A REPORT ON INTERNSHIP PROGRAME AT ADITYA BIRLA CAPITAL

Submitted in partial fulfillment of the requirements of the award of degree of

Master of Business Administration of University Of Kerala

Submitted by

ANANTHU R
Reg. No: 5951845012
Batch 2018-2020

Under the guidance of

FACULTY GUIDE COMPANY GUIDE

DR. PRASANTH MR. BINEESH M
DIRECTOR BRANCH MANAGER
IMT PUNNAPARA , ALAPPUZHA ADITYA BIRLA SUN LIFE MUTUAL FUNDS

INSTITUE OF MANAGEMENT AND TECNOLOGY UNDER CO-OPERATIVE ACADMEY

OF PROFESSIONAL
EDUCATION (CAPE) CAPE CAMPUS, VADACKAL PO, ALAPPUZHA
2018-2020
ESTABLISHED BY GOVERMENT OF KERALA

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 DECLARATION

I hereby declare that internship report entitled “internship program at ADITYA BIRLA
CAPITAL” submitted by me for partial fulfillment of the award of the degree of master
administration of University of Kerala is own work. The report has not been submitted for the award
of any other degree of this university or any other university

Place : ANANTHU R
Date :

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 ACKNOWLEDEMENT

First and foremost, I convey my reverential salutation of the almighty God for enabling me to take up
and complete this internship.
I would to express my deep sense of gratitude to my faculty guide, DR. Prasanth K M, who has been
constant inspiration throughout the work.
I wish to express my sincere gratitude to Director Prasanth , IMT Punnapara , Alappuzha for all the
support
I wish to express my profound gratitude to my internship guide , Mr Bineesh M sir .for completing this
study in their esteem organization . I extend my sincere gratitude to the management and staff of
ADITYA BIRLA CAPITAL Mutual funds Kochi. For their helps and support throughout the project.

ANANTHU R

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 CONTENTS

CONTENTS PAGE NO

Chapter 1.

1.1 Introduction
1.2 Objectives of the study
1.3 Significance of the study
1.4 Scope of the study
1.5 Limitations
1.6 Chapterisation

Chapter 2
2.1 Industry Profile
2.2 Company Profile
2.3 Corporate History
2.4 Strategic Intent
2.5 Products
Chapter 3
3.1 Organizational structure
3.2 Department profile and Activities
3.4 Functional area
3.5 HR Deparment
3.6 Marketing Department

Chapter 4
4.1 Tasks assigned during internship
4.2 Learning Summarization (As an intern)
4.3 Conclusion
4.4 Bibliography

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1.1 INTRODUCTION TO THE STUDY

A mutual fund is a professionally managed investment fund that pools money from many investors to
purchase securities.

Mutual funds have advantages and disadvantages compared to direct investing in individual securities.
The primary advantages of mutual funds are that they provide economies of scale, but also a higher
level of diversification and also they are managed by professional investors.

Primary structures of mutual funds include open-end funds, unit investment trusts, and closed-end
funds. Exchange-traded funds (ETFs) are open-end funds or unit investment trusts that trade on an
exchange. Some close- ended funds also resemble exchange traded funds as they are traded on
stock exchanges to improve their liquidity.

This is performance analysis of the mutual funds in India with reference to Aditya Birla Sunlife
Mutual Funds. After referring this information about the same a person can be informed about the
current status of the mutual funds regarding investments in the same.
It is hoped that the users will benefits by this study and recommendations and suggestions will be
an added advantage

Aditya Birla Group is a global player, headquartered in Worli, Mumbai, India. They have presence in
34 countries with a healthy human capital of 120,000 employees worldwide. The group was founded
by Seth Shiv Narayan Birla in 1857. Aditya Birla group scored a revenue of 4,830 crores USD in FY
2018-19.

Aditya Birla Capital is one of their proud subsidiaries of financial services wing. As per records,
Aditya Birla Financial Services Group is guided by parent company Aditya Birla Nuvo which is now
acquired by Grasim Industries which is considered as a flagship venture by them. It’s another similar
subsidiaries include

 Aditya Birla Finance Limited

 Birla Sun Life Insurance

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  Birla Sun Life Asset Management

 Aditya Birla Insurance Brokers Ltd.

 Aditya Birla Money

 Aditya Birla MyUniverse Ltd.

 Aditya Birla Money Insurance Advisory Services Limited

 Aditya Birla Stressed Asset AMC Private Limited

 Birla Sun Life Trustee Company Pvt. Ltd.

Aditya Birla Sun Life AMC Limited is a joint venture between the Aditya Birla Group and the Sun
Life Financial Inc. of Canada. Having a total AUM of Rs.2540 billion for the quarter end June
30th, 2019, ABSLMF can be considered as one of the leading Fund Houses in India. ABSLMF has
an impressive mix of reach, a wide range of product offerings across equity, debt, balanced as well
as structured asset classes, sound investment performance and over 7 million investor folios as of
June 30th, 2019.

Top competitors for Aditya Birla in mutual fund industry are ICICI Mutual Funds, SBI
Mutual Funds, Tata Mutual Funds, DSP Blackrock Mutual Funds, L&T Mutual Funds etc. The point
where Aditya Birla holds on market on industry is the quality and promptness of service provided.
Also their market holdings are quite transparent and convincing. Aditya Birla Mutual Funds is more
focused into Tax Saver funds. Its recent time, Aditya Birla started focusing more on Sector Funds
efficiently.

1.2 Objectives of the study

 To understand the organization structure of the company

 To understand different department their functional and activity

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  To apply concept learned in class room out of comfort zone and experience real-life learning.

 To develop personnel and professional skill and also confidence in work

1.3 SIGNIFIANCE OF THE STUDY

The scope of the study is intended to acquire experience of overall functioning of the organization. It provides
an opportunity to see the practical constrains faced by the managers while putting theory into practice theory. It
also helps to understand the functioning of various departments.

1.4 SCOPE OF THE STUDY

The internship program helps to get a practical knowledge about the functioning of the company and their
department which a quite different from theoretical study it also cover its strength, weakness, opportunity and
threat in the organization.it helps to gain knowledge about the real life situation faced by the managers on each
stage of work and how they tactically solve the problem encountered by them

1.5 LIMITATION OF THE STUDY

 An extensive study could not be undertaken due to lack of time.

 The study is limited to my knowledge and experience.
 Employee were busy in their work , so they could not give much information
 There are several matches which are kept as confidential matters that are not exposed to me

1.6 CHAPTERISATION

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Chapter 1: Introduction

Introduction chapter gives an idea about the organization where the study has conducted, the nature of the
study, significance of the study, and its objectives and limitations.

Chapter 2: Industry profile and company profile

In this chapter give over all view about the industry and company its growth from time to time

Chapter 3: Organization structure department profile and activities

This chapter gives the organization structure, growth, objectives and other activities of Mutual funds. And also
gives the details about the different functional departments in the organization and its responsibilities.

Chapter 4: Task and learning summarization

In this chapter give task and learning summarization.

