcnr ql atai ,:'..np pofust ::ai. odCa;ong leaders awards rmgd dtrF ts Lmo Sdnarc is a irf.ndind F{ilc of sfaFire e.t frrirg ii:3) shr: bacd h USA h ftsd ta AO{ I rc?ct.d totat rru d 596.3 ,rllo ' tr emgmql hAi.Th: Erd dlbrbbTobT. opcl. , G6t'P. &I (C$ tnorn r &f Oqdr 6 rirylt 8r{ L | *rdt aflfit3 srgrq b.*d h tmddFl Eamq orlridc p.ir, tlGK b | &p- brcd conpny**ni: ilo h: mlbdui; C irJ&n tr' oil@ ie r PUbft sdr p&dm onprry h Indr ll ir t fr"':n aoo mrry. t! nod y*.d. eogcrt b be 0y rntd €dCbaim) ufrihip n* of lrda! m,& dl podrtm ad 8l *of l'de's nnd p podrcdot ll h !* ligfrd pd?clirg s+rjo h hdt , wdVCih,m 5 Lrs t Td$F tirtd is lr'&l l'gcC ltlirqhg ad ottrtJdim dElotrrb fri rddirml rlccds in lT drd dcdid tuiE ! lrw.dlyetilr.m I lwrdrNrBihGtofthtUt"E.h19S6btlEfeyr a-Sqpbst:itohetr..rddsoiccbu*r*lhe CongarrywmdrBih0ddFset-tlFGn)h i93l- x wadtyatih.m .ffi 306-043-1 jerKumar Aditya Birla Group un Mangalam Birla. Can he Manage fre Mandate?

The top 20 executives of the Group, who had greater responsibilities in the Group, could report direciiy to KM Bida, trerebygMng tremcompletefreedom b run trelrbusinesses, andatthesame time holding them more accounbbleforheir ierformance. KM Birla said, 'Delegation for me is given. lf the person feels that he can't hke responsibility hen I am he wrongpersonbworkfor." BasantKumarBirh,fatherofAVBirl4said,KumarMangalam'swo*ingrnrdelismmpletety difierentfrom his fatrer's. Kumar Mangalam believes in delegalicn of ponrer. His style is more.Group oriented.sr Santupt Misra, oneof the mostimportantHR execulives of theGrorp, sairf"Mr. Birlashrtsftom a position oftustandconlinuesio doSo unless prwen othen*ise, butitis in noway abdicalion. Hehas his ovm antennae and picks rare moments to assess people.lfyorpassmusterattrosepoinb,trenyorhareh'shuslbrever.4 SaneralanalystsalsopnisedKMBirla'sstyle offunclioning.

Analysbwereof freviewtlrathemreof KM Birla's managenentstylewere trequalifes of endunnceandpersuasion. The negoliaiion forhe Group's acquisilion of Larsen & Toubro's (L&T) cement division was a suihble example of iL The negotialions lasted orertwoyears and KM Birla keptpursuing itpersistentV tillhe clinched tre deal.A.M. Naik, Chairman and Managlng Director, L&L said, tlis style, very slmply pu( b to win over tre person across the hble witr a lotoi patience. He justwon'tgiveup. Heis verychanning andfriendty wen in trethickof negoliations. He geb o

KM Birla, dudng histenure, alsoemployeda numberofwomenmanagers unlike hispredecesson.When hehadhken oreraschairman, herewereveryfewwomen managers, butasdmrly20O5women canstifubd morethan 6%dGrottp's employeeslt Shailendra Jain, President of Grasim, said, lVhat changed under he young Birla, however were the expectalionsfrombeemplryees. Botr G.D. Birla andAV. Birlawere morefocused on relatively shorttermgoals, but$e 's cunent chairman hkes a longterm viary and while he less dernanding in tlre short term he is far more demanding in the long run. lnilially; he''ras tying b undershnd; now he b in complete command. Earlier he would ask, now he gives us he direction.'42

