His calling is to build an organisation that can create value; anything else is a subset of that. There is an element of legacy here, but he doesn't see himself as a catalyst of change as such, only change as a subset of organisation building. An MBA from London, Kumar Mangalam has proved he is no ordinary young man. At 39, Kumar Mangalam Birla has already done more than what most others get to do in a lifetime. He was only 31 when SEBI appointed him to chair a path-breaking committee on corporate governance.
He has transformed a hidebound conglomerate into a modern globally competitive commodity giant. As a 28-year-old, he boldly faced the challenge of turning a sprawling and hidebound family business into a modern conglomerate. His splendid success points to a man who, despite being only 38 today, thinks and acts like one much more mature than his age. At 28, the responsibility of heading India's number two business house was thrust upon Kumar Mangalam Birla after his father Aditya Vikram's untimely death on October 1, 1995. When Birla took over the mantle at the Aditya Birla Group, sceptics doubted his ability to handle a mammoth business house with interests spanning viscose, textiles and garments on the one hand and cement, aluminium and fertilisers on the other, several of which were then in the grip of a cyclical downturn. There was also the question of how he would transform the traditional babu culture (internal bureaucracy) of the group - an anomaly in a rapidly globalising environment. He proved the naysayers wrong. In less than three years KM had done his family proud, which is presided over by his doting grandfather, Basant Kumar Birla. In the 11 years that he has led the group, he has won admiration, recognition and respect for his management acumen and contribution to the industry.
In that time, he has also pulled off a string of acquisitions at home and abroad and more importantly geared it to compete in a global marketplace. As a result, the Aditya Birla Group today operates on a global scale, with manufacturing operations in nine countries and product sales in over 100. It's a world leader in viscose staple fibre, the world's ninth largest producer of cement, the fifth largest producer of carbon black, Asia's largest integrated aluminium producer, and also its fastest growing copper company. Under his leadership, the group has consolidated its position in existing businesses and ventured into cellular telephony, asset management, software and BPO. Some of the AV Birla group's companies include big names like, Grasim, Hindalco, UltraTech Cement, Aditya Birla Nuvo and Idea Cellular. Keeping up with Hindalco's objective of being a global player, the company acquired 66.66 percent of Noveslis; the deal includes $2.4 billion debt. By the second quarter of 2007 the entire 100 percent of the company will be completed. Novelis Inc., one of the leading aluminium companies of North America, is also one of the world's largest producers of flat-rolled aluminium. A spun-off from Canadian aluminium major Alcan, Novelis has 37 manufacturing plants in 11 countries. Hindalco which is already strong in the general market, after this acquisition, will be strong in the premium market. After the magnum opus Tata-Corus deal, this acquisition by the Birla Group marks the second largest by an Indian company abroad.
Today, AV Birla is one of the largest business houses in India and enjoys a leadership position in all the sectors in which it operates. With over 75 business units, spanning the South East Asian belt, Africa, Canada and the UK among others, it is reckoned as India's first multinational corporation. Kumar Mangalam is counted among the richest persons in India and is the eighth youngest billionaire outside India. Not incidentally, his is also the most successful of all the Birla groups that were spawned after patriarch Ghanshyam Das apportioned assets among his sons and grandsons. At the core of Kumar Mangalam's management style are the twin virtues of patience and persuasion. He just won't give up. He remains charming and friendly even in the thick of negotiations. With pedigree that beckons grace and humility, he gets exactly what he wants by actually winning you over. Indeed, a young achiever with a promising future in the corporate world! |