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 CHAPTER 2:

INDUSTRY PROFILE & COMPANY PROFILE

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2.1 Industry Profile
2.1.1 What Is a Mutual Fund?

A mutual fund is a type of financial vehicle made up of a pool of money collected from many
investors to invest in securities like stocks, bonds, money market instruments, and other assets.
Mutual funds are operated by professional money managers, who allocate the fund's assets and
attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is
structured and maintained to match the investment objectives stated in its prospectus.

Mutual funds give small or individual investors access to professionally managed portfolios of
equities, bonds and other securities. Each shareholder, therefore, participates proportionally in
the gains or losses of the fund. Mutual funds invest in a vast number of securities, and
performance is usually tracked as the change in the total market cap of the fund—derived by the
aggregating performance of the underlying investments.

KEY TAKEAWAYS

 A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds,

or other securities.
 Mutual funds give small or individual investors access to diversified, professionally
managed portfolios at a low price.
 Mutual funds are divided into several kinds of categories, representing the kinds of
securities they invest in, their investment objectives, and the type of returns they seek.
 Mutual funds charge annual fees (called expense ratios) and, in some cases, commissions,
which can affect their overall returns.
 The overwhelming majority of money in employer-sponsored retirement plans goes into
mutual funds.

2.1.2 Understanding Mutual Funds

Mutual funds pool money from the investing public and use that money to buy other securities,
usually stocks and bonds. The value of the mutual fund company depends on the performance of

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the securities it decides to buy. So, when you buy a unit or share of a mutual fund, you are
buying the performance of its portfolio or, more precisely, a part of the portfolio's value.
Investing in a share of a mutual fund is different from investing in shares of stock. Unlike stock,
mutual fund shares do not give its holders any voting rights. A share of a mutual fund represents
investments in many different stocks (or other securities) instead of just one holding.

That's why the price of a mutual fund share is referred to as the net asset value (NAV) per share,
sometimes expressed as NAVPS. A fund's NAV is derived by dividing the total value of the
securities in the portfolio by the total amount of shares outstanding. Outstanding shares are those
held by all shareholders, institutional investors, and company officers or insiders. Mutual fund
shares can typically be purchased or redeemed as needed at the fund's current NAV, which—
unlike a stock price—doesn't fluctuate during market hours, but is settled at the end of each
trading day.

The average mutual fund holds hundreds of different securities, which means mutual fund
shareholders gain important diversification at a low price. Consider an investor who buys only
Google stock before the company has a bad quarter. He stands to lose a great deal of value
because all of his dollars are tied to one company. On the other hand, a different investor may
buy shares of a mutual fund that happens to own some Google stock. When Google has a bad
quarter, she loses significantly less because Google is just a small part of the fund's portfolio.

2.1.3 How Mutual Funds Work

A mutual fund is both an investment and an actual company. This dual nature may seem strange,
but it is no different from how a share of AAPL is a representation of Apple Inc. When an
investor buys Apple stock, he is buying partial ownership of the company and its assets.
Similarly, a mutual fund investor is buying partial ownership of the mutual fund company and its
assets. The difference is that Apple is in the business of making smartphones and tablets, while a
mutual fund company is in the business of making investments.

Investors typically earn a return from a mutual fund in three ways:

1. Income is earned from dividends on stocks and interest on bonds held in the fund’s
portfolio. A fund pays out nearly all of the income it receives over the year to fund
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 owners in the form of a distribution. Funds often give investors a choice either to receive
a check for distributions or to reinvest the earnings and get more shares.
2. If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.
3. If fund holdings increase in price but are not sold by the fund manager, the fund's shares
increase in price. You can then sell your mutual fund shares for a profit in the market.

If a mutual fund is construed as a virtual company, its CEO is the fund manager, sometimes
called its investment adviser. The fund manager is hired by a board of directors and is legally
obligated to work in the best interest of mutual fund shareholders. Most fund managers are also
owners of the fund. There are very few other employees in a mutual fund company. The
investment adviser or fund manager may employ some analysts to help pick investments or
perform market research. A fund accountant is kept on staff to calculate the fund's NAV, the
daily value of the portfolio that determines if share prices go up or down. Mutual funds need to
have a compliance officer or two, and probably an attorney, to keep up with government
regulations.

Most mutual funds are part of a much larger investment company; the biggest have hundreds of
separate mutual funds. Some of these fund companies are names familiar to the general public,
such as Fidelity Investments, The Vanguard Group, T. Rowe Price, and Oppenheimer Funds.

2.1.4 Types of Mutual Funds

Mutual funds are divided into several kinds of categories, representing the kinds of securities
they have targeted for their portfolios and the type of returns they seek. There is a fund for nearly
every type of investor or investment approach. Other common types of mutual funds include
money market funds, sector funds, alternative funds, smart-beta funds, target-date funds, and
even funds-of-funds, or mutual funds that buy shares of other mutual funds.

2.1.4.1 Equity Funds

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The largest category is that of equity or stock funds. As the name implies, this sort of fund
invests principally in stocks. Within this group are various sub-categories. Some equity funds are
named for the size of the companies they invest in: small-, mid- or large-cap. Others are named
by their investment approach: aggressive growth, income-oriented, value, and others. Equity
funds are also categorized by whether they invest in domestic (U.S.) stocks or foreign equities.
There are so many different types of equity funds because there are many different types of
equities. A great way to understand the universe of equity funds is to use a style box, an example
of which is below.

The idea here is to classify funds based on both the size of the companies invested in
(their market caps) and the growth prospects of the invested stocks. The term value fund refers to
a style of investing that looks for high-quality, low-growth companies that are out of favor with
the market. These companies are characterized by low price-to-earnings (P/E) ratios, low price-
to-book (P/B) ratios, and high dividend yields. On the other side of the style, spectrum
are growth funds, which look to companies that have had (and are expected to have) strong
growth in earnings, sales, and cash flows. These companies typically have high P/E ratios and do
not pay dividends. A compromise between strict value and growth investment is a "blend,"
which simply refers to companies that are neither value nor growth stocks and are classified as
being somewhere in the middle.

The other dimension of the style box has to do with the size of the companies that a mutual fund
invests in. Large-cap companies have high market capitalizations, with values over $5
billion. Market cap is derived by multiplying the share price by the number of shares
outstanding. Large-cap stocks are typically blue-chip firms that are often recognizable by
name. Small-cap stocks refer to those stocks with a market cap ranging from $200 million to $2
billion. These smaller companies tend to be newer, riskier investments. Mid-cap stocks fill in the
gap between small- and large-cap.

A mutual fund may blend its strategy between investment style and company size. For example,
a large-cap value fund would look to large-cap companies that are in strong financial shape but
have recently seen their share prices fall and would be placed in the upper left quadrant of the
style box (large and value). The opposite of this would be a fund that invests in startup

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technology companies with excellent growth prospects: small-cap growth. Such a mutual fund
would reside in the bottom right quadrant (small and growth).

