the Aditya Birla Group. What are your views on the business portfolio adopted by the group? (7 marks) Aditya Birla Group is one of the first multinational corporations in India. Its headquarter is located in Mumbai with many others operations in different parts of the world such as in Asia (Thailand, Singapore, Myanmar, Laos, Indonesia, Philippines, China…), Europe (UK, Germany, Hungary, Italy, France, Luxembourg, Switzerland…), America (US, Brazil…). Throughout their growing, Aditya Birla have
an industrial, financial and commercial center. In the city there are industries such as the textile, petroleum, automotive, food, machinery, metals and electronics. In this city the largest industrial conglomerates are located such as Godrej, Aditya Birla Group, Tota and Sons. (“Cities of the World”) Mumbai is important center
It leads to reduction of transportation costs as the common ownership results in closer geographic proximity. The transaction costs can be controlled if a firm acquires the other firms in the vertical chain, then one division of the same company will transfer goods to other divisions. So, transaction costs in form of transport, cost of negotiation, cost of control etc. will be eliminated. The overall average cost of the firm will decrease because if the divisions are under same management control