A PROJECT REPORT ON

COMPARATIVE ANALYSIS OF MARKETING STRATEGIES USED BY

ADITYA BIRLA FINANCE LIMITED

SUBMITTED TO
SIES COLLEGE OF COMMERCE AND ECONOMICS
(AFFILIATED TO MUMBAI UNIVERSITY)
AS A PARTIAL REQUIREMENT FOR COMPLETING THE DEGREE OF
THE BACHELOR OF MANAGEMENT STUDIES (SEMESTER VI)
2018-19

SUBMITTED BY:
NADAR NEHA ANTHONYRAJ
ROLL NO.: 100

UNDER THE GUIDANCE OF

Ms. Divya Thakur

SIES COLLEGE OF COMMERCE AND ECONOMICS,

SION (EAST), MUMBAI – 400022.
 SIES COLLEGE OF COMMERCE AND ECONOMICS,
SION (EAST), MUMBAI – 400022
(AFFILIATED TO MUMBAI UNIVERSITY)

A PROJECT REPORT ON

COMPARATIVE ANALYSIS OF MARKETING STRATEGIES USED

BY ADITYA BIRLA FINANCE LIMITED

SUBMITTED BY: NADAR NEHA ANTHONYRAJ

TYBMS SEMESTER VI
ROLL NO.: 100

UNDER THE GUIDANCE OF :

MS. DIVYA THAKUR

ACADEMIC YEAR 2018-2019

 CERTIFICATE

I, Ms. Divya Thakur hereby certify that, Ms. Nadar Neha Anthonyraj studying
in the Third Year of Bachelor of Management Studies course at the S.I.E.S
College of Commerce & Economics, Sion(East), has completed a project on
“Comparative Analysis of Marketing strategies used by Aditya Birla
Finance Limited” under my guidance in the academic year 2018-19.

The information presented in this project is true and original to the best of my
knowledge.

Date:

Place: Mumbai

Ms. Jinal Shah Ms. Divya Thakur

(Co ordinator) (Project Guide)

Examiners Signature & Date Dr. Nina Roy Choudhury

(Principal)
 DECLARATION

I, Ms Nadar Neha Anthonyraj studying in the Third Year of Bachelor of

Management Studies course in the academic year 2018-19 at S.I.E.S
College of Commerce & Economics, Sion (East), hereby declare that I
have completed the project titled Comparative Analysis of Marketing
strategies used by Aditya Birla Finance Limited as a part of the course
requirements of Bachelor of Management Studies of University of
Mumbai.

I further declare that the information presented in this project is true and
original to the best of my knowledge.

Date: Ms. Nadar Neha Anthonyraj

Roll No.100
Place: Mumbai
 ACKNOWLEDGEMENT

In making this project report a lot of people have contributed by giving

me the required knowledge and time, I would like to thank all of them.

My special thanks to all my friends who had supported me with my

survey and also all my faculty members.

It is because of their assistance and competence that I have reached this

milestone.

I would like to express my gratitude and sincere thanks to my Project

Guide Ms. Divya Thakur, for instilling confidence in me to carry out this
study and extending valuable guidance and encouragement from time to time,
without which it would not have been possible to undertake and complete this
project.

I also wish to extend my appreciation to the management and staff of

my college, especially our principal Dr. Nina Roy Choudhury, for their kind
co- ordination and support. And last but not the least my colleagues for their
valuable comments and suggestions for making this a cherishable experience
for me.

Ms. Nadar Neha Anthonyraj

Roll No.100
 Executive Summary

I, Neha Anthonyraj a student of SIES college got an opportunity to carry out an internship
in Aditya Birla Finance Limited ("ABFL") the leading well-diversified financial services
company in India. The reason behind this was to get an in depth understanding of the
functioning of corporate marketing used by well-known financial institutions. So, under
ABFL comes Wealth management which offers personalized solutions to the clients and
partners up with them at every step of the way on the road to financial well-being. Wealth
management has different sub department which deals with different target groups such as
wealth HNIS/UHNIS, Business partner groups, Corporate & Treasures services.
So, the business partnership group has distribution partners who are agents who serves as a
link between the Aditya Birla finance limited company and clients. As there is an intense
competition between the financial companies and different types of marketing strategies
are adopted in order to tie up with many financial advisors as possible. So, my internship
project is to analysis such competitor’s marketing strategies.
The main motive is get in depth understanding of various Marketing strategies used by
competitors of Aditya Birla Finance ltd as they noticed an shift of number of IFAs from the
favour of ABFL to such Competitors
 INDEX
Sr Title Pg
Nos. no.
Part I-Financial System 1-7
1. Introduction to Financial system 1
1.1 Overview of financial sector in India 2
1.2 Role of Financial System 5
1.3 Components/constituents of Indian Financial 6
system
Part II-Financial System-Evolution 8-13
2. 2.1 Evolution of Indian Financial System 9
2.2 Financial sector reforms in India 10
2.3 Trends in the Financial Services Industry in India 12
Part III-Aditya Birla Finance Ltd Company Profile 14-29
3. Company profile 15
3.1 History of Aditya Birla finance Limited 16

3.2 Key People of Aditya Birla finance Limited 17

3.3 Products& Service Offering of Aditya Birla 18

finance Ltd
3.4 Mission and objectives of Aditya Birla finance Ltd 27

3.5 SWOT analysis Of Aditya Birla finance Ltd 28

Part IV-Aditya Birla Finance Ltd ‘s 30-32
Competitors
4. Competitor profile 30

4.1 NJ Wealth 31
 4.2 Prudent corporate 32
Part V-Comparison of marketing strategies 33-42
used by Aditya Birla Finance Ltd and its
competitors
5. Comparative analysis of marketing strategies used 33
by competitors of Aditya Birla finance Ltd

5.1 Brand positioning of ABFL, NJ wealth, Prudent 34

corporate
5.2 Marketing strategies used by ABFL, NJ Wealth, 37
Prudent corporate
Part VI-Role in the Organizations & 43-53
Experience of Internship
6. Role in the organization 45

6.1 Background of the study 47

6.2 Reason for the study 48

6.3 Research methodology 49

6.4 Finding & Interpretations 50

6.5 Recommendations/inferences 55

7. Challenges/Limitations 56
8. Conclusion 57

9. Bibliography 58

10. Annexure 59
 Part I-

FINANCIAL SYSTEM

Chapter I-Introduction to Financial system

[1.1] Overview of financial service sector in India

[1.2] Role of Financial System

[1.3] Components/constituents of Indian Financial System

1
 INTRODUCTION
Overview of financial service sector in India

India has a diversified financial sector undergoing rapid expansion, both in terms
of strong growth of existing financial services firms and new entities entering the
market. The sector comprises commercial banks, insurance companies, non-
banking financial companies, co-operatives, pension funds, mutual funds and
other smaller financial entities.

The banking regulator has allowed new entities such as payments banks to be
created recently thereby adding to the types of entities operating in the sector.
However, the financial sector in India is predominantly a banking sector with
commercial banks accounting for more than 64 per cent of the total assets held by
the financial system.

The Government of India has introduced several reforms to liberalise, regulate

and enhance this industry. The Government and Reserve Bank of India (RBI)
have taken various measures to facilitate easy access to finance for Micro, Small
and Medium Enterprises (MSMEs). These measures include launching Credit
Guarantee Fund Scheme for Micro and Small Enterprises, issuing guideline to
banks regarding collateral requirements and setting up a Micro Units
Development and Refinance Agency (MUDRA).

With a combined push by both government and private sector, India is

undoubtedly one of the world's most vibrant capital markets. In 2017, a new portal
named 'Udyami Mitra' has been launched by the Small Industries Development
Bank of India (SIDBI) with the aim of improving credit availability to Micro,
Small and Medium Enterprises' (MSMEs) in the country. India has scored a
perfect 10 in protecting shareholders' rights on the back of reforms implemented
by Securities and Exchange Board of India (SEBI).

2
Market Size
The Mutual Fund (MF) industry in India has seen rapid growth in Assets Under
Management (AUM). Total AUM of the industry stood at Rs 24.03 trillion (US$
342.01 billion) between April-November 2018. At the same time the number of
Mutual fund (MF) equity portfolios reached a high of 74.6 million as of June
2018.Another crucial component of India’s financial industry is the insurance
industry. The insurance industry has been expanding at a fast pace. The total first
year premium of life insurance companies reached Rs 193,866.23 crore (US$
30.10 billion) during FY18.Along with the secondary market, the market for
Initial Public Offers (IPOs) has also witnessed rapid expansion. The total amount
of Initial Public Offerings (IPO) increased to US$ 1.2 billion raised from 37
between April – June 2018.
Over the past few years India has witnessed a huge increase in Mergers and
Acquisition (M&A) activity. In H12018, 74 deals of acquisition took place in
financial sector. The total value of such transactions was US$ 4.166 billion.
Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set up a
joint venture with Ebix Inc to build a robust insurance distribution network in the
country through a new distribution exchange platform.

