What Is The Next Step Of Adani, Ambani And Birla?

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Tata, Birla, Ambani, Adani, Godrej, and Bajaj All the people who changed themselves with time are still standing in the field, ready to fight. What is the reason? When you are the leader of one industry and successful in one industry, then why is it necessary for you to pursue diversification? When Reliance’s Petrochemical is running, then why is it going into retail and telecom?

Why does Adani have a presence in 10 industries? Why does Tata have a presence in 10 industries? And what are the factors that influence when some people do diversification, like Ambani, Adani, and Tata? They are super successful.

Next Step Of Adani, Ambani And Birla?

What is so special about them? And when some people do this same diversification, they fail miserably, like Blogcon, Ruia Group, SR Group, Anil Ambani Ji, What mistakes do these people make in diversification? So, in today’s blog, we will see all the major business houses in India. Tata, Ambani, Adani, Birla, Godrej, and Jindal What changes have they made to themselves in the last 10–20 years? And what plans are they making for the next 10 years?

So, you are getting to see the complete history and present of Indian family businesses in this blog. So, there is no chance to skip this blog. Rather, send this blog to family and friends as much as possible so that their recognition of these businesses increases. Watch this blog till the end. In the end, I will narrate two such stories that state about a diversification, a small diversification, and how the fate of the entire group changed.

 What are those groups? I will tell you at the end of the blog, and in this blog, you may get an idea of any new diversification. You are making a mistake; maybe you can avoid it by not doing it, or you may use a new idea. So, watch this blog till the end. I am starting the blog by saying, ‘Janta Janardan ki Jai Ho.

Tata Business Empire

So, let’s start the Blog by considering The most respectable and largest group of our India “With the Tata Group” The Tata Group has diversification in its DNA He started with trading and then ventured into steel along with trading With steel, they said to come into the power sector as well Along with power, he will also open hotels as well After that, they also worked in IT services as well and went on to enter almost every sector and got success in all.

Tata Group Diversification

Now, let’s talk about which sector they are entering. Tata Group is diversifying into aircraft manufacturing. They have set up a factory for aerostructure manufacturing and signed an agreement with Boeing to make their Apache helicopter. They have set up a factory in Hyderabad, and the work has started. It is also not like that if they are working with Boeing, then they will leave Airbus. They have also made a joint venture with Airbus to make transport aircraft, and that factory will be set up in Vadodara (a city in Gujarat).

 Another diversification they have done in the defense sector There, they are working with Lockheed Martin. Meanwhile, many projects are in the pipeline. Now, they have come into battery manufacturing. They set up a new company under Tata Sons, and they are building a gigafactory in the UK. Which will manufacture batteries? A new vertical: Hyper Loop Transportation Tata Steel has partnered with a startup at IIT Madras.

 We will also work on “Hyper Loop Transportation.” Apart from this, they have acquired a company in the semiconductor sector; they have started a company in precision manufacturing; and Tata is also building its own super app. Now you will say, Rahul Ji, Where are they getting money for doing so much work? Tata Group currently has a debt of 3.5 lakh crore.

 However, they do not need to take tension. As Tata Son said, the old businesses that we had created—TCS, Tata Steel, Tata Motors, and Titan They are saying, Father, you should open new businesses. We will take care of the expenses. On the basis of this confidence, their chairman, i.e., N. Chandrasekaran, said, We are planning to invest $90 million, i.e., 700,000 crore, in these sectors over the next 10 years.

Ambani Group and Strategies

Now, let’s talk about our favorite and second-biggest group, “Ambani Group,”  “Reliance Industries.” First, they started Vimal by selling clothes. Afterwards, they moved to a polyester and then a petrochemical plant, and now such a big refinery has been set up in Jamnagar. After that, they shift to the second vertical, i.e., Reliance Retail. After that, they moved to the third vertical, i.e., Reliance Telecom. When they were moved, there used to be 10 companies in the cluster. Now, only 4 companies are there. First, they are themselves; one is somehow alive. One is Vodafone India, counting its last breath, and one is the government’s BSNL.

 Now, after setting up these three big verticals—petrochemicals, retail,  and telecom They are not satisfied. They are entering the fourth vertical, i.e., renewable energy. They are investing 75,000 crore, and Mukesh Ambani is setting up four gigafactories in Jamnagar. So, while doing all this, where is Mukesh Ambani taking money from? In March 2020, Mukesh Ambani raised a total of 240000 crores from the market and made Reliance Industries debt-free. They had raised this money from Google, Facebook, and others. Now these are their big verticals.

He is such a prominent person. Like the small things, such as, for instance, bringing their own NBFC, i.e., Jio Financial Services They moved into their own retail business and will sell groceries. They started JioMart. They are already selling Campa-Cola. They are setting up their own data center, and now these come into ‘others’ because it is Ambani. Now, if it were some other business, I may possibly have said that it is a big investment for him; it is going into miscellaneous.

