Kumar Mangalam Birla plans up to $30 billion investment despite global uncertainties

Kumar Mangalam Birla plans to invest as much as $30 billion over the next two to three years, undeterred by geopolitical tensions, trade uncertainties and shifting demand across global markets.

The chairman of the Aditya Birla Group acknowledged that the volatile business environment has made investment decisions more challenging for the conglomerate, which operates across sectors ranging from metals and cement to financial services and retail.

“You either grow or you go down; you can’t stay in a state of equilibrium.” Birla said at the Bloomberg New Economy Forum in New Delhi on Tuesday. The group is planning investments across its businesses in India and overseas, he said on the sidelines of the event.

“We are also increasing the investment in the US,” he said.

Businesses worldwide are navigating unpredictable US tariff and trade policies, the conflict in the Middle East and changing demand patterns across major economies. These developments have added complexity to capital allocation decisions for companies with significant international operations.

The Aditya Birla Group operates across 41 countries and generated $72 billion in revenue in the year ended March. As of June, it derived 42% of its sales from outside India, leaving its businesses exposed to developments across multiple markets.

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“Because we are a global organization, when I read about a significant global event in the newspapers, I can be sure that it will impact us somewhere,” Birla said.

The Mumbai-based conglomerate has interests spanning Hindalco Industries, UltraTech Cement, Aditya Birla Capital and Aditya Birla Fashion and Retail. It is also expanding into adjacent businesses, including paints through Birla Opus, building materials through the Birla Pivot marketplace and jewellery through Indriya under Novel Jewels.

The group has also acquired Shell Plc’s renewable energy assets for $1.8 billion and launched Ultravolt, its electric cables brand.

US expansion and AI investments

A significant portion of the planned investment includes a $5 billion outlay for Novelis’ greenfield aluminium recycling and rolling plant in Bay Minette, Alabama, in the US. The project forms part of the group’s broader investment plans as it expands its international operations.

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However, Birla indicated that the group would be more measured in deploying capital towards artificial intelligence, as businesses assess how the technology fits their individual requirements.

The conglomerate will make investments in AI “a little more gradually than we thought a year ago,” Birla said. “I don’t think we need to act out of a sense of FOMO.”

According to Birla, adopting AI presents a different challenge from navigating geopolitical risks, as businesses within the group cannot follow a uniform strategy for implementing the technology.

The group’s investment plans therefore reflect a continued commitment to expansion, alongside a more cautious approach to emerging technologies amid an uncertain global business environment.

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