Investments/Developments

 Investments by Foreign Portfolio Investors (FPIs) in Indian capital markets

have reached Rs 6,310 crore (US$ 899.12 million) up to November 22, 2018.
3
 As of October 2018, the Financial Inclusion Lab has selected 11 fintech
innovators with an investment of US$ 9.5 million promoted by the IIM-
Ahmedabad's Bharat Inclusion Initiative (BII) along with JP Morgan, Michael
and Susan Dell Foundation, and the Bill and Melinda Gates Foundation.
 The private equity and venture capital (PE/VC) investments reached US$
25.20 billion between January to October 2018.

Government Initiatives

 In December, 2018, Securities and Exchange Board of India (SEBI) proposed

direct overseas listing of Indian companies and other regulatory changes.
 Bombay Stock Exchange (BSE) introduced weekly futures and options
contracts on Sensex 50 index from October 26, 2018.
 In September 2018, SEBI asked for recommendations to strengthen rules
which will enhance the overall governance standards for issuers,
intermediaries or infrastructure providers in the financial market.
 The Government of India launched India Post Payments Bank (IPPB), to
provide every district with one branch which will help increase rural
penetration. As of August 2018, two branches out of 650 branches are already
operational.

Road Ahead

 India is today one of the most vibrant global economies, on the back of robust
banking and insurance sectors. The relaxation of foreign investment rules has
received a positive response from the insurance sector, with many companies
announcing plans to increase their stakes in joint ventures with Indian
companies. Over the coming quarters there could be a series of joint venture
deals between global insurance giants and local players.
 The Association of Mutual Funds in India (AMFI) is targeting nearly fivefold
growth in assets under management (AUM) to Rs 95 lakh crore (US$ 1.47
trillion) and a more than three times growth in investor accounts to 130
million by 2025.

4
 ROLE OF FINANCIAL SYSTEM

The financial sector plays a critical role in the function of the economy. It allows
more efficient transfer of resources from savers to investors as well as facilitates
the use of funds by households, businesses, traders and governments. In fact, an
efficient financial sector spurs economic growth. The Indian financial
system6 comprises of an impressive network of banks, other financial and
investment institutions, offering wide range of products and services, which
together function in fairly developed capital and money markets. As such,
financial system has come to occupy an important role in the process of economic
development.

The economic development of a country depends, inter alias, on its financial

structure. In the long run, the larger the proportion of financial assets to real
assets, the greater the scope for economic growth. Investment is a pre- condition
of economic growth. This apart, to sustain growth, continued investment in the
growth process is essential. Since finance is an important input in the growth
process it has a crucial role to play in the economy. The more efficient
composition of real wealth is obtained by the promotion of financial assets which
provide incentives to saves to hold a large part of their wealth in financial form.
The increasing rate of savings is correlated with the increase in the proportion of
savings held in the form of financial assets relative to tangible assets.

A sound and efficient financial system can contribute to economic growth and
development in a number of ways which include by providing a spectrum of
financial assets to meet diverse preferences of household and thus, enabling them
to choose their asset portfolios to achieve a preferred mix of return, liquidity and
risk. Further, it helps to raise productivity of capital through efficient allocation.
Conditions8 that support the development of a more robust and balanced financial
structure with improve the ability of domestic financial systems to contribute to
their growth. By restoring macroeconomic stability, building better legal,
accounting, and regulatory systems, specifying rules for fuller disclosure of
information, and levying taxes that do not fall excessively on finance governments
can lay the foundations for smoothly functioning financial systems.
5
a. It serves as a link between savers and investors. It helps in utilizing the
mobilized savings of scattered savers in more efficient and effective manner. It
channelizes flow of saving into productive investment.

b. It assists in the selection of the projects to be financed and also reviews the
performance of such projects periodically.

c. It provides payment mechanism for exchange of goods and services.

d. It provides a mechanism for the transfer of resources across

geographicboundaries. It provides a mechanism for managing and controlling the
riskinvolved in mobilizing savings and allocating credit.

e. It promotes the process of capital formation by bringing together the supply

ofsaving and the demand for ingestible funds.

f. It helps in lowering the cost of transaction and increase returns. Reduce

costmotives people to save more.

g. It provides you detailed information to the operators/ players in the marketsuch

as individuals, business houses, Governments etc.

6
 Components/ Constituents of Indian Financial system:

The following are the four main components of Indian Financial system.

1. Financial institutions

2. Financial Markets

3. Financial Instruments/Assets/Securities

4. Financial Services.

Financial institutions: Financial institutions are the intermediaries who facilitate

smoothfunctioning of the financial system by making investors and borrowers
meet. Theymobilize savings of the surplus units and allocate them in productive
activitiespromising a better rate of return. Financial institutions also provide
services toentities seeking advice on various issues ranging from restructuring
todiversification plans. They providewhole range of services to the entities
whowant to raise funds from the markets elsewhere.

Financial Markets:Finance is a prerequisite for modern business and financial

institutionsplay a vital role in economic system. It's through financial markets the
financialsystem of an economy works. The main functions of financial markets
are:

1. To facilitate creation and allocation of credit and liquidity;

2. To serve as intermediaries for mobilization of savings;

3. To assist process of balanced economic growth;

4. To provide financial convenience.

Financial Instruments
Another important constituent of financial system is financial instruments.
Theyrepresent a claim against the future income and wealth of others. It will be a
claimagainst a person or an institution, for the payment of the some of the money
at aspecified future date.

Financial Services:
Efficiency of emerging financial system largely depends upon the qualityand
variety of financial services provided by financial intermediaries. The
termfinancial services can be defined as "activities, benefits and satisfaction
connectedwith sale of money that offers to users and customers, financial related
value".

7
 Part II
FINANCIAL SYSTEM-EVOLUTION

Chapter II- Evolution of Financial system

[2.1] Evolution of Indian Financial System

[2.2] Financial sector reforms in India

[2.3] Trends in the Financial Services Industry in India

8
 EVOLUTIONOF INDIAN FINANCIAL SYSTEM

Economic development of the nation is completely depending on its

financialstructure. Both in long run and short run, the financial system and its
efficiencydictates the success of the nation in terms of economic growth. The
larger, theproportion of financial assets to real assets, the greater the scope of
economicgrowth. Investments which are considered as the core of financial
structure are apre-condition of economic growth. This apart, to sustain growth,
continuedinvestment in the growth process is essential. As finance is an important
input inthe growth process, it has a crucial role to play in the development off
economy. The increasing rate of saving is correlated with the increase in the
proportion ofsavings held in the form of financial assets relative to tangible assets.
The word "system", in the term "financial system", implies a set ofcomplex and
closely connected or interlined institutions, agents, practices,markets, transactions,
claims, and liabilities in the economy.

Indian financialsystem consists of financial market, financial instruments and

financial intermediation. In simple terms, financial system is the set of inter-
related activities/services working together to achieve some predetermined
purpose orgoal. It includes different markets, the institutions, instruments, services
andmechanisms which include the generation of savings, investment capital
formationand growth. Van Horne defined the financial system as the purpose of
financialmarkets to allocate savings efficiently in an economy to ultimate users
either forinvestment in real assets or for consumption. Christy has opined that the
objectiveof the financial system is to “supply funds to various sectors to activities
of theeconomy in ways that promote the fullest possible utilization of resources
without the destabilizing consequence of price level changes or unnecessary
interference with individual desires.
According to Robinson, the primary function of thesystem is “to provide a link
between savings and investment for the creation ofnew wealth and to permit
portfolio adjustment in the composition of the existingwealth. Financial system
provides services that are essential in a modern economy. The use of a stable,
widely accepted medium of exchange reduces the costs oftransactions. It
facilitates trade and therefore, specialization in production.Financial assets with
attractive yield, liquidity and risk characteristics encouragesavings in finical form.
By evaluating alternative investments and monitoring theactivities of borrowers,
financial intermediaries increase the efficiency of resourceuse. Access to variety
of financial instruments enables an economic agent to pool,price and exchange
risks in the markets. Trade, theefficient use of resourcessaving and risk taking are
the cornerstones of a growing economy. In fact, thecountry could make this
feasible with the active support of the financial system.
9
 FINANCIAL SECTOR REFORMS IN INDIA

It was in this backdrop that wide-ranging financial sector reforms inIndia were
introduced as an integral part of the economic reforms initiated in theearly 1990s
with a view to improving the macroeconomic performance of theeconomy. The
reforms in the financial sector focused on creating efficient andstable financial
institutions and markets. The approach to financial sector reformsin India was one
of gradual and non-disruptive progress through a consultativeprocess.

