Overview
Aditya Birla Group of companies have marquee name in India. It is one of the oldest corporate groups of India. They have good brand value in India. This group has wide range of companies with different products touching lives of millions of India. In this article I will discuss about the listed companies from the group because as an investor you can make money only with listed entities.
It will help you find the company list easily and you can then perform your analysis on individual companies.I have analyzed other famous corporate groups of India that you may be interested in like Tata group, HDFC group and Bajaj group.
Aditya Birla group company performance
I have listed all the companies from this group and their performance in last twenty years. This gives idea about long term price appreciation of those companies and amount of money they have made for the investors. Also if some company does not have 20 year price performance then I have considered IPO listing price to get the returns they have given to the investors. So you can get an idea about group performance for all companies combined.
| Company | Return % |
|---|---|
| Ultratech Cement | 2,873% |
| Grasim | 2,233% |
| Hindalco | 816% |
| Aditya Birla Capital | -28% |
| Vodafone Idea | -86% |
| Aditya Birla fashion and retail | 31% |
| Aditya Birla Money | 32% |
| Aditya Birla Sunlife AMC | -49% |
From the above list there are some disasters as well. Investors have lost wealth in companies like Vodafone Idea. It can be termed as one of the wealth destroyers in past one decade or so. At one point of time the company was trading at range of above 100 and now it is trading below 10 causing huge wealth destruction for investors over the years.
Along with Vodafone idea several other companies like Aditya Birla sunlife AMC and Aditya Birla capital have also given negative returns to investors. But these two companies are recent listing so twenty years of performance is not available for them. So there can be chance of getting positive returns in long term as many companies tend to under perform post IPO and give good returns in long term. The winner from the group has been cement giant Ultra tech cement and Grasim which can be seen as a holding company with stake in few of other Aditya Birla group companies.
Aditya Birla group company market cap
Above you have seen returns investors have made in the companies from this group. Now it is time to see market capitalization of companies which are listed on stock exchanges from this group. I have categorized the companies in Large Cap, Mid Cap, Small Cap and Micro cap. So you can easily filter out the companies based on the market capitalization of the group.
| Company | Market Cap |
|---|---|
| Ultratech Cement | Largecap |
| Grasim | Largecap |
| Hindalco | Largecap |
| Aditya Birla Capital | Largecap |
| Vodafone Idea | Midcap |
| Aditya Birla fashion and retail | Midcap |
| Aditya Birla Money | Microcap |
| Aditya Birla Sunlife AMC | Midcap |
As you can see the group has four large cap, three mid cap and one micro cap company. Note in above list companies like Ultra tech cement, Grasim and Hindalco are part of Nifty50 index. So it is one of those corporate groups which have three or more companies in Nifty50 index. The other corporate groups which has more than three or three companies are listed below
Aditya Birla Group of Companies details
Below is the list of companies from this corporate group. The companies are mentioned not in any particular order.You can get idea about sector they operate in below as well. I have discussed each company in details later in this article.
- Ultratech cement – Cement
- Grasim – Holding company
- Hindalco – Aluminum
- Aditya Birla Capital – Finance
- Vodafone Idea – Telecom
- Aditya Birla Fashion and Retail – Retail
- Aditya Birla Money – Broking
- Aditya Birla Sunlife AMC – Asset Management
Ultratech Cement
Ultratech cement is part of Nifty50. It is the largest cement company in India and third largest in the World if we exclude China from comparison. For ready mix concrete and grey cement it is the largest manufacturer. Apart from India the company has operations in Srilanka, UAE and Bahrain. It is also present in the white cement space.