Birla Group and strategies

Now let’s talk about the Birla Group. Earlier, the name of Tata-Birla was taken. Now, Ambani-Adani has put them aside a bit. However, it is still not a small matter. We consider them to be engaged in B2B business, like Hindalco and NBC; these are their big companies. However, let me tell you one thing: India’s biggest cement manufacturer is named UltraTech. Afterwards, they diversified themselves into “Telecom.”

  He was the one who brought the ‘Idea’ Company Apart from that, what you are seeing in  fashion retail Either Peter England, Van Heusen, or Louis Philippe He (Aditya Birla) is one behind it. Apart from that, in financial services, there is already a thing named Aditya Birla Capital. Now, Aditya Birla Grasim is building a B2B platform to provide building materials, and they are also starting a D2C digital platform for apparel, and they are moving into the retail of premium jewelry business. And recently, they also started making paint.

 They will also enter the paint industry, as they already make wall putty. This is the extension, and from there, paint will be made, while they will sell it through their UltraTech network. Hence, the already-set-up business is ready on the first day. So, Birla, whose name you haven’t heard, has done so much diversification. So, imagine what is going on in the market. Now let’s talk about the most controversial person in India. The one about whom either very positive news comes or very negative news comes is “Mr. Adani.” You know of this person’s diversification, like Every third day, he buys another company.

 They started with the port business; however, while doing the port business, they started a road infrastructure business as well. Whereas, I also started an airport business as well. Then they said, Let’s buy NDTV as well, and thus entered the media industry as s well. Afterwards, he bought ACC cement, and so they entered into the cement industry as well.

Apart from that, he is also entering the petrochemical business, and it is in direct competition with Mukesh Ambani. Here, Mukesh Ambani is setting up a data center, and Adani is also setting up a similar one. Apart from that, in steel, defense, and aerospace, their projects are pending in all three sectors. So, there should be a separate blog about their expansion.

Godrej Group and Strategies

There is one more family group, i.e., the Godrej Group. Their fourth generation is doing their business. However, they have retained their old businesses, such as Godrej Locking and Defense. They entered the capital business, and they are also providing financial services. Meanwhile, they have started making their presence in the real estate world with Godrej Properties, and if they get that land (case in court) worth 1 lakh crore, then it will be a great win for Godrej. A separate blog has also been made on this The editor, sir, will share the link in the description.

Mahindra Group and Strategies

They didn’t do much diversification. They also have a presence in many different sectors. We will make separate blogs on them. However, their main diversification was done in 1986. They went into the IT sector while continuing to manufacture autos. Established a company with the name Tech Mahindra, which earns 5000 crores in net profit every year. They also entered Mahindra Finance in 1991, and its current annual profit is also 2000 crores.

Jindal Group and strategies

 One more Group – “Jindal Group” Which is known for its steel and steel plants.Now, they are moving into electric vehicle manufacturing as well and they are also starting a Paint and Cement business as well.

2 Diversification Story

that were about to be told in the end “Two Stories” Two of the most wonderful diversifications of the time that created such value that the world kept looking It’s a matter of 2008. There was a Bajaj Group that deals in automobiles, and it is known by all like Bajaj Auto. However, at that time, they demerged their company and brought up a new financial company, i.e., Bajaj Finance Limited and Bajaj Finserv.

Bajaj Group Diversification

It was demerged in 2008, and today, the market cap of this company is 7,00,000 crores, 1.5 lakh crores more than SBI. So, it can be considered one of the most successful diversifications in recent times. Last year, Bajaj Finance Limited and Bajaj Finserv together made a net profit of more than 11,000 crore before Bajaj Finance.

India’s Most Successful diversification

India’s most successful diversification took place in the 1980s. There was a company named Western India Palm Refined Oil Limited. Its short form is Wipro. This company used to refine palm oil, and it was an FMCG company that made soaps and products. But at the time when the government told IBM to leave India, At that time, IT opportunities opened up, and they came to the IT services. And today, you know this company by the name Wipro. While making oil, they started making software and stood next to TCS and Infosys. So, we have talked about the success.

Failed Diversification

Now, let’s talk about some failed diversification. Like some people said, we will do diversification, and so we failed miserably. Hence, the biggest name that comes to mind is our younger Ambani. Reliance Communications was doing well under Anil Ambani’s leadership. Perhaps he can excel in the power sector as well. However, he did diversify, like building ships. Then he announced his intention to enter the entertainment business. After that, he went into the defense sector, went into the cement sector, and went into financial services.

They went to sectors where they had no link or expertise. He believed that, since he was taking action, he would likely achieve success. As a result of this, the younger Ambani faced failure. You must have heard the name of one more group, “The Wadia Group.” Their company is Britannia. They were sitting and enjoying selling biscuits. However, they said that they would also run an airline. So, make Go First (an airline) Hence, I faced failure. Venugopal Dhoot They had Blogcon, known for its great products and company. However, they went into oil exploration and would enter the telecom sector.

