Dear shareholders,
FY 2024-25 was a study in resilience and dynamism, shaped by the push
and pull of uncertainty and the powerful force of adaptive leadership. For the Aditya
Birla Group, it has been a year of unprecedented growth and renewal. The Group has been an
engine of big bets, moving with conviction across multiple frontiers.
Kumar Mangalam Birla
Chairman
We witnessed, in vivid form, the breadth, depth, and scale of our
businesses, reflected in the sheer simultaneity of strategic moves. New platforms were
launched and rapidly scaled — in paints, in jewellery retail, and in B2B e-commerce.
At the same time, we deepened leadership in our core sectors like cement, metals, fibre,
chemicals, and financial services.
Each move was consequential on its own. Together, they reflect a rare
dynamism. A kind of corporate choreography. What enables it? A distinctive alchemy of
capital strength, institutional talent, brand equity, sectoral expertise, and trust,
carefully built over decades. It is this combination that has allowed us to move swiftly
and with clarity, even amidst global uncertainty.
Global outlook: Making sense of an uncertain world
The global economy in 2024 proved unexpectedly steady, growing at 3.3%,
only a shade below the 3.5% posted a year earlier, despite persistent noise and
disruption. According to the International Monetary Fund, this resilience held firm
against an unsettled backdrop of inflationary pressures, geopolitical fault lines, and
fragmenting trade ties. The United States, driven by buoyant consumer and government
spending, led the developed world with GDP growth of 2.8%. Yet this strength stood in
contrast to more subdued performances across Asia and Europe.
China's recovery, once a cornerstone of global momentum, remained
hesitant. Sluggish consumer demand and ongoing stress in the property sector weighed
heavily. In parallel, investment levels across major economies stagnated, productivity
gains stalled, and public debt remained a growing concern.
Geopolitical tensions, now more durable than episodic, compounded
market uncertainty. A more fragmented world economy, shaped by competing spheres of
influence and rising trade friction, added further complexity.
India emerged as an outlier of stability and momentum in a world
adrift. With projected GDP growth of 6.4-6.5%, it retained its crown as the
fastest-growing major economy. The final quarter surged to 7.4%, powered by construction,
manufacturing, and sustained government capital outlay.
Yet not all signals were dim. Inflation eased, dropping from 6.6% in
2023 to 5.7% in 2024, reflecting tighter monetary policy and a marked softening of supply
chain disruptions. Central banks in advanced economies began pivoting away from
restrictive stances, making financial conditions more supportive, though not without
caution.
Looking ahead, global growth is expected to moderate to 2.8% in 2025
before edging up to 3.0% in 2026. Much of the drag is expected from advanced economies,
with their collective growth projected to slow from 1.8% to 1.4%.
Monetary easing and subsiding inflation offer some tailwinds. Still,
vulnerabilities persist. Geopolitical conflict, high borrowing costs, and deteriorating
trade dynamics remain formidable obstacles. Inflation is projected to fall further to 4.3%
in 2025 and 3.6% in 2026, but service sector inflation remains sticky, and trade
disruptions could yet spark fresh cost pressures.
Merchandise trade, long the engine of global growth, faces an uncertain
future. New tariffs and retaliatory measures risk pulling global trade volumes into
contractionary territory. Encouragingly, recent bilateral trade deals suggest that
diplomacy is not entirely off the table, even as rhetoric hardens.
India enters the new fiscal year with tailwinds intact. GDP growth is
projected at 6.5%, with risks well-balanced. Consumption is expected to pick up further.
Public investment will likely remain a key growth lever, while fiscal consolidation
continues.
India in 2024-25: Standing strong in a fractured world
India emerged as an outlier of stability and momentum in a world
adrift. With projected GDP growth of 6.4-6.5%, it retained its crown as the
fastest-growing major economy. The final quarter surged to 7.4%, powered by construction,
manufacturing, and sustained government capital outlay.
Policy credibility, macroeconomic resilience, and diversified growth
engines underpinned this performance. Consumption rebounded and exports rose. Agriculture
benefited from favourable monsoons and strong food grain output. Services, still India's
growth mainstay, grew by 7.2%, accounting for over half of gross value added.
India's export story was particularly telling. Merchandise and services
exports reached an all-time high of US$ 824.9 billion, up 6.01% year-on-year, a feat few
economies could match amid global headwinds.
Inflation, a lingering concern globally, trended down decisively. The
headline inflation rate eased to 4.6%, from 5.4% a year earlier, helped by effective
supply- side interventions, softening input costs, and timely monetary policy adjustments.
The Reserve Bank of India moved from tightening to a neutral stance in October 2024, then
back to accommodative in April 2025.
The financial system stood firm. Balance sheets strengthened and asset
quality improved. Loan
growth remained in double digits. Yields softened across government and
corporate debt, reinforcing investor confidence.
