Chapter-1

Introduction to company
Aditya Birla Nuvo:
Aditya Birla Nuvo Ltd. (ABNL) is a US$ 4 billion premium conglomerate. It is part of the
Aditya Birla Group, a US$ 40 billion Indian multinational operating in 36 countries in six
continents.

Vision
To be a premium conglomerate building leadership in businesses and creating value for all the
stakeholders.

Mission
Investing in promising sectors
Building leadership in businesses
A platform to drive synergy of resources
Delivering best value to all the stakeholders
To be a responsible corporate citizen

With a market cap of ~US$ 3 billion as on 31 May 2014, ABNL is present across Financial
Services, Telecom, Fashion and Lifestyle, IT-ITeS and Manufacturing businesses. Anchored by
about 49,000 employees, ABNL touches the lives of more than 135 million Indians.

Over the years, Aditya Birla Nuvo has transformed itself from a manufacturing company to a
diversified conglomerate.

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.
LIC), with AUM (assets under management) of ~USD 20 billion and having an annual
revenue size of over USD 1.2 billion (2012-13). Trusted by ~5 million customers and
anchored by about 14,750 employees, it has a nationwide presence through more than
1,550 points of presence and about 160,000 agents / channel partners.

Birla Sun Life Insurance (BSLI) is a 74:26 joint venture between ABNL and Sun Life
Financial, Canada. BSLI ranked 5th among private players with a market share of 8 per
cent in FY13. 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 Rs.22,929 crore as on 31st March
2013. It sells one life insurance policy every minute. BSLI has one of the best persistency
ratios in the industry @ 81 per cent. o

Life Insurance business recorded strong growth

in profit and declared an interim dividend of Rs.197 Cr @ 10 per cent of its paid up
capital in 2012-13

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 9.4
per cent in Q4FY13 with an AUM of (Rs.83,451 crore) as on 31st March 2013.

Aditya Birla Finance, the NBFC arm, doubled its book size y-o-y to ~USD 1.5 billion
(Rs.8,000 Cr) as on 31st March 2013.

A prominent player in Private Equity, Wealth Management, Broking & General

Insurance Advisory space.

ABNL holds 25.27 per cent in Idea Cellular, a USD 8.5 billion company by market cap
as on 23 July 2013. It posted revenue of ~USD 4 billion in FY12. Idea is the 3rd largest
cellular operator in India with revenue market share at 15.7per cent (Q4FY13) 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 1.6 billion minutes of usage per day.
Serving a large customer base of over 121.6 million subscribers, Idea holds 16 per cent in
Indus towers, the worlds largest tower company. Aditya Birla Group holds 45.88 per
cent in Idea Cellular. Idea has the highest 98.4 per cent active subscribers ratio (28
February 2013) in the industry and is the leading net subscribers gainers post launch of

mobile number portability in India. Idea is generating strong cash profit and has a sound
balance sheet to support its growth plans. The Board of Directors of Idea has also
proposed a maiden dividend.

ABNLs Fashion & Lifestyle business is the largest branded apparel player in India
selling one branded apparel every second. With the acquisition of Pantaloons, its annual
revenue has reached USD 1 billion. Louis Philippe and Van Heusen are the best selling
brands in India. The nation-wide reach of Madura, Pantaloons and Jaya Shree Textiles,
combined together, stands expanded to 1,443 exclusive brand outlets / stores spanning
across 3.7 million square feet besides more than 4,750 departmental stores and multi
brand outlets. The business generated return on operating capital employed of 25%
driven by strong earnings and working capital management. While Madura and Jaya
Shree are divisions of ABNL, Pantaloons Fashion & Retail Ltd. is a listed subsidiary in
which ABNL holds 67.95%. Its shares are listed on BSE and NSE.

Aditya Birla Minacs is the 6th largest Indian BPO company with revenue size of over
USD 450 million in FY13 (Rs.2,466 crore). Minacs has global delivery capacities serving
several Fortune 500 clients through 35 centres and ~20,500 employees. In FY13, its net
profit surged by 80 per cent from Rs.70 crore to Rs.125 crore. It is generating steady cash
profit to fund its capex and working capital requirements. ABNL holds 99.85 per cent in
Aditya Birla Minacs.

Manufacturing businesses (Agri, Rayon and Insulators) posted combined revenue of USD
770 million (Rs.4,155 crore) in FY13.