The Reserve Bank has been consistently working towards setting anenabling
regulatory framework with prompt and effective supervision,development of
technological and institutional infrastructure, as well as changingthe interface with
the market participants through a consultative process.Persistent efforts have been
made towards adoption of international benchmarksas appropriate to Indian
conditions. While certain changes in the legalinfrastructure are yet to be affected,
the developments so far have brought theIndian financial system closer to global
standards.

The reform of the interest regime constitutes an integral part of thefinancial sector
reform. With the onset of financial sector reforms, the interest rateregime has been
largely deregulated with a view towards better price discoveryand efficient
resource allocation. Initially, steps were taken to develop thedomestic money
market and freeing of the money market rates.

The interest rates offered on Government securities were progressively raised so

that the Government borrowing could be carried out at market-related rates. In
respect of banks, a major effort was undertaken to simplify the administered
structure of interest rates. Banks now have sufficient flexibility to decide their
deposit and lending rate structures and manage their assets and liabilities
accordingly. At present, apart from savings account and NRE deposit on the
deposit side and export credit and small loans on the lending side, all other interest
rates are deregulated. Indian banking system operated for a long time with high
reserve requirements both in the form of Cash Reserve Ratio (CRR) and Statutory
Liquidity Ratio (SLR). This was a consequence of the high fiscal deficit and a
high degree of monetization of fiscal deficit. The efforts in the recent period have
10
been to lower both the CRR and SLR. The statutory minimum of 25 per cent for
SLR has already been reached, and while the Reserve Bank continues to pursue its
medium-term objective of reducing the CRR to the statutory minimum level of 3.0
per cent, the CRR of SCBs is currently placed at 5.0 per cent of NDTL.

As part of the reforms programme, due attention has been given to diversification
of ownership leading to greater market accountability and improved efficiency.
Initially, there was infusion of capital by the Government in public sector banks,
which was followed by expanding the capital base with equity participation by the
private investors. This was followed by a reduction in the
Governmentshareholding in public sector banks to 51 per cent. Consequently, the
share of thepublic sector banks in the aggregate assets of the banking sector has
come downfrom 90 per cent in 1991 to around 75 per cent in2004. With a view to
enhancingefficiency and productivity through competition, guidelines were laid
down forestablishment of new banks in the private sector and the foreign banks
have beenallowed more liberal entry. Since 1993, twelve new private sector banks
havebeen set up. As a major step towards enhancing competition in the banking
sector,foreign direct investment in the private sector banks is now allowed up to
74 percent, subject to conformity with the guidelines issued from time to time.

11
 Trends in the Financial Services Industry in India

The financial services industry is a highly volatile sector, which immediately gets
affected by various reasons: be it technology, government regulations, fiscal and
monetary policies, trade relations, tax changes, etc. This year has witnessed major
changes in the financial services, thanks to technology again, we explore which are the
top trends that rocked the financial service industry over the past 5 years.

1. The Boom of Big Data

Big Data has almost made the pandemonium break loose in the field of data science. Data
science, business intelligence, and business analytics have penetrated in almost all areas.
This has played a pivotal role in redefining the way data is used. The management of
finance industry is looking out for professionals who are well equipped with the
knowledge of business analytics. Rather, it is a golden period for Business Analytics
professionals, who will witness a sudden increase in their demand. With the ease in the
collection of data of consumers and their transactions in addition to the development of
techniques to use this information to build potential clients, the financial services industry
is certainly up for a big change.
This sea wave of change is sure to bring a huge demand for business analytics
professionals.

2. Start-ups In India

Not to mention in India has witnessed a growth in the start-up industry deals by leaps and
bounds. The recent government also announced financial assistance for start-ups. You’ll
see many ideas lined up for investors and the financial services industry has much to do in
this case.

With rising start-ups who need investments, there is a need for finance modelling
professionals who will prepare financial models to represent the financial viability of the
projects.

3. Outsourcing

Most Indian companies, considering the increasing costs of setting up head offices in top
cities such as Mumbai, Delhi, Bangalore, etc., have decided to outsource their KPO
activities to Tier II and Tier III cities such as Pune, Jaipur, etc. Overcrowding of resources
12
in Tier I cities has induced the companies to set up in other cities, thereby increasing the
employment opportunities in these areas.

This proves there are increasing employment opportunities for finance professionals in
Tier II and Tier III cities.

4. NPAs

The menace of NPAs (Non-Performing Assets) has given birth to responsible debt
payment since the attitude of MNCs is slowly changing these days. Companies no longer
keep the attitude of looking at debts as a primary source of funds or engage in siphoning
of funds. This can serve as a big booster to honest entrepreneurs and discourage defaults
in payments. In fact, as per latest news, almost four banks are planning to sell the assets
of Kingfisher Airlines, the company who came into limelight after being declared as a
defaulter of payments. Considering the change, there is bound to be increasing demand
for credit analysts and project finance experts who will review the credibility and
financial viability of the firm.

5. IFRS

With the much ado about IFRS, it has finally started making its impact in the financial
accounting of Indian companies. While voluntary adoption has already begun, some
companies have come under the ambit of compulsory adoption since 1st April 2016. This
has necessitated the demand of IFRS professionals who can guide into a successful
change in the financial accounting.

6. Payment Banks

Payment banks are redefining traditional banking since it is possible for them to reach out
as many rural areas who’ve never availed formal banking services. With more and more
payment banks getting licenses from the RBI, this move has become widely popular. the
big names in this industry include Paytm, Vodafone M-Pesa, National Securities
Depositary, etc.

Payment Banks will ensure that even rural areas are availing facilities of formal banking
services, which in turn, will ensure that there is an increase in demand of support and
finance professionals. The Indian economy is making its mark on the global map. That is
the reason many MNCs are opening up their units in India or outsourcing their activities
to India. The Internet has already created a revolution and the financial service industry is
making its mark.

13
 Part III
ADITYA BIRLA FINANCE LTD
COMPANY PROFILE

Chapter III- Company Profile

[3.1] History of Aditya Birla finance Limited

[3.2] Key People of Aditya Birla finance Limited
[3.3]Products & Service Offering of Aditya Birla finance Ltd
[3.4] Mission and objectives of Aditya Birla finance Ltd
[3.5] SWOT analysis Of Aditya Birla finance Ltd

14
 Company profile

Aditya Birla finance limited

Aditya Birla Finance Limited (“ABFL”) is among the leading well-diversified

financial services company in India offering end-to-end lending, financing and
wealth management solutions to a diversified range of customers across the
country. ABFL is registered with RBI as a systemically important non-deposit
accepting non-banking finance company (“NBFC”) and ranks among the top five
largest private diversified NBFCs in India based on AUM as of March 31st, 2017
(source: CRISIL).

For the Quarter ended 31st December 2018, ABFL’s loan book has reached Rs.
493 billion. Along with its growth, ABFL has maintained healthy asset quality
with GNPA (Gross NPA) at 1.17% as of 31st December 2018. This is reflected in
its long-term credit rating of AAA (Stable) by ICRA and AAA (Stable) by India
Ratings, Perpetual debt credit rating of AA+ (Stable) by ICRA and AA+ (Stable)
by India Ratings (Stable) and short-term credit rating of A1+ by ICRA & India
Ratings.

ABFL caters to the varied needs of diverse set of customers ranging across retail,
HNI, ultra HNI, micro enterprises, SME, mid and large corporates. ABFL offers
customized solutions in areas of personal and business loans, corporate finance,
mortgages, capital market-based lending, project loans, structured finance, wealth
management and digital lending, debt capital markets and syndication.