Analysb beliwed tratKM Birla has began to think big in recenttimes. ln he beginning, he usually used tofocus more on exhacting value raherfran betting big on growfr. Unlike his early days as the chairman of theGroup, he expanded his business empire through various acquisitions. In 2000, he Group acquired tre INR 1,750 crore Indal b become he largest playain aluminum business inAsia6 and in 2005 he Group acquired L&T making il $e largest cement company in lndrla. According to an arlicle published inThe Economic Imes, The Group's acquisitions bear bstimony b Kumar Nlangalam s aggression in trema*etry Asof 2005, Kumar Mangalam Birla 38, chairman of one of the oldestfamily business houses in India, has succeeded not only in sustaining the growth of Aditya Birla Group, but has also made it one of the most diversified conglomerates inAsia. But analysts beliared trat therewere sareral challenges ahead.

Challenges Ahead

Despite remaining profitsbie, the compan/s growtr has beensloweras compared to ib peer:s in tre recentpast lthas been reflecled in tre stock nnrkel where'tts marketcapibtzation of INR 30,000 crores is less tran ib tobl tumover.

. Although tre Group has become ttre king of commodilies in India by becoming the largest producers of cement, aluminum and insulators and also leading manufucfurers of viscose shple fiber, carbon black, viscose filament yam,5 analysts befiwed thatheGrorp's biggestchallengerestedin making ib commcdity businessof aluminum,viscceshple fber and fertilizer more compefilive and also valuable on ttre stock market According to an article in Eusiness loday, 'After all, theGranp's marketcap todayis much less han ib orremllrevenues.lts noordinarychallenge. But,henhehas prwed that he is no ordinary young man."€

e The Ogrrhation [bt', op.tit t 1s he Biila rumba me?F, op.cil- r lbid. . Thc Organizdion Man. op.cit 't Trarsbrmatlon ncil atchcmisb tom ordrary peoplc', op.cL a Thc lfirgs Ga'rntit', g.d. ilAftcr ar trcir-nisirg sbrl il'r bccn a dadr to ha top, op.ot r lbid. t' Ja1*2, Ro*ri 'Thc Eg B of lndn &rsirpsC. rt*v.h.rsirpss{oda7.oom. Deccmbcr 2lr 200:l t Thc Orgnirdion l*an'. opciL ffi 306-043-1

Aditya Bida Group under Kumar Mangalam Birla: Can he Manage the Mandate?

Though fteGroup hasforayed into Telecom and InfoTech consulting in 1995 and 2000 respecfvely, itis stilla smafi player ln tre ma*et Aditya Birla Grrup has excelled in he commodi6es business and is one of tre larest cost producea of nmtoffremnunodiEes itmanuhcfures. Butibfu[rre bstlies in afraining leadership posilion ln cusbnBrodenteJ Uusl.'ess- Thechallengaalsolies in consolidating ibold businessesandathesamelimeexpanding fre newemnonry businesses-

In the days ofAV Birla, ttre Group had to dealwih the exiernalenvironment like obhining ficenses, permib and cleanances from tre govanment But ln present day scenario KM Birla's main challenge lies in combdng tre very compbx nafureof hemarketlike hriffbaniens which has gone do,rn considerably.The shndardsforqualityandcos[ competence hatealso become a crucialfactorforsurvival. Commenling on KM Birla, R. Gopalakrishnan, o

The Group has been consistenty planning to expand its globai presence. But ttre challenge fes ln sushining ib leadership posilions in ib cue businesses. Also KM Birla has to play a malx role in mairnhlnirng a hannony among tre-op larel management in cultrnliy divercffied working Group. lt is also imporhnt to create a itong hurnan resourie base. Another big bstfor KM Birla is changing this patiarchal Grorp into a maitrcracy based Grorp. According to an article published in Er.rsiness Sfandard,'Attretop sib KunnrMangalam Birl4 and despite fre delegation cfauhority, people stilt preferbunitfortsabu s'orderdirecs.Ghanging this mindsetisclearly Birla's biggestchallengenow.'o

' l(mt Bie Bdd.oP.a ' 1. h EiL ilrria om7, op.d ffi 306-0 43-1

Aditya Birla Group underKumar Mangalam Birta: Can he Manage tre Mandate?

