Legacy gives licence to exist; dynamism right to lead, says Kumar Mangalam Birla

CHENNAI: Aditya Birla Group chairman Kumar Mangalam Birla on Tuesday mixed nostalgia, humour and hard-earned boardroom lessons as he traced his family's ties with Tamil Nadu and the evolution of the diversified group to argue that enduring institutions are built not by legacy alone, but by purpose, long-term thinking, scale and the ability to reinvent themselves.

Delivering the keynote address at the 190th annual general meeting of the Madras Chamber of Commerce and Industry (MCCI), Birla struck a personal note by recalling that his name was chosen by his great-grandfather while he was in south India and that his mother, who grew up in Madurai, speaks fluent Tamil. Though he never learnt the language, he joked that he understood the emotion behind "Whistle Podu" before quipping that "Ee Sala Cup Namde" had finally become "a statement of fact."

Drawing parallels between MCCI's 190-year journey and the Aditya Birla Group's own evolution, he said institutions that successfully renew themselves across generations deserve as much admiration as start-ups. While the group's legacy stretches back more than 160 years, it is only 30 years since it became a unified brand in 1996 by integrating businesses with distinct histories under one identity. "The greatest strength of a legacy institution is its ability to remain forever young. Legacy may give you the licence to exist. But foresight and dynamism give you the right to lead," he said here on Tuesday.

He also said Grasim today has 10 business lines, a $20-billion topline and a combined market capitalisation exceeding $65 billion.

Birla distilled his experience into four principles. Purpose, he said, is "a gravitational force" that helps institutions outlive individuals, citing GD Birla's 1973 belief that companies should be judged by "how much the company cares", decades before CSR and ESG became corporate lexicons.

Long-term thinking, he said, was exemplified by Hindalco's $6-billion acquisition of Novelis, initially criticised as his "Waterloo moment" but now an $18-billion business.

On scale, he pointed to UltraTech Cement's rise to over 200 million tonnes of capacity (helped by the acquisition of the Chennai-based India Cements) making it the world's largest cement producer outside China. UltraTech added more than 50 million tonnes of capacity in FY25 and FY26 and increased operating cash flow by 50 per cent in FY26 despite global disruptions.

Responding to questions after his address, Birla said geopolitical conflicts and supply chain disruptions had reinforced the importance of resilient supply chains, deep customer relationships and onshoring.

He also expressed confidence that India could emerge as a global manufacturing hub, saying the country has the market, talent and resources, and that "the stars seem to be aligned" despite existing challenges. Manufacturing remains critical for employment generation, he noted.

On leadership, Birla said the Aditya Birla Group is "a people-run organisation" with high levels of delegation and empowerment, supported by rigorous leadership development and a strong corporate centre. "The institution lowers the personal cost of bold decision-making," he said, adding businesses should aspire to be No 1 or No 2 in their sectors while keeping a sharp focus on cash flows.

Meanwhile, A Viswanathan, president, Delphi TVS, assumed office as the new chief of MCCI after Chemplast Sanmar’s advisor Ramkumar Shankar’s term at the chamber came to an end.