Aditya Birla Capital Limited (ABCL), is the financial services platform of the
Aditya Birla Group. With a strong presence across the life insurance, asset
management, private equity, corporate lending, structured finance, project finance,
online personal finance management, housing finance, pension fund management
and health insurance business, ABCL is committed to serving the end-to-end
financial services needs of its retail and corporate customers. Anchored by more
than 17,000 employees, ABCL has a nationwide reach and more than 2,00,000
agents / channel partners.
15
 History of Aditya Birla finance Limited

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 10 years from 2007-2017 is as follows:

 From 5 business lines to a well-diversified portfolio of 12 business lines

 Aggregate AUM1 has grown 10 times to Rs. 2,463 billion
 Lending book (including Housing Finance) has grown 65 times to Rs. 388 billion
 Aggregate2 revenues have grown 6 times to Rs. 106 billion
 From Investment phase to aggregate2 earnings before tax of Rs. 11.5 billion
Our parentage
Aditya Birla Capital is a part of the Aditya Birla Group, a USD 40 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 36 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 IGAAP financials of subsidiaries/JVs,
before inter-company eliminations or minority interest

16
KEY PEOPLES OF ADITYA BIRLA FINANCE LTD
AS OF 2019

Rakesh Singh
Chief Executive Officer

Sanjay Miranka
Chief Financial Officer (CFO) - NBFC

Rajeev Sharma
Head - Capital Market Group

Devang Rawal
Head - Corporate & Institutional

Nirmal Kishore
Head - Retail Lending

M S Sekhar
Head - Risk & Compliance

Ankur Kapoor
Head - Operations

Sujatha Sudheendra
Head - Human Resources

Sudesh Puthran
Chief Technology Officer (CTO)

Udayan Sharma
Head - SME, Wealth Management & Emerging Businesses

17
 Products & Service Offering of Aditya Birla finance Ltd

DCM &
Loan
Syndication

SME Personal
Finance finance

Aditya birla
finance ltd

Real estate Corporate

finance finance

Loan
against
Securities

 Personal finance

Aditya Birla Finance offers personal loan to salaried individuals with a good
credit score and a consolidation, medical emergencies, purchase of household or
electronic goods, children's education, wedding expenses, home improvement and
for travelling. Broadly, it covers an individual's immediate personal need for
funds. The unsecured loan is offered to all salaried individuals from ages 23 to 60
at a fixed rate of interest.

 Corporate finance

Aditya Birla Finance Limited offers a comprehensive solution to meet all your
business requirements. We offer business owners Corporate Finance that help you
scale up their operations or acquire new processes for optimal functioning and
18
 profitability. Moreover, our corporate finance is an excellent solution that applies
to both short term (managing assets and existing liabilities) and long term (capital
purchases and future investments) financial issues.

 Project Finance:The project financing business was set up in 2011 with a view to
partner in the infrastructure development financing in India. Since then, this
business has focussed on the opportunities in the infrastructure, core and
manufacturing sectors by providing comprehensive solutions for mid-sized
projects and partnering with other infrastructure financing institutions for the
larger projects.The project financing team acts as a focal point of contact for our
customers' entire debt financing requirements catering to business development,
project appraisal, customizing, advising and providing financing solutions. The
project financing business has been the sole lead arranger and underwriter of a
significant amount of project debt over the years. With over 100 corporate groups
serviced by our three zonal offices in Mumbai, Delhi & Hyderabad, this business
caters to providing holistic solutions encompassing Rupee term loans, sub-debt /
mezzanine finance, non-fund-based facilities as well as structured finance and
bond placements across major sectors.

 Structured Finance: Structured corporate finance transactions require a

trustworthy, reliable and an experienced partner (and not just a financier) who can
understand your business requirements. Apart from conventional balance sheet
and project loans, we offer customised & innovative solutions for long term
working capital requirements, bridge loans, acquisition financing and equity
investment requirements. By providing timely and innovative solutions to assist
you in achieving your goals, we would be able to become your partner of choice
and not just a financier.

 Working Capital: Businesses run on a constant stream of daily funds. Their

requirements can range from purchasing monthly office supplies to paying rent on
the office space. However, having working capital at hand always is not
potentially likely at all times. Hence, companies may explore the option of taking
a Working Capital Demand Loan to meet their financial needs.

19
 Term Loans: Businesses need a periodic infusion of funds to keep their operations
running without a hitch. From purchasing new machinery to upscale output to
procuring skilled manpower, every business requires immediate funding to keep
its activities and revenues on course of growth. There may be times when a
company may not have enough cash reserves at hand, or may lack adequate
securities that may be instantly liquidated. In such cases, a term loan is a useful
instrument.

 Loan against securities

 Loan Against Shares: Every business requires funding from time to time. Whether
to upgrade operations or purchase new premises, business loans help corporates
take a higher leap towards progress. Whether your business is small or large, you
may require an inflow of funds to take your operations to the next stage of
success. However, you could consider putting your securities in the capital market
to use. Instead of monetising your investments in securities, why not take a Loan
Against Shares (LAS) also known as Loan Against Securities or a Line of Credit
(LOC) and leverage your investments.

 Loan Against Mutual Funds: Loan Against Mutual Funds offers customers the
opportunity of receiving immediate liquidity against the mutual fund units they
own. This is essentially an overdraft facility for short-term monetary
requirements, with a relatively shorter tenure than other loans. You may take a
loan against the mutual funds you own to earn immediate returns on it, as well as
earn surplus reserves to invest elsewhere. To avail of a Loan Against Mutual
Funds (LAMF), the borrower must request the Mutual Fund Registrar to mark a
lien against the mutual fund units

 Loan Against Life Insurance Policy:Loan Against Life Insurance Policies offers
customers the opportunity to leverage their existing life insurance policies and
generate cash reserves quickly. This is a beneficial facet of life insurance, which
helps you liquidate an existing policy (ies) to beget funds for professional or
business purposes. It is pertinent to note that the loan is approved only against
20
 traditional life insurance models that include endowment and money back
features. It is not granted against term insurance, but we approve the LAIP for
unit-linked insurance policies.

Also, not all life insurance plans qualify for personal loan against insurance
policy. Aditya Birla Finance approves LAIP only for Life Insurance policies that
have attained their surrender value at the time of application of the loan.
 ESOP Financing: Employee contribution is the single most important driving
force for a company’s success. Businesses cannot achieve their financial goals if
employees do not exert their best efforts towards accomplishing the same. Hence,
companies may reward their prized employees by setting up an Employee Stock
Option Plan (ESOP). The ESOP may either be set up as a trust fund or it can
borrow money to purchase new or existing company shares. Employees may opt
for ESOP Financing to purchase company equity shares

 IPO Financing: Investing in IPOs is a rewarding experience for individuals or

companies. However, it may so happen that you may not possess the requisite
funds to subscribe to IPOs. At this juncture, an inflow of funds from another
source may become necessary. One can explore the option of IPO Financing to
bridge the deficit between the resources at hand and the funds needed in
aggregate.

 Promoter Funding: After building your company to a force to reckon with, you
as the promoter of the business, will always want to expand by way of starting
new operations, entering new markets and introducing new products. To do this,
you may require additional funds. In such a case, Promoter Funding against your
shareholding is an excellent way to raise funds immediately.

 Margin Trade Funding: There is no doubt that one may need urgent funds at key
moments in life. One may even wish to leverage their owned equity investments
to get a loan. However, the securities one owns may not be sufficient to either
yield the required loan amount or purchase further securities. In such a case, one
may wish to bridge the deficit in their resources with funding from another source.

21
 A financing solution known as Margin Trade Funding is a worthwhile option to
explore at this juncture.

 Real estate finance

Loans Against Property: A sudden requirement of funds is an unavoidable

circumstance arising in professional or personal life. Whether a personal necessity
(hospitalisation, child's marriage) or a professional one (expanding business
operations on a priority basis), every person requires immediate financial backing
at key moments. In this context, it is imperative to consider an invaluable source
of finance known as Loan Against Property (LAP). This is a loan borrowed by
placing one's owned property as collateral. The funding may be given by financial
institutions after scrutinising the validity of the said property and its current
market value.

 Construction Finance: The real estate industry requires a constant stream of funds
for various construction-related tasks. From the under-construction stage to the
handover stage, developers must have funds available to ensure the timely
delivery of housing or commercial units. Stalling a project mid-way owing to
paucity of funds is a common problem faced by many housing and commercial
development projects in India. Real estate developers can overcome this hurdle by
availing construction loans.

 Lease Rental Discounting: Owning a commercial or residential property in India

comes with its share of advantages – the principal one among them being that the
property owner is able to lease out the premises to earn rental income. Apart from
monetising the property, the rent receivables also yield an additional benefit to the
owner: he can raise a term loan against the rent for personal or business intents.
This loan is known as Lease Rental Discounting (LRD) and is approved against
the discounted rental cash flows from the property and its current market value.

