CK Birla Group

CK Birla Group
Company typePrivate
IndustryConglomerate
Founded1857; 167 years ago (1857)[1]
FounderSeth Shiv Narayan Birla
HeadquartersNew Delhi, India
Area served
Worldwide
Key people
C. K. Birla (Chairman)
Amita Birla (Co-chairman)
RevenueIncreaseUS$3 billion[2] (2024)
OwnerC. K. Birla
Number of employees
35,000+[2]
SubsidiariesOrient Electric
Birlasoft
Orient Paper & Industries
Hyderabad Industries Limited
Websitehttps://ckbirlagroup.com/

CK Birla Group is an Indian multinational conglomerate headquartered in Birla Tower on Barakhamba Road, New Delhi, India. The group has been historically led by industrialists Braj Mohan Birla and Ganga Prasad Birla.[3] The CK Birla Group has a presence in following sectors - technology, automotive, home and building, healthcare, and education.[4] It incorporates a diverse range of entities, including Orient Electric, Orient Cement, HIL Limited, National Engineering Industries (manufacturer of NBC Bearings), Birlasoft, GMMCO, and Orient Paper & Industries.[4] The company is currently headed by its chairman, C. K. Birla, and co-chairman Amita Birla, both of whom are members of the Birla family.[5][6]

As of 2024, it includes over 35,000 employees, 52 manufacturing facilities, and operations across five continents. In the fiscal year 2023, the company reported a total revenue of approximately US$3 billion.[2][7]

In 2023, CK Birla Group was listed among the International Sponsors of War by the Ukrainian National Agency on Corruption Prevention due to its business with Russia during the Russian invasion of Ukraine.[8][9]

History

[edit]

In 1939, Orient Paper was established in Brajarajnagar, Odisha.[1] Later, Orient Paper became India's largest paper company.[10] In 1946, National Engineering Industries (NEI) was founded, followed by the acquisition of Neosym, previously known as Indian Smelting & Refining Company, in 1947.[1]

In 1948, Braj Mohan Birla started the operations of Hindustan Motors, an automotive company that he founded in West Bengal.[11] Known for producing the Ambassador car, widely used as a taxicab and government limousine, Hindustan Motors held the position of India's largest car manufacturer until the rise of Maruti Udyog.[12][13]

Under Ganga Prasad Birla's leadership, the group ventured into project management by acquiring the three-million-tonne Ajaokuta steel project from the Nigerian government, which was facing operational challenges at the time. This move triggered further initiatives, such as the modernization of integrated steel plants owned by the state-operated Steel Authority of India Limited in Durgapur and Rourkela.[14][15]

Industrial diversification continued with acquisitions like Orient Fans (1954) and HIL (1956).[1] In the 1990s, the C K Birla Group had a 50:50 joint venture with General Motors, which ended in 1999 when GM acquired 86%, and Holden took 14% of the Indian production facilities.[16]

Further expansions in cement (Orient Cement, 1982)[17] and information technology (Birlasoft, 1995)[18] ensued. Institutions like Birla Science Centre and BM Birla Heart Research Centre were founded in 1985 and 1989, respectively.[15] AVTEC, an automotive component manufacturer, was formed in 2005.[19] The group's technological footprint expanded with the acquisition of Switzerland-based ASSAG in 2013[20] and EnablePath in 2014 by Birlasoft.[18]

CK Birla Group's subsidiary HIL acquired Germany-based Parador Holdings GmbH, a building material maker, for a cash consideration of $96.5 million in July 2018.[21] In January 2020, National Engineering Industries (NEI), through its European subsidiary, acquired Slovakia-based Kinex Bearings. The financial details of the deal were not disclosed by NEI.[22] During the same month, it sold the thermal insulation business of Hyderabad Industries Limited to the French company Imerys SA for US$11.26 million (₹80 crore).[23] In July 2022, CK Birla Group, via its flagship HIL, acquired Odisha-based building material-maker Fast Build Blocks for ₹65 crore.[24]

Companies

[edit]

Birlasoft

[edit]

In 1995, the CK Birla Group diversified its operations into the information technology sector with the establishment of Birlasoft, which provides enterprise application services, custom application services, and specialized services like testing, analytics, and mobility. Birlasoft serves clients in the United States, the United Kingdom, Europe, and the APAC region.[18]

