Billionaire Kumar Mangalam Birla plans to commit up to $30 billion in investments over the next two to three years, despite mounting global uncertainties that he said have complicated investment decisions for his metals-to-retail conglomerate.
The proposed investment will span the group’s businesses in India and international markets, Birla told reporters on the sidelines of the event. The conglomerate also intends to step up its spending in the United States.
“You either grow or you go down; you can’t stay in a state of equilibrium,” the chairman said at the Bloomberg New Economy Forum in New Delhi on Tuesday.
“We are also increasing the investment in the US,” he said.
Companies worldwide are navigating an uncertain business climate, with unpredictable US tariff and trade measures, the ongoing conflict in the Middle East and changing demand patterns across major economies and industries adding to the challenges.
The Aditya Birla Group has operations in 41 countries and reported revenue of $72 billion in the financial year ended March. International markets accounted for 42% of its sales as of June, while more than a third of its overall business comes from overseas.
The Mumbai-headquartered Aditya Birla Group has a diverse portfolio spanning metals company Hindalco Industries Ltd., cement manufacturer UltraTech Cement Ltd., non-banking financial company Aditya Birla Capital Ltd. and retailer Aditya Birla Fashion and Retail Ltd.
Expanding into new business segments
The conglomerate is also entering new markets and taking on established players. Its recent ventures include paints under the Birla Opus brand, building materials through the Birla Pivot marketplace and jewellery retail under the Indriya brand, operated by Novel Jewels. It has also acquired Shell Plc’s renewable energy assets for $1.8 billion and introduced Ultravolt, its electric cables brand.
“Because we are a global organization, when I read about a significant global event in the newspapers, I can be sure that it will impact us somewhere,” Birla said.
AI investments to grow at a measured pace
The group’s planned investment also includes a $5 billion commitment towards Novelis’ greenfield aluminium recycling and rolling facility in Bay Minette, Alabama.
On artificial intelligence, Birla said the group would increase investments at a more measured pace than previously anticipated.
The conglomerate plans to approach AI investments “a little more gradually than we thought a year ago. I don’t think we need to act out of a sense of FOMO,” he stated.
Birla also identified AI as a challenge for businesses alongside geopolitical uncertainties, noting that the group’s diverse operations cannot adopt a single, uniform approach to the technology.
(With inputs from agency)