 Commercial Property Purchase: The real estate market in India continues to be in

a state of speedy development. Owing to a business-friendly environment several
Indians are taking up the gauntlet of running their own enterprises. This
22
 necessitates the purchase of commercial property to set up business headquarters.
A company will also require premises for the storage of machinery and
equipment, or a smaller premise for back-office operations. For all of this, the
company needs a steady stream of revenue that will facilitate the property
purchase. In the absence of the requisite funds at hand, businesses can avail of a
finance solution known as the Commercial Property Purchase Loan.

 SME Finance

As the owner of a small or medium enterprise, you have to manage the day-to-day
running of your business, while also pursuing plans to expand your business. This
could be through technological advancement, or perhaps through setting up
ancillary units in different markets, or even scaling up production to anticipate
future demand. Along with this, you also need to keep an eye out for opportunities
you can capitalise on: a sudden tender you want to bid for, a unit that is up for
auctions that you could buy. All of these require funds that your working capital
may not have the elasticity to provide.SME Finance can prove beneficial to you at
these times. Our range of products are tailored to meet your requirements.

 Line of Credit: A line of credit, is an arrangement between a financial institution,

and a customer that establishes a maximum loan balance that the lender permits
the borrower to access or maintain a customer may draw upon the available line of
credit, provided that the amount does not exceed the limit. Money borrowed on
the line of credit must be paid back within a specified timeframe, at a specified
interest rate. Unlike a loan, however, only the money actually drawn (or used) on
a line of credit is charged.

 Unsecured Business Loan: A line of credit, is an arrangement between a financial

institution, and a customer that establishes a maximum loan balance that the
lender permits the borrower to access or maintain a customer may draw upon the
available line of credit, provided that the amount does not exceed the limit. Money
borrowed on the line of credit must be paid back within a specified timeframe, at a
specified interest rate. Unlike a loan, however, only the money actually drawn (or
used) on a line of credit is charged
23
 Secured Business Loan: The Small and Medium Enterprises (SME) sector in India
has matured tremendously over the last few decades, providing employment
opportunities to millions of people and bringing several industries to rural areas.
The SME sector employs millions of Indians and functions as a subsidiary to large
industries in the country. The sector also contributes to a large portion of the
country's exports. It follows that the growing SME segment's business output must
be bolstered by timely funding. The productivity of the sector can be significantly
augmented by periodic funding. This business loan takes the shape of a financial
product known as SME Loan.

 Working Capital Demand Loan: Businesses run on a constant stream of daily

funds. Their requirements can range from purchasing monthly office supplies to
paying rent on the office space. However, having working capital at hand always
is not potentially likely at all times. Hence, companies may explore the option of
taking a Working Capital Demand Loan to meet their financial needs.

 Supply Chain Financing Solutions - Invoice Discounting: Enables you to convert

your receivables into cash which in turn improves liquidity resulting into a healthy
and continuous cash flow for your business.
Vendor Finance

Channel Finance for Manufacturers

Channel Finance for Traders

 DCM & Loan Syndication

The DCM business aims to provide solutions by leveraging its knowledge and
insight of the debt capital markets in India. These are coupled with robust
distribution and structuring capabilities.
The following debt capital market offerings:

 CONVENTIONAL CORPORATE BONDS

24
 We provide financing solutions to corporates and financial institutions to meet
their business requirements such as Capital Expenditure, Long Term Working
Capital, Refinancing and other corporate purposes.

 SHORT- TERM FINANCING

We provide short term financing products such as Commercial Paper issuances
and Structured Bridge financing instruments.

 CREDIT ENHANCEMENT STRUCTURES

We provide tailor made solutions using various credit enhancement mechanisms
such as Third-Party Guarantee, Holdco Guarantee, DSRA Guarantee, Partial
Credit Enhancement, First Loss Guarantee thereby increasing the credit
worthiness assuring a diverse investor base.

 SECURITISZATION
Our securitization solutions extend across a wide range of asset classes, including
consumer loans of all types, Real Estate holdings and future flows of stable cash
streams through a wide array of solutions like Pass Through Certificates (PTCs),
Commercial Mortgage Backed Securities (CMBS), Collateralized Debt
Obligations (CDOs) and Receivable Discounting structures.

 COLLATERALISZED LENDING
We provide innovative financing solutions for Corporates against collateralized
securities such as Capital Market instruments and Real Estate.

 MEZZANINE FUNDING
We provide customized solutions to corporates and financial institutions through
Subordinated Debt and Quasi-equity instruments.

 ACQUISITION FINANCE

25
 We enable corporates to identify the optimal financing solution for acquiring the
target company with the use of debt, equity and hybrid financing techniques.

 Lease Rental Discounting

Owning a commercial or residential property in India comes with its share of

advantages – the principal one among them being that the property owner is able
to lease out the premises to earn rental income. Apart from monetising the
property, the rent receivables also yield an additional benefit to the owner: he can
raise a term loan against the rent for personal or business intents. This loan is
known as Lease Rental Discounting (LRD) and is approved against the discounted
rental cash flows from the property and its current market value.

 Commercial Property Purchase Loan

The real estate market in India continues to be in a state of speedy development.

Owing to a business-friendly environment several Indians are taking up the
gauntlet of running their own enterprises. This necessitates the purchase of
commercial property to set up business headquarters. A company will also require
premises for the storage of machinery and equipment, or a smaller premise for
back-office operations. For all of this, the company needs a steady stream of
revenue that will facilitate the property purchase. In the absence of the requisite
funds at hand, businesses can avail of a finance solution known as the
Commercial Property Purchase Loan.

 Construction finance

The real estate industry requires a constant stream of funds for various
construction-related tasks. From the under-construction stage to the handover
stage, developers must have funds available to ensure the timely delivery of
housing or commercial units. Stalling a project mid-way owing to paucity of funds
is a common problem faced by many housing and commercial development
projects in India. Real estate developers can overcome this hurdle by availing
construction loan

26
Mission and objective of Aditya Birla finance limited

To be a premium global conglomerate with a clear focus on each of the businesses

To deliver superior value to our customers, shareholders, employees and society at

large

The "Power of 5" is unique way of saluting, celebrating and cheering the
inspirational act of integrity, commitment, passion, seamlessness and speed by our
people, over the last decade.

Integrity: Honesty in every action

Acting and taking decisions in a manner that is fair, honest, and following the
highest standards of professionalism. Integrity for us means not only financial and
intellectual integrity, but in all other forms as are commonly understood

Commitment: Deliver on the promise

On the foundation of integrity, doing whatever it takes to deliver value to all

stakeholders. In the process, taking ownership of our actions and decisions, those
of our team and that part of the organisation that we are responsible for

Passion: Energised action

A missionary zeal arising out of emotional engagement with the organisation that
makes work joyful and inspires each one to give our best.

Seamlessness: Boundaryless in letter and spirit

Thinking and working together across functional silos, hierarchies, business and
geographies. Leveraging the available diversity to garner synergy benefits and
promote openness through sharing and collaborative efforts

Speed: One step ahead always

Responding to internal and external customers with a sense of urgency.

Continuously seeking to crash timelines and choosing the right rhythm to optimise
organisation efficienciesFinancing solutions to enable us to get the right things at
the right time without having to wait.

27
 SWOT Analysis of Aditya Birla Finance Ltd

• Goodwill of • Less awareness

Aditya Birla in rural market
Brand

Strength Weakness

Opportunites Threats

• Huge potential • Many

in Finance competitors in
market the market

SWOT Analysis of Organization SWOT analysis is a tools auditing an

organization and its environments. It is the first stage of planning and helps
markets to focus on key issued. SWOT stands for strength, weakness, opportunity
and threats. Strengths and weakness are internal factor. Opportunities and threats
external factors

 STRENGTH

Carry Goodwill of Aditya Birla Brand

Transparent functioning.

Very strong capital base.

28
 Customer satisfaction.

 WEAKNESS

Less awareness in rural market.

Number of advertisements is very less.

Shifting of IFAs from their favour.

 OPPORTUNITIES

Huge potential in Financial sector.

Create awareness about the importance of financial advisory.

Build brand trust through investment in promotional activities.

 THREATS

Stiff competition from Nj wealth and prudent corporate.

Entry of new firms.

29
 Part IV
ADITYA BIRLA FINANCE LTD ‘s
COMPETITORS

Chapter IV-Competitors Profile

[4.1] Nj Wealth
[4.2] Prudent corporate

30
 Competitors Profile

 NJ Wealth

NJ Wealth - Financial Products Distributors Network, one of India's leading and

most successful network of distributors in the financial services industry.

