Guided by our Purpose ‘To enrich lives, by building dynamic and responsible
businesses and institutions, that inspire trust', and by leveraging our resources,
expertise, and influence, we aspire to be a catalyst for meaningful impact, shaping a
future where business serves as a force for good in everything that we touch and do.
Dear Stakeholders,
In an era marked by unprecedented global challenges, the imperative for businesses to
transcend conventional paradigms has never been more pressing. At the Aditya Birla Group,
we recognise that our success is intrinsically tied to the well-being of society and the
planet we inhabit. As custodians of progress and stewards of sustainable growth, we
embrace the ethos of being a force for good in all facets of our operations. At the heart
of our philosophy lies the conviction that business can and must serve as a catalyst for
positive change. Beyond the pursuit of profit margins, we envision a world where economic
prosperity harmonises with social welfare and environmental stewardship. This vision
guides our strategic decisions, propelling us to harness the transformative power of
business to create collective prosperity. Being a force for good entails a multifaceted
approach that extends across our entire value chain. From fostering inclusive growth and
empowering local communities to mitigating environmental impact and creating prosperity
for our nation and its people, our commitment to operating responsibly is woven into the
fabric of our business endeavours. It is part of our DNA and our legacy. It defines who we
are.
By creating value for all stakeholders – shareholders, employees, customers, and
society at large – we aim to nurture an ecosystem of mutual benefit and collective
advancement. This philosophy underpins our unwavering dedication to ethical governance,
transparent communication, and responsible business practices. As we navigate the
complexities of a rapidly evolving world, we remain steadfast in our commitment to being
agents of positive change.
Guided by our Purpose ‘To enrich lives, by building dynamic and responsible
businesses and institutions, that inspire trust', and by leveraging our resources,
expertise, and influence, we aspire to be a catalyst for meaningful impact, shaping a
future where business serves as a force for good in everything that we touch and do.
By creating value for all stakeholders – shareholders, employees, customers, and
society at large – we aim to nurture an ecosystem of mutual benefit and collective
advancement.
Global Economy: Resilience in Motion
The global economy exhibited remarkable resilience and divergence during 2023, defying
fears of stagflation and recession. Increased government spending, notable labour force
participation, and continued household consumption growth supported global economic growth
last year. Despite substantial interest rate hikes by central banks, economic activities
worldwide grew steadily, buoyed by household demand fuelled by pandemic savings and
supportive policies in mortgage and housing markets. These growth drivers mitigated the
impact of policy rate increases. Major central banks, led by the US Federal Reserve, have
likely reached their peak rate hikes. Expectations are for rate cut initiations during the
latter part of 2024, signalling cautious optimism for the global economy and financial
markets. Global economic growth is estimated at 3.2% in 2023 and projected to continue at
the same pace in 2024 and 2025, albeit these growth rates are at historically low levels.
The US economy was a standout in 2023, with GDP growth exceeding long-run averages at
4.9% in Q3 and 3.4% in Q4, driven by robust services growth and a resurgence in
manufacturing activity. Simultaneously, as the Fed raised rates and supply constraints
eased, inflation declined to 1.7% in Q4, undershooting the 2% target. This
"miracle" of strong growth and low inflation defied the recessionary predictions
of most economists.
In contrast, Europe slowed to just 0.4% GDP growth in 2023, weighed down by reduced
household spending from elevated energy costs tied to the Russia-Ukraine conflict and
tighter monetary policy. Prospects for 2024 remain subdued at 0.8% growth, constrained by
strained fiscal positions limiting any growth impetus. China experienced a 5.2% growth
rate in 2023 and is projected to expand by 5% in 2024 and 4.5% in 2025, bolstered by
policy support measures. However, a protracted property crisis remains a major drag on
growth.
Global economic prospects have improved as major economies have averted a severe
downturn, reducing inflation without raising unemployment. However, the outlook remains
cautiously optimistic. Persistent challenges include prolonged high interest rates, debt
sustainability issues, ongoing geopolitical tensions, and escalating climate risks, all of
which continue to impede growth.
India: Leading the Way
Yet, for India, the picture is promising amid a globally uncertain macroeconomic
environment. India's economy has shown resilience, with real GDP growth of 8.2% in FY
2023-24, making it the fastest-growing major economy and the fifth largest globally.
Structural reforms and domestic household demand are key drivers of India's growth.
Inflation has eased, supported by monetary policy actions and supply-side interventions.
India is expected to grow at 7.2% in FY 2024-25.
The banking sector has seen improvements in earnings, governance, and balance sheets.
Non-banking financial companies (NBFCs) also show sound performance, contributing to
credit growth in the private sector. Prudent policies and regulatory measures aim to
safeguard financial stability in India. The Indian rupee has managed relative stability
supported by improved external balances, including a moderation in the current account
deficit and robust forex reserves. Increased services exports have been supportive of the
external balance. India's FinTech ecosystem, supported by initiatives like the Unified
Payments Interface (UPI), has transformed financial services, promoting inclusion and
digitisation.
Hence, despite global challenges, the Indian economy is poised for sustained growth. We
believe collective actions and focused measures by the government have helped overcome
past challenges and will realise India's growth potential in the future. To summarise, the
Indian economy has demonstrated resilience, supported by reforms, low core inflation, and
a sound financial sector. Continued focus on reforms will see India emerge as a key global
growth engine.
Aditya Birla Group: In Perspective
Amid this economic backdrop, the Aditya Birla Group's strong performance in FY 2023-24
stands as a testament to our unwavering commitment to purpose-driven growth, driving
sustained value creation for stakeholders across our diverse business portfolio.
