2007-08 - Aditya Birla Nuvo, Ltd

MANAGEMENT’S DISCUSSION AND ANALYSISOVERVIEWIndia continued to remain as one of the fastest growing economies in the world. Your Company has postedgrowth-oriented results during the year keeping momentum with the Indian economy despite challengingconditions of surge in commodity prices that posed inflationary threats, appreciation of the Indian Rupeethat clouded exports prospects, and hardening of interest rates.STRATEGIC MOVESYour Company continued its growth journey during the year, and took many strategic steps to strengthen itsfinancials and boost the growth of new age businesses. All the businesses are progressing well on thedesigned path.• Telecom business is few steps away from Pan India presence while growth in existing circles is beingaccelerated through widening of network.• Financial services businesses are regaining market share on the back of expanded distribution reach.• BPO business is executing integration of Transworks-Minacs and building global delivery capacitiestowards profitable growth, amidst challenges of US Dollar weakening and slows down in US.• Branded garments business is building sizeable world class presence in apparel retailing.• Moreover, capacities in various value businesses are being expanded to capitalise on the growthopportunities, besides optimum utilisation of the resources.Preferential Warrants Offer to PromotersTo augment funds to meet, your Company’s Investments/Capital Expenditure requirements for its existing aswell as new growth opportunities, to enhance long term resources and thereby strengthening the financialstructure, the shareholders of your Company, in the Extra Ordinary General Meeting, held on 6 th February, 2008,have approved the issue of 20,500,000 Warrants through Preferential Offer to Promoters/Promoter Group at aprice of Rs. 2,007.45 per warrant, each warrant being convertible over a period of 18 months from the date ofallotment into one equity share of Rs. 10/- each at a premium of Rs. 1,997.45 per share. Up until 31 st March, 2008,a sum of Rs. 411.5 Crores had already been received on application. Out of the above, the Promoters/PromoterGroup have exercised their option on 1,700,000 warrants on 31 st March, 2008, and the equity shares against thesame have been allotted against receipt of Rs. 307.1 Crores, net of application money.With these investments and growth initiatives, Aditya Birla Nuvo has achieved a balanced business portfolio.Growth BusinessesValue BusinessesGarmentsTelecom(31.78%)BPO(88.3%)FinancialServicesIT Services(70.4%)RayonCarbonBlackInsulators Fertilisers TextilesApparelRetail (100%)ContractExports (100%)Life Insurance(74%)*Asset Management(50%)*Distribution(49.99%)*Capital MarketInsurance AdvisoryRepresents SubsidiariesRepresents JV’s/Associates* JV with Sunlife Financial, Canada(11)