“Rs 1 crore is not enough to start any business in today's context,” Kumar Mangalam Birla, chairman of the Aditya Birla Group, said in a candid interview on Nikhil Kamat's podcast.
Offering a glimpse into his business philosophy, Birla shared insights on leadership, entrepreneurship and India's evolving market landscape.
In a stark reality check for aspiring entrepreneurs, Birla emphasized the importance of scale in India's competitive business environment. “How much can be done with a crore of rupees? Scale is critical, and significant capital is essential to make an impact,” he noted. “If that's all I have, I'd rather keep it in the bank.”
Birla's advice to budding entrepreneurs was simple: “Do what you love to do, keep the passion alive, and build a great team. A strong team is vital because no leader can achieve much on his own. He also emphasized the importance of agility in business, saying, “The world is changing fast. You must change your business model to stay relevant.
Discussing the group's diversification from textiles to cement to jewellery, Birla shared the strategy of seizing opportunities in emerging sectors such as financial services and retail.
“When India opened up new spaces for private enterprise like mutual funds and insurance, we did not want to miss those opportunities. It is about aligning with national trends and leveraging our strengths as a group.
In terms of leadership, Birla revealed a unique sense of discipline. “In 29 years, I've only lost my temper 18 times,” he said, finding anger counterproductive in a corporate setting. Trust is the foundation of agency, and instinct plays a critical role in decision-making. “Look at the track record, talk to them, refer the sounds.”
Reflecting on creativity, he said, “The most creative thing you can do is build or run a business.” For Birla, leadership means striving to be number one or two in every market.
Birla also touched on corporate responsibility, seeing it as duty rather than philanthropy. “Giving back is something you have to do,” he said, describing how his team's scholarship program changed his life.