‘Diversification’ means adding new lines of business. The new lines of business may be related to the current business or may be quite unrelated. If the new lines added, make use of the firm's existing technology, production facilities or distribution channels or it amounts to backward or forward integration, it may regarded as related diversification. Some companies expand the business into unrelated industries.
For example: Wipro which is in the business of edible oils, soaps, has also sprung its business segments in information technology etc.