Aditya Birla Group’s financial verticals to grow 10-22% in 3-5 years
Aditya Birla Group’s key financial verticals, under Aditya Birla Capital, are expected to grow at a CAGR of 19-21 per cent in three-five years, according to Chairman Kumar Mangalam Birla.
“The financial services sector is expected to outpace GDP growth by 2X in the next five years. The three largest components —credit, investments and insurance — are expected to grow at a CAGR of 19-21 per cent, 20-22 per cent, and 10-12 per cent, respectively over the next three-five years,” Birla said.
Birla was speaking at the launch of the group’s omni-channel D2C platform Aditya Birla Capital Digital (ABCD), wherein it aims to acquire over three crore new customers in three years.
Aditya Birla Capital CEO, Vishakha Mulye, said that the platform has been developed and built at a cost of ₹100 crore over the past year and is expected to help double the company’s customer base in three years.
Digital footprint
The platform offers 22 products and services, including lending, insurance and investment businesses. It also has in-house products such as Portfolio Consolidator, Spend Analyzer, Digital Health Assessment and Payment solutions, among others.
It is expected to help Aditya Birla Capital augment its digital footprint, acquire customers digitally at scale, cross-sell and up-sell products and services, and become a full-stack financial services provider, Birla said.
“I am certain that our large ABG ecosystem of employees, customers, distributors and channel partners will benefit from this platform which will act as a growth catalyst across businesses,” he said. The company has been testing the platform within the group ecosystem for the last several months and has now opened it up to the public.
Group ecosystem
The group, under the flagship UltraTech Cement, had 1.5 lakh dealers and retailers, whereas the recently-launched paints business is expected to have over 50,000 channel partners. The fashion and retail business has a network over 1,500 franchisee partners and 1,000 sourcing vendors, and the other manufacturing businesses have a partner vendor ecosystem of over 50,000. The overall MSME ecosystem comprises more than 2.5 lakh partners, and “is a source of huge competitive advantage”. It also over 25 crore customers across its 14 business verticals.
The growth across businesses has been aided by expansion in the branch network, with Aditya Birla Capital adding over 500 branches in the last two years, taking the total to about 1,500 branches serving 3.5 crore customers, Birla said, adding that Aditya Birla Capital has emerged as a key growth engine for the group and this seems to be a “coming of age moment” for the company.
Aditya Birla Capital has over ₹4-lakh crore in AUM. Consolidated revenue grew 22 per cent in 9M FY24, with profit-after-tax growing 44 per cent during this period.