Aditya Birla Capital Limited (ABCL) is the holding company for all financial service businesses of the Aditya Birla Group and is a Non-Banking Financial Institution (NBFC).
The company is a subsidiary of Grasim Industries and manages assets worth INR2.46 trillion (US$34 billion) and had over 12,000 employees as of March, 2017. Through various subsidiaries, Aditya Birla Capital is in the business of life insurance, asset management, private equity, corporate finance, structured finance, insurance broking, wealth management, equity broking, currency broking, commodity broking, financial advisory services, housing finance, pension fund management and health insurance.
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History
Aditya Birla Group got into the financial service business with a Non-bank financial institution called Birla Growth Fund in 1986 (later renamed Birla Global Finance Limited in 1994). In 2005, the group decided to consolidate its business and as part of this exercise, it merged Birla Global Finance Limited into Aditya Birla Nuvo. At the time of the merger, Birla Global Finance had assets worth approximately INR 160 billion under its management. Aditya Birla Capital (incorporated as Aditya Birla Financial Services Limited in 2007 as a 100% subsidiary of Aditya Birla Nuvo) subsequently became the holding company for financial service businesses of the group. In 2017, Aditya Birla Financial Services was renamed Aditya Birla Capital.
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Products and Services
Products and services offered by the company include life insurance, asset management, private equity, corporate finance, structured finance, insurance broking, wealth management, equity broking, currency broking, commodity broking, financial advisory services, housing loans, pension fund management and health insurance.
Aditya Birla Capital got into the insurance sector in India after the government allowed entry of private companies in the sector. In 2001, Birla Sun Life Insurance Company Limited was founded as a joint venture between Aditya Birla Group and Sun Life Financial of Canada with Aditya Birla Nuvo (then Indian Rayon) and Birla Global Finance together holding 74% of the company's equity shares and Sun Life Financial holding 26%. In 2016, Sun Life Financial had increased its shareholding to 49% in Birla Sun Life Insurance and Aditya Birla Group continued to have 51% controlling stake. As of 2016, the company had approximately 400 branches across India and approximately 57,000 agents.
In 2016, Aditya Birla Capital launched Aditya Birla Health Insurance Company, a standalone health insurance provider in India. The company is a joint venture with Aditya Birla Capital holding 51% of the company and MMI Holdings of South Africa holding the remaining 49%. As of 2017, the company had 60 branches spread across 34 cities in India.
Aditya Birla Group set up Birla Sun Life Asset Management to enter the mutual fund business as an equal joint venture with Sun Life Financial of Canada in 1994. In 2012, Aditya Birla Nuvo acquired an additional 1% stake in the company making it a subsidiary, with Sun Life Financial holding 49% in the venture. In 2014, the mutual fund crossed INR 1 trillion in assets under its management. It is the fourth largest mutual fund in India. In the same year, Birla Sun Life Mutual Fund bought out ING Mutual Fund, the Indian mutual fund business of ING Group. In 2017, the company added the prefix "Aditya" and became Aditya Birla Sun Life Mutual Fund.
In 2009, Aditya Birla Capital acquired a controlling stake Apollo Sindhoori Capital Investments, a securities broking firm. The company was later renamed Aditya Birla Money. Aditya Birla Capital decided to get into the Mortgage loan sector in 2015.
In the year 1986, Aditya Birla Group incorporated Birla Growth Fund. The company operated four divisions; Capital Market, Corporate Finance, Retail Finance and General Insurance Advisory. In the year 1994, the company changed its name from Birla Growth Fund Limited to Birla Global Finance Limited and the company was listed on The National Stock Exchange and Bombay Stock Exchange. In 2006, the company was delisted from Bombay stock exchange after its amalgamation with Aditya Birla Nuvo. In 2010, the company was renamed Aditya Birla Finance Limited.
The company runs a private equity business under the name Aditya Birla Private Equity. In 2017, Aditya Birla Capital received a license to set up an asset reconstruction company.
Restructuring and Rebranding
The Aditya Birla Group announced a plan to restructure its business in 2016. As part of this plan, it was announced that the financial services business would be listed as a separate entity on stock exchanges. In September 2017, Aditya Birla Financial Services was restructured as Aditya Birla Capital Limited listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) after demerging from its parent entity, Grasim Industries (Aditya Birla Nuvo merged into Grasim Industries prior to the Aditya Birla Capital demerger).
In 2017, all financial services of the Aditya Birla Group came under one brand, Aditya Birla Capital. The company came out with a strategy of a single brand, single point of contact for clients and focus on money in general in place of individual products.
References
Source of article : Wikipedia
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