2.1.4.2 Fixed-Income Funds

Another big group is the fixed income category. A fixed income mutual fund focuses on
investments that pay a set rate of return, such as government bonds, corporate bonds, or other
debt instruments. The idea is that the fund portfolio generates interest income, which then passes
on to shareholders.

Sometimes referred to as bond funds, these funds are often actively managed and seek to buy
relatively undervalued bonds in order to sell them at a profit. These mutual funds are likely to
pay higher returns than certificates of deposit and money market investments, but bond funds
aren't without risk. Because there are many different types of bonds, bond funds can vary
dramatically depending on where they invest. For example, a fund specializing in high-yield junk
bonds is much riskier than a fund that invests in government securities. Furthermore, nearly all
bond funds are subject to interest rate risk, which means that if rates go up, the value of the fund
goes down.

2.1.4.3 Index Funds

Another group, which has become extremely popular in the last few years, falls under the
moniker "index funds." Their investment strategy is based on the belief that it is very hard, and
often expensive, to try to beat the market consistently. So, the index fund manager buys stocks
that correspond with a major market index such as the S&P 500 or the Dow Jones Industrial
Average (DJIA). This strategy requires less research from analysts and advisors, so there are
fewer expenses to eat up returns before they are passed on to shareholders. These funds are often
designed with cost-sensitive investors in mind.

2.1.4.4 Balanced Funds

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Balanced funds invest in both stocks and bonds to reduce the risk of exposure to one asset class
or another. Another name for this type of mutual fund is "asset allocation fund." An investor may
expect to find the allocation of these funds among asset classes relatively unchanging, though it
will differ among funds. This fund's goal is asset appreciation with lower risk. However, these
funds carry the same risk and can be as subject to fluctuation as other classifications of funds.

A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a
balanced fund, but these kinds of funds typically do not have to hold a specified percentage of
any asset class. The portfolio manager is therefore given freedom to switch the ratio of asset
classes as the economy moves through the business cycle.

2.1.4.5 Money Market Funds

The money market consists of safe (risk-free), short-term debt instruments, mostly
government Treasury bills. This is a safe place to park your money. You won't get substantial
returns, but you won't have to worry about losing your principal. A typical return is a little more
than the amount you would earn in a regular checking or savings account and a little less than the
average certificate of deposit (CD). While money market funds invest in ultra-safe assets, during
the 2008 financial crisis, some money market funds did experience losses after the share price of
these funds, typically pegged at $1, fell below that level and broke the buck.

2.1.4.6 Income Funds

Income funds are named for their purpose: to provide current income on a steady basis. These
funds invest primarily in government and high-quality corporate debt, holding these bonds until
maturity in order to provide interest streams. While fund holdings may appreciate in value, the
primary objective of these funds is to provide steady cash flow to investors. As such, the
audience for these funds consists of conservative investors and retirees. Because they produce
regular income, tax-conscious investors may want to avoid these funds.

2.1.4.7 International/Global Funds

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An international fund (or foreign fund) invests only in assets located outside your home
country. Global funds, meanwhile, can invest anywhere around the world, including within your
home country. It's tough to classify these funds as either riskier or safer than domestic
investments, but they have tended to be more volatile and have unique country and political
risks. On the flip side, they can, as part of a well-balanced portfolio, actually reduce risk by
increasing diversification, since the returns in foreign countries may be uncorrelated with returns
at home. Although the world's economies are becoming more interrelated, it is still likely that
another economy somewhere is outperforming the economy of your home country.

2.1.4.8 Specialty Funds

This classification of mutual funds is more of an all-encompassing category that consists of
funds that have proved to be popular but don't necessarily belong to the more rigid categories
we've described so far. These types of mutual funds forgo broad diversification to concentrate on
a certain segment of the economy or a targeted strategy. Sector funds are targeted strategy funds
aimed at specific sectors of the economy such as financial, technology, health, and so on. Sector
funds can, therefore, be extremely volatile since the stocks in a given sector tend to be
highly correlated with each other. There is a greater possibility for large gains, but also a sector
may collapse (for example, the financial sector in 2008 and 2009).

Regional funds make it easier to focus on a specific geographic area of the world. This can mean
focusing on a broader region (say Latin America) or an individual country (for example, only
Brazil). An advantage of these funds is that they make it easier to buy stock in foreign countries,
which can otherwise be difficult and expensive. Just like for sector funds, you have to accept the
high risk of loss, which occurs if the region goes into a bad recession.

Socially-responsible funds (or ethical funds) invest only in companies that meet the criteria of
certain guidelines or beliefs. For example, some socially-responsible funds do not invest in "sin"
industries such as tobacco, alcoholic beverages, weapons, or nuclear power. The idea is to get
competitive performance while still maintaining a healthy conscience. Other such funds invest
primarily in green technology, such as solar and wind power or recycling.

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2.1.4.9 Exchange Traded Funds (ETFs)

A twist on the mutual fund is the exchange traded fund (ETF). These ever more popular
investment vehicles pool investments and employ strategies consistent with mutual funds, but
they are structured as investment trusts that are traded on stock exchanges and have the added
benefits of the features of stocks. For example, ETFs can be bought and sold at any point
throughout the trading day. ETFs can also be sold short or purchased on margin. ETFs also
typically carry lower fees than the equivalent mutual fund. Many ETFs also benefit from
active options markets, where investors can hedge or leverage their positions. ETFs also enjoy
tax advantages from mutual funds. The popularity of ETFs speaks to their versatility and
convenience.

2.2 COMPANY PROFILE

Aditya Birla Capital Limited (ABCL) is the holding company for the financial services
businesses of the Aditya Birla Group.
Formerly known as Aditya Birla Financial Services Limited, ABCL’s subsidiaries have a strong
presence across Protecting, Investing and Financing solutions, ABCL is a universal financial
solutions group catering to diverse needs of its customers across their life stages.
Powered by more than 18,000 employees, the subsidiaries of ABCL have a nationwide reach
with 850+ branches and more than 2,00,000 agents / channel partners and several bank partners.
As of June 30th, 2019, Aditya Birla Capital Limited manages aggregate assets worth Rs. 3000
plus billion and has a consolidated lending book of over Rs. 619 billion, through its subsidiaries
and joint ventures.
Aditya Birla Capital Limited is a part of the Aditya Birla Group, a US$ 48.3 billion Indian
multinational, in the league of Fortune 500. Anchored by an extraordinary force of over 120,000
employees, belonging to 42 nationalities, the Aditya Birla Group operates in 34 countries across
the globe.

2.2.1 HISTORY OF THE COMPANY

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 Originally incorporated in October 2007 under the Companies Act 1956, Aditya Birla Financial
Services Private Limited received the certificate of registration from the Reserve Bank of India
in May 2009 to commence the business as non-deposit taking NBFC.

In December 2014, the company was converted from a private limited company to a public
limited company, and was renamed as ‘Aditya Birla Financial Services Limited’.

During past one decade since its incorporation, the Company has come a long way to become
one of the largest financial services players in India. Year 2017 marks a milestone, with the
Company becoming a pure play listed holding company of all the financial services businesses of
the Aditya Birla Group.

