Av Birla Group Not To Make Cross-Investments

The Aditya Birla group has taken a policy decision not to make cross-investments in the future. The decision is significant in the context of the large acquisition opportunities that may come its way in the forseeable future, such as those of the state-owned National Aluminium Co and National Fertilisers.

The decision means if, for example, Hindalco is to be successful in its bid for Nalco, it will have to fund the acquisition on the strength of its own balance sheet.