“Rs. 1 crore is insufficient to launch a business in today’s landscape,” remarked Indian billionaire Kumar Mangalam Birla.
Birla shared these insights during an interview on Nikhil Kamath’s podcast, where he reflected on his leadership style, business mindset, and personal experiences.
He discussed his prosperous journey, revealing his methods for steering a global conglomerate and his perspectives on entrepreneurship and family values.
Notably, Birla maintains a precise count of the occasions he has lost his temper, stating, “I’ve lost my temper only 18 times in 29 years, as a management principle.”
The seasoned Indian entrepreneur believes that “expressing anger in a corporate setting leads to losing control,” highlighting the significance of trust in effective delegation.
Birla also elaborated on his hiring philosophy, mentioning that when it comes to external candidates, his judgement relies on intuition. “It’s a gut feel. Review the track record, communicate with them, and conduct thorough referencing.”
For Birla, the foundation of a strong team rests on ambition, which he defines as the drive to involve people with greater expertise.
His business approach is characterised by a relentless quest for leadership within any market he enters. “We only pursue ventures where we can achieve the number 1 or 2 position in the near future.”
Birla presented an unconventional view, asserting that larger businesses demand increased creativity to prosper, stating, “all easy opportunities have been utilised.” He regards creativity as vital in business, explaining, “The most imaginative endeavour is to establish or operate a business.”
Reflecting on evolving business dynamics, he remarked, “As a business expands, management shifts from being a science to becoming an art.”
He underscored the necessity of consistency, which he termed the “soft power of consistency,” accentuating its crucial role in attaining long-term success.
When discussing the startup ecosystem, Birla advised on funding needs, stating that Rs. 1 crore is not enough to start a business today.
He illustrated how trust serves as a fundamental element in building a successful enterprise, recalling how his jewellery business thrived within its first month through a customer base that exchanged old gold.
Birla recognised private equity and venture capital as credible avenues for business development but highlighted that they require distinct skill sets.
He detailed Aditya Birla Group’s strategy of utilising existing networks, such as the cement dealer network, to grow their paint business, taking advantage of the real estate boom and increasing nuclear families.
Birla’s entrepreneurial career commenced early when he began collaborating with his father. “I received a practical MBA by attending my father’s meetings from the age of 18.”
Upon taking charge of the Aditya Birla Group at the age of 28 following his father’s unexpected death, he described his initial feelings as a blend of relief and a sense of duty.
Looking back on his early experiences, he recounted starting on the factory floor, acquiring knowledge of financial controls firsthand.
Birla also touched upon his family’s strong values, reminiscing how his grandfather, despite his achievements, led a modest lifestyle. “He owned merely 5 kurtas and 3 suits even in his later years.”
Sharing wisdom from his great-grandfather, Birla encouraged individuals to make their own decisions, a lesson that profoundly influenced him from a young age.
His advice for aspiring entrepreneurs is straightforward: “Engage in what you love, maintain your passion, and assemble a formidable A-team.”
Birla highlighted the significance of consistency in leadership. “The impact of consistency is often underestimated. In my experience, it is incredibly important,” he articulated.
Concerning business expansion, Birla stated, “To achieve growth, you must have motivated teams.”
He advocates for a balance between adherence to structure and innovation, particularly when scaling businesses.
The Aditya Birla Group Chairman also underscored the importance of corporate responsibility, declaring, “Giving back is not philanthropy; it’s a responsibility you should embrace.”
Birla shared an inspiring story about a girl benefitting from a scholarship provided by the Birlas’ foundation.
His philosophy on family philanthropy is clear: “We should refrain from documenting or publicising charitable efforts,” he remarked.