The products and services from the company can be divided into below segments
- Ultra tech cement
- Ordinary portland cement
- Portland Pozzolana cement
- Premium Ultratech
- Portland blast furnance slag cement
- Birla white cement
- Birla white wall care
- Birla white level plast
- Birla white textura
- Birla white GRC
- Ready mixed concrete
- Ultratech Decor
- Ultratech Duraplus
- Ultratech Zip
- Ultratech Aquaseal
- Ultra tech building solutions
- Cement
- Steel
- Painting system
- Waterproofing and Chemicals
- Electricals
- Plywood
- Shuttering ply
- Power and hand tools
- Flooring
- Pipes
- Sanitary ware
- Mortars
- Roofing
- Water storage tanks
- Ultra tech building products
- Tiles Adhesives
- Repair products
- Waterproofing products
- Industrial and precision grout
- Plasters
- Masonry products
- Light weight Autoclaved aerated concrete blocks
Below are some of the unique characteristics about the company
- Largest single brand retail chains in India
- Highest market capitalization cement company of India
- Vast market reach with more than 80% of Indian cities and towns covered
- It is the only company in World excluding China which has 100+ MTA capacity in single country
- Dealer and Retail chain network of more than 1 lakh in the country
Cement is very important ingredient for any construction activity. It can be treated as a essential commodity. The rise in Infrastructure projects is growth driver for this sector. There are many small and large players in it with many of them catering one or two regions. The pan India presence of any company is very tough which this Aditya birla group company has achieved. This company is one of sustainable companies out of Nifty50.
It has given good returns for investors over the years. It is regarded as one of the safe bets considering the growing stature of India and investment in the infrastructure and housing projects.
Grasim
Grasim can be seen as holding company of Aditya Birla group. It is also part of Nifty50 and is present in different business verticals. You can view it as Conglomerate as it has its own business and also a holding company as it has majority stake in other companies from the group. The different business verticals of the group are
- Viscose staple fibre
- Man made bio degradable fibre which is alternative to Cotton
- Can be used in Apparel, Home textiles, Woven and Non woven garments
- 4 fibre plant, 1 pulp and 1 Lyocell plant in India
- 8 Lakh TPA capacity in India
- Used in over 100 major brands
- Viscose filament yarn
- Largest manufacturer of Viscose filament yarn in India and third largest globally
- Represented as brand Raysil
- It is natural and used in georgettes, crepes, chiffons etc
- Chemicals
- One of the largest producer of Caustic Soda
- One of leading players in Chlor Alkali segment with products like Stable Bleaching Powder (SBP), Polyaluminium Chloride (PAC), Chlorosulphonic Acid (CSA), Chlorinated Paraffin Wax (CPW), Calcium Chloride (CaCl), Aluminium Chloride (AlCl) and Chloromethane (CMS)
- Epoxy products segment include products like liquid epoxy resins, formulated resins, reactive diluents and hardeners
- It has 8 caustic soda manufacturing sites in India
- The products from this division have application in Water treatment, plastics and polymers, Agrichemicals, Dyes and Pigments, Pharmaceuticals, Foods and Cosmetics
- Textiles
- Only integrated Linen factory in India
- Total linen capacity and cotton fabric capacity is approx 10 million meters per annum
- Total wool capacity 38,742 spindles
- Linen club is largest linen retail chain in the World
- Insulators
- India’s largest manufacturer of electrical insulators
- It is also one of the top four insulator manufacturer in the world
- It exports ceramic insulators to more than 58 countries making it one of the largest exporter of the product
- Creates both Ceramic and composite insulators
- Had JV with Maschinenfabrik Reinhausen to manufacture Composite Hallow Core Insulators.
- Paints
- This is the new business segment company is entering
- It has planned to setup 6 plants in states of Haryana, Punjab, Karnataka, Tamil Nadu, Maharashtra, and West Bengal
- The total capacity is planned to be 1332 MLPA
- The plan is to start the production from year FY 25
- B2B eCommerce
- The 100 billion USD building material segment have only 2% penetration
- Company wants to leverage digital first adoption for products like Cement, Steel, Doors and Windows, Kitchen and Electricals, Sanitaryware , Plumbing and tiles
- Commercial launch will be in FY24
Below companies are subsidiary of Grasim
- Ultra tech cement
- Aditya Birla Capital
So it is complete conglomerate operating in different business verticals not related to one other. It is also mentioned as one of the most sustainable companies listed on Indian stock exchanges due to its diverse nature of business operations and key areas in which it operates. The B2B eCommerce and Paints are poised as next growth trigger for the company.