Started in 2003, NJ Wealth seeks to reach out to the common man and extend the
opportunity to create wealth through an empowered network of financial products
distributors – the NJ Wealth Partners. To its Partners, NJ Wealth provides a full
service, comprehensive business platform with end-to-end solutions critical for
success in financial products distribution practice. With its compelling set of
offerings covering every area of distribution practice, NJ Wealth has managed to
successfully transform the lives of many small and big distributors.
To the common man, NJ Wealth offers a comprehensive wealth management
platform with a wide choice of financial and non-financial products. Backed by
high levels of excellence in operational and service standards, NJ Wealth offers
customers of its Partners, with solutions that truly make a difference.
Driven by the strong vision of 'Creating Wealth and Transforming Lives', NJ
Wealth's constant endeavour is to build on the ideas that are meaningful &
effective in scaling business challenges, seizing available opportunities and
serving the interests of the customer.

The NJ Wealth family has grown steadily and today it has over 33,000+ NJ
Wealth Partners, spread across 95 branches in 19 states in India with over
25,00,000+ investors, and over INR 65,000+ crores of mutual fund assets under
advice. Irrespective of the numbers though, it is trust in us which fuels the passion
for creating solutions with excellence that touch many lives, day after day.

31
 Prudent Corporate

Incorporated in 2000 with a clear vision of providing professional services in the

area of personal and corporate investments, Prudent group has created a niche
segment over a period of time with an excellent quality client base with in-house
capability of analysing various products on various parameters before suggesting
them to clients.

The team approach has worked wonders and in the short span of over one and a
half decade, the Prudent Group has expanded its horizon by offering specialized
services in the areas of Personal & Corporate Investment Planning through Mutual
Funds, Equities, Derivatives, Third Party Products, Fixed income Products,
Life/General Insurance, Commodities and Real Estate through various business
verticals.

Prudent is headquartered at Ahmedabad, Gujarat and operates out of 70 branches

across 19 states in India. Prudent comprises a team of 800+ high skilled
professionals in various business verticals, it is their combined intelligence, spirit,
and dedication that has lead the company to enviable heights.

Time and again, Prudent has been rewarded by industry through various awards
and laurels. Prudent was adjudged as winner of CNBC TV 18 - Best Financial
Advisor Award (West) for 5 years in a row from 2009 to 2014.

32
 Part V-COMPARISON
OF MARKETING STRATEGIES USED
BYADITYA BIRLA FINANCE LTD & ITS
COMPETITORS

Chapter V-Comparative analysis of marketing

strategies used by competitors of Aditya Birla
finance Ltd

[5.1] Brand positioning of ABFL, NJ wealth, Prudent

corporate
[5.2] Marketing strategies used by ABFL, NJ Wealth,
Prudentcorporate

33
 Comparative analysis of marketing strategies used by of Aditya Birla
Finance ltd

Brand positioningby Aditya Birla Finance ltd

Market Segmentation

 Aditya Birla Finance segment market based on user status -based on client’s
position
 The segmentation is also based on demographic- Providing Financial solutions
based on Client’s age.
 User Usage-Solutions based on client’s usage.

Target Marketing

 The target audience of Aditya Birla finance ltd varies as they have different
solutions n advisory for different audience bas on their age , work profile , needs.

Positioning

 Brand Loyalty- As ABFL has its presence in the market for years and have
catered to different market segments through these years.
 Ad promotion- mostly used promotion are through print media.
 Different campaigns-#dear money

34
 Brand positioning by NJ Wealth

Market Segmentation

 In NJ Wealth, there exist heterogeneous segments. The major segment consists of

Advisors.

 Advisors are Segmented into insurance advisors, Tax consults, Chartered

Accountant, Stock brokers and postal agents.

Target Marketing

 NJ INDIA INVEST targets various segments Like all financial professionals i.e.
teacher, advocate, MBA student, etc.

 But the main targets are the Insurances, Taxes, Direct Equity and PPF Different
products are provided to suit different targeted groups.

Positioning

 NJ India is a dominant player in the Indian mutual funds distribution business

with over decade of experience.

 NJ India Invest has a given the very good research supports to his advisor.

 In NJ India Invest is present in more than 100 location in 19 states.

 NJ Wealth Focus on “BE A WEALTH ADVISOR” position.

35
 Brand positioning by Prudent corporate

Market Segmentation

 Prudent corporate has a global reach it segments it market based on geographic as

well as on user status. Mostly advisors are targeted as they are mutual fund agents.

 Advisors are Segmented into insurance advisors, Tax consults, Chartered

Accountant, Stock brokers and postal agents.

Target Marketing

 Prudent corporate also targets various segments Like all financial professionals
i.e. teacher, advocate, MBA student, etc.

 But the main targets are the clients looking for investment solutions.

Positioning

 Being an eminent name in the respective domain, Prudent Corporate always strive
to render the most favourable Tax consultancy services to its clients.

 Service is acknowledged by the clients because of being the best and reliable in
nature.

36
 Marketing Strategies of Aditya Birla finance ltd

 Running Different campaigns to promote their services

# DEARMONEY

Aditya Birla Capital Limited (ABCL) had launched its #DearMoney, commercial
through a high-octane campaign across 51 TV channels, 14 radio stations, OOH
locations, Facebook, YouTube, Instagram and websites.

Directed by Ram Madhvani, the TVC has been created by Taproot Dentsu. Media
handling the digital campaign roll-out and MindShare India being responsible for
the digital and TV media planning. Fitch India was responsible for the creation of
the new visual brand identity for Aditya Birla Capital.

This is the very first campaign to be launched post the formation of Aditya Birla
Capital, which is the holding company of all the financial services businesses of
the Aditya Birla Group and one of the leading financial services players in India.
With this launch, all ABCL businesses, inclusive of Aditya Birla Finance Limited,
Aditya Birla Sunlife Mutual Fund, Aditya Birla SunLife Insurance and Aditya
Birla Health Insurance, have come together as one to serve the end-to-end
financial needs of its retail and corporate customers through one brand.

The campaign highlights the launch of a whole new category, money, and the
launch of a whole new way in which financial brands enter and become a part of
people's lives through their life's needs. Money is not an easy topic to talk about as
the complexities surrounding it are unique to every individual. And therefore most
of us do not like to talk about money, not just with others, but often even with
ourselves.
The objective of the campaign is to provoke people to start a conversation about
money, with money! In a unique one-on-one conversation across all channels and

37
 mediums, the campaign touches on the issues the people of India have in relation
to their money and self-realise the need for money in various aspects of their life.
For only when people start actively thinking about their money, will they take the
first step towards planning it for all their life's needs, throughout their lives.

 Tie up with apps such as paytm to offer finance option to seller

Online recharge and payments company Paytm has tied up with Aditya Birla
Finance to offer hassle-free finance options to more than 50,000 sellers on its
platform. The move is expected to help small and medium sellers to scale up their
business.
By creating an ecosystem which helps our merchants to grow their business faster
Accessibility to short-term loans and working capital loans is often a major
roadblock for smaller sellers which we are working towards removing Aditya
Birla Finance was setting up a dedicated system and infrastructure to cater to the
financing requirement of smaller sellers.

A majority of micro, small and medium enterprises (MSME) in India do not have
access to formal financing channels, said Aditya Birla Finance Chief Executive
Rakesh Singh. "The partnership with Paytm also creates the opportunity for ABFL
to penetrate the unbanked MSME space faster."

 Providing brochures & leaflets for promotion to IFAs to maintain transparency

They provide the materials to advisors on monthly basis which shows that the
financial companies want their financial advisors to be updated about their
offerings throughout the year.
This is a way of promoting their offerings to IFAs as well as to the client

38
 Marketing Strategies of competitors of Aditya Birla finance ltd

 NJ WEALTH

The present marketing strategies of mutual fund products adopted byNJ

Indiainvest can be divided into following heads:

1. Direct marketing

2. Selling through Intermediaries

3. Other channels

DIRECT MARKETING

This constitutes 20 % of the total sales of mutual funds. Some of the

importanttools used in this type of selling are:

Personal Selling

In this case, the customer support officer at particular branch takes

appointmentfrom the potential prospect. Once the appointment is fixed, he
informs the managementexecutives in marketing department to meet and give him
all details about the schemes being offered by the fund.

Telemarketing

In this type of marketing, the database of the people is to be picked from

thetelephone directory or other commercial sources randomly. Sometimes people
belongingto particular profession are also contacted through phone and informed
about funds.

39
Advertisements

The Asset Management Companies advertises the particular schemes

innewspaper, magazines, televisions and radios at regular interval of time. Now a
day, mutual fund NFOs (IPO’s) are coming at every two months' which are
heavily advertisedthrough these mediums. The purpose is to keep investors aware
about the schemes offered by funds and their performance in recent past.

