“Rs 1 crore is not enough…”: KM Birla shares harsh realities about starting a business in India

“Rs 1 crore is not enough to start any business in today’s context,” said Kumar Mangalam Birla, Chairman, Aditya Birla Group, during a candid interview on Nikhil Kamath’s podcast.

Giving a glimpse into his business philosophy, Birla shared insights on leadership, entrepreneurship and the evolving market landscape in India.

In a tough reality check for aspiring entrepreneurs, Birla emphasized the importance of expansion in India’s competitive business environment. “How much can you do with just Rs 1 lakh crore? Size is crucial and big capital is necessary to make an impact,” he noted, adding: “I would rather keep it in the bank if that’s all I have.”

Birla’s advice to budding entrepreneurs was clear and straightforward: “Do what you love to do, keep your passion, and build a great team. Having a strong team is crucial because no leader can achieve much alone.” He also stressed the importance of flexibility in business, saying : “The world is changing rapidly. You need to adjust your business model to stay relevant.”

Discussing the diversification of the group from textiles to cement to jewellery, Birla shared the strategy behind capturing opportunities in emerging sectors such as financial services and retail.

“As India opened up new spaces for private ventures – such as mutual funds and insurance – we did not want to miss these opportunities. It is about aligning with national trends and leveraging our strengths as a group.”

In terms of leadership, Birla revealed a unique sense of discipline. “I have only lost my temper 18 times in 29 years,” he said, considering that anger in the company environment is counterproductive. He added that trust is the basis of delegation, while intuition plays a crucial role in hiring decisions. “Look at their track record, talk to them, and make sound references.”

“The most creative thing you can do is build or run a business,” he said, thinking about creativity. For Birla, leadership means striving to be number one or two in every market.

Birla also touched on corporate responsibility, seeing it as a duty and not charity. “Giving back is something you have to do,” he said, recounting how his group’s scholarship programs have changed people’s lives.