Among the most energy efficient fertiliser plants in India

Indias largest and the worlds fourth largest manufacturer of insulators

Considering the Carbon Black Business scenario, both in the Indian and the global
context, ABNL has decided to divest its Carbon Black Business, subject to the requisite
approvals, on a going concern basis, by way of slump sale for a lump sum consideration
of Rs. 1,451 Crore as an enterprise value, subject to the adjustment for net working
capital. Having received the shareholders approval, the Company is in the process of
divesting the Carbon Black Business. The cash inflow from the divestment will
strengthen the Companys balance sheet.

HISTORY
Aditya Birla Nuvo, an AV Birla Group company traces its origin to a modest beginning with the
acquisition of Indian Rayon Corporation Limited, a viscose filament yarn manufacturing unit, in
1963.
Aditya Birla Nuvo is now a diversified conglomerate and the platform that has launched many
new businesses for Indias premier business house, the Aditya Birla Group. Aditya Birla Nuvo
has a balanced portfolio of traditional and new age businesses under its fold, ranging from
textiles to life insurance.
The Aditya Birla Group is in the league of Fortune 500. It is anchored by an extraordinary force
of 130,000 employees, belonging to 25 different nationalities. In India, the Group has been
adjudged 'The Best Employer in India and among the top 20 in Asia' by the Hewitt-Economic
Times and Wall Street Journal Study 2007.
Over 50 per cent of the Group's revenues flow from its overseas operations. The Group operates
in 25 countries: India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland,
Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai,
Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea.
The razor sharp focus on each business has made it a leading player in most segments, including
viscose filament yarn, carbon black, branded garments, agri business, textiles and insulators.
Over the past few years, Aditya Birla Nuvo, through its subsidiaries and joint ventures, has made
successful forays into life insurance, telecom, business process outsourcing (BPO), IT services,
asset management and financial services.
Powered by an intellectual capital of over 37,000 employees and an optimum mix of revenue and
profit streams, the company is in a strong position to invest in high growth businesses to
maximise long-term shareholder gains.
Business area of the company includes:

Viscose Filament Yarn - Indian Rayon - Indian Rayon, a major player in the Indian viscose
filament yarn business, is the second largest producer of viscose filament yarn (VFY) in India
with a 30 per cent domestic market share.
Garments - Madura Garments - Indian Rayon, a major player in the Indian viscose filament yarn
business, is the second largest producer of viscose filament yarn (VFY) in India with a 30 per
cent domestic market share.
Carbon Black - Hi-Tech Carbon - -Tech Carbon, the carbon black business of Aditya Birla
Nuvo, is the second largest producer of Carbon Black in India, covering 33 per cent of the
domestic market share.
Agri solutions - Indo Gulf Fertilisers It is the first company to introduce the principles of Six
Sigma in the agricultural fields, Indo Gulf aims at providing complete agri solutions to farmers
with unique value-added products and services.
Textiles - Jaya Shree Textiles - A leading player in the domestic linen and worsted yarn
segment, Jaya Shree Textiles has revolutionised the Indian textile market by popularising linen
across a wide customer base with the brand Linen Club.
Insulators - Aditya Birla Insulators- Aditya Birla Insulators, India's largest manufacturer of
high-performance insulators, has leveraged the power of reliability, to provide world-class
insulating solutions to the power industry.
Joint ventures and subsidiaries:

Idea Cellular Limited, the fifth largest mobile telephony service provider in India

Birla Sun Life Insurance, one of the leading life insurance companies in India

Birla Sun Life Asset Management, one of the leading asset management companies in
India

Aditya Birla Minacs Worldwide Limited, among the top five BPO players in the country
by revenue size.

Achievements/ recognition:

Aditya Birla Nuvo won the most admired company of the year at Clothing Manufacturers
Association Of India (CMAI) Awards 2008 under domestic category.

In the carbon black segment it was awarded TPM Excellence award (II Category) from
JIPM, Japan.

Aditya Birla Insulators won the Golden Peacock National Quality Award in the
manufacturing category.

In the textiles segment it received the first prize by the Government of India for best
energy conservation measures.

In the BPO segment it was awarded Innovation Award by CIO magazine 2007.

As a leading player, Aditya Birla Nuvo ranks as:

India's second largest producer of viscose filament yarn (VFY)

The country's largest premium branded apparel company

The second largest producer of carbon black in India

Largest manufacturer of linen fabric in India

Among the most energy efficient fertiliser plants

Indias largest and the worlds fourth largest producer of insulators.

