“You can't stop growing...for me capital allocation has been a challenge because you have a whole lot of new demands on your capital which we know about but at the same time...you keep growing; you either grow or you go down,” he said.
Birla also pointed to geopolitical developments as a significant challenge for companies with operations spanning multiple countries. As businesses become increasingly interconnected, developments in one part of the world can have consequences for operations elsewhere, often in ways that are difficult to anticipate.
“We are a global organisation and when I read about a significant global event in the newspapers I can be sure that it will impact us somewhere in the business, somewhere in the world which I may not even sort of understand the full impact of when I'm reading it in the papers.”
MUST WATCH: KUMAR MANGALAM BIRLA'S GROWTH MANTRA - WHAT’S HOT
Employee collaboration and engagement are key
Against this backdrop, Birla stressed the importance of collaboration among employees and a broader understanding of how global developments influence businesses. He said companies must encourage teams to learn from one another and recognise the connections between events that may initially appear unrelated.
At the same time, businesses must remain focused on improving the underlying competitiveness of their individual operations, he said. Maintaining employee motivation and engagement is equally important to navigating uncertainty and sustaining organisational performance.
“At the end of the day, it's people who make the difference and I think keeping them going and keeping them enthused and energetic is an equally important task,” he said.
Manufacturing strategy centres on cost and scale
Birla also highlighted cost competitiveness and economies of scale as key priorities for the group's manufacturing businesses. He said the group aims to position its manufacturing operations among the world's most cost-efficient producers, allowing them to compete effectively in global markets.
“I think it's about building the inherent strength of the business. So, for example, in all our manufacturing businesses, we'd be in the bottom decile of the cost curve globally. So, amongst the 10% lowest cost producers, it's about scale,” he added.
His remarks underline the group's approach of balancing continued investment with operational efficiency, employee engagement and resilience amid global uncertainty.