To mark this new phase in its journey, and in line with its new unified brand identity, the
Company was rechristened as ‘Aditya Birla Capital Limited’ in June 2017. The synopsis of its
journey over past 12 years from 2007-2019 is as follows:

 From 5 business lines to a well-diversified portfolio of 13 business lines

 Aggregate AUM1 has grown to Rs. 3,000 billion

 Lending book (including Housing Finance) has grown to Rs. 601 billion

 Aggregate2 revenues have grown to Rs. 115 billion

 From Investment phase to aggregate2 earnings before tax of Rs. 12.9 billion
Our parentage
Aditya Birla Capital is a part of the Aditya Birla Group, a USD 44.3 billion Indian multinational
in the league of Fortune 500. Anchored by an extraordinary force of over 1,20,000 employees,
belonging to 42 nationalities, the Aditya Birla Group operates in 35 countries across the globe.
About 50 percent of its revenues flow from its overseas operations. For more information on the
Aditya Birla Group, please visit www.adityabirla.com.

 Includes AUM of Life & Health Insurance, Private Equity & quarterly average AUM of Asset
Management businesses

 Represents summation of 100% of the Ind AS financials of subsidiaries/JVs, before inter-

company eliminations or minority interest

2.3 CORPORATE HISTORY

Aditya Birla Group is one of India's largest conglomerates and also claims to be the most
international of the country's major corporations. The company acts as a holding company for

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more than 72 manufacturing and services subsidiaries throughout India, and in Thailand,
Indonesia, the Philippines, Malaysia, Australia, China, Egypt, and Canada. Aditya Birla's major
subsidiaries include Grasim, the world's leading producer of viscose staple fiber, and a
manufacturer of rayon grade pulp, cement, sponge iron, textiles, and chemicals; Hindalco, a
leading producer of aluminum and copper; UltraTech Cement, which produces portland cement
and related products; Aditya Birla Nuvo, which manufactures clothing, textiles, and carbon black
and is India's second largest producer of viscose filament yarn; Indo Gulf, a fertilizer producer;
Birla NGK Insulators (a joint venture with NGK of Japan), which is the world's leading producer
of insulators; and Idea Cellular Ltd., a mobile service provider jointly owned with fellow Indian
conglomerate Tata Industries. The company also produces software and provides IT services,
and operates a number of financial products subsidiaries. The company's Birla Sun Life
Insurance Co. is the second largest private sector insurance company in India, and its Birla Sun
Life Asset Management Co. is the country's fourth largest assets manager. In other areas, the
company claims to be the world's eighth largest producer of cement and the world's fourth largest
producer of carbon black. These operations combine to generate revenues of nearly $7.6 billion
per year. The company is led by Kumar Mangalam Birla, son of Aditya Birla.

Indian Financial Dynasty in the 19th Century

The Aditya Birla Group was founded in the 1960s by Aditya Birla, who started building his
business empire at the age of 24. By then, however, the Birla family had been one of India's most
prominent industrial and financial families for nearly a century. The origins of the Birla family
fortunes lay in the second half of the 19th century, when in 1870 Seth Shiv Narayan Birla
launched a cotton- and jute-trading business in the town of Pilani, in Rajasthan, India. Despite
the British occupation, and the attempt to establish monopolies by the British trading companies,
Birla succeeded in building the family's first fortune.

The next phase of the family's success came at the beginning of the 20th century, when Birla's
grandson Ghanshyamdas took over as head of the family fortune. The younger Birla led the
family into the industrial sector, setting up a jute mill in 1919. The Birla family also became
important supporters of the independence movement led by Mahatma Ghandi. Ghanshyamdas
Birla not only provided the financial backing for Ghandi, he also participated in the talks with
the British that ultimately led to the country's independence. The company's wealth, and its

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intimate connection with the new Indian government, enabled it to emerge as one of a small
number of Indian families that dominated India's quasi-socialist economy through the end of the
century.

With independence, Birla began developing his industrial empire in earnest. The family quickly
branched out into a number of sectors. Just days after the country's declaration of independence,
for example, Birla founded Grasim Industrial Ltd., opening a small weaving plant in Gwalior. By
1950, Grasim had begun importing the recently developed rayon fiber, and it began producing
rayon-based fabrics. In 1954, Grasim launched its own rayon production, opening a factory in
Nagda. By the mid-1960s, Grasim also had launched production of the rayon pulp itself.

The family's interest in textiles and rayon in particular led it to acquire another branch, Indian
Rayon Corporation, in 1966. That company had been founded just a decade earlier, and in 1963
had expanded with the construction of its own viscose filament yarn factory in Veraval. As part
of the Birla family holdings, Indian Rayon, which later evolved into the Birla group's largest
subconglomerate, Aditya Birla Nuvo, developed diversified operations, including the production
of garments, textiles, carbon black, and insulators. The company also entered cement production,
launching its own factory in 1985.

In the meantime, Birla's industrial interests had led it into a new area, the production of metals,
and specifically aluminum. The family established a new company, Hindalco, in 1958 and began
construction of their first smelter. That complex, in Renukoot, launched production in 1962. By
1967, the company had set up its own power plant, in Renusagar, described by the company as
"a significant strategic move." The company later branched out into copper production as well.

The development of the family's business interests had been turned over to Ghanshyamdas
Birla's sons, K. K. Birla, C. K. Birla, and B. K. Birla. While B. K. Birla took over the family's
raw materials and related industrial operations, his brothers took charge of other Birla family
holdings, including Hindustan Motors, part of India's big three automakers, and the Hindustan
Times, one of the country's major newspapers.

International Pioneer: 1970-80

In the mid-1960s, Aditya Vikram Birla joined his father, B. K. Birla, in that branch of the family
business, which by then consisted of Grasim, Hindalco, and Indian Rayon. By the end of the

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decade, Aditya Birla, then 24 years old, was placed in charge of these companies, which formed
the basis of the Aditya Birla Group.

The younger Birla soon proved himself a visionary, leading the company's development from an
India-focused industrial group to India's first and largest internationally operating conglomerate.
The company enjoyed the advantages of India's "License Raj," a license-permit-quota system
devised by the country's first prime minister, Jawarharal Nehru, that made it difficult for new
domestic competitors to emerge. Although this system protected and reinforced the Birla family's
interests, it also subjected the Birla group to strict capital controls. At the end of the 1960s,
however, Aditya Birla recognized a means of skirting these controls, through the development of
foreign interests.