India enters the new fiscal year with tailwinds intact.
GDP growth is projected at 6.5%, with risks well balanced. Consumption
is expected to pick up further. Public investment will likely remain a key growth lever,
while fiscal consolidation continues.
Manufacturing momentum is expected to build, supported by the
Production Linked Incentive (PLI) scheme and the new National Manufacturing Mission.
Infrastructure will remain a priority, buoyed by initiatives under Gati Shakti, higher
allocations for affordable housing, and a renewed push under the Asset Monetisation Plan.
The external sector outlook, though exposed to global turbulence,
remains cautiously optimistic. Ongoing trade negotiations and regional partnerships offer
a buffer against a volatile trade landscape.
While global financial market volatility, geopolitical tensions, and
trade fragmentation pose downside risks, India's sound macroeconomic fundamentals, robust
financial sector, and commitment to sustainable growth position the economy to remain the
fastest-growing major economy in 2025-26.
Aditya Birla Group: Investing in people, leading with purpose
In an era of disruption and dynamism, the Aditya Birla Group has held
firm to a foundational conviction that people are the ultimate differentiator. In FY
2024-25, this belief took on new urgency and new scale.
Our investments in talent, culture, and capability were not just
deepened, but future aligned.
Through the year, 13,233 professionals joined us in the management
cadre across businesses, 76% of whom were under the age of 35. This surge in Gen Z hiring
marks a deliberate pivot to next-generation talent that is digital-first, agile, and
ambitious. Diversity hiring accounted for 18%, reflecting our continued commitment to
inclusion as a business strategy.
Our Learning Fest, a three-month Group-wide initiative, brought
future-critical themes like digital transformation, data analytics, growth mindset, and
inspirational leadership, to the fore. More than 10,000 employees participated, from
factory floors to corporate offices, reflecting a culture where learning is universal.
A robust pipeline of talent is the cornerstone of any sustainable
business. Internal hiring rose to 76% at senior levels (up from 72%) and to 70% at mid and
junior levels (from 54%), reinforcing our commitment to growing from within. Among
critical senior leadership roles, 67% were filled by planned successors, 19% by other
internal talent, and only 14% externally. These figures reflect a healthy blend of
self-reliance and fresh perspective. The engine behind this momentum is a mix of
structured leadership programmes, mobility frameworks, and strong mentorship architecture.
Learning and development remained the cornerstone of our people
strategy. Gyanodaya, our Leadership and Learning Centre, inaugurated a new
1.58.000 sq. ft. campus with cutting-edge infrastructure and immersive
learning technologies. Over 6,300 learners attended programmes across future skills,
leadership, and functional competencies. The Gyanodaya Virtual Campus, our digital
learning platform, saw participation from 92% of our workforce, touching nearly 60,000
employees.
Our Learning Fest, a three-month Group-wide initiative, brought
future-critical themes like digital transformation, data analytics, growth mindset, and
inspirational leadership, to the fore. More than
10.000 employees participated, from factory floors to corporate
offices, reflecting a culture where learning is universal.
Equally, we recognise that high performance must be underpinned by
well-being. The Group took significant strides in mental and physical health support this
year. Awareness programmes, counselling services, and a network of trained Emotional First
Aiders provided critical care to over 1,400 employees and family members. In Mumbai, 99.5%
of eligible employees completed annual health check-ups. Across the Group, businesses
tailored wellness initiatives to local contexts, ensuring impact with empathy.
Employee engagement levels remain among the highest in the industry.
Our internal survey, ABG Vibes 2025, reported a 91% engagement score. 87% of employees
indicated a strong intent to build long-term careers within the Group. These numbers not
only exceed external benchmarks but also speak to the emotional equity we have built over
time.
Our people philosophy extends beyond the workplace. Through the A
World of Opportunities Foundation,
203 scholarships were awarded to students from underprivileged
backgrounds. Over 33,000 employees contributed H 6.7 crore, reflecting a deep culture of
giving. Since inception, nearly 5,000 scholarships have been granted, and more than 2,000
alumni are now gainfully employed across India. Meanwhile, our Deep Volunteering programme
enabled 250 employees to contribute directly to grassroots causes, with 16 selected for
immersive NGO engagements in remote areas—living, learning, and giving back.
The year culminated with meaningful external recognition. The Aditya
Birla Group was named a Top Employer 2025 in India by the Top Employers Institute and
featured among Forbes World's Best Employers. These accolades reaffirm our
belief that our people are the key to our continued success. And in building a world of
opportunities for our people, we deepen our own purpose as a Force for Good.
