About
Grasim Industries Ltd
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies. It is a leading global player in n Viscose Staple Fibre (VSF), the largest chemicals (Chlor-Alkalis), largest cement producer and diversified financial services (NBFC, Asset Management and Life Insurance) player in India. The chemical business was set up given it's a critical input for manufacturing VSF, and to achieve backward integration. Grasim is the largest Caustic Soda producer in India with a capacity of 840 KTPA. Grasim's subsidiary UltraTech Cement Limited is a leading global cement manufacturer with a capacity of 93 MTPA in India (includes 4 MTPA overseas).
The Company is India's pioneer in viscose staple fibre (VSF), a man-made, biodegradable fibre with characteristics akin to cotton. It is engaged primarily in Viscose (Pulp, Fibre and Yarn), Chemicals (Caustic Soda, Epoxy and allied Chemicals) and others (Insulators, Textiles, Fertilisers and Solar Power Designing, Engineering Procurement and Commissioning). The company's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka. The company is a global leader in viscose staple fibre (VSF), with 9% global share.
The Company has presence in the financial services business through its holding in Aditya Birla Capital Limited (ABCL). ABCL is the holding company for all the financial service businesses of the Aditya Birla Group. ABCL has a strong presence across life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance businesses.
Grasim Industries Limited was incorporated on August 25, 1947. In the year 1950, the company started production of fabrics at Gwalior with imported man-made rayon. In the year 1954, they commenced VSF production at Nagda in Madhya Pradesh. In the year 1962, they set up of Engineering Division for plant and machinery for VSF. In the year 1963, they started composite textile mill at Bhiwani in Haryana. In the year 1968, they commenced Rayon production at Mavoor, Kerala.
In the year 1972, the Company commenced production of rayon grade caustic soda for VSF production at Nagada. In the year 1977, the Company started production at their third rayon plant at Harihar in Karnataka. In the year 1985, Vikram Cement, the Company's first cement plant went on stream at Jawad in Madhya Pradesh. In the year 1987, they commenced second production line of Vikram Cement. In the year 1991, they added the third production line of Vikram Cement.
In the year 1992, the Company set up Birla International Marketing Corporation (BIMC), a merchant exporter. In the year 1993, they commissioned Vikram Ispat, India's third largest gas-based sponge iron plant. Also, they set up Birla Consultancy & Software Services to provide IT consulting services and for software development.
In the year 1995, the Company commissioned two greenfield cement plants namely, Grasim Cement at Rawan in Chattisgarh and Aditya Cement at Shambhupura in Rajasthan. In the year 1996, they commissioned the first phase of the company's fourth VSF plant at Kharach in Gujarat. In the year 1999, the company's viscose staple fibre (VSF) and rayon grade pulp units at Mavoor were closed down owing to lack of raw material.
In year 1998, cement business of Indian Rayon and Industries Ltd, a Group Company was demerged and transferred to the Company. Also, the Company in association with Timbec Inc. set up a Joint Venture Company namely, Atholville Pulp Mill at Canada. In the year 2000, the Company set up the Lawson Competency Centre as a division of Birla Consultancy & Software Services, the software arm of Grasim, following a tie up with Lawson Software (USA).
In the year 2001, the Company demerged the Consultancy and software service into a separate entity, namely Birla Technologies Ltd. They commissioned four Ready-Mix Concrete plants with an aggregate capacity of one million cubic meters. In October 2002, the company acquired 10% stake in L&T and increased their stake to 15.3%.
In the year 2002, the Company divested Gwalior textiles unit and the textile operations were consolidated at Bhiwani to manufacture 'Grasim' and 'Graviera' brands. Also, Dharani Cements Ltd merged with the company. The company set up VSF Research & Application Centre at Kharach in Gujarat. In the year 2004, the company acquired the controlling stake in UltraTech CemCo Ltd (now UltraTech Cement Ltd). In the year 2005, the company acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc.
In the year 2006, the Company formed a Joint Venture Company, Birla Jingwei Fibres Company Ltd. Also, they acquired VSF plant in China. In the year 2007, the Company divested their share in Shree Digvijay Cement Company Ltd. They transferred textile units at Bhiwani to a subsidiary company, Grasim Bhiwani Textiles Ltd. Also, they commissioned eighteen ready-mix concrete plants. In the year 2008, the Company commissioned brownfield expansion at Aditya Cement at Shambhupura (Rajasthan).
