Chairman Kumar Mangalam, now 31, has been able to grow out his father's shadow after having stunned the corporate world with a string of acquisitions during the year, which also includes his first investment outside India.

"But the international commodity downcycle has taken a firm grip on the group, as is evident from a more than 30 per cent erosion in market capitalisation of the four main group companies -- Grasim, Hindalco, Indian Rayon and Indo-Gulf --- all major market-movers through the year," said an analyst.

Says Kumar Mangalam Birla, "In the recent past our stocks have been undervalued despite our sustained performance levels. While the bourses have been behaving in an erratic manner, therehas been from our investors a clamour for restructuring of our portfolio of businesses into more focussed entities."

"In response to the legitimate concerns of our shareholders, we are evaluating restructuring options that would enhance shareholder value. We are critically reviewing the structure of all our companies, barring Hindalco which is a clear metal-focussed company," he added.

The group, due to its strong focus on commodities, has been hit by flat demand for most of its products and, as a result, lower prices leading to poor price realisation.

"That has been the case in all its primary businesses: cement, aluminium, copper and textile intermediaries, leading to a decline in profit margins," analysts say.

From a high of Rs 351.75 a share in January, flagship Grasim, which is emerging as the new cement powerhouse, has slumped to Rs 181.90 on Monday. Aluminium giant Hindalco, similarly, has dropped to close at Rs 509 on Monday, after having dropped to below Rs 500 in the previous weeks.

IndianRayon, which has lost its largest division - cement - to Grasim, has plummeted to Rs 113.10 a share on Monday from a high of Rs 208.50 in January.

Indo-Gulf, the fertiliser and copper maker, despite projecting a much higher turnover on account of the commissioning of its copper smelter, has dropped to Rs 26.20 a share from a high of Rs 40 at the beginning of the year.

The major surprises sprung by Birla during the year include the merger of the cement businesses of Grasim and Indian Rayon, takeovers of Dharani Cement and Shree Digvijay Cement and the acquisition of a pulp mill in Canada to synergise the group's operations in India with those in south-east Asia.

Birla says, "In reshaping our business portfolio, we are not averse to exiting any business where we do not attain a dominant position or create shareholder value. We are actively looking into entering new businesses that have a synergistic fit."

"For all new businesses we have redefined our criteria for investment. We ask: Do we have asustainable competitive advantage here? Can we become a dominant player? Can we create shareholder value? Only if all these answers are in the affirmative, we move ahead," he added.

Birla has also identified the areas of insurance, banking, power, infrastructure, and energy sectors for growth. "New opportunities for our group will unfold in these areas which we will capitalise on as there is a strategic fit between these sectors and our group. Over the long haul, we are confident of successfully running these businesses as well," Birla said.

"In balancing between consolidation in our existing businesses and proposed forays into new sectors, our endeavour is to turn our group into a more dynamic, focussed, shareholder-driven entity," he added.

Birla also appears determined to seek the help of professionals from outside the group, which for so long has been dominated by long-time Aditya Birla loyalists. Birla has initiated this process of professionalising through the inclusion of high-profile HindustanLever director Debu Bhattacharjee as the managing director of Indo-Gulf.