Aditya Birla Nuvo: A US$4.5 billion Conglomerate
Business-wise capacity and Distribution Network
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Beyond business
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Aditya Birla Group
 
 
 
 
 
Aditya Birla Nuvo: A US$4.5 billion Conglomerate

Aditya Birla Nuvo Ltd. (ABNL) is a US$ 4.5 billion conglomerate by revenue size. It is part of Aditya Birla Group, a US$ 40 billion Indian multinational. Having a market cap of ~US$ 2.5 billion as on 30 November 2012, ABNL is present across Financial Services, Telecom, Fashion & Lifestyle, IT-ITeS and Manufacturing businesses. Anchored by over 65,000 employees, ABNL touches lives of more than 120 million Indians.







Aditya Birla Nuvo Ltd. commands leadership position in India across its businesses:
Aditya Birla Financial Services ranks among the top 5 fund managers in India (excl. Banks and LIC), managing AUM of ~USD 20 billion as on 30th September 2012 and having an annual revenue size of over USD 1.3 billion (2011-12). Trusted by ~5.5 million customers and anchored by about 17,000 employees, it has a nationwide presence through more than 1,775 points of presence and about 200,000 agents / channel partners. ABFS is the largest contributor to ABNL’s consolidated earnings before tax – contributed 45 per cent in FY12.
 
Birla Sun Life Insurance (BSLI) is a 74:26 joint venture between ABNL and Sun Life Financial, Canada. BSLI improved its ranking to 5th among private players with an enhanced market share of 7.8 per cent in FY12. It reported Embedded Value of Rs.4,015 crore as on 31st March 2012 and VNB margin at 22.8 per cent. It is managing AUM of ~USD 4.5 billion as on 30th September 2012. It sells one life insurance policy every minute. BSLI has one of the best persistency ratios in the industry @ 81 per cent. It declared a dividend of Rs.98.5 Cr @ 5 per cent of its paid up capital.
 

Birla Sun Life Asset Management (BSAMC) is a 51:49 joint venture with Sun Life Financial, Canada. BSAMC improved its all India ranking to 4th and market share to 9.8 per cent with an AUM of ~USD 15.5 billion as on 30th September 12.

 
Aditya Birla Finance, the NBFC arm, doubled its book size y-o-y to ~USD 1 billion as on 30th September 2012. 
 

A prominent player in Private Equity, Wealth Management, Broking & General Insurance Advisory space.

ABNL holds 25.30 per cent in Idea Cellular, a ~USD 6.5 billion company by market cap as on 30th November 2012. It posted revenue of ~USD 4 billion in FY12. Idea is the 3rd largest cellular operator in India with revenue market share at 14.9 per cent (Q1FY13) and it has been the highest gainer of revenue market share since past four years. Idea ranks among the top 10 cellular operators in the world with about 1.4 billion minutes of usage per day. Serving a large customer base of over 115 million subscribers, Idea holds 16 per cent in Indus towers, the world’s largest tower company. Aditya Birla Group holds 45.93 per cent in Idea Cellular. Idea has the highest 94.1 per cent active subscribers’ ratio in industry and is among the top 2 net subscribers’ gainers post launch of mobile number portability in India. (Q2FY12) and it has been the highest gainer of revenue market share since past two years. Idea ranks among top 10 cellular operators in the world with more than 1.2 billion minutes of usage per day. Serving a large customer base of over 106 million subscribers, Idea holds 16 per cent in Indus towers, the world's largest tower company. Aditya Birla Group holds 45.98 per cent in Idea Cellular. Idea has the highest 92 per cent active subscribers' ratio in industry and is a leading net subscribers' gainer post launch of mobile number portability in India.

Madura Fashion & Lifestyle is the largest premium branded apparel player in India selling two branded apparel every three seconds. Having doubled its revenue size to ~USD 450 million in past 2 years, Madura sells leader brands viz., Louis Philippe, Van Heusen, Allen Solly and Peter England through 1,197 exclusive brand outlets spanning across 1.7 million square feet area besides more than 1,400 departmental stores and multi brand outlets. It retails international brands under ‘The Collective’. ABNL’s Board has approved the proposed acquisition of a controlling stake in Future Group’s, ‘Pantaloons Format Business’ post its demerger from Pantaloon Retail (India) Ltd (PRIL), subject to requisite approvals. 

Aditya Birla Minacs is the 6th largest Indian BPO company with revenue size of over USD 415 million in FY12. Minacs has global delivery capacities serving several Fortune 500 clients through 36 centres and ~19,500 employees. It sold Total Contract Value of USD 730 million and won 16 new clients in FY12. It was ranked among ‘top five emerging outsourcers in North America’ by Frost & Sullivan. ABNL holds 99.85 per cent in Aditya Birla Minacs.
Posting combined revenue of USD 1.25 billion in FY12, manufacturing businesses yielded ROACE of 20 per cent in FY12.
 
Second largest carbon black manufacturer in India (Aditya Birla Group is the largest in the world in terms of capacity)
 
Among the best energy efficient fertiliser plants in India
 
India’s largest and the world’s fourth largest manufacturer of insulators
 
Second largest manufacturer of viscose filament yarn in India
 
Largest manufacturer of linen fabric in India

Net Debt to Equity stood at 0.66 and Net Debt to annualised EBITDA at 4.2 as on 30th September 2012. Considering long term investments of more than Rs.6,000 crore made by ABNL in its businesses over the years, the leveraging ratios are at reasonable level. This is supported by strong cash flows generated consistently by manufacturing businesses. Equity infusion by promoters will further strengthen the balance sheet. Out of total infusion of  Rs.1,500 crore, a sum of Rs.375 crore has already been infused by the promoters as 25 per cent application money.

Other information as on 30th September 2012
Promoter & Promoter Group shareholding (incl. 1.26 per cent GDRs) 52.30 per cent
Number of equity shareholders 147,130
Number of equity shares outstanding 113.52 million
Market Price per equity share (As per National Stock Exchange of India Ltd.) Rs. 898
Book Value per equity share (Consolidated) Rs. 749
Earnings per equity share (Consolidated H1FY13 – Non-annualised) Rs. 50.30

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The razor sharp focus on each business has made Aditya Birla Nuvo a leader in most segments