This success is underpinned by our exceptional talent pool, whose dedication and
entrepreneurial spirit are the true catalysts for our sustained achievements. This year,
we have advanced our purpose-driven approach to business by integrating our purpose in
every stage of the employee life cycle: hiring, induction, learning, performance appraisal
and continuous employee connect.
Being the force Force for Good for ABGites
By enabling employees to develop capabilities and achieve their true potential, 186
learning events covering 4,700+ ABGites were held by Gyanodaya, our Learning and
Leadership Development Centre In addition, 14,000+ ABGites were covered through outreach
programmes, done closer to the employees in our Units / offices all over the globe. Robust
digital learning, enabled 81% of the employees to learn at their convenience around topics
of interest and need.
Our leaders play a crucial role in strengthening the succession pipeline. Through
Business and Functional Talent Councils, they set the vision for their respective areas,
identify the future capabilities needed for success, review the availability of talent,
and agree on actions to enhance the talent pipeline. This year, over 12,000 employees (99%
of the eligible population) underwent potential assessments, enabling us to identify
high-potential talent across all levels and prepare them for leadership succession. As a
result, 56% of critical mid and senior-level positions were filled through our internal
pipeline. Additionally, the internal and external hiring ratio for senior management roles
has improved from 59:41 to 75:25 over the past three years.
Our strong employer brand enabled us to attract high-quality talent for three new
businesses built grounds-up: Birla Opus, Birla Pivot and Novel Jewels. We hired 14,800+
employees across levels in the management cadre, 75% of whom are millennials and GenZ.
We have maintained our focus on strengthening gender diversity, ensuring more women are
in mainstream roles and leading strategic responsibilities across various functions and
regions. Currently, women make up 15.6% of our management cadre, with 277 women holding
senior and top leadership positions. We are also making a special effort to increase the
representation of women in technical roles. For example, we have appointed our first
female unit head for the battery enclosure plant, enrolled 25 women in a one-year
apprenticeship program in core mining who will be placed in UltraTech, and have women
serving as Territory Sales Managers at Birla Opus. We strive to enrich the lives of our
employees through integrated healthcare solutions that focus on their physical and
emotional well-being, as well as that of their families. Our Digital Health and Well-Being
app, AB Multiply, has enrolled 26,000 employees for holistic wellness services.
Additionally, over 9,000 employees have benefitted from company-sponsored annual physical
health check-ups. We have made significant efforts to reduce the stigma associated with
mental health, ensuring that employees and their families can access professional and
confidential counselling services when needed. Last year, over 1,000 employees or their
family members sought help, marking an increase of more than 25%. The results of ABG Vibes
2023, our annual engagement survey, reflect our commitment to being a force for good for
our employees. The scores have improved in all areas across employee segments compared to
the previous cycle: 91% of employees are proud to be associated with the Group, 93% would
recommend the Group as a great place to work, and 87% see themselves working with the
Group two years from now (an 8% increase from the last cycle). Additionally, 89% of
employees find a sense of meaning and purpose in their work, and 91% are optimistic about
the future of the business.
Indeed, the Aditya Birla Group stands at an exciting juncture. Many of our businesses
are poised for transformational growth, while new ventures are emerging with a lot of
promise. We are not just expanding in size but also diversifying in scope across various
industries and regions.
Your Company's performance
CTIL delivered a robust performance in FY 2023-24, setting the foundation for
transformational growth in the years ahead. On a consolidated basis, revenue stood at
4,264 Crores, and the Company reported a profit after tax of 304 Crores for FY 2023-24.
In our Real Estate vertical, Birla Estates, projects with a revenue potential of than
45,000 Crores (~24.4 million are under development (including of ~ 9,166 Crores). These
projects on four key markets in India – the Metropolitan Region (MMR), Bengaluru,
National Capital Region (NCR), and They deliver premium real estate residential,
commercial, and mixed-use segments. Silas, the second tower of our flagship project, Birla
Niyaara, became the fastest selling project in Mumbai's luxury segment, with 68 units sold
worth 2,391 Crores within a month of its launch. Over 80% of the units in the first
tower have already been sold. Overall, Birla Estates achieved sales of almost 1.7 million
sq. ft. worth 3,985 Crores in FY 2023-24. The revenue of the Pulp and Paper division had
a marginal drop of 6%. The Capacity Utilisation for FY 2023-24 was 97% as compared to 95%
in FY 2022-23. To safeguard the environment, the Pulp and Paper division makes every
effort to reduce or alternate renewable energy sources. Currently, 33.80% of the total
energy requirement for the pulp and paper business is met by renewable energy, which is
slated to rise to 65% by FY 2025-26.
4,264 Crores
Revenue
304 Crores
Profit after Tax
This year, CTIL, curtailed its energy intensity compared to the previous year.
Renewable energy constitutes 32% of the total energy consumption. CTIL also achieved a
reduction in the energy and water consumption. Your Company aspires to reach 1.5 million
plantations by FY 2026-27, paving the way to a wood-positive goal. Your Company's Research
& Development (R&D) is focused on innovating high-quality products while
minimising resource wastage. Your Company is effectively utilising biomass to reduce
reliance on conventional fuels, supporting our nation's 2070 net zero target.
Conclusion
Your Company's multidimensional achievements underscore what has been a foundational
philosophy of our Group— that true corporate success is measured by the enduring
value we create for all our stakeholders. And that is our legacy, our promise, and our
future.
Kumar Mangalam Birla
Chairman