KM Birla, the chairman of the Aditya Birla Group, said on Saturday that his ancestors embraced the socio-economic concept of trusteeship. Speaking at the Hindustan Times Leadership Summit, the industrialist elaborated on the concept, saying companies are not just symbols of capitalism but also “institutions of collective prosperity”.
The business icon called his conglomerate a people’s organisation.
“We are a people’s organisation, and we truly are. People feel empowered and accountable. People know we invest in them. It gives a different sense of commitment,” he said in a conversation with HT’s editor-in-chief, R Sukumar.
KM Birla said that the ethos of his great-grandfather, GD Birla, have been passed down through generations and are deeply ingrained in the organisation.
The industrialist said that more than 4,000 people have been associated with him for twenty years or more, bringing continuity in the organisation.
Birla also said that nothing significant can be achieved by taking shortcuts.
“In the last thirty years of my being there, I don’t think we have achieved anything significant by taking shortcuts. Whatever we have achieved, we have gone through the rough and tumble of it,” he said.
KM Birla said that their flagship company, Grasim, was founded ten days after India’s independence by his great-grandfather, GD Birla. He added that the partition had just taken place, and large swathes of cotton-growing land had been transferred to Pakistan.
The desire at that time was to become self-sustaining, Birla said, adding that the birth of the business was based on national priorities.
He said that infrastructure will be a major area of investment if the country is to grow at 7-8% and experience multi-decade growth. He emphasised that it is clear metals and cement will be required in significant quantities to support this growth.