IBLA Exclusive | Kumar Mangalam Birla signals more Aditya Birla Group expansion, backs manufacturing for 2027

Aditya Birla Group could expand into more businesses over the next decade, with Chairman Kumar Mangalam Birla saying the conglomerate's strong internal accruals, healthy balance sheets and low debt give it the financial strength to pursue new opportunities.

The group currently has projects worth around $35 billion underway, including about $5 billion in the US. Birla said the scale of these commitments meant the group would need to be mindful of the bandwidth required before taking on more projects.

However, he indicated that the group could enter more sectors as its existing businesses reach their full potential. Aditya Birla Group has entered several new sectors over the past two years, building confidence to consider further expansion.

"One doesn't want to stagnate. The obvious thing to do is, after you're saturated in your current businesses, having grown them to their full potential, to look to invest in other sectors," Birla said in an exclusive interview with CNBC-TV18 at the India Business Leader Awards (IBLA) Jury Meeting.

He added that the group could eventually be present in more businesses than he had envisaged even a year ago.

Manufacturing is Birla's big bet for 2027

Asked where he would place his biggest bet for 2027, Birla identified manufacturing, citing the changing geopolitical environment and the importance of being a reliable supplier for customers.

He said companies with an onshore presence and manufacturing capabilities across markets were well positioned to benefit from these shifts.

"For those who are a safe haven for customers, like we are for many in the industries we're in, we are a safe haven for our customers. We are onshore. We have built plants and manufacturing capabilities across the world. With that, I think we're in a very good space," he said.

Birla expects India to grow at 6-8%

On India's economic outlook, Birla remained optimistic, expecting the country to grow at 6-8%. He pointed to rising incomes, increasing aspirations and the formalisation of the economy as factors supporting growth.

He said several sectors were benefiting from the shift of unorganised businesses into the organised economy, resulting in growth rates higher than their usual levels.

"I expect India to do very well. I think growth of 6-7-8%, somewhere there," he said.

Birla also said greater foreign investment in manufacturing would boost confidence in the Indian economy. He added that it would be encouraging to see foreign portfolio investors return, noting that some inflows had picked up over the preceding two weeks.

Birla confident of Vodafone Idea turnaround

Birla expressed confidence in Vodafone Idea's prospects, saying the company's team was working around the clock to turn around the business.

"I have every reason to believe that it'll be a strong turnaround for Vi," he said.

US remains an important investment market

On the group's US investments, Birla highlighted its $5 billion greenfield aluminium rolling mill in Alabama, describing it as the group's largest greenfield investment at a single site anywhere in the world.

He said Aditya Birla Group had been present in the US for more than 15 years and had seen good returns on its investments. The group remained positive about investing in the country, particularly given the US focus on attracting manufacturing investments.

Commenting on the US midterm election results, Birla said it was too early to assess their implications for the group's investments. However, he felt the results were broadly along expected lines.