The Making Of First Indian MNC - #Issue: 10 🗞️
While other Indian businessmen were fighting to dominate Indian markets, he set his eyes on the global markets.
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It is that time of the week when you want to sit down, grab a cup of chai or coffee and read about an Indian businessman who in his short-lived life of 51 years built the first MNC of India.
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When Amazon top boss Jeff Bezos said the 21st century belongs to India, one may side aside this statement thinking it's a gimmick to catch the attention of the world's 2nd biggest market.
But the truth is, Indian companies are slowly yet steadily taking over the world. Indian companies are making a name for themselves. TCS, Infosys, Wipro, Reliance, Tata Group are catching attention all over the world.
On the other hand, startups like Postman, Browserstack, Freshworks are gaining headlines and coverage in the fast-evolving startup scenes.
The Indian Family Businesses:
Much of the big and top businesses in India are owned by a few business families. These business families have started decades ago as small firms and climbed the ladders of success ever since.
Tata, Birla, Reliance, Adani are all family-owned businesses. From raising $20 billion in a couple of months to acquiring troubled legacy names in Europe and the US, Indian family-owned businesses have been the flag bearer of Indian businesses on the global stage. One of these families also holds the title of building the first Indian MNC.
The Era Of License Raj:
After Independence, Indian witnessed a socialist regime. Governments in the centre discouraged private businesses and put more emphasis on state-owned enterprises. At times, Governments have nationalised some private businesses as well.
Apart from nationalisation, the Government also imposed strict quota control in private businesses. The word 'profit' was considered a dirty word in the early days after independence.
While most of these family-owned businesses were focused on surviving the socialist regime and license raj, one business family dared to dream big and beyond India.
The Birla Business Dynasty:
Birlas are one of the oldest business families in India. The Birla business empire was started by GD Birla in the 19th century. Since its beginning almost one and half centuries back, the Birla business family have always pushed the boundaries of business excellence to its limits.
After India's independence, the success becomes synonymous with Birla Family. Even today, the phrase "Tata Birla" is used to symbolise extreme wealth.
The Birla family is blessed with some of the tallest figures in the business circles of India. Basant Kumar Birla, Aditya Vikram Birla and Kumar Mangalam Birla have carried the legacy of the Birla Family forward after the death of founding patriarch GD Birla.
Aditya Vikram Birla, the grandson of legendary GD Birla and father of commodities king Kumar Mangalam Birla is considered as the man who made Indian businesses a global affair.
Aditya Birla's Dream:
Aditya Vikram Birla was the first from the Birla family to went abroad for studies. Aditya Birla studied in MIT. There in the United States, he saw how the American companies expand their businesses beyond the borders of the USA.
These giant multinationals of the USA ignited a fire in the heart of young Aditya Birla. He dreamt of taking his family business beyond the boundaries of India.
In 1965, Aditya Birla returned to India after finishing his studies in the United States. Immediately after reaching his family home in Kolkata, Aditya Birla has handed over a project by his grandfather GD Birla.
Aditya Birla was given the charge of an ailing textile mill called India Rayon. When he took over the charge of India Rayon, it was buried neck-deep in debt. Over the next few years, Aditya Birla transformed the loss-making India Rayon into one of the best performing businesses in the Birla Family's long list of holdings. Aditya Birla was ready to take on the next challenge after proving his mantle in India Rayon.
Time To Go Global:
With experience under his belt and tailwind in his vision, Adity Vikram Birla decided to do something that was never done before by any businessman in India. It was 'a first' in India's business history. But Aditya Vikram Birla is focused on making history.
In 1969, Birla Group became the first Indian company to open a manufacturing plant outside India. The country was Thailand. Indo Thai Synthetics became the first overseas company of the Birla family. Indo Thai synthetics was making synthetic fibres. While Indian companies were working round the clock in Delhi's corridors of power, Birla decided to try its luck in Thailand.
The next few years saw Aditya Vikram Birla venturing into more and more foreign countries. In 1973, Birla Group entered Indonesia. Two years later in 1975, Birla Group started its operation in the Philippines, followed by Malaysia in 1977. A year later, Singapore became the next country in Birla's long list of foreign ventures.
Birla Group was manufacturing synthetics fibres, fertilisers, chemicals, polyester fibres in their overseas plants.
A Profitable Venture:
Aditya Birla's bold bids started showing results. By the end of the 1980s, the Birla Family became the richest business family in India. It was also the only Indian business family to regularly feature in the Forbe's rich list starting in 1987.
In 1992, Aditya Vikram Birla became the 2nd Indian to list one of his companies in the foreign stock exchange. He missed the first place to Dhirubhai Ambani by just a few months.
A Short But Illustrious Life:
Like every good thing, Aditya Vikram Birla's life was short too. In 1995, India was shocked to hear the news of Aditya Birla's untimely demise. Aditya Birla lost his fight against cancer at the age of 51 years. He breathed his last when he was at his prime.
At the time of his death, Aditya Birla left behind a business empire. His Birla Group was already a global MNC with 8,000 crores in revenue, 9,000 crores in assets, 55 plants in 42 countries that employed more than 75,000 people.
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This Indian Marwari family was considered to be the richest in the world in the 17th century.
We lost him at such an young age! Wish he lived a few more years.