During the year 2009-10, the company completed their ongoing cement expansions and commissioned the 3.1 million TPA grinding capacity at Kotputli, Rajasthan. In May 22, 2009, the company hived off their sponge iron business by way of slump sale. As per the scheme of arrangement, the cement business of the company was demerged into Samruddhi Cement Ltd (Samruddhi), a subsidiary of the company with effect from October 1, 2009. Concurrently, Samruddhi Cement Ltd was amalgamated with UltraTech Cement Ltd with effect from July 1, 2010.
During th eyear 2010-11, the company acquired 1/3rd stake in Aditya Holding AB, Sweden, a leading manufacturer of specialty pulp used in the manufacture of VSF, which acquired Domsjo Fabriker AB (Domsjo), Sweden, at an enterprise value of Swedish Kroner (SEK) 2.12 Billion (approx. Rs 1,570 crore).
In September 2010, UltraTech completed acquisition of ETA Star Cement Company LLC comprising of 2.3 million TPA clinker facility and grinding units of 2.1 million TPA in UAE, 0.4 million TPA in Bahrain and 0.5 million TPA in Bangladesh. With this acquisition, UltraTech gained direct access to the markets in the Middle East and neighbouring regions. Consequent to this acquisition, UltraTech's capacity stands augmented at 52 million TPA. In August 2011, the company acquired Aditya Birla Power Ventures Ltd and thus Aditya Birla Power Ventures Ltd became a subsidiary company.
In 2014, Grasim commissioned its state-of-the-art VSF plant at Vilayat in Gujarat.
On 11 February 2015, the Board of Directors of Grasim Industries approved the proposed merger of Aditya Birla Chemicals (India) Limited (ABCIL) with Grasim. The swap ratio approved by the board was one equity share of Grasim for every 16 shares of ABCIL held on record date. On 5 January 2016, ABCIL announced the completion of merger process with Grasim Industries.
The Board of Directors of Grasim Industries, Aditya Birla Nuvo Limited (ABNL) and Aditya Birla Financial Services Limited (ABFSL) at their respective meetings held on 11 August 2016 approved the merger of ABNL into Grasim and the subsequent demerger and listing of its financial services business through a composite scheme of arrangement. ABNL is a diversified conglomerate with various business interests including manufacturing of fertilizers, viscose filament yarn, chemicals, insulators, textiles etc., financial services and telecom. The financial services business is a division of ABNL and is engaged in the activity of fund based lending, making, holding and nurturing investments in financial services sector. As per the swap ratio for merger, each shareholder of ABNL will get 3 equity shares of Grasim for every 10 equity shares held in ABNL on record date. For demerger of financial services business into ABFSL, each shareholder of Grasim (post-merger) will receive 7 equity shares in ABFSL for every 1 equity share held in Grasim.
On 1 June 2017, the National Company Law Tribunal (NCLT) approved the Composite Scheme of Arrangement involving the merger of Aditya Birla Nuvo (ABNL) with Grasim to be followed by the listing of Aditya Birla Financial Services Ltd (ABFSL). The merger of ABNL with Grasim became effective from 1 July 2017. The name of Aditya Birla Financial Services was changed to Aditya Birla Capital Limited (ABCL) on 21 June 2017. ABCL got listed on the stock exchanges on 1 September 2017. ABCL is the holding company of all the financial service businesses of the Aditya Birla Group. It has a significant presence across several business sectors including NBFC, asset management, life insurance, health insurance and wellness, housing finance, private equity, general insurance broking, wealth management, broking, online personal finance management, and pension fund management.