Hindalco
Hindalco is part of Nifty50 and is one of the largest Aluminum companies in India. The company has other businesses as well along with Aluminum business. The major segments of the company are
- Aluminium
- One of the largest integrated primary producer of Aluminum in Asia.
- The end products from the company are primary Aluminum, Aluminum flat rolled products, Aluminum foils and packaging and Aluminum extrusions
- Copper
- One of the largest single location copper smelters in the world
- The products from the copper division are Copper cathodes, Copper rods and precious metals
- The copper brands are Birla Copper and are known for the quality
- Chemicals
- The company exports the products from this segment to more than 32 countries.
- The major products are coarse alumina hydrate, metallurgical alumina, special alumina and alumina hydrate
- These chemicals are used in refractory, ceramics, polishing compounds, abrasives and glass
- Cargo handling
- Acids
- It produces products like Sulphuric acid and Phosphoric acid
- These products are produced as by product of the copper process
- Fertilizers
- It produces di-ammonium phosphate (DAP) fertiliser.
- It also produces nitrogen phosphorus potassium (NPK) fertiliser
- The brand names are Birla Balwan, Birla phospho gypsum and Birla bishwas
The Company is also largest producer of Gold in India among the private sector companies. It is said to be metal powerhouse company from the house of Birla. The major companies under Hindalco are
- Novelis Inc
- This world leader company in rolled Aluminum product was acquired by Hindalco in year 2007.
- Hindalco Almex Aerospace
- It produces products for use in Aerospace mainly.
- It is one of its kind facility in India
The company is listed on stock exchanges and have distinguished position in the metals sector. With dominance in Aluminum, Copper and Gold the company is present in metals which have continued demand in near future as well.
Aditya Birla Capital
Aditya Birla Capital is holding company for financial services offered by the group. The company in turn is subsidiary of Grasim industries. It owns some of the listed companies operating in financial services space. Below are the different business areas in which the company operates in.Below are the major business segment themes the company operates in
- Protecting
- Life Insurance
- Health Insurance
- Motor Insurance
- Travel Insurance
- This segment is combination of Life Insurance and General Insurance
- It is complete Insurance solutions to customers.
- Investing
- Mutual Funds and Stock broking
- Wealth management
- Portfolio management services
- Pension funds
- Real estate investment services
- So this segment is investment services offered by the group
- Financing
- Under this segment it offers Loan services
- Various loans offered by the company are mentioned below
- Home finance
- Personal finance
- Mortgage finance
- SME finance
- Advising
- Under this business segment the company offers Advising services
Above mentioned products are complete financial basket offered by the company. It is offered both for Individual customer or Retail customer and also the Business users or corporate companies. This provides complete diversification of the services. The company is present in
- More than 1,000 branches all over India
- Approx 2 lakh direct and indirect professional
- More than 3,500 billion INR asset under management
- Around 38 million customer base
The Company was formed recently as part of restructuring of the group. So you have price performance of last few years only not two decades. This is something you need to keep an eye on.
Vodafone Idea
Vodafone idea is joint venture between Aditya Birla group and Vodafone group. Vodafone is leading telecom provider multinational company. At present it is third largest telecom provider in India only behind Reliance Jio and Bharti Airtel, The company is reeling under debt pressure. This is getting reflected in decimal performance of stock prices as well. It is also losing subscribers with time which is not helping the company as well.
Earlier it was known as Idea but with introduction of Vodafone the company has rebranded itself as VI which stands as short form of Vodafone idea. It is one of the worst performing stocks as of now with respect to price performance as investors have lost huge wealth in this company over the years.Since most of the people are already aware of the business a telecom provider mentions I am not proving more details on this front.