 So, enter these sectors. Failed The Ruias of the SR Group were doing good work; however, they entered into the stell and oil business, so they also failed miserably. Now, there are some people who tried to diversify, failed, but managed to survive in the end. In this case, Mukesh Ambani’s in-law’s name comes first: ‘Ajay Piramal Ji’ He had taken stock in Vodafone and had taken stock of 5800 crores in 2012, and if he were in this company till date, he would have a big loss.

However, in 2014, he sold that stock for 8900 crores. In two years, he went out with a profit of 3100 crores. If he had stopped, it would have been a big loss. Raymonds also entered the consumer business. The perfume was also launched under the name ‘Park Avenue’ Launched a product under the name Kamasutra. However, those products didn’t work, so Raymond existed after selling the business to Godrej.

Now, as we are talking about failure, let me tell you: Why did these diversifications fail? Listen to the reasons. Reason No. 1: Unrelated Foray Brother, you are doing X business, and while working on it, you felt that I would do Y business as well. So, brother, please don’t go and do it.

Hence, Kumar Mangalam Birla said They are making paint while making wall putty; that’s the expansion itself. They will make it and sell it there only. So, that business will work. If you foray into a very unrelated sector, then it will not work. Blogcon was making electric products in one place and going into oil exploration in another. Such things do not work at all. 

Key Success Factors For Business Group

Vinod Ji, some businesses have become super successful, such as our Reliance Industries. What are their reasons? The first reason is very simple, i.e.,  ‘Market Study in the Right Product’ You say that Mukesh Ambani also entered into other industries and won Before entering another industry, he indulged in market research for 4-5 years.

Until he didn’t find out, What is the gap in this market? What will I bring? How will I bring it? And what will be unique? They just don’t start. In any business, any man who has a management bandwidth They have a big staff and a big team, so if they undertake any new diversification or start any new project, they can allocate around five members to manage the work. Some people think that I will do all the work and manage every business.

 Like I had done a CCD case study. While running and opening Café Coffee Day, he goes into 10 businesses, and he is the head of all those businesses. There was no management team. So, a person gets stuck. Mukesh Ambani assembles a new team for each business venture, bringing in experts from the respective industry. “Synergy with existing portfolio” Open a new business in a way that it can support the old one. If Reliance launched Retail, Jio came to support it, and Retail was also the one to support it.

They both support each other, and they will give support to Jio Financial Services. So, if you work with existing and synergistic businesses, you will be successful. One is going this way and one is going this way. Success becomes tough, and the most important business support from the group For example, Tata Ji is doing new experiments on today’s date.

 And if he fails, he has no tension. TCS is sitting, giving 40000 crores every year. Even if 10,000 crores go here and there, he will again earn in the next quarter. So, existing groups have so much support. If the experiment fails, then they are present. However, if your existing group gives 2000 crores and you sit while taking 5000 crores of liability, what will happen to you? and the most important thing in the very last.

Why is diversification necessary?

There are many reasons. “The first” is that you have found a new opportunity in the market that no one else has found. Like you felt that the upcoming 10-15 years are of solar energy, there is much pressure on the environment (protection), so there will be a significant increase in renewable energy. So, there will be a significant increase in EVs. There will be good work in defense.

Now that an opportunity is visible in front of them and they have money in their pockets, why not invest? Second, “de-risk the portfolio.” I say that you are the king of a particular thing. However, it appears that the significance of that thing will decrease in the next 10–20 years. Like people in the Middle East, they said that we are the kings of oil, and we will not do anything. So, what will happen if oil runs out?

So, they said, Until they have the oil, let’s invest in four things  more.” So, if tomorrow the oil runs out, we can earn from other areas as well. The third is “staying ahead of the competition.” When two competitions are running back to back, and if you do diversification, you will get an additional advantage, like if any player in the industry gives us a competition, then we have other areas as well. Fourth and most important is “engaging the next generation.

” For example, if Mukesh Ambani says to Akash that you now manage the petrochemical business in Jamnagar, he says, “Papa, I don’t want to do this.” So, new business for the new generation. These are the new-generation businesses. They will be understandable to my next generation, and most importantly, when 2-4 children are born in a family in India and there are conflicts in the big families, this makes diversification easy in the business.

Conclusion

So, this blog is the answer to that common man’s question. Why is Mukesh Ambani doing so many businesses? Some diversifications are successful and some are not, and what have people done to diversify themselves? And what are they going to do next? So, if you are trying to become a top leader in the business and you feel that there is no success, you can do many diversifications, and if you are successful after trying it, that doesn’t mean it is the end. Brother, if you have settled on a great shop, however, you have three children.

If any conflicts happen tomorrow, make it three shops from that one shop at least, or start three different businesses from that shop. So that it can be effectively divided between the sons and the old-generation business that you have established It may be possible that the new generations do not want it. So, you need to pay attention to these things.

 You need to focus on it. So, the things that are imprinted in the newspaper for the Ambanis will be like, He has become the No. 1 richest person in India. He is doing this s growth. Rather, two brothers got into a fight, so I will present it in the next blog with you. Thank you, Jai Hind!

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