Hoardings and banners

In this type of marketing' the various funds advertise their schemes

throughhoardings and banners, which are kept at important locations of the city
where themovement of the people is very high.

SELLING THROUGH INTERMEDIARIES

Intermediaries include Distributors or Agents or Brokers who contribute in

greatmanner to increase the sales of mutual funds schemes. These people or
distributors are indirect touch with the investors. Most of them are also involved
in selling shares and other investment instruments. They are completely associated
with financial markets and hence perform a good job to convince the investors to
invest in mutual funds. On the other hand. customers prefer to put trust on those
distributors who give them right information about the fund and keep them update
with market conditions

Regular meeting with distributors also plays vital role in collecting the sales of
mutual funds. The Sales executives regularly meet these distributors and solve
their requirements and complain from either service side or from customer side.
The objectiveis to make a good business relation and work with co-operation
because these distributorsor brokers contribute 70-80% of total sales of mutual
funds.Sometimes special training sessions are also to be organized for the new
agents or distributors. Training involves giving details about the scheme,' their
investmentobjective' its performance in the market and the competitors’ schemes
also.Sometimes big distributors have their own sub agents or sub brokers to
increasetheir sales activities.
40
 OTHER CHANNELS

Apart from direct marketing and intermediaries, there are other

distributionchannels also developed by mutual funds. It includes banks and other
financialinstitutions that are promoting these mutual funds schemes as per the
regulations prescribed by SBI and RBI. In private as well as nationalized banks.
there is a separatesection for mutual funds. They have their own executives with
efficient sales force to promote the mutual fund schemes among their customers.

STALL ACTIVITY

NJ uses a very common technique as its marketing techniques' i.e. Keepingstalls

and booths at various fairs. At these stalls they try to get convince the peopleto
invest in mutual funds and become an advisor. This is a widely used technique by
major byNJ India Invest.

VAN ACTIVITY

Another technique used byNJ Wealth is using a car for advertising. Mostly Maruti
car is used for doing this work.

KHICHDI MEET

Khichdi meet is one of the unique marketing techniques used byNj IndiaInvest. In
this meet 10 to 15 partners are invited. This is a technique which makesthe
partners feel their importance in the company and motivates them to work more
and more.

 Prudent Corporate

Single interaction point

41
Effective integration of different products and services for simplicity that deliver
effective, dynamic solutions that work. Dedicated Relationship Manager for every
Prudent Partner

Single Service Point – Get/ Deposit Applications of All AMCs/ All schemes at
Prudent Branch office. Query Handling - Single contact point for all queries
across all AMCs/ All problems.

SINGLE WINDOW - MULTIPLE SOLUTIONS Single Interaction Point Money

through wisdom

Joint Calls

Joint calls includes the calling the partners and informing them aboutvarious new
schemes and keeping them aware about the market conditions. It also includes
going to the partner and explaining him about the new schemes in themarket and
where actually he can invest his money i.e. in what type of mutualfund he wants
to invest and what is the amount. Sometimes the head alsoaccompanies the mutual
fund advisory to do joint calls.

Client meets

Client meets are arranged whenever it is required. There are differentmeets like
meet for issuing of new mutual funds' a project visit in case of prudent corporate
reality, meeting telling the partners about the conditions and new schemes
whichare recently added. These meetings and gatherings are known as client
meets.

Courier

This is technique is also used for marketing by all financial institutions.

Different brochures, templates,bookletsare sent on monthly or weekly basestothe
places of partners. This keeps the partner update with what is going in the firm
and market conditions.

42
 Part VI
ROLE IN THE ORGANIZATION &
EXPERIENCE OF THE INTERNSHIP

Chapter VI- Role in the Organization

[6.1]Background of the study

[6.2] Reason for the study
[6.3] Research methodology
[6.4] Finding & Interpretations
[6.5] Recommendations/inferences

43
44
 My role in the Organization

 Aditya Birla Finance Limited (“ABFL”) is among the leading well-diversified

financial services company in India offering end-to-end lending, financing and
wealth management solutions to a diversified range of customers across the
country.

 Aditya Birla Finance Limited(ABFL), through its brand Aditya Birla Wealth
Management, offers a range of solutions for wealth management and
distribution. It also offers third party products like company deposits, mutual
funds, structured products, alternate investments and property services.

 I was assigned as intern in marketing department of Aditya Birla wealth

management which comes under ABFL and my mentor wasNamrata Ginwala
– Deputy Chief Manager (Marketing).

 So during my Summer internship I had to first get complete knowledge of the

functioning of the department so portfolio of ABWM was given to me and I
was introduced to some people to get information from them to get proper
understanding of the work.

 The wealth management has different sub department which deals with
different target groups such as wealth HNIS/UHNIS, Business partner groups,
Corporate & Treasures services.

 So I was given a project during my summer internship as

CompetitorResearchof Marketing content of BPG business whereI had to
analysis and do a research on marketing strategies and content used by the
competitors of the Aditya Birla Finance Ltd.

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 So the business partner groups are basically the link between the Aditya Birla
company and clients. BPG are generally independent financial advisors so my
job was to interview such IFAs and to get an understanding of their
preferences.

 This research was also targeted to get a comparative analysis of the

competitors’ strategies and ABFL to understand where ABFL was lacking in
the area of marketing and the reason of shifting of IFAs from ABFL ‘s Favour.

 This project helped me to put my skills and knowledge in actual practise by

interacting with different IFAs and also to understand the steps involved in a
research.

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 Background of the study

1. Aditya Birla Finance Limited (“ABFL”) is among the leading well-diversified

financial services company in India offering end-to-end lending, financing and
wealth management solutions to a diversified range of customers across the
country.
2. So, under ABFL comes Wealth management which offers personalized solutions
to the clients and partners up with them at every step of the way on the road to
financial well-being.
3. Wealth management has different sub department which deals with different
target groups such as wealth HNIS/UHNIS, Business partner groups, Corporate &
Treasures services.
4. So, the business partnership group has distribution partners who are agents who
serves as a link between the Aditya Birla finance limited company and clients.
5. IFAs play a crucial role as they are the one who are in direct contact with the
clients by providing them suggestion and helping to fulfil complex financial needs
of the clients by their expertise and knowledge.
6. As the IFAs focus on building relationships that’s responsive, attentive, and
personalwiththeclients. So, they can get better understanding of the client’s
situation.
7. So, the financial institutions should take a keen interest to maintain good relation
with IFAs by being up to date with them and providing them all the necessary
information which is required by the IFAs.
8. As there is an intense competition between the financial companies and different
types of marketing strategies are adopted in order to tie up with many financial
advisors as possible. So, to analysis such competitor’s marketing strategies
9. The main motive is get in depth understanding of various Marketing strategies
used by competitors of Aditya Birla Finance ltd as they noticed an shift of number
of IFAs from the favour of ABFL to such Competitors.

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 The Reason for the study-

Shifting of IFAs from Aditya Birla Finance ltd

First, what is IFAs?

Independent Financial Advisers or IFAs are professionals who offer independent

advice on financial matters to their clients and recommend suitable financial
products from the whole of the market. The term was developed to reflect a
United Kingdom (UK) regulatory position and has a specific UK meaning,
although it has been adopted in other parts of the world, such as Hong Kong.
The term is commonly used in the United Kingdom where IFAs are regulated by
the Financial Conduct Authority (FCA) and must meet strict qualification and
competence requirements.

Typically an Independent Financial Adviser will conduct a detailed survey of a

client’s financial position, preferences and objectives; this is sometimes known as
a ‘factfind’. The adviser will then recommend appropriate action to meet the
client's objectives; and if necessary, recommend a suitable financial product to
match the client’s needs.

Individuals and businesses consult IFAs on many matters including investment,

retirement planning, insurance, protection and mortgages (or other loans). IFAs
also advise on some tax and legal matters. So as IFAs are the link between Aditya
Birla Finance ltd and their clients and recently there were some number of IFAs
shifting from favour of Aditya Birla finance ltd to the competitors i.e. Nj wealth &
prudent corporate.
So the Project work was given to me as a part of my internship where I have to
interview IFAs to get a better understanding of their preferences and on what basis
they choose the financial institution which whom they want to collaborate.

48
 Research methodology

 Research Objectives
 To analysis & understand the Competition faced by financial companies.

 To get insights about the competitor’s offering to the financial advisors.

 To understand financial advisor’s preferences and their relationship with different

financial companies.

 To find out what marketing strategies are adopted by different financial

companies to get competitive edge over its competitors.