On 12 December 2017, Grasim announced that it has received the rights to manage and operate Viscose Filament Yarn (VFY) business of Century Textiles & Ind. Ltd. (CTIL) from CTIL for a period of 15 years. Consequently, Grasim will have Right to Use' the relevant assets. The ownership of the assets will remain with CTIL. CTIL has installed capacity of 25,000 tonnes of VFY. With Grasim's VFY capacity of 21,300 tonnes, the combined capacity will increase to 46,300 tonnes. As part of the transaction, Grasim will pay to CTIL commuted value of royalty of Rs 600 crore, refundable security deposit of Rs 200 crore and net working capital at closing estimated at Rs 165 crore. The Scheme of Demerger amongst Century Textiles and Industries Limited ('Century') and UltraTech and their respective shareholders and creditors has been made effective from 1 st October, 2019 consequent to completion of conditions precedent specified in the Scheme. In terms of the Scheme, UltraTech has allotted issue 1 (one) equity share of the Company of face value Rs 10/- each for every 8 equity shares of Century of face value Rs 10/- each to the shareholders of Century on the record date as defined in the Scheme.
On 16 March 2018, Grasim Industries announced that the production capacity of epoxy resin, reactive diluents and hardeners at the company's epoxy plant at Vilayat (Gujarat) has increased from 82,350 metric tonnes (MT) per annum to 1.23 lakh MT per annum through de-bottlenecking process.
On 26 March 2019, your Company has issued and allotted 5,000, 7.65%, fully paid-up, Unsecured, Redeemable Non-Convertible Debentures aggregating to Rs 500 crore on private placement.
During the FY2019, the Company has acquired the Chlor Alkali business from KPR Industries (India) Limited (KPR') by way of slump sale, for a cash consideration of Rs 253 Crore. The business consist of an underconstruction ChlorAlkali plant of 200 TPD capacity at Balabhadrapuram, Andhra Pradesh. The Company has taken over the identified assets and identified liabilities associated with KPR. On commissioning of this plant along with other ongoing expansion projects, the Company's caustic soda capacity will increase from 1.15 MMTPA to 1.38 MMTPA.
The Company has acquired 100% equity shareholding of Soktas India Private Limited ('SIPL') (now known as Grasim Premium Fabrics Private Limited) from its current promoters SOKTAS Tekstil Sanayi Ve Ticaret A.S., Turkey for cash consideration of Rs 135.40 Crore. Consequent to acquisition, SIPL has become a wholly owned Subsidiary of the Company, w.e.f. 29 March 2019.
The company won the Dun & Bradstreet Corporate Award 2019 for Top Company in the Indian Textiles sector.
As per the directives of the Central and State Governments in the wake of COVID-19 pandemic, the Company had suspended operations across various locations, except for Fertiliser business, w.e.f. 25th March, 2020 which adversely impacting the businesses during the quarter. Operations have since been resumed at all the plants of the Company except plant located at Harihar, taking cognizance of the Governments' views around resuming manufacturing activities with controlled entry and exit facilities, and after obtaining necessary permissions in this behalf.
During the year 2019-20, Aditya Birla Capital Limited (ABCL), a subsidiary of the Company has made a preferential allotment of 210,000,000 equity shares of Rs 10 each at a premium of Rs 90 per share to the certain investors, of which the Company has also subscribed 7,70,00,000 equity shares amounting to Rs 770 Crore.
The Company has entered into an agreement on 12 November, 2020 for transfer of its Fertilizer business (Indo Gulf Fertilizers unit), comprising of manufacture, trading and sale of inter alia urea, soil health products and other agri-inputs as a going concern, on a slump sale basis, to Indo Rama India Private Limited at the respective meetings held on 16th April, 2021 on which the said Schme has been approved.
During the FY 2021, UltraTech Nathdwara Cement Limited (UNCL) through its subsidiary, Krishna Holdings Pte. Ltd, a Company incorporated in Singapore completed the divestment of its entire equity shareholding of 92.5% in its cement subsidiary at a net consideration of USD 94.70 million.
The Company commissioned following expansion/ new product capacities a. Viscose Staple Fibre brownfield expansion of 300 ton per day (TPD) Phase 1 at Vilayat on 1st November 2021, b. Caustic Soda expansion of 170 TPD Phase 1 at Rehla on 21st October 2021 and Chloromethane Plant of 150 TPD at Vilayat on 4th November 2021.
During year 2021, the Company partnered with Lubrizol Advanced Materials (a Berkshire Hathaway Company) to manufacture and supply Chlorinated Polyvinyl Chloride (CPVC) resin in India.
