Consumer businesses to contribute $25B in next 5 yrs: Aditya Birla Group Chairman

Aditya Birla Group expects its consumer businesses to reach about $25 billion in the next five years, helped by diversification and strengthening of portfolio, its Chairman Kumar Mangalam Birla said on Friday.

This would be even larger than several standalone businesses operating in the consumer businesses, he said.

The group is consciously focusing on strengthening its consumer-facing business of the Aditya Birla Group, which includes its financial services, fashion retail portfolio, telecom business, and real estate platform.

"Many of our businesses are poised for transformational growth, while new ventures are emerging with great promise. We are not just expanding in size but also diversifying in scope," said Birla.

The group's consumer business has strengthened portfolio over the last three years, Birla said.

"Around 20% of our group's revenue today comes from consumer businesses. And I believe this will increase to over 25% over the next five years to reach about 25 billion dollars of revenue from consumer businesses," Birla said at an event here.

Consumer business revenue is around $13 billion, at present.

The group, which entered in Rs 6.7-lakh crore India jewellery market with the launch of brand 'Indriya', stands at an exciting juncture and is diversifying itself creating new platforms, Birla said.

"One of the key drivers for this will of course be the successful ramp-up of our newest consumer businesses -- paints and jewellery retail," he said.

The Indian consumer is "fast evolving" and rapidly coming of age, he said.

The Indian consumer has also changed in ways that not many would have anticipated even a few years ago," said Birla.

Aditya Birla earlier this year entered fast-growing Indian paint businesses, where it has invested around Rs 10,000 crore.

"This effort includes intensifying our focus on financial services, building a fully fleshed-out fashion retail portfolio, revitalising the telecom business, scaling our real estate platform, and, of course, launching two new consumer businesses," he said.

In the last three years, Aditya Birla Group has "redoubled our bet on the dynamism of the Indian consumer", he said.

Aditya Birla Group, the multi-conglomerate, which has business interests, including in metals, cement, fashion and retail, financial services, renewables, fibre, textiles, chemicals, real estate, trading and mining -- market cap topped the $100-billion mark this year.

"Aditya Birla Group stands at an exciting juncture. Many of our businesses are poised for transformational growth, while new ventures are emerging with great promise," Birla said.

It is not just expanding in size, but also diversifying in scope, he said.

"By blending the strength of our established businesses with the fresh energy of our new ventures, we are constructing a unique growth platform," he added.