 Research plan
 Sample plan

Sample unit-Financial advisors

Sampling method-Convenient sampling

 Research design

Primary-Questionnaire interview
Descriptive research and Explanatory research

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 Findings & Interpretation of data

 The most of the sampled financial advisors have been working as an financial
advisors for 6 to 8 years. The advisors were mostly working in a corporate
company before starting their advisory services company. As the advisors said
they prefer an independent working environment compared to corporate working
environment.

 Advisors use their tie up companies’websites such as

www.prudentcorporate.com&www.njwealth.in for their transactions.

 Some of the advisors prefer client satisfaction and providing valuable services to
them the most while there were also some advisors who prefer profitability more.

 The financial advisors mostly use comprehensive approach for their clients so
they prefer to tie up with such financial companies which helps the financial
advisor to understand all the aspects of their client’s financial position.

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1. Which marketing materials do they provide?

RESPONSE

Turorials
6%
Whatsapp posts
6%

Emailer Company
20% brochures
49%

Leaflets
19%

 The materials provided by financial companies were mostly brochures and leaflets
while for some of the advisors also received mailers and WhatsApp posts

2. How often do they provide such materials?

RESPONSE

Periodically
during
Anually campaigns
21% 1%

Quarterly Monthly
16% 62%

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 They provide the materials to advisors on monthly basis which shows that the
financial companies want their financial advisors to be updated about their
offerings throughout the year.

3. Is the materials customizable like can they add name or brand logo on it?

RESPONSE

YES
28%

NO
72%

 The response for customization of such materials were mostly negative so it

shows that the financial institutions prefers to not allow the IFAs to customize
their Booklet.

4. How does the materials is sent to you?

1.Hardcopy 2. Softcopy

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 RESPONSE

HARDCOPY
14%

SOFTCOPY
86%

 The materials were mostly given in the form of softcopy to most of the advisors
and very few are received in form of hardcopy which shows that the financial
company prefer to give softcopy over hardcopy due to its convenience of
exchange.

5. Are the materials?

I)Free of cost as you have to subscribe ii) Additional money is charged

RESPONSE

ADDITIONAL CHARGE
11%

FREE OF COST
89%

 The advisors receive the materials for free of cost by logging on their websites as
a subscriber.
53
6. Do you think co-branding is important?

RESPONSE

NO
15%

YES
85%

 The advisors feel co-branding is very important but they said not all the
companies do co-branding but they prefer when there tie up companies co brand
with them.
7. Do you pass off the materials to your clients? If yes, which materials do u pass?

RESPONSE

NO
24%

YES
76%

 The advisors only pass off materials such as brochures and leaflets to their
clients not all the materials they receive from the financial companies. Passing
off the materials has also helped the financial advisors to gain their client’s
interest.

54
 Recommendation /Inferences

 The advisors prefer their material to be in softcopy for easy accessibility so it is

recommended that the materials are available in softcopy form and the advisors
should be given such marketing materials on monthly basis so they are updated
about the offerings.

 The advisors feel co-branding is very important so it shows that advisors prefer
financial companies which co-brand with them.

 Most of the advisors does not disclose all materials to their clients which might be
a downfall for the clients so advisors should be encouraged to pass most of the
materials to the client.

 One of the competitors also have a dedicated online portal designed to provide
marketing support. It has marketing products available such as banners, booklets,
flyers, stationery, newsletter, personalized products, SMS manager.

 One of the competitors’ strategies is to provide personalized services to different

category of business associates such as client desk for clients and partner desk
support for partners which has more edge over client support desk.

55
 Challenges/Limitations

The challenges that I faced during the starting of my internship was it was
difficult to adapt to the environment as a being a college student it was all new for
me the corporate working lifestyle

The challenges faced during my Internship project are as following as it becomes

essential to figure out the various constraints that I underwent during the study.
The following points in this direction would add to our total deliberations: -

 Due to confidentiality with their partner companies, some IFAs were not open to
give some details.

 Lack of time is the basic limitation in the project.

 Some IFAs refuse to cooperate with the queries.

 Some IFAs gave biased or incomplete information regarding the study.

 Lack of proper information and experience due to short period of time

.
 Some IFAs did not answer all the questions or do not have time to answer.

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 Conclusion

 The Summer internship at Aditya Birla Finance Ltd is really full of experiences
and learning.

 Firstly, it was a great experience to work with a world class as it was my first step
into the corporate world.

 It was an eye-opener for me as it provided me an opportunity to have practical

knowledge of market.

 It was very interesting to interact with the IFAs and know from them what they
actually expect from Aditya Birla finance Ltd.

 Distribution channel of the company should be strong because any problem in

distribution channel make product and company suffer.

 Due to market research project I have got an opportunity to see different

marketing strategies and content used by Financial Institutions to attract IFAs in
order to increase the number of clients.

 I have learnt about how being transparent with the IFAs and giving them some
liberty to customize the marketing content will have positive impact on IFAs.

 When I saw my seniors doing each and every kind of work than I came to know
how much important is each kind of work.

 Experience & learning’s through Marketing dept.

 I also learned how much values & cultures of the organization impacts
productivity

 Organizing your work and put a timeline make your work easier.

 You can learn by observing more than asking.

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 BIBLIOGRAPHY

 Avadhani, V.A., ‘Marketing of Financial Services’, Himalaya Publishing House,

Mumbai, 2008
 Narasimham.M (1998), “Report of the committee on financial sector reforms”, A
Nabhi publication, Publishing house, Delhi, p349
 Sen, Kunal and R.R.Vaidya(1997), “ The process of financial liberalization in
india”, Oxford New Delhi, p.114
 Lee, J., Marlowe, J. (2003), "How consumers choose a financial institution:
decision- making criteria and heuristics", International Journal of Bank Marketing,
Vol. 21 No.2, pp.53-71.
 Srivastava, R.M. and Divya Nigam, ‘Management of Indian Financial
Institutions’, Himalaya Publishing House, Mumbai, 2010.
 Bhole, L.M. and Jitendra Mahakud, ‘Financial Institutions and Markets –
Structure, Growth and Innovations’, Tata McGraw Hill Education Private
Limited, New Delhi, 2010.

WEBSITES

 www.adityabirlacapital.com

 https://economictimes.indiatimes.com/industry/banking/finance/aditya-birla-
financial-services-to-enter-infrastructure-financing/articleshow/10481329.cms

 https://bestmediainfo.com/2017/11/aditya-birla-capital-s-dearmoney-campaign-
encourages-people-to-have-a-conversation-around-money/

 https://www.livemint.com/Companies/kIxriIVcQjYv2w6AWpGm8J/The-rise-of-
Aditya-Birla-Financial-Services.html

 https://www.techmagnate.com/aditya-birla-finance-ppc-case-study.html

 https://talentedge.in/blog/evolution-finance-digital-india/
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 ANNEXURE

Questionnaire for IFAS

1. How long has it been since you have started your Financial advisory business?
2. Before starting, did you work in any corporate company?

3. If yes then, where were you working previously?

4. What made you to start your own IFAs?
5. How is the experience has been as you have shifted from a corporate working
environment to your own independent working Environment?

6. What are your areas of specialization?

7. On what basis do you segment your clients & which segment is mostly preferred
by you?

Age group wise Job wise Ticket size wise Lifestyle wise

8. What approaches do you use while giving advices to your clients?

9. Do you use any online portal for easy accessing of transaction?

10. What kind of commission structure do you follow?

11. Currently with which companies do you have tie-ups?

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 12. How did they approach you?

13. Which materials do they provide from the following?

Company One pager Product Campaign

brochures information materials

Emailer Articles Trading materials Tutorials

WhatsApp posts Any special Contests-

websites

Others-

14. How often do they provide such materials?

Monthly Quarterly Annually Periodically during

campaigns

15. How does the materials is sent to you?

 Hardcopy

 Softcopy

16. If softcopy is it available online?

17. Is the materials?

i) Free of cost as you have to subscribe

iii)Additional money is charged

18. Is the materials customizable like can they add name or brand logo on it?

19. If so, then which all materials are customizable?

Company One pager Product Campaign

brochures information materials

Emailer Articles Trading materials Tutorial

WhatsApp posts Any special Contests

websites

Others-
60
20. Do you run any co-branded campaigns with the companies, if so can you share
some details?

21. Does the company run any contests for you, if so what type of contest?

22. Do you pass off the materials to your clients too?

23. If yes, then which materials do you pass off to your clients?
24. What impact does that have on your client like does that

 Help to retain your clients

 Increase your client’s willingness to invest

25. What are your Future plans for your company?

26. Do you want to expand your business?

27. If yes, then how do you plan it?

61