2.4 STRATEGIC INTENT

2.4 .1 Our Vision and values

"To be a leader and role model in a broad-based and integrated financial services
business."
The 4 pillars of our vision that will help us achieve it are:

To be a leader – we are committed to being a leader in all facets of our businesses, rather than
being just another participant in this race.
To be a role model – we will not become leaders by cutting corners or making compromises.
Whatever we do, we will strive to be the best in class. And if we are the best, then our customer
will have no reason to go elsewhere – therefore our leadership is assured, on pure merit.
To be a broad-based player – we are committed to meeting all the felt and unfelt needs of our
target customer. And thereby, we can retain him or her across their needs and life-stages.
We aim to be an integrated player –we believe that this approach gives us a competitive edge
through sharing of best practices, deriving cross – business synergies & providing talent pool
with world of opportunity to grow.
Our customers place a lot of trust when they choose us as a partner for fulfillment of their dreams
- be it buying a dream home or investing their hard earned money in mutual funds or for meeting

21
their retirement or child's education or protection needs or taking a business loan for expansion.
At Aditya Birla Capital, our endeavor is to become a preferred financial services brand of choice
for all our customers’ needs across their life cycle - a brand that customers will not only just trust
but also happily endorse. Keeping this customer insight in mind, we have created a unique
strategy & structure to present our spectrum of businesses and offerings under one virtual brand.
From a customer perspective, this offers simplicity & convenience. For our employees, we offer
a world of growth opportunities across all our financial services offerings. And to our
shareholders, this gives the reassurance that we will attract and retain our customers, cost
effectively, across their life-cycle needs.

2.5 PRODUCTS

Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children
and loved ones need not be compromised. Insurance planning equips you to smooth out the
uncertainties and adversities that life might send your way, so that the best that life has to offer,
secure in the knowledge that your beloved ones are well provided for. BSLI offers a complete
range of insurance products

1. Protection Plans
2. Savings Plans
3. Child Plans
4. Investment Plans
5. Retirement Plans
6. Group Plans
7. Rural Plans

Insurance Plans
BSLI offers Lifeguard - a set of pure protection plans. Choose from amongst three different
product structures to insure your life and provide total security to your family, at a very
affordable cost.
22
 Level Term Assurance with return of premium
 On death the entire sum assured will be paid.
 On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium

 On death the entire sum assured will be paid.
 No survival or maturity benefits.
You can also enhance the above two policies by adding Accident
& Disability Benefit Rider and Waiver of Premium Rider (WOP)

Level Term Assurance - Single premium:

 On death the entire sum assured will be paid.
 No survival or maturity benefits.

Protection Plans
BSLI offers a variety of policies that give you the benefits of protection and the opportunity to
save for important assets or events, like a home, a car or a wedding.
A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# with the
added advantage of flexible liquidity option. An ideal plan for long term planning with the
benefit of liquidity.

The key features of the plan are:

 Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the
annual premium. You can also choose the term of the plan.
 At the end of the term, the higher of the value of units or the guaranteed value is paid. On
death, Sum Assured along with the higher of value of units or the guaranteed value is
payable.
 Facility to make withdrawals from the 6th policy year onwards till the end of the policy term.
Every year withdraw up to 10% of the value of units.

23
 Additional credits payable as a percentage of the initial annual premium are paid along with
the death or maturity benefit.
 Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum
Assured

Savings Plans
 Flexibility to make additional investment with the help of the top-up facility.
 Flexibility to increase / decrease your annual premium Amount
 Facility of Automatic Premium Payment- With this facility you can take a temporary break
from premium payment.
 Total transparency with the premium allocations, and other charges declared upfront.
 The guaranteed value of the unit fund is the value of all invested premiums (premiums net of
all charges) along with the declared bonus interests.
With Automatic Premium Payment facility, you can avail a temporary break from premium
payment for a maximum of 1 year. This facility is available once if the premium paying term is
less than 15 years and twice, if it is 15 years or more. You can also enhance your policy by
adding Accident & Disability Benefit Rider , Waiver of Premium Rider and Critical Illness Rider
.A regular premium unit-linked insurance plan with an assurance of Capital Guarantee# An ideal
plan for your long-term savings and protection requirement.

The key features of the plan are:

 Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the
annual premium. You can also choose the term of the plan.
 At the end of the term, the higher of the value of units or the guaranteed value is paid. On
death, Sum Assured along with the higher of value of units or the guaranteed value is payable
 Additional credits payable as a percentage of the initial annual premium are paid along with
the death or maturity benefit.
 Additional insurance for 10 years after the maturity, for an amount of 50% of the Sum
Assured.
 Flexibility to make additional investment with the help of the top-up facility.
 Flexibility to increase / decrease your annual premium amount

24
 Facility of Automatic Premium Payment- With this facility you can take a temporary break
from premium payment.
 Total transparency with the premium allocations, and other charges declared upfront. The
guaranteed value of the unit fund is the value of all invested premiums (premiums net of all
charges) along with the declared bonus interests.
With Automatic Premium Payment facility, you can avail a temporary break from premium
payment for a maximum of 1 year. This facility is available once if the premium paying term is
less than 15 years and twice, if it is 15 years or more.
The capital guarantee is applicable only on the invested premium and the declared bonus
interests. You can also enhance your policy by adding Accident & Disability Benefit Rider,
Waiver of Premium Rider and Critical Illness Rider.
A unit-linked insurance plan with an assurance of Capital Guarantee which offers you the benefit
of a limited premium payment term. An ideal plan for protection with wealth creation that offers
the flexibility of a limited premium paying term.
 Flexibility to choose a premium payment term of 5, 7 or 10 years for a maturity term of 10,
15 or 20 years respectively.
 Flexibility to choose a specific level of protection (Sum Assured), based on a multiple of the
annual premium.
 At the end of the term (maturity), the higher of the value of units or the guaranteed value is
paid. On death, Sum Assured along with the higher of value of units or the guaranteed value
is payable.
 Additional credits payable as a percentage of the initial annual premium are paid along with
the death or maturity benefit.
 Facility to make withdrawals from the 6th policy year onwards till the end of the policy term.
Every year withdraw up to 10% of the value of units
 Flexibility to make additional investment with the help of the top-up facility.
 Flexibility to increase / decrease your annual premium amount
 Total transparency with the premium allocations, and other charges declared upfront.
 The guaranteed value of the unit fund is the value of all invested premiums (premiums net of
all charges) along with the declared bonus interests.

25
 The capital guarantee is applicable only on the invested premium and the declared bonus
interests. You can also enhance your policy by adding Accident & Disability Benefit Rider
and Critical Illness Rider.
 Presenting Premier Life – The Preferred plan for the Preferred Customer. The key features of
the plan are:
 Limited premium payment option: Choose from among a 3, 5, 7 or 10 year premium paying
term.
 Choice of sum assured: Choose a sum assured, which is a minimum multiple of 1 and a
maximum multiple of 25 times the annual contribution.
 Additional allocation of units on a periodic basis.
 Facility to top-up your investment any time you have surplus funds.
 Choose from among four funds, based on your investment objective and risk appetite.
Flexibility to decrease your sum assured.
 Add-on riders to protect you against any eventuality.
 Loans against the policy.
You can also enhance your policy by adding Critical Illness

Rider, Accident & Disability Benefit Rider.

Presenting Life Time – unit –linked plans that meet your changing needs
over a lifetime. These solutions have been developed to meet your savings, protection
and investment needs at every stage in life.

