Hello Guys.. A presentation on diversification where two company example is taken.One who is successful and other which failed in diversifying the business. So would help you a a lot. Regards Ajay Gupta

1. Business Diversification.
Presented By:-
Ajay Gupta
Rajiv Maurya
Chandan Naik
Nikunj Majithia
Kunal Parihar

2. What is Diversification?
Diversification is a corporate strategy to enter into a new
market or industry which the business is not currently in,
whilst also creating a new product for that new market.

3. Why do Firms Diversify?
When they have excess resources, capabilities, and core
competencies that have multiple uses
Diminishing growth prospects in present industry
Cost saving opportunities
Capture strategic fits
Capture financial economies
Spread business risk
Leverage brand name

4. Strategic options for Diversification.
Acquisition / Merger
 Acquire or merge with company competing in market
Greenfield Venture / Internal Development
 Start up new business unit and use it to enter in to
market
Strategic Alliances and Joint Ventures
 Combine resources with partners

5. Most Popular Types of Diversification…
Horizontal Diversification:
It is a strategy in which a firms long term strategy is based on
growth through acquisition of one or more similar firms operating at
the same stage of the production-marketing chain.
- E.g. Acquisition of Arcrol by Mitta Steels
Vertical Diversification:
It is a process in which a firm's grand strategy is to acquire firms
that supply it with inputs (such as raw materials) or are customers
for its outputs (such as warehouses for finished products).

7. Introduction...
•Founded in-1857
•Chairman–Dr. Vijay Mallya
•Headquartered –Richmond Road, Bangalore
• Revenue:
US $20 Billion.
• Corporate Address:
U B Tower Level 12,U B City 24 Vittal Mallya Road, Bengaluru-
560001,Karnataka

8. Business of kingfisher….
Brewery
Alcohol Beverage
Chemicals & Fertilizers
Aviation
Sports(Owner of the IPL Team)
UB Global(trading company)
Mangalore Chemicals & Fertilizers Ltd

11. About Kingfisher Airlines.
 Kingfisher Airline was establish in 2003. But It was started in 2005.
 Kingfisher Head office Located in Ville Parle Mumbai But its
Registered office in Bangalore.
 Kingfisher Has been Certified as being one of six Airlines in the
world to have a five star Rating from Skytrax.
 By early 2012, the Airline losses of over 7,000 crore Due to Strike &
other Problem.
 Domestic Destination – 63 (2011)
 International Destination -8(2011)

12. Problems with Kingfisher…
 Cut-throat fares, high fuel prices, and high taxes..
 Air India was responsible for the cut-throat fares that started the price competition which
forced all the airlines to lower prices.
 The domestic airlines are projected to report a combined loss of $2.5 billion ( 1,250 crore)
by end of this fiscal (2011-12).
 Strike Problem.
 Cancellation of flights.
 Lack of Management.
 Dissatisfaction of Loyal costumer.
 Increasing Loss Day by Day (Rs. 470 Crore 2011)

13. 31destinations in India
Focused & Profit making
routes
Low price compared to King
fisher red
Focus on Low Cost Airlines
Innovative and radical method
so fair line back
end operations like financing ,
leasing.
Less Turnaround time as
compared to Kingfisher red
63 domestic destinations in
India
Many Unprofitable routes like
Nasik , Hubli etc.
Strict rules by DGCA on
implementation of Time Table
Operations shifted to New
Terminals in Delhi & Mumbai.
Focus diverted from high
service to low cost
More Turnaround time as
compared to Indigo

14. Ranking 2007 & 2011..

15. Market share Before & After..
Shutdown Date:-
20 October 2012 the DGCA suspended its flying license.

16. Kingfisher Airline before & After
 Before
a. Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320
aircrafts
b. February 2009 there were 904,000 passengers who flew on Kingfisher, giving it the highest
market share in India.
c. Kingfisher Airlines has 74 domestic destinations and 8 international destinations across Asia
and Europe
d. Kingfisher Airlines has a five star rating from Skytrax
e. Kingfisher Got the various Awards..
1) Best Bonus Promotion.
2) Best Customer Service.
3) Best Member Communication(First Runner Up)
4) Best Airline in a Survey Conducted by IMB.

17. Kingfisher Airline before & After Continued..
 After.
a) In financial year 2009-10, the airline made a net loss of Rs 1,647.22 crore.
b) Huge decline in Market Share
c) Fall in Ranking from 1st position to 5th in 2011 Mid.
d) They come up with the problem of :-
1) High training cost
2) High maintenance cost
3) Government Dues
e) Finally it Got closed on 20th October 2012

19. About Birlas….
Aditya Birla Group started in 1857.
Shiv Narayan Birla started cotton trading operations in the small town of Pilani in Rajasthan.
Ghyanshyamdas Birla(GD birla)-1919-he set the manufacturing company.
Grandson of G.D.Birla is Aditya Vikram Birla(A.V.Birla)-1964
Son of A.V.Birla is Kumar Mangalam Birla(K.M.Birla)-1995.
Revenue of Aditya Birla in 2016 is US $58 billion.
They also have 120,000 employees.

20. Vision And Mission
VISION
To be a premium global
conglomerate
with a clear focus on each
business. MISSION
To deliver superior value to our
customers,
shareholders, employees and
society at large.

