While the Grasim-Nuvo merger is expected to unlock value in the financial services business of the Aditya birla Group, concerns remain for Grasim’s minority shareholders.
The Aditya Birla Group, in early August, announced a restructuring of its businesses wherein it will merge two of its main holding companies—Aditya Birla Nuvo (ABNL) and Grasim Industries.
The move comes just over a year after the group had, in May 2015, reorganised its fashion retail business by demerging Madura Fashion (the branded apparel retailing division) and Madura Lifestyle (the luxury branded apparel retailing division) from Nuvo and amalgamated them with Pantaloons Fashion & Retail, a listed arm of the group.
In the first stage of the current restructuring, the group plans to merge Nuvo with Grasim Industries, after which the group’s financial services business, Aditya Birla Financial Services (ABFS)— currently part of Nuvo—will be spun off and listed separately.to merge Nuvo with Grasim Industries, after which the group’s financial services business, Aditya Birla Financial Services (ABFS)— currently part of Nuvo—will be spun off and listed separately.
Grasim Industries is the flagship of the Aditya Birla Group, with business verticals such as viscose staple fibre, cement, chemicals and textiles. It has a 60 percent stake in Ultratech Cement. Nuvo, on the other hand, has business divisions such as life insurance, financial services and also telecom (through its 23 percent stake in Idea Cellular).
The purpose of this restructuring, according to group chairman Kumar Mangalam Birla, is three-fold: To consolidate the group’s fast growing businesses with a strong, stable cash flow; to unlock value for shareholders though the listing of the financial services business; and to simplify the group’s ownership structure.
This story is from the September 16,2016 edition of Forbes India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the September 16,2016 edition of Forbes India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
