AB Group gears up for a mega rejig, aims to focus on core biz

Aditya Birla Group is gearing up for a rejig and is realigning its business verticals such as Grasim, AB Nuvo and AB Money, according to the people in the know of the group. The aim is to focus on core assets, while diversifying and expanding into growth sectors, reports Kritika Saxena.

Over the next 2-3 weeks, executives of the group are likely to discuss and decide on the future course of action.

People aware of the development say Aditya Birla Group is likely to demerge all of its non-financial businesses such as telecom and agriculture, cement into a separate entity. This holding entity will be merged in to Grasim at a later date, they say.

While Aditya Birla Group declined to comment stating it doesn’t comment on market speculation, SP Tulsian of sptulsian.com said that there is still a lot of overlapping of AB Group’s verticals despite multiple restructuring exercises in the past 6-7 years. This sort of restructuring exercise has been warranted for a long time, he said.