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Diversification

To diversify means to add something new-new product, new market or new technology. Diversification involves framing a strategy to achieve growth (increase in the scale of operations) by adding new products or selling in new markets. Jay pee industries dealing in the business of hotels, education and cement is an example of diversification. Birla industry has diversified into textiles, cement and tyres. The H.K. Group of companies has a portfolio of textiles, computers, plastics, chemicals, tyres, tubes, dry cells, paints, cement, sugar and a number of other products.

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