Your Company's performance
Your Company delivered robust growth in FY 2024-25 despite headwinds
such as moderated demand, heightened competition, and prevailing uncertainties. Your
Company reported net revenue of ~$ 8.9 billion (H 75,955 crore) and EBITDA of $ 1.6
billion (H 13,302 crore).
Your Company's efforts converge towards a singular goal - of building a
strong, prosperous, and developed India. As the country's leading cement manufacturer,
your Company is a key partner in the government's vision of developing a Viksit Bharat by
2047. In FY 2024-25, your Company continued to apply the strategic lever of scale to
reinforce its contribution to nation-building, adding a substantial 42.6 MTPA grey cement
production capacity to achieve consolidated capacity of 188.8 MTPA.
The capacity expansions in FY 2024-25 were driven by both organic and
inorganic growth. Your Company added 16.3 MTPA of new capacity through planned organic
expansions. It's growth-accretive and footprintexpanding acquisitions of India Cements and
the cement business of Kesoram Industries Limited brought another 26.3 MTPA under its
fold. With another 3.5 MTPA added in FY 2025-26, your Company's global cement capacity
reached 192.26 MTPA. This positions your Company as the only cement company in the world
(outside of China) to have 175+ MTPA of cement manufacturing capacity in a single country.
This sustained momentum testifies to your Company's long-term commitment to India's
development agenda.
Your Company's efforts converge towards a singular goal-of building a
strong, prosperous, and developed India. As the country's largest cement manufacturer,
your Company is a key partner in the government's vision of developing a Viksit Bharat by
2047.
Your Company stands shoulder to shoulder with the nation, not merely as
a cement manufacturer, but as a silent force powering progress from the ground up. It's
expansive manufacturing footprint in India - comprising 34 integrated units, 30 grinding
units, and 9 bulk terminals - is optimally located and supported by a robust network of
over 1.45 lakhs channel partners, enabling it to cover 80% of the country and serve
customers whether in bustling cities or the remotest villages. Whether it's building
bridges that connect cities or homes that nurture families, your Company takes pride in
being a tangible contributor to the India growth story.
As cement demand rises in line with the ~15% CAGR increase in
investments projected in the roads, real estate, and renewables sectors over FY 2025-26
and FY 2026-27, your Company's foundational emphasis on scale and operational efficiencies
will strengthen its ability to capitalise on emerging growth opportunities and create
purposeful impact through nation-building, advancing its proposition of Banega Toh Badhega
India.
Our net zero goal
As a globally responsible cement producer, your Company maintains a
future-focused commitment to sustainability, the third strategic pillar of its growth and
operational strategy, complementing scale and efficiency.
In FY 2024-25, your Company demonstrated leadership in sustainability
by becoming one of the first industrial enterprises in India to commission 1 GW of
renewable energy (RE) capacity for captive use. It's efforts to increase the share of
green energy in the energy mix have been gaining momentum year after year.
Your Company is well-positioned to fulfil the RE100 commitment of
meeting 100% of it's electricity requirement through renewables sources by 2050.
Your Company is a signatory to the GCCA 2050 Cement and Concrete
Industry Roadmap for Net Zero Concrete, and has pledged to produce carbon-neutral concrete
by 2050. As part of its roadmap to Net Zero, it aims to reduce its net Scope 1 CO2
emission intensity by 27% by
2032 (from base year 2017). Aligned with this, in FY 2024-25, your
Company reduced its net CO2 emission intensity to 549 kg/tonne of cementitious
material from 632 kg/tonne cementitious material from base year 2017.
What gives us pride is not only the scale of what we build, but the
intent behind it. Your Company sees sustainability as an opportunity to lead differently -
to innovate, to protect, and to give back.
Your Company believes that true progress is built, not just measured.
Over the years, your Company has played a pivotal role in fortifying India's economic
growth by leading with scale, growing in strength, and by fulfilling its purpose of
enriching lives and delivering enduring value to all stakeholders. Its contribution to
nation-building goes beyond material. It is rooted in your Company's belief in the power
of infrastructure to transform lives, the potential of communities to thrive, and the
responsibility of industry to build an inclusive, resilient, and sustainable future.
These enduring imperatives will continue to guide your Company. As we
shape India's future, we remain committed in our role as a Force for Nation-Building.
Conclusion
I have long believed that the stronger we grow, the greater the impact
we create. Growth, for us, is a force multiplier.
It compels us to widen the aperture- to think more boldly about the
difference we can make. It energises us to leverage our scale, resources, and leadership
to deliver disproportionately better outcomes for all our stakeholders - employees,
consumers, partners, investors, and society at large.
This dynamic interplay, of purpose and performance, underpinned by our
proven ability to synthesise capital, talent, and ideas, is what will shape a truly
transformative future. And through this journey, we will continue to demonstrate, with
quiet conviction, the enduring power of business as a force for good.
Kumar Mangalam Birla
Chairman