Exhibit I Kumar Mangalam's Management Team

Santrupt Misra: Joined in 1996. Creditedwitr helplngprofessionalizetheGroup.

Sanjiv Aga: Joined tre Group in 1998 and presently b the managing dir-ector of Indian Rayon S.K. Mitra: DirectorofGroup's FinancialSewbes Shailendra Jain: WorkingwittheGrroupsincel965andistreheadofpulpandsbplefbrebusiness. Debu Bhattacharya JoinedtheGroupinl99SandisheManagingDirec{orofHindalcolndustries. Bharat Singh: Heads Group wide mrporate stsategr and developmeni. Saurabh Misra: GroupDirecbrofhecementbusins.HejoinedtlreGror:pin2000 Deepak Mittal: Group Directo-Acrylic Fibre and Tedles, Bangkok

S*r*t St

Exhibit 2

Contribution of g*ctors in fndia to Group tsrnover

?to of tatal turnovar

others ; insubtsrs vFv mining cerbon blrch gatuEirts inlgtencp fertilirers

vsF (erie6t copPer alurni.niurn

O,:O 5,O

Sou rce: www.adityabirla. com 306-0 43-1

Aditya Birla Group under Kumar Mangalarn Ejirla: Can he Manage tl-te Mandate?

Exhibit 3 Aditya Birla Group Fac$ile

' The Group is tre world leader in Viscose Staple Fiber. . OneotheAsia'slargestproducers'ofAluminurn

. The Group is also the fastesigrowing copper company in Asia

. lfs tre Bh largest producer of cernent in the world.

. Worfds fourth largest produca of carbon bfack

. The Group also has the world's largest singlelocation palm oil refinery.

. Third largest producer of insulatcrs glcbally.

. India s secondJargest producer of viscose filamentyam.

. The numbertwo private sector insurance company in India. . Fourh-largestassetmanagementcornpanyinlndia

Compiled byEFA| Business SchoolCase Development0enhefom -wtru.adityabirla.corn andunmrllogspotmm

,ffi | ,' t t'

306-0 43-1

Aditya Birla Group under Kurnar Mangalam Birla: Can he Manage tre Mandate?

Annexure 1 Various Awards Won by Kurnar Mangalam Birla

Chosen as heYoung GiobalLeaden bytheWorld Economic Forum (Davos)in 2004.

The EconomicTimesAwards named him as TheBusinessLeaderof heYea/forCorporate Excellence2002 2003.

. &rsiness /nda selected him m he "Business Man of tr\eYear-2003 .

. In 2003, he also won The Natonal Inslitrte of lndustrial Engineering's (NlTlE)'s The Lakshya - Business VisionaryAward

. He was also ranked among tre top fweAsian business baders forfie ?sian Business LeaderA'anrd 2002 sponsored by CNBCfl nsead. . Hewon the prestigious Inslitubof D'recbns Golden Pemc* NationalAvrrard forBusiness Leadership'in 2001.

. Won The Gianb lntemationalAraard for tsusiness Exceilence and his Contibulion to he Industf in 2001. . Won The ffindtr/ran 77meC'tsusinessman of heYea/ award in 2001 . Was honoured as The ManagementMan of heYear 1999-200f by he Bombay ManagementAssocialion.

. ln 1998, he became trefirstand onlyindustiaiistbhave been appeinbd as a public nomineeon tre goveming board of tre Securities and Exchange Board of India (SEBI) by tre Finance Ministy.

Compiled by ICFAI Business SchoolCase DevelopmentCentefrom -wvwv.adityabirlacom

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