It provides Prepaid services, Postpaid services, wifi devices as well. It is offering all the services currently offered by your service provider or if you have VI connection then you would have idea about the services offered by it. The consolidation of telecom provider have destroyed many companies and it is now down to three companies.
Aditya Birla fashion and retail
Aditya Birla fashion and retail is retail arm of the group. The business of the company is divided into below segments
- Lifestyle brands
- Lifestyle brands of the company are
- Allen Solly has wide range of products for Men, Women and Kids. It offers corporate and western wear
- Louis Philippe offers wedding and business meeting solutions
- Peter England brand with 1000+ stores all over India and focused mainly on young Indian men
- Simon Carter is British brand. The company brought it in India in year 2017
- Van Heusen is premier lifestlye brand focused on professionals. It is US brand and company brought in India in year 1990
- Pantaloons
- Pantaloons is fashion retail chain with stores in more than 150+ cities covering Metro cities and other tier 2 and tier 3 cities.
- It has more than 350+ stores covering the country and making it one of the most wide spread fashion retail chains in the country
- It covers Men, Women ethnic, Women western, Kids and Home Decor segments.
- The different brands from the company are Ajile, Ajile loungewear, Bare denim, Byford, Indusroute, Akriti, Rang manch, Annabelle, Candie, Living scapes.
- The wide range of products with all price points provide single stop shopping experience for most of the families.
- Youth Fashion
- This segment is mainly focused on Millennials and Gen Z.
- The major brands of this segment are American Eagle and Forever 21
- Other business
- It has various ethnic wear brands like Jaypore, Tasva and Marigold Lane.
- It also has partnership with designers like Shantanu and Nikhil, Tarun Tahiliani, Sabyasachi and house of Masaba.
- The collective is India’s largest international multi brand retailer
- It has also launched the inner wear products from Van Heusen.
The Company is one of the major retail chains in India. Trent from the house of Tata and this company can be compared as they are into same business segment with minor differences but do provide a good candidate for comparison.
Aditya Birla Money
Aditya Birla money is one of the leading stock broking companies in India. It is now offering discount broking with customized plans as well. The company plans are listed below
- Charging flat 20 INR per transaction across segments of Cash, Options and Futures
- It also provides customized rates for few customers as well
- It provides lifetime free Demat account with one time fee of 999 INR. The life time free is typically for period 10 years
- Unlike discount brokers it is providing research reports, tips and recommendations
- Personally I liked the amount of information they provide in their web interface dashboard making it one of the most complete platforms
- On the draw side I would have loved the interface to be more user friendly and simple.
The company is subsidiary of Aditya Birla capital. It is in recent times trying to change the interface and introduce new plans to capture the market. Right now the market is dominated by discount brokers. It has also entered the space and now is planning to promote the platform heavily to gain market share from new generation platforms. It is interesting to see how well this brand goes from here.
Aditya Birla Sunlife AMC
It is joint venture between Aditya Birla group and Sun life financials of Canada. Sun life financials is one of the top financials houses of Canada having operations in many countries. It is one of the largest asset management companies in India. The company has pan India presence covering more than 200 locations. The various products from the company are
- Debt funds
- Equity funds
- ETF funds
- Hybrid funds
- Fund of funds (unique concept)
- Index funds
- Target maturity funds
Most of the mutual fund companies are recent listings on stock exchanges including this one as well. You can compare it with other listed peers like HDFC AMC and Nippon India AMC. This will give you an idea about the company performance and comparison based on different indicators.
Conclusion
You can read our other Group of companies post. I have covered all major groups to help you come up with ready list of stocks you would like to track and invest.This will help you discover not so well known companies from famous group which can be Multi bagger in near future. So it is better to read all the posts and then select the companies. You can get list of all groups in my article on Creating watch List.
Aditya Birla group is one of the most prestigious corporate groups of the country. There was saying that are you Tata or Birla signifying the wealth and respect these corporate groups have among the local people similar to Ambani and Adani saying nowadays. It is one of the oldest corporate groups with business operations in diverse fields.