Protection
 Choose a specified level of protection (available only with Lifetime).
 Two levels of Sum Assured to choose from (available only with Lifetime II).
 Flexibility to increase or decrease your sum assured.
 Add-on riders to protect you against any eventuality.

Savings
 Flexibility to increase or decrease your contribution.
 Facility of Premium Holiday, wherein the policy continues even if there is a temporary break
in the payment of annual contribution (available only with Life Time).

26
 Facility of Automatic Cover Continuance, wherein the policy continues even if there is a
temporary break in the payment of annual contribution
 Facility to top-up your investment any time you have surplus funds.
 Additional allocation of units on a periodic basis.
 Loans against the policy.

Investment:
 Choose from among four funds, based on your investment objective and risk appetite.
 Choice to switch between investments options (4 free switches every policy year).
You can also enhance your policy by adding Critical Illness Rider, Major Surgical Assistance
Rider, Accident & Disability Benefit Rider, Accident Benefit Rider (available only with Life
Time) and Waiver of Premium Rider. An insurance plan that gives added protection, savings
and multiple options, all in one!
 The flexibility to choose your premium contribution.
 The flexibility to choose amongst three levels of cover (in the form of sum assured) for the
same amount of total annual contribution.
 The flexibility of shifting between the three levels of cover, as you require.
 The flexibility of receiving your maturity proceeds as a lump sum or in equal annual
installments over 3 or 5 years.
You can also enhance your policy by adding Variety of Riders An insurance plan that gives
you added protection, savings, multiple options, plus the power of liquidity.
 The flexibility to choose your premium contribution.
 The flexibility to choose amongst three levels of cover (in the form of sum assured) for the
same amount of total annual contribution.
 The flexibility of shifting between the three levels of cover, as you require.
 The flexibility of receiving your maturity proceeds as a lump sum or in equal annual
installments over 3 or 5 years.
 The flexibility of withdrawing up to 10% of the accumulated value of your policy, after the
first 5 policy years.
You can also enhance your policy by adding Variety of Riders An ideal plan for those who
want to accumulate funds on a regular basis while enjoying insurance protection.

27
 Guaranteed Benefits: Guaranteed additions @ 3.5% of the Sum Assured, compounded
annually for the first 4 years of the policy.
 Extended Life Cover: An extended cover for 5 years after the maturity of the policy, for
50% of the sum assured, at no extra cost.
 Maturity Benefit: At the end of the term, the policyholder receives the full sum assured, the
guaranteed additions and the vested bonuses.
 Death Benefit: The beneficiary receives the sum assured, the guaranteed additions and the
vested bonuses in case the life assured were to meet with an unfortunate event. In case the life
assured is aged 7 years or less, the basic premium paid will be returned.
You can also enhance your policy by adding Critical Illness Rider, Major Surgical Assistance
Rider, Accident & Disability Benefit Rider, Waiver of Premium Rider (WOP) As a responsible
parent, you will always strive to ensure a hassle-free, successful life for your child. However, life
is full of Uncertainties and even the best-laid plans can go wrong. Here’s how you can give your
child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid is especially
designed to provide flexibility and safeguard your child’s future education and lifestyle, taking
all possibilities into account. Choose from amongst a basket of 4 plans:

 Smart Kid regular premium

 Smart Kid unit-linked regular premium
 Smart Kid unit-linked regular premium II
 Smart Kid unit-linked single premium II

CHILD PLANS
All these plans offer you:
 Financial Benefits: Regular payments at critical stages in your child’s life, like Board
examinations, Graduation and Post-graduation.
 Total peace of mind, even if you are not around
 Sum Assured is paid immediately: Ensures that your loved ones stay financially secure,
even in your absence.
 All future premiums are waived: Ensuring that your family is not financially burdened in
your absence.

28
 Policy benefits continue: The educational benefits of the policy continue, ensuring that your
child can realize his or her dreams without any hassles.
 Development Allowance: Smart Kid guarantees regular income to secure your child’s
educational career and also ensures his or her all-round development, for a nominal additional
amount. The Income Benefit Rider takes care of this through an annual payment of 10% of
the sum assured, to your child, till the maturity of the policy, in the unfortunate event of the
death of the parent. All Smart Kid plans can be enhanced with the Accident & Disability
Benefit Rider and Income Benefit Rider . You can also an Accident Benefit Rider to a
Smart Kid Regular Premium policy, and a Waiver of Premium Rider (WOP) to Smart Kid
unit-linked regular premium policy.
Life Link II is a unique plan that combines the security of a life insurance policy with the
opportunity of enjoying high returns on your investments, without the market
risks compromising on the protection of your family!
Death Benefit: The Sum Assured under the product has 2 options, either 500% of the initial
premium or 105% of the initial premium. In the event of an unfortunate death, the beneficiary
will receive higher of the value of units or the initial death benefit, less any withdrawals.
Withdrawal Benefit: One can make partial withdrawals from the accumulated value of the
policy after completion of one policy year.
Flexibility: Choose from four fund options, based on your investment objective and risk
appetite. If at a later stage your financial priorities change, you can switch between the various
fund options, absolutely free, 4 times a year.

Investment Plans
Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier
generations. For you, this increase will mean a longer retirement life, stretching into a couple of
decades. BSLI Retirement Solutions that combine the best of insurance and investment. These
solutions are developed to ensure your peace of mind for the years to come.
1. Why plan for retirement?
2. How much should I set aside for retirement?
3. The impact of inflation on your retirement savings
4. Why plan early?

29
5. About Annuities

Why plan for retirement?

For too many people, the joy of retirement after years of hard work is eclipsed by the financial
uncertainties that it brings. Despite all the planning and saving, you can never sure whether your
money will last a lifetime. Retirement planning offers a way to ensure a more enjoyable, stress
free tomorrow. A prudent plan will ensure that increasing life expectancy, higher inflation and
increasing taxes do not eat away into your hard earned savings.

30
Retirement Plans
How much must I set aside for retirement?
To ensure a comfortable retired life, you would be wise to invest money into additional avenues
like pension plans. How much you need to invest can be answered by answering some questions
such as:
1. How long do you have to save that amount before retirement?
2. Where can you invest your retirement money?
3. How much risk are you willing to take on your investments?
In an era of competitive parity, the only asset that makes a decisive difference between corporate
success and failure is the quality of human capital. Employee benefits have proven to be an
excellent tool to optimize the retention of talent and improve an organization’s bottom-line. The
quality of an organization’s employee benefits establishes and maintains a company's image as a
caring employer. Optimum care of employees is a long-term investment that results in a
sustained competitive advantage for an organization in the times to come.
BSLI Group Solutions Advantage:
 An integrated basket of employee benefits solutions that offer incomparable flexible benefits.
 Sound investment management that focuses on safety, stability and profitability of the
portfolio.
 Personalized financial planning for your employee that takes care of his/her changing
financial needs at every stage of life.
 Quality service initiatives and transparency across all operations, promising superlative
operational efficiency.