Chapter-2
Allen Solly Brand
Launched in India in 1993, Allen Solly brought about a completely new concept to menswear in
India Friday Dressing. In the years that followed, the brand, with its Anglo-American
heritage, proved to be the most innovative of the Madura Fashion & Lifestyle's brands. Today it
is one of India's most popular and easily recognised brands in the branded premium apparel
segment. Consumers understand it as a vibrant and upbeat work wear brand. Allen Sollys recall
with Friday Dressing is clearly the strongest.
Convention is not a word that exists in the brand's vocabulary, and from the beginning the brand
not only broke the rules of formal workplace dressing, but also re-wrote them. The dull world of
business dressing with its greys and whites was shaken up by Allen Solly, which
unapologetically added vibrant dashes of colour to its formal wear lines. The approach paid off,
spawning many imitators. Nevertheless, the unconventional, yet unmistakable Allen Solly Man
never lost his place in the spotlight.

The work casuals category is growing strongly due to several key trends:

Work culture is more relaxed and hence organisations do not impose strict dressing
norms.

New age workforce is keen to look stylish, fashionable and most importantly express
their distinct individuality. This is obviously best expressed through apparel and
accessories.

Entrepreneurship/off-beat professions are gaining ground thereby providing a promising

opportunity for work casuals.

Allen Solly is keen to tap into this large opportunity by strengthening what its best known for
Friday Dressing. Going forward, the brands core positioning will broaden the meaning of
Fridays by emphasising its spirit defined as upbeat, relaxed and effortless.
The brand has ensured that its range of products is stylish, fashionable and sufficiently casual
i.e. work appropriate. This is clearly aimed at young professionals/entrepreneurs who are ahead
of the curve, open to experiments and believe in looking distinct.
Emphasis will clearly be on a segmented approach with respect to distribution large format
exclusive stores and key accounts for top metros and cities and smaller-sized stores for the next
level of cities. Allen Solly plans to have 150 exclusive stores by FY13 and double that number
by FY16.
Allen Solly was the first brand in India to introduce Western wear for the working women in
2002. Ten years later, it launched Friday Dressing for the young woman professional. It is a
range of work-casuals that will redefine work-wear for women in India. The range exudes
sophistication, is chic, fashionable and sufficiently casual while being work appropriate.
Womens work-wear in India has gone through a definite and significant transition over the past
few years. Today, office-wear for women in India has evolved from classic formals and blues
and creams to a more casual and fashionable look. Women are experimenting through mix-nmatch i.e. coordinating two disparate pieces of garment to create a completely new look. Allen
Solly has captured this spirit very well through its range of Friday Dressing. It includes Dresses,
Tops, Tunics, Trousers, Shirts, Skirts, Shorts, Suits and Blazers.
The brand is engaging consumers through its digital initiatives and plans to spend significantly
on it over the next few years. Its in-house and experienced design and product teams are
encouraged to travel extensively and create products that are benchmarked with some of the most
well-known international brands/trends.

Today with the rise of the creative economy, stress and uncertainty have become a daily
challenge to deal with at the workplace. It is in this context that Allen Solly makes a bold
statement yet again, firmly believing that no breakthrough work happens when you are stressing
out.
The brands vision is to lighten up the workplace through a whole new range of preppy work
casuals in bold colours, innovative fabric and young fits. Not only do these garments individually
brighten up the work environment, but they also lend themselves to lateral coordination with
each other, and the impact of the sum is greater than the individual parts.
Allen Solly, in keeping with the spirit of the brands core and legendary Friday Dressing
tagline, has worked on a new Retail Identity that can be seen across all leading stores. The new
identity takes inspiration from the brands strong Nottingham heritage, which has been rendered
in a very modern and contemporary manner. Nottingham is Allen Sollys birthplace and a city of
stags.
The new identity for Allen Solly features the logo with a very prominent mnemonic (Stag) and a
fresh new retail identity. The product has also been made more sophisticated, vibrant and upbeat.
The new retail identity has been created keeping in mind the brands British roots.
The Coat of Arms featured elements such as the Allen Solly Monogram, the Ram and the Stag,
elements that represented the culture of the company and its products. The Ram was symbolic of
the English wool industry and Allen Sollys place within it, while the Stag was representative of
the city of Nottingham, wherein lays the brands roots.
The brief for the new identity was painstakingly created to ensure absolute clarity and arrive at a
wholesome view of the experience that had to be created. The endeavour was to infuse the new
retail identity with the brands casual British personality giving it a tangible form while keeping
in mind the customers personal life and its attributes.