“Rs 1 crore is just not enough to start any business in today’s context,” said Kumar Mangalam Birla, Chairman of Aditya Birla Group, during a candid interview on Nikhil Kamath’s podcast.
Offering a peek into his business philosophy, Birla shared insights on leadership, entrepreneurship, and India’s evolving market landscape.
In a tough reality check for aspiring entrepreneurs, Birla emphasized the importance of scale in India’s competitive business environment. “How much can you do with just Rs 1 crore? Scale is critical, and significant capital is essential to make an impact,” he noted, adding, “I’d rather just keep it in the bank if that’s all I had.”
Birla’s advice to budding entrepreneurs was straightforward: “Do what you love doing, keep the passion alive, and build a great team. A strong team is critical because no leader can achieve much alone.” He also underscored the importance of agility in business, saying, “The world is changing rapidly. You need to tweak your business model to stay relevant.”
Discussing the group’s diversification from textiles to cement to jewelry, Birla shared the strategy behind seizing opportunities in emerging sectors like financial services and retail.
“As India opened up new spaces for private enterprise — like mutual funds and insurance — we didn’t want to miss those opportunities. It’s about aligning with national trends and leveraging our strengths as a conglomerate.”
On leadership, Birla revealed a unique sense of discipline. “I’ve only lost my temper 18 times in 29 years,” he said, viewing anger in a corporate setting as counterproductive. Trust, he added, is the foundation of delegation, while gut instinct plays a crucial role in hiring decisions. “Look at the track record, speak to them, do sound referencing.”
Reflecting on creativity, he said, “The most creative thing you can do is build or run a business.” For Birla, leadership means striving to be number one or two in every market.
Birla also touched on corporate responsibility, seeing it as a duty rather than philanthropy. “Giving back is something you ought to do,” he said, recounting how his group’s scholarship programs have changed lives.
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