image source: livemint.com
Kumar Mangalam Birla, an Indian billionaire industrialist and Chairmen of Aditya Birla Group is no more into buying the firm which has global or liberalized supply chains. This statement comes after Kumar Mangalam Birla sees protectionism as a primary focus as the COVID-19 pandemic has increasingly curbed the products and people.
In an interview with Haslinda Amin in the Qatar Economic Forum, Kumar said that “We won’t be looking towards the companies having global supply chains in a way that your business source is at one place and you are selling across the country. This is being called as a ‘reset’ that has taken place on account of growing Protectionism.
Well known Market player, Birla, in last 25 years have acquired more than 40 companies. In this new world, when the Birla group is focusing towards regionalization and protectionism as their primary objective the group sees the need for “strong hold of regionalization” for cross-border M&A.
However, all of this comes after the vulnerability being observed due to Coronavirus in China’s rapidly increasing economy. This has marked a lesson to other nations like U.S, Europe, European Union et cetera to promote self reliance and protect their domestic enterprise.
HOMEGROWN CHAMPIONS
According to Birla, different countries can be seen following different policies in order to achieve homegrown champions. It added even globalization needs to have “a very sharp dimension of regionalization to it.” According to Bloomberg’s Billionaires Index, Birla has seen its wealth increasing almost 52% this year to up to $10.4 billion
Kumar further adds, “We are looking forward to regionalism as one big themes, regional hubs, regional presence, regional employment serving to regional demand, I would say we are a global company but rooted in local economics.”