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AV Birla group to foray overseas with chemicals

BS Corporate Bureau

The Aditya Vikram Birla group will focus on chemicals and carbon black while foraying into overseas markets. The group has identified east Europe, China and South Africa as the major regions it intends to enter.

Speaking to Business Standard, group chairman Kumar Mangalam Birla said: "We have a strong presence in Southeast Asia in chemicals and carbon black. These businesses would be our first port of call when we expand our business overseas."

The group's eventual aim is to move up two notches and figure among the top three producers of carbon black globally over the next few years. The group currently produces 370,000 tonne of carbon black a year. It has plants in Egypt, Thailand and India.

The Birlas have a string of chemicals companies across south east Asia that produce a range of products, from caustic soda, sodium sulphate/phosphate, hydrogen peroxide to epoxy resins.

The international operations of the group currently contribute over Rs 100 billion (around $2 billion), to the group turnover of Rs 270 billion, a major portion of which comes from chemicals and carbon black.

Birla said he would also look at acquisition opportunities to expand his business overseas.

On the domestic front, Birla said the group was keen on bidding for the state-owned fertiliser and metals companies when they come up for divestment. "We are constantly reviewing our portfolio of business, and are likely to exit some and enter some knowledge-based areas," he said.

"We are looking at bio-technology. But things are at a preliminary stage," Birla added.

"We are also looking at acquisition opportunities in the information technology sector. We may not be a TCS, but PSI Data Systems has a strong presence in some specific areas. We would look at organically growing in these areas," Birla said.

Birla boards

The boards of the Aditya Birla group companies may see the induction of a few more professional managers. They are now almost entirely dominated by independent directors.

"We have begun to induct a few company executives into the boards. We will see more inclusions," Kumar Mangalam Birla told Business Standard.

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