21. Group Profile
Group companies
 Grasim Industries Ltd.
 Hidalgo Industries Ltd.
 Aditya Birla Nuvo Ltd.
 UltraTech Cement Ltd.
Indian companies
 PSI Data Systems
 Aditya Birla Minacs Worldwide Limited
 Essel Mining & Industries Ltd
 Idea Cellular Ltd.
 Aditya Birla Insulators
 Aditya Birla Retail Limited
 Bihar Caustic and Chemicals Ltd.
Joint ventures
 Birla Sun Life Insurance
 Birla Sun Life Asset Management Company Ltd.
 Birla Sun Life Distribution Company Ltd.
 Tanfac Industries Ltd.
International Establishments
 Thailand
 Philippines
 Indonesia
 Egypt
 Egypt
 China
 Canada
 Australia
 Laos
 North and South America, Europe and Asia

22. Aditya Birla Business Diversification….
VSF
GARMENTS
TEXTILES

23.  Hindalco:-
Industry Metal
Founded 1958
Headquarters Mumbai, India
Key people Kumar Mangalam Birla
Area served World wide
Employees 19,341
Website www.hindalco.com

24. A. Products:
Aluminum Copper Mines

25. Industry Telecommunication
Founded 1995
headquarters Santacruz EAST Mumbai, India
Key people MR. HIMANSHU KAPANIA
(Director)
Products Mobile telephony wireless
broadband
Website www.ideacellular.com
 Idea cellular:-

26.  News:-
 2G spectrum: Industry says call
rates to go up by 30p/min.
 Will be introducing 4G in Mumbai
Soon
 Lowest Call Rate..

27. Industry Building material
Founded 1948
headquarters Nagda, M.P., India
Key people Op puanrmlka, director
Products Cements
Area served Global
Parent Aditya Birla Group
Website www.grasim.com
 Grasim:-

28.  News:
 Grasim Industries Q3 profit up 14%, shares jump 4%.
 Net sales for the company rose 1% to Rs. 9470.95 crore.
Grasim shares up nearly 4% on inclusion in MSCI India index

29. Industry Building material
Founded 1983
headquarters Mumbai, India
Key people Op puanrmlka, director
Products Cements
Parent Grasim industries
Website www.ultratechcement.com
 Cement:-

30.  News:
Net profit of UltraTech cement increase by 18%.
 Stock of UltraTech Cement is up 19 per cent since buy call
in May 2016.
 Company managed to beat the slowdown through higher
institutional sales and improvement in market share.

31. Industry Business process outsourcing
Founded 1981
headquarters Bangalore, India
Key people Deepak j Patel (CEO)
services Customer lifecycle management
marketing
No. of location 40
Website www.minacs.adityabirla.com
 Aditya Birla Minacs:-

32.  Major Competitors:-
Textile Copper &
Aluminum
Cement Telecommunication
Vimal Essar Ambuja Bharti Airtel
Raymonds Sail Binani VODAFONE
TATA TATA DOCOMO
RELIANCE
BSNL

33. Some Historical Achievements.
 1857 -The foundation of the Birla Group of Companies is laid by Seth Shiv Narayan Birla – cotton trading
operations commence at Pilani, Rajasthan.
 1947-Grasim is incorporated. (rayon weaving)
 1958 -Hindalco is incorporated. (aluminium)
 1966-The Indian Rayon Corporation Ltd is acquired.
 1986-The Birla Growth Fund is set up. (to finance industrial equipment, plant and machinery and consumer
durables, as well as for stock market operations)
 1988 -joint venture with Hindustan Petroleum Corporation Ltd (to set up a three-million-ton refinery,
Mangalore Refineries and Petrochemicals Ltd.
 2000 -Indian Rayon acquires Madura Garments
 2006-Hindalco in a joint venture with Almex USA Inc.
 2007:-Aditya birla Ranked No 1 best Employer by the Hewitt-
1)Golden Spoon Awards.
2) Best VM at In-store
 2010:-Most admired retail face of the year.
 2012:- Master Brand Award.

34.  Globally the Aditya Birla Group..
o A metals powerhouse, among the world's most cost-efficient aluminum and
copper producers. Hindalco-Novelis is the largest aluminum rolling
company.
o No.1 in viscose staple fibre.
o The fourth largest producer of insulators.
o The fourth largest producer of carbon black.
o The 11th largest cement producer globally, the seventh largest in Asia and
the second largest in India.

35. Market Capitalisation in 2014 & 2015..

36. Aditya Birla Before & After…
Before
Aditya Birla Group was founded in the 1957 by Aditya Birla
Seth Shiv Narayan Birla launches a cotton- and jute-trading business in the town of Pilani, in Rajasthan, India.
In Initial time they have only 12,000 Employees.
They had there business only in 6 Countries.
Revenue was only US $1 Million.
In initial time they have only Few products..

37. Aditya Birla Before & After Continue…
After
 In present Aditya Birla have more than 20 Products in the Market.
 Current Total revenue is US $ 56 Billion.
 Total Employees they have is 1,20,000.
 There Business is Expanded to 42 Countries.
 They are 4th largest Producer of Insulator.
 They are in Top 5 Cement producer in World.
 Number 1 in Carbon Black.
 Its 18 hospitals tend to more than a million villagers.
 Among the top two supermarket chains in the retail business

38. THANK YOU