'We shouldn't...': Kumar Mangalam Birla explains why Rs 10000000 is not enough to start business today

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, believes starting a business today requires much more than Rs 1 crore. "Rs 1 crore is just not enough to start any business in today’s context," he remarked during a conversation on Nikhil Kamath's podcast. The Indian billionaire delved into topics ranging from leadership and entrepreneurship to family values, providing rare insights into his journey and management ethos.

Leadership Through Discipline and Trust

Birla described his leadership philosophy as rooted in discipline and trust, emphasizing the challenge of managing a workforce of 180,000 employees across the globe. Remarkably, he has maintained an almost unshakable composure over his career, losing his temper only 18 times in 29 years. "Getting angry in a corporate context means getting out of control," he explained, stressing the importance of trust in effective delegation.

When it comes to hiring, Birla relies on intuition combined with a thorough evaluation of a candidate’s track record and references. "It’s a gut feel," he said, adding that ambition is a key trait he seeks, particularly in team members with extensive experience.

Creativity at the Heart of Business

Birla shared his perspective on the creative demands of large-scale businesses. “The most creative thing you can do is build or run a business,” he said, highlighting the importance of innovation as businesses mature. According to him, leadership in any market is a priority, stating, "We only enter businesses where we can be number 1 or 2 in the foreseeable future." He also noted that as businesses grow, management shifts from being a science to an art, requiring a balance of consistency and creativity.

Startups and Strategic Growth

On the topic of startups, Birla offered a candid take on capital requirements. "Rs 1 crore is just not enough to start any business in today’s context," he reiterated, underscoring the importance of substantial investment. He highlighted trust as a critical factor in business success, citing the early success of his jewelry venture, where customers trusted the company with old gold exchanges.

Birla also discussed leveraging existing networks for growth, pointing to the Aditya Birla Group’s use of its cement dealer network to expand into the paint business, capitalizing on trends like real estate development and nuclear families.

A Life of Learning and Legacy

Birla’s entry into the corporate world came early. “I had a real-time MBA, sitting through my father’s meetings from the age of 18,” he recalled. At just 28, he assumed leadership of the group after his father’s passing, navigating initial challenges with a blend of relief and responsibility. Starting on the factory floor, he gained firsthand experience with financial controls and operations.

Family values play a central role in his life. Birla shared stories of his grandfather’s simple lifestyle and his great-grandfather’s advice about making independent decisions, lessons that have left a lasting impression on him.

Advice for Entrepreneurs

To aspiring entrepreneurs, Birla emphasized passion, teamwork, and consistency. "Do what you love doing, keep the passion going, and get together a great A-team," he advised. He also highlighted the importance of energized teams and balancing innovation with structured processes when scaling businesses.

On corporate responsibility, Birla stressed that giving back is a moral obligation rather than philanthropy. He recounted a story of a scholarship recipient whose life was transformed by the Birla Foundation, reaffirming his belief that charitable work should be discreet. "We shouldn’t document or publicize charitable work," he said, reflecting his family’s understated approach to philanthropy.

Birla’s insights paint a picture of a visionary leader who values creativity, discipline, and trust while staying deeply grounded in family traditions and social responsibility.