Group Solutions
Group Term Assurance: Helps provide affordable cover to members of a group.
Group Gratuity Plan: Helps employers fund their statutory gratuity obligation in a flexible and
hassle-free manner.
Group Superannuation Plan: A flexible scheme (defined benefit and defined contribution) to
provide a retirement kitty for each member of the group.

31
Group Term Assurance:
BSLI flexible group term solution helps provide affordable cover to members of a group. The
cover could be uniform or based on designation/rank or a multiple of salary, and can be extended
to all employees between the ages of 18 and 65 years.
The benefit under the policy is paid on the event of the member’s death to the beneficiary
nominated by the member. It is a one-year renewable policy where one master policy covers all
proposed employees comprising the group, with a minimum group size of 25 persons. New
members can join the group and outgoing members can leave the group at any point during the
policy term.

Highlights include:
 Greater convenience for the employees with relaxed underwriting and medical
requirements.
 "Free Cover Limits" with simplified underwriting depending upon the number of
employees in the group and the level of cover chosen.
 Guaranteed benefit: On death during the term of the contract (while in Service), the sum
assured will be paid to the beneficiary of the employee.
 Choice of additional coverage in form an Accident and Disability Benefit Rider and Critical
Illness Cover
 Premium is viewed as a business expense in the year of payment.

Group Gratuity Plan:

BSLI group gratuity plan helps employers fund their gratuity obligation in a scientific manner.
Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan can
also be customized to structure schemes that can provide benefits beyond the statutory
obligations. Highlights include:
 Wider choice of investments with Market Linked Plans - to meet the diverse financial
goals. We offer 4 investment options (short-term debt, debt and balanced and capital
guarantee plan) where investments will be made in accordance with the fund objectives.
 Transparency through Daily disclosure of Unit Value and regular disclosure of the portfolio
of each of the investment option

32
  Flexibility through switching and contribution redirection option to enable reshuffling of
portfolio
 Bundled Life Cover greater value to the employee by packaging life insurance covers with
the gratuity, with minimal amount of underwriting.
 Actuarial services to provide a scientific estimation of the gratuity liability.
 Low explicit charge structure with the conditions for exit specified upfront.
 Enhanced service levels through faster claim settlement, easier access to information and
regular statements.
 Complete end to end solution in the legal and regulatory approval process for scheme set up or
transfer

Employee Benefits:
 The contribution made by the employer is not included in the value of taxable perquisites in
the hands of the employee.
 Gratuity received up to Rs 350000 is exempt from Income tax under Sec 10(10)
 Annual contribution up to 8.33% of salary bill in a financial year is allowed a deduction for the
purpose of computation of profits and gains of business.
 Contribution towards past service liability is allowed as deduction as per the Income Tax rules.

Group Superannuation Plan:

BSLI Superannuation Scheme (for both Defined Benefit and Defined Contribution funds)
offers substantial benefits to both employers and employees. The employer and employee can
avail of tax benefits applicable to an approved superannuation trust. The scheme will provide for
a retirement fund for each participating employee. An employee would be able to choose from
various annuity options or opt for partial commutation of corpus at retirement.

Highlights include:
 Wider choice of investments with Market Linked Plans – to meet the diverse financial
goals. We offer 5 investment options (short-term debt, debt, balanced, growth and capital
guarantee plan) where investments will be made in accordance with the fund objectives.

33
 Control - Each member/employer can exercise greater control over investments by choosing
one or more of the investment options.
 Multiple Annuity Options - 5 annuity options and open market option
 Transparency - Transparency through Daily disclosure of Unit Value and regular disclosure
of the portfolio of each of the investment option
 Flexibility - Flexibility through switching and contribution redirection option to enable
reshuffling of portfolio
 Low explicit charge structure with conditions for exit specified upfront.
 Enhanced service levels through faster claim settlement, easier access to information and
regular statements.
 Complete end to end solution in the legal and regulatory approval process for scheme set up
or transfer BSLI Rural Products are designed to meet the needs of the rural consumers. These
products offer the following features:
1. Low and Affordable Premiums
2. Life Cover
3. Savings Option
4. Hassle free procedure

BSLI offers 2 specially designed rural plans.

a) BSL I – Endowment Plan
b) BSLI - Regular Premium
BSLI Endowment Plan:
BSLI offers the following features:

Rural Plans
 Life Cover and Savings
 Regular Premiums
 Age at entry 18 - 45 Yrs
 Premium Mode Half Yearly / Yearly
 Term 5,10,15 Yrs
 Sum Assured Rs.5,000 -20,000

34
 Premium / Year Rs. 507 - 553 ( SA: Rs.10,000)
 Maturity/Death benefit Sum Assured

BSLI - Regular Premium:

BSLI is a regular premium policy with the following features:
 Individual policy
 Only Life cover
 Term - 3 & 5 Yrs
 Age independent premium
 Age at entry 18 - 45 Yrs
 Sum Assured Single
 Premium / Year Rs 50 – 200
 Maturity/Death benefit Rs.5,000 - 20,000
 Death Benefit Sum Assured

IRDA:
The insurance sector has been opened up in India, as there was an urgent need. The international
experience indicates those country with a liberalized insurance sector have witnessed a rapid
growth in premium volumes enhancing the domestic saving rate. This happened in China,
Malaysia and Singapore where a competitive market has led to improvement in Services and
quicker settlement of claims. It is also important to note that competition will bring about
advancement in information, communication and technology. And rightly therefore a decision
was taken by the Government of India to open up Insurance sector. The establishment of IRDA
in the month of April 2000 has been important development in this direction, making the end of
monopoly in the insurance sector.

WHY INSURANCE IN INDIA:

 Only 22% of the insurance population has been extended cover. Market penetration is low
and the potential to exploit is high.
 Insurance premium per capita is very low.

35
 Lack of comprehensive social system benefit and welfare means that demand for pension
products is high.
 Huge middle class of approximately 300 Million.
 Existing insurance company score low on customer service front.

The insurance market registered growth in the Asian region even though India’s share in global
insurance is less than 0.5% (1988) as compared to USA (24.2%) and Japan (21%). Studies have
revealed that in an emerging market, as disposable income rises, Insurance premiums as a ratio
of GDP shoots up. The confederation of Indian Industry projected a growth of Life Insurance
premiums from Rs.350 Billion at present to Rs.140 Billion. The
Growth of non-life insurance premium is expected to increase from 75 billion to 375 billion. Out
of which, only 10% is tapped by the existing insurer.
Insurance even more than banking is a volume game. A very exclusive approach in view is
unlikely to provide meaningful numbers. Currently, insurance is bought for the purpose of tax-
benefits. A higher percentage of business is in the rural market. The share of rural new
Business insurance total new business is 55% in terms of policies and 47% in terms of sum
assured. However, this needs to be viewed in the light of some recent issues that have been
raised regarding as to what constitutes the rural market. Therefore, private insurers will be best
served by middle market approach, targeting the customer segments that are presently
unexploited.
How many Indians are aware that LIC has more than 60 Products and GIC has more than 180
Products? Not only there is a reduction in the premiums of Life Insurance products have long
overdue since Indian morality rate has decreased three folds in the last 50 years. There is also
scope to increase the yield on life insurance policies (presently 6%) with proper risk management
in place.
It is been debated that insurance business does not produce profit in the first five years cross
subsidization is a feature of Indian market. Even the first portfolio vote that is considered
profitable, cross subsidizes other departments. Tariffs reduction is likely to reduce profits; further
insurers have to institute proper claims management progress in order to extract efficiencies. At
present life insurance business in the country is taxed at 12.5% of the profit in financial year. The
government is soon to present a new model of taxing life insurance companies at international

