Kumar Mangalam Birla, chairman, Aditya Birla Group, shares his outlook for 2024-25 and sheds light on the uncertainty of 2025, the impact of Donald Trump, the importance of technology, India's manufacturing strength and bold steps taken by the group to strengthen. Its status in 2025.
Here is what Birla had to say.
As we enter 2024, we reach a significant milestone – a quarter of a century. It is remarkable to contemplate the vast amount of history that unfolded in just 25 years. This era is anything but normal.
From the rise of the digital age and the globalization of the economy to climate challenges and the unstoppable march of artificial intelligence, we have experienced seismic shifts. These 25 years have seen changes that, in the past, could have taken centuries to unfold. In many ways, different historical periods have collided and blended, leaving us with a world that is more connected but more divided, more advanced but more anxious, and more hopeful but uncertain than ever before.
Embracing uncertainty in 2025
Looking ahead to 2025, we find U3 in a world – uncertain, unpredictable and unconventional. The key is not to resist this uncertainty, but to embrace it. This reset may well define the paradox of our time: a world full of potential but mired in ambiguity. While social media may seem to shape reality, the true picture is far more complex and influential than the surface-level images we see in our feeds.
The Trump Factor and Global Influence
One factor that could dramatically shape the year ahead is the Trump factor. This has the potential to redefine global geopolitical dynamics with significant implications for the global economy and business environment. The US has long been a critical market for our group outside India, with investments in excess of $15 billion, including $4 billion in ongoing greenfield expansion.
I believe that the India-US relationship will continue to grow in strength in the coming years. The U.S. economy remains unparalleled in its dynamism, and our investments will help revitalize its expanding manufacturing sector. As Warren Buffett wisely said, “Never bet against America.”
India's emerging manufacturing power
The global push towards manufacturing is a welcome development and signals a move towards more resilient and diversified supply chains. Often underestimated in terms of industrial prowess, India is well positioned to capitalize on this opportunity. Apple's ecosystem migration to India is a clear example; Soon, a quarter of the world's iPhones will be produced. India's automobile sector has also become a global force exporting components and vehicles worldwide.
India's Cement Industry: A Hidden Powerhouse
One of India's lesser recognized industrial achievements is its cement industry, the second largest in the world. This important sector has fueled infrastructural growth across the country, resulting in job creation and economic development. In 2024, our flagship cement company, UltraTech Cement, crossed a significant milestone of 150 MTPA capacity. UltraTech now produces more than 1.5 times the total cement production in the United States and holds more than 80% of the capacity in Europe. This is a testament to India's rising industrial strength and its growing influence in the global manufacturing renaissance.
2024: A Year of Bold Moves
For us at the Aditya Birla Group, 2024 was a year of remarkable achievement – a period in which we fully embraced our role as a driver of transformational investment. We have seen the breadth and depth of our businesses come to life, from scaling new growth platforms like B2B e-commerce for paints, jewelery retail and building materials, to strengthening leadership in our core businesses like cement and metals. We have revived our telecom joint venture and accelerated the transformation of our financial services and fashion retail businesses. This is truly a year of major milestones.
The Power and Dynamics of the Aditya Birla Group
Each of these initiatives remains a significant achievement, but together they demonstrate the power and dynamism of our Group. With our unique capital, talent, brand strength and industry expertise, we have been able to move swiftly and decisively even in the face of global uncertainties.
I have always believed that the stronger we are, the more impact we can have and the more lives we can enrich. This philosophy encourages us to think broadly about the positive outcomes we can create for all our stakeholders: employees, customers, partners, investors and society. Ultimately, business should be a force for good.
Celebrating the legacy of BITS Pilani
2024 marked the 60th anniversary of BITS Pilani, an institution founded by my grandfather, Mr. GD Birla and nurtured by our family for generations. BITS Pilani has become a symbol of entrepreneurship in India, and I have had the privilege of leading it for the past 16 years. It has had a transformative impact on India's entrepreneurial ecosystem with over 6,400 startups, including the founders of 17 Unicorns and Decacons.
BITS Pilani has always fostered critical thinking, bold dreams and relentless ambition. I remember a conversation with my grandfather in the 1970s when I stated that BITS would make Pilani the focus. He smiled and replied, “Pilani's recognition is a positive result, and the real aim was to create a talent factory for a rapidly industrializing India.” His words stand as a powerful reminder of the institution's deeper purpose.
This belief in the power of talent is also reflected in the Aditya Birla Scholarship Program launched 25 years ago in memory of my father. Today, the program has 781 scholars, a talented group shaping the future of global companies and institutions. Investing in talent is the foundation on which we build our future.
The next phase of the 21st century
Looking back at the first two decades of the 21st century, technology dominated the landscape. Social media democratized content, amplified voices and opened up opportunities on an unprecedented scale. However, this revolution has also come at a cost – the same tools that connected billions have also fragmented societies, polarized discourse and eroded trust. We are approaching the climax of this divisive moment.
A new era of unity
The next decade will bring a more profound transformation—one that harnesses technology as a force for unity. A desire for authenticity and deep connection, beyond being algorithm-driven, will drive the next wave of innovation. Platforms will evolve to bridge divides, foster understanding and celebrate shared humanity. This drive for connectivity extends beyond social media and will influence the way businesses, governments and communities connect with individuals. From virtual communities to immersive technologies that dissolve boundaries, the quest for connection can become the glue that binds a fractured world.
Vision for the future
The next chapter of the 21st century awaits us, and calls for vision, clarity and determination. We stand on the cusp of a new era that has the potential to shape a more integrated, connected and prosperous world.