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Advertorial: Aditya Birla Group: Growing together with Indonesia, its people and its environment
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Mr. Mukul Agrawal - President Director, PT. Indo Bharat Rayon (IBR)
Aditya Birla Group, a Fortune 500 company, is a US $41 billion corporation, anchored by over 120,000 employees belonging to 42 nationalities. Over 50 percent of its revenues flow from its overseas operations spanning 36 countries. The India-based multinational conglomerate, Aditya Birla Group has a strong presence in Indonesia spanning more than four decades.
Aditya Birla Group entered the Indonesian market in 1972 in the yarn business by with a modest investment of US$15 million and this has now risen to US$1.3 billion. The Group has established five factories throughout the country. It has diversified its product portfolio, which includes Viscose Staple Fibre (VSF), yarn, anhydrous sodium sulphate, sulphuric acid, carbon di-sulfide, etc. Through these five factories, the Group provides employment to more than 10,000 people in Indonesia. The company’s products are exported to countries across the globe.
The commercial production of VSF at IBR’s 60-hectare plant in Purwakarta, West Java, began in 1982. Over the years, the production of VSF has gone up from 48 tonnes to 578 tonnes a day. The end products are developed for international retailers such as H&M as well as for local retailers like Gajah Duduk. The Aditya Birla Group produces VSF in four countries of which its Purwakarta plant is the Group’s flagship VSF-producing plant. It is also the largest
Speaking about its engagement with Indonesia, IBR President Director, Mr. Mukul Agrawal says, “Indonesia and India are culturally very similar. So it was a natural choice for us to choose Indonesia as one of the first overseas destinations for the Group”. He adds, “We are the preferred supplier of VSF in Indonesia and in the markets we operate in. We are known for our quality product and services.”
The Group’s other companies in Indonesia have also achieved great success, both nationally and internationally. PT. Indo Raya Kimia, another Group company, is a leading producer of carbon disulphide. It enjoys the distinction of receiving the Zero Accident Award every year since 2002. Among the largest producers and exporters of yarn in Indonesia are the three yarn-spinning businesses of the Group.
“We have almost 18 percent of the market share in viscose yarn being traded globally,” says Mr. Kapil Agrawal, President Director of the Group’s Spinning business in Indonesia. “The users of these yarns are largely fabric manufacturers in apparels, home and technical textiles, carpets, and upholstery in automobiles. We connect with the customer in different forms during his daily routine”, he adds. According to him, Aditya Birla Group’s success in Indonesia as well as other geographies can be attributed to the inspiration and adherence to the Group’s core values of Integrity, Commitment, Passion, Seamlessness and Speed as enunciated by our Chairman, Mr. Kumar Mangalam Birla. “We have a strong process of identifying local talent and nurturing them through mentoring and development,” he says.
Focusing on people and building a strong team has been a priority at the Aditya Birla Group. The Group recently won the AON HEWITT Best Employer Award in Indonesia. This is a testament to the Group and reaffirms that it is one of the most preferred companies to work in Indonesia. IBR has a retention rate of over 98%, which indicates its long term association with its employees.
Commenting on the strong focus on Corporate Governance, Mr. Thomas Varghese, Business Head – Textiles, Acrylic Fibre & Overseas Spinning, says “Our core value of Integrity requires that we follow the highest standards in Corporate Governance and apply ethical business policies in conducting our business in Indonesia and any other country world-wide.”
Aditya Birla Group attributes much of this success to its commitment to excellence. Its Group Chairman, Mr. Kumar Mangalam Birla, believes in being globally competitive on all counts. “Our products should be in the top slot. We should be number one or number two in our business wherever we are present, and whichever market we are present, in whichever geography of that country we are present,”
Mr. Mukul Agrawal remarked, alluding to Mr. Birla’s vision.
Furthermore, he credits the Group’s success in Indonesia with its close attention to its employees and surrounding communities besides product excellence and superior customer service.
One of the cornerstones of all the Group’s businesses is their focus on CSR activities and working together with people in the nearby communities to better their quality of life. IBR’s partnership with the local government has been very rewarding. The company has helped provide better access to education, drinking water, building mosques, developing roads, making drains in villages, imparting vocational training, and improving the hygiene and health of the people here. In August 2016, IBR laid the foundation of yet another new pre-primary school, half a kilometer from its Kampung Cikuray factory in Cilangkap village. IBR has already built an elementary and a secondary school here.
The Group is very mindful of environmental conservation. Comments Mr. Dilip Gaur, the Group’s Business Director of the Pulp & Fibre Business - “We believe that placing Sustainability at the core of our business will help us maintain a competitive edge and in doing so create a better world”.
Elaborating on this Dr. Bir Kapoor, IBR’s COO for the Asia-Pacific region, avers “IBR continuously monitors its performance on various sustainability tools like the Higgs Index parameters and recycles and reprocesses waste,” PT. Indo Bharat Rayon’s and PT. Indo Raya Kimia’s plants have been designed with a control and monitoring system that ensures reliable, safe and eco-friendly operations. These units are working hard to continually reduce its carbon footprint on the environment.
“By combing sustainability forestry, sustainable logistics, responsible sourcing in the creation of Birla Spunshades dyed fibre, and by using learning and development tools, we are moving forward on Sustainability across the value chain,” says Mr. H. K. Agarwal, COO, Fibre Business.
The Group’s spinning business is a GRI 4 compliant company, working towards reducing carbon footprint, conserving water and lowering waste. It engages with various stakeholders like suppliers, customers and the community.
With its long standing presence in Indonesia, Aditya Birla Group is committed to the country’s growth story. The Group’s business model is based on long-term sustainability. “We look forward to continued investment and growth in Indonesia. We are proud to be partners in progress with the country in its exciting journey ahead”, concludes, Mr. Dilip Gaur.
