“Rs 1 Cr Is Not Enough To Start Business”, Aditya Birla Group Chairman KM Birla, Here’s Why

Speaking on Nikhil Kamath’s podcast, Kumar Mangalam Birla, Chairman of the Aditya Birla Group, shared insights into leadership, business, and more.

The Indian billionaire, known for steering a global conglomerate with operations spanning 36 countries, reflected on his career, sharing lessons on discipline, trust, and the power of creativity in business.

“Rs 1 Crore Is Not Enough to Start a Business”

During the podcast, Birla highlighted the growing capital requirements for startups in today’s competitive landscape. “Rs 1 crore is just not enough to start any business in today’s context,” he stated.

Birla advised budding entrepreneurs to align their ambitions with India’s dynamic market trends while emphasizing the role of creativity in overcoming challenges. “The most creative thing you can do is build or run a business,” he said.

He also noted the unique challenges posed by larger businesses, adding, “When business grows larger, that’s when management turns from being a science into an art.” Creativity, according to Birla, becomes even more essential as businesses grow and traditional opportunities are exhausted.

On Leadership

Reflecting on his leadership journey, Birla shared that discipline and trust form the cornerstone of his management philosophy. Leading a workforce of 180,000 employees across the Aditya Birla Group, he emphasized the importance of measured decision-making.

“I’ve only lost my temper 18 times in 29 years,” he revealed, citing this as a principle to maintain control and foster trust. “Getting angry in a corporate context means getting out of control.”

Birla also discussed the role of gut instinct in hiring, stressing the importance of ambition and experience in building a strong team. “It’s a gut feel. Look at the track record, speak to them, do sound referencing,” he explained.

For him, ambition drives successful hiring decisions. “The key is to bring people on board who have more experience and can take the organization further.”

Business Philosophy: Be Number One or Two

Birla’s approach to business is guided by a relentless pursuit of market leadership. “We only enter businesses where we can be number one or two in the foreseeable future,” he stated.

On Entrepreneurship

Birla offered straightforward advice to aspiring entrepreneurs: “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 emphasized the need for agility in a rapidly changing business environment. “The world is changing rapidly. You need to tweak your business model to stay relevant,” he said.

Lessons from Family and Early Days

Birla’s entrepreneurial journey began early, working alongside his father. “I had a real-time MBA, sitting through my father’s meetings from the age of 18,” he recalled.

At the age of 28, Birla took over the reins of the Aditya Birla Group after his father’s untimely passing. Reflecting on that pivotal moment, he described his emotions as a mix of relief and responsibility.

Birla credited his family’s deep-rooted values for shaping his philosophy. Sharing a story about his grandfather, he said, “Despite his success, he kept only five kurtas and three suits even in his later years.” This simplicity, coupled with his great-grandfather’s advice to “make your own decisions,” has had a lasting impact on his leadership style.

Corporate Responsibility: A Duty, Not Philanthropy

Birla stressed the importance of corporate responsibility, seeing it as a moral obligation rather than philanthropy. “Giving back is not philanthropy; it’s something you ought to be doing,” he asserted.

He recounted a moving story of a girl who benefited from a scholarship under the Birlas’ foundation, highlighting the transformative impact of such initiatives. However, Birla emphasized that charitable work should remain understated. “We shouldn’t document or publicize charitable work,” he said.

Consistency ; The Soft Power

Consistency, Birla noted, is a subtle yet powerful tool for long-term success. “The power of consistency is something that we don’t always value. That, in my experience, is very important,” he remarked.

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