In 2019, Birlasoft and KPIT Technologies underwent a merger and demerger, resulting in the creation of separate publicly listed entities. The IT services arm of KPIT Technologies merged with Birlasoft in January 2019. Birlasoft now operates in IT services, while KPIT Technologies focuses on automotive engineering.[25][26]

HIL Limited

[edit]
Main article: Hyderabad Industries Limited

HIL Limited, formerly Hyderabad Industries Limited, is the owner of brands such as Charminar, Birla Aerocon, and Charminar Fortune.[27] The company operates in the construction materials, machinery, industrial supplies, components, and logistics network domains.[28][29] HIL Limited operates in India and Germany. HIL Limited deals in pipes and tiles, including the acquisition of Germany-based Parador in July 2018.[30] This strategic acquisition contributed to the company's growth from ₹1,000-3,000 crore in the fiscal year 2020-2021.[28]

Orient Electric

[edit]
Main article: Orient Electric

Orient Electric, previously known as Calcutta Electrical Manufacturing Company was acquired by Orient Paper in 1954.[1] The company operates in two segments, Electrical Consumer Durables (ECD) and Lighting and Switchgear.[31] It is one of the largest manufacturers of fans in India.[32][33] The company operates manufacturing facilities in Faridabad, Haryana, Noida, Hyderabad and Kolkata. It has a strong presence in the North and Western markets in India. The company holds approximately a 20 percent market share in India as of 2016.[34] It holds a 60% overall market share, and in the premium segment, it has a 40% market share as of 2018.[35]

CK Birla Healthcare

[edit]

The company operates in the healthcare sector, with two CK Birla Hospitals in Delhi NCR, one in Punjabi Bagh[36] and the other in Gurgaon.[37] The company operates a network of fertility clinics under the name Birla Fertility & IVF, specializing in in-vitro fertilization (IVF), egg freezing, and fertility testing.[38]

GMMCO Limited

[edit]

GMMCO was established in 1967 through the acquisition of Blackwood Hodge Equipment by the CK Birla Group. It is into the sale and support of construction, mining equipment, and engine power systems.[39][40] In 1986, it became the Indian dealer for heavy-duty machinery manufacturer Caterpillar Inc.[39] In January 2014, it acquired Bucyrus India, a division of Caterpillar Inc., for an undisclosed sum. It had had business volume is $400 million in 2018.[41]

National Engineering Industries

[edit]

National Engineering Industries (NEI) was founded in 1946[42] and is engaged in the manufacturing of bearings for the automotive, railway, industrial, and aerospace industries.[22] It sells bearings under the brand name NBC Bearings and exports them to at least 20 countries, including the United States, Germany, Brazil, Japan, and Australia.[43] In January 2020, NEI completed the acquisition of Kinex Bearings, a Slovakia-based company.[22]

The company has a rubber division called NEI Rubber, which operates under the National Engineering Industries.[44]

Orient Cement

[edit]

Orient Cement, part of the CK Birla Group, has manufacturing facilities in Devapur (Telangana) Yadgir (Karnataka) and Nashirabad (Maharashtra).[45] With a total cement production capacity of 3.4 million tpa, the company markets its products under the brands, Orient, Majbooti, and Birla Excel.[46] Founded in 1979, Orient Cement was originally part of Orient Paper & Industries. It underwent demerger in 2012 and commenced cement production in 1982 at Devapur in the Adilabad district of Telangana.[47]

Orient Paper & Industries

[edit]
Main article: Orient Paper Mills

Orient Paper & Industries is one of India's top paper manufacturers, offering a broad selection of writing, printing, industrial, and specialty papers.[48] The company was incorporated in 1939. It started as a paper maker and later grew into a multi-product company, expanding its presence into three segments — paper, cement, and fans.[49][50] In 2011, Orient Paper strategically spun off its cement business, resulting in the establishment of Orient Cement.[51] Subsequently, in 2016, the company decided to demerge its electrical appliances division, resulting in the establishment of Orient Electricals.[52]

Avtec

[edit]

Founded in 2005,[19] Avtec is a manufacturer of powertrain and precision-engineered products, supplying high-precision components to automotive, off-highway, agriculture, and railway industries. Its clientele includes companies such as Alison, BEML, Caterpillar, Daimler, Ford Motor Company, General Motors, Renault-Nissan, and Tata-Jaguar. Its manufacturing units are situated in Hosur, Chennai, and Pithampur in India.[53]

Neosym Industry

[edit]