36
rates. New entrants should be well advised to look ahead to the stage where brand strength will
be a competitive advantage and sketch their alliances accordingly. In fact, we believe that
alliance related to distribution rather than to produce or technology will prove most valuable in
the long run.
Banks and financial companies will emerge, as attractive distribution channel for this insurance
trend will be led by two factors, which already apply in other world market. First Banking food
insurance, fund management and other financial services companies are being to increase their
profitability and provide maximum value to their customers. Therefore, they are themselves
looking for a range of products to distribute. In other market notably Europe; this has resulted in
bank assurance. Bank entering into the insurance business in India to bank hope to maximize
expensive existing network by selling a range of products more of a loss alliance between
insurance and bank than a formal ownership. Some Indian entrants like ICICI, HDFC and
Reliance hope to ride their existing network and customer bases.

37
 CHAPTER 3
ORGANIZATION STRUCTURE

38
 Structure and Hierarchy

ORGANIZATIONAL STRUCTURE

CEO (CHIEF EXECUTIVE OFFICER)

CFO (CHIEF FINANCIAL OFFICER)

CDO (CHIEF DESIGN OFFICER)

HOS (HEAD OF SALES)

ZM (ZONAL MANAGER)

RM (REGIONAL MANAGER)

TMS (TERRITORY MANAGERS)

BRANCH HEAD

BM BRANCH MANAGERS

AM (AGENCY MANAGER)

IA (INSURANCE ADVISORS)

39
 KEY PEOPLES OF ORGANIZATION

Mr. Kumar Mangalam Birla (Chairman)

Mr. Pankaj Razdan (CEO and MD)
Mr. Amit Jain (Chief financial officer)

40
Chapter 4

41
4.1 TASK ASSIGNED DURING INTERSHIP

As a part of my internship, the first task of the same was to study about the organization
and also their way of working and related things. The first task I got assigned was to
promote and sell their financial products like –

 Systematic Transfer Plan (STP)

 Systematic Withdrawal Plan (SWP)
 Lump sum
 Systematic Investment Plan (SIP)

As I was assingned to source business from banking sector there as direct deaking with
the bank and the customers. Banking channel was bringing 30% of firms business.
ABSLMF had links with major leading banks where they have access to their customer
database. So my main tasks were to cover banks and to market our products which
were mainly on SYSTEMATIC INVESTMENT PLAN (SIP) AND LUMP SUM with
the help of the direct customer approach and their database support. The banks which I
have approached was-

 Bank of Baroda
 Dhanalakshmi Bank
 Federal Bank
 Karur Vysya Bank
 HDFC Bank
 South Indian Bank

ABSL mutual funds have introduced NFO (new fund offer) schemes during the time of
internship period on Pharmacy and health care sector which was more challenging as the
new scheme was needed to be interacted to the customers and also with the bank
employees and branch managers regarding the returns and benefits of NFO schemes

4.2 LEARNING SUMMARIZATION

About what I learnt in their internship training in the organization helped me to know the overall
functioning of departments in the organization. How the employees are motivated and trained in
the organization towards achieving their goals set by the organization.
It also helped me to know the co-ordination between the different levels in the organizations, and
42
also helped me to know the leadership skills and also to be as an initiator during the different
situation. It gave me a practical exposure to the various functional about my plan for future areas
of which I only had a theoretical knowledge so far future. Through my summer internship
program I had good experience.

Birla Mutual funds helped me gain self-confidence and improve my skill, through this I would be
able to implement my skill and knowledge in the organization where I would be given a chance
to be an employee of the organization and I build in confidence. I will take up the offer as an
opportunity to me.
 Time management
 Punctuality
 Cooperation with others
 Proper filing and indexing

After joining my internship program at Birla Mutual funds. I had memorable experience. In
addition to daily work I had great opportunity to meet different people working over there. I
made lot of friends during the course of internship. They were all professional, sincere and
taught me patiently. I would never forget our pleasant time. In this one month, I have established
a good relationship with the employees in the organization. Besides, I found that having flexible
mind and attitude which is very important in the business world. As a part of my study I visited
different departments in the organization to make a detailed study. Finally, I would like to give
sincere thanks again to everyone in the organization who extended their support in training me to
complete this program. I believe that such experiences and skills are valuable to my future about
co-operations extended by management career. The management and the employees in the firm
were very co-operative and helpful. They provide each and every details required by me for the
internship program. The trainers in each department helped me with getting the required
information and also explained me the working of each of the department in details and they also
helped me to know how the theoretical concepts that I learnt in their internship training in the
organization. Helped me to know the overall functioning of departments in the organization.
How the employees are motivated and trained in the organization towards achieving their goals
set by the organization.

43
CONCLUSION

The organization study which is a part of our MBA and I did it in Aditya Birla mutual funds. It
helped to understand the practical knowledge of real time organization. The organization study in
the functional area of the company was a new experience for me. It gives an exposure to the
actual business and to know about the practical difficulties faced by the business. It gave an idea
about how the different works are interrelated to each other. It helps a lot to understand the
theories studied in the class. Above all I could understand about the industry procedures. The
study also helped in getting an insight on the functions of the department in an organizational
practically.

This organizational study report is the result of my work and credible information I have
gathered during my period of association with the organization. I hope that the reality shock
which I expect has stimulated me to gather information to face the actual real time situation in
the industry in the future which acts as an impetus for future career prospectus. The details
obtained from the company for organization study are very useful for a professional career and
decision making and the study was a great experience to know all about the working of an
organization.

Internship at Aditya Birla Sun Life Mutual Funds has provided me practical

knowledge and its importance of application on various points of marketing like

 How to approach a customer.

 How to attend a customer.

 Decision making at right time

 Promptness

 Promotion of products on a dull market

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 Even though Mutual Funds industry has got a great recognition after demonetisation, the myth of
risks at mutual fund industry remains the same. On past 15 years, Its only 3 years where sensex
indicator has marked negative for ABSLMF. According to AMFI (Association

of Mutual Funds in India), total turnover of Mutual Fund industry in India is 22.86 lakh crore.
Irony is that it is only 27% of India’s savings recorded. Hopefully Mutual Fund industry will
be showing up with more attractive funds in future and thereby a consistent lead to an
economic growth.

Bibliography

www.valueresearchonline.com

www.birlasunlife.com

www.bseindia.com

www.moneycontrol.com

www.morningstar.in www.amfiindia.com

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