The amalgamation of Aditya Birla Finance Ltd (ABFL) with its parent Aditya Birla Capital Ltd (ABCL) with effect from April 1, 2025, will lead to rationalisation and simplification of group structure, improved financial stability, and increased operational efficiency, according to ABCL.
ABCL, in a statement, said it will be converted from a Core Investment Company to an operating NBFC (non-banking finance company), and this will create a unified larger entity with greater financial strength and flexibility enabling direct access to capital.
This will also help the Company maximise its share of opportunities by efficient utilisation and allocation of capital, it added. ABFL is a wholly-owned NBFC subsidiary of ABCL.
“The amalgamation has resulted in reduction of legal entities and simplification of the group structure of ABCL…The amalgamation has led to consolidation of businesses and operational synergies, resulting in expansion and long-term sustainable growth. This will enhance the value for various stakeholders of the Company.
“The amalgamation has led to seamless implementation of policy changes and reduction in the multiplicity of legal and regulatory compliances,” per the statement.
Kumar Mangalam Birla, Chairman Aditya Birla Group, noted that in line with the nation’s growth, Aditya Birla Capital has significantly expanded in scale and size, establishing itself as a core growth engine for the Aditya Birla Group.
Accelerate growth
“I am confident that the combined strength of our diversified financial products and services will enable us to accelerate growth, drive financial inclusion and be a key contributor to India’s vast economic growth opportunities,” he said.
The Board of Directors of ABCL on Monday approved the appointment of Vishakha Mulye as the MD & CEO and Rakesh Singh as the Executive Director and CEO (NBFC) of the amalgamated entity. These appointments are subject to regulatory and other requisite approvals.
Mulye said, “With a simplified corporate structure, we now have better access to capital to drive operational synergies, long-term growth and enhanced value creation for all stakeholders….”
As of December-end 2024, ABCL’s aggregate assets under management of over ₹5.03 lakh crore, include a consolidated lending book of over ₹1.46 lakh crore and gross written premium of ₹16,942 crore in Life and health insurance businesses in nine months of FY25.