Neosym Industry Limited is a metal manufacturing company established in 1932 as The Indian Smelting and Refining Company Limited. It was acquired by the CK Birla Group in 1947.[1] It produces grey and SG iron castings for automotive, agriculture, earthmoving, and engineering industries. Its manufacturing unit, located in Pune, India, has a production capacity of 70,800 metric tons per annum.[54]

Philanthropy

[edit]

The CK Birla Group engaged in various philanthropic activities across science, technology, art, culture, and heritage preservation. It is also working for the betterment of rural and underprivileged communities in India.[5]

The company runs various hospital trusts, including the B.M. Birla Heart Research Centre (Specialty hospital) and the Calcutta Medical Research Institute in Kolkata (Multispeciality hospital),[55][56] Rukmani Birla Hospital in Jaipur,[57] and education institutes like BIT Mesra in Ranchi, Rukmani Birla Modern High School in Jaipur, and Modern High School for Girls and Modern High School International in Kolkata.[58][15][59]

It has set up institutions like the G P Birla Archaeological Astronomical and Scientific Research Institute (GPBAASRI), BM Birla Science Centre, B. M. Birla Science Museum in Hyderabad, Birla Institute of Scientific Research and BM Birla Planetarium in Jaipur. Ganga Prasad Birla constructed temples in Hyderabad, Jaipur, Amlai, and Bhopal, and contributed to the restoration of historically and religiously significant sites. The Birla temples in Brajarajnagar, Odisha were founded by Braj Mohan Birla.[5][15][60]

In April 2020, CK Birla Group and its promoters jointly committed ₹35 crores to support the Government of India's COVID-19 efforts, directing ₹25 crores to the PM CARES Fund and allocating the remaining funds for state government initiatives in equipment procurement.[61]

Awards

[edit]

In 2006, the Government of India conferred the Padma Bhushan, the third-highest civilian honor, upon Ganga Prasad Birla, the company's former chairman, in recognition of his contributions to social work.[15][62]

Controversies

[edit]
  • In 2023, NBC Bearings, a CK Birla Group' company filled the gap in Russia's bearing imports after Western manufacturers ceased sales following Russia's full-scale invasion of Ukraine. This halted operations at key tank factories like Uralvagonzavod and Omsktransmash. To overcome the shortfall, the company stepped in and accounted for 38.4% of Russia's imports, totaling $12.3 million from April 2022 to March 2023. The Ukrainian government's National Agency on Corruption Prevention included the company on its "War & Sanctions" portal as International Sponsors of War, specifically naming key management figures: Rohit Saboo, Sanjiv Taparia, Gaurav Chaturvedi, Shailesh Patni and Rajan Jain.[9][63]

References

[edit]
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  2. ^ a b c Talukdar, Prashun (31 July 2024). "Birlasoft shares fall 5% today after Q1 FY25 results; check key details". Business Today. Retrieved 24 August 2024.
  3. ^ Edgar Thorpe (September 2011). The Pearson General Knowledge Manual 2011. Pearson Education. ISBN 978-81-317-5640-9.
  4. ^ a b "Group Profile". CK Birla Group. Archived from the original on 20 September 2014. Retrieved 25 April 2018.
  5. ^ a b c D. K. Taknet (2016). The Marwari Heritage. IntegralDMS. p. 409. ISBN 9781942322061.
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  18. ^ a b c Gupta, Bhawan (13 January 2014). "Birlasoft acquires US-based CRM solutions provider EnablePath". VCCircle.
  19. ^ a b "HM hives off auto parts biz into JV". The Times of India. 20 February 2005.
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  36. ^ Panda, Sushmita (9 February 2023). "Delhi's CK Birla Hospital introduces fully active robot for minimally invasive knee replacement surgery". The Financial Express.
  37. ^ "सी के बिड़ला हास्पिटल फार वुमेन की 1,000 करोड़ रुपये के निवेश से 14 नये अस्पताल खोलने की योजना" (in Hindi). Navbharat Times. 11 August 2019.
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  39. ^ a b "Partners in Success". Construction World. 1 April 201.
  40. ^ "Gmmco Sells and Supports Cat 320D "One Machine. Endless Possibilities"". NBM&CW.com. July 2013.
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  62. ^ "Simple man with a sharp mind". Telegraph India. 3 July 2010.
  63. ^ Padmanabhan, Keshav (22 May 2023). "'War sponsors': Indian entity among 26 blacklisted by Ukraine for 'abetting Russian aggression'". ThePrint.
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