The Scheme of Arrangement between the Company and Indorama India Private Limited (IIPL) and their respective Shareholders and
Creditors was approved by Board of Directors of the Company and IIPL for approving divestment of Business Undertaking, which were filed with respective jurisdictional National Company Law Tribunals (NCLT). The Hon'ble NCLT Indore Bench at Ahmedabad approved the Scheme vide its Order dated 2nd September, 2021, which became effective from 1st January, 2022.
The Company set up a state-of-the-art Composite Hollow Core Insulators (CHCI) manufacturing plant (Phase-I) Project at Halol, Gujarat, which costed about Rs. 74 Crore to serve power transmission and distribution industry, and commissioned from Feb' 2022.
Grasim Premium Fabric Private Limited (GPFPL) and Grasim Industries Limited got amalgamated through the Scheme of Arrangement, which became effective from 21st June 2021 with Appointed Date, April 01, 2019.
The Board of Directors of ABNL Investment Limited (wholly owned subsidiary of the Company) and Sun God Trading and Investment
Limited (wholly owned subsidiary of ABNL Investment Limited) had approved Scheme of Amalgamation between Sun God Trading and Investment Limited (Transferor Company) and ABNL Investment Limited (Transferee Company) and their respective Shareholders and Creditors of Companies Act, 2013, vide its Order dated 3rd February, 2021, which became effective on 29th June 2021 with Appointed Date, 1st April, 2019.
During the year 2021-22, Birla Advanced Knits Private Limited became a Joint Venture of the Company w.e.f. 14th July, 2021 and the Company holds 50% of the paid-up equity share capital. Renew Surya Uday Private Limited became an associate Company of the Company w.e.f. 25th November 2021 and the Company holds 26% of the paid-up equity share capital. ABReL Solar Power Limited (ABRSPL) was incorporated on 31st August 2021 as a wholly owned subsidiary of Aditya Birla Renewables Limited (ABReL) and the Company acquired 26% stake in ABRSPL w.e.f. 22nd October 2021. Grasim Premium Fabric Private Limited ceased to be subsidiary of the Company with effect from 21st June 2021.
During the year 2022-23, the Company's subsidiary, UltraTech commissioned 12.4 mtpa additional capacity of grey cement. It further commissioned a 2.2 mtpa brownfield cement capacity at Patliputra in April 23.
During the year 2022-23, Grasim Business Services Private Limited was incorporated as a wholly-owned subsidiary of the Company on 4th January 2023 to provide business support service including Staffing solutions.
During the year 2023, full leadership team hiring and on-boarding was commissioned for B2B E-Commerce Business.
Grasim Industries Ltd
Chairman Speech
Dear Shareholders,
The foundation of our Group rests on a philosophy of trusteeship, which imagines
corporations as institutions that drive collective prosperity. This philosophy has played
an integral role in shaping our actions for generations, guiding us in our quest to enrich
lives. Over the years, this purpose, though unstated, has been our unwavering anchor.
In FY23, we formally put to words our Group's purpose statement. At its heart is the
commitment to enrich lives by building dynamic and responsible businesses and institutions
that inspire trust. Every day, we strive to honour this commitment through our brands,
products, services, solutions, actions, relationships, and institutions.
Our purpose statement stands both timeless and fresh against the backdrop of our
extensive history.
In a world of increasing opportunity, and also accelerating uncertainty, our purpose
statement is meant to act as a talisman and remain at the core of our business decisions.
Our purpose offers us a unique lens with which to viewthe world, to bring perspective
to it, and to thrive in it. Guided by this unique perspective, we navigate the evolving
global landscape with resilience and foresight. As we turn our attention to the current
state of the global economy, it is evident that we are charting a course through a 'new
normal'.
GLOBAL ECONOMY: FINDING A NEW NORMAL
The global economy continues to pull itself out of the pandemic-triggered shock. It
does so amid a complex environment marked by the ongoing conflict in Ukraine, geo-economic
fragmentation, soaring interest rates, and looming risks of a banking
contagion. Reflecting these concerns, the International Monetary Fund (IMF) expects
global economic growth to dip from 3.4% in CY22 to 2.8% in CY23. Developed countries are
predicted to experience a more pronounced deceleration, their aggregate growth stumbling
to just 1.3% in CY23-the slowest pace in a decade, excluding the pandemic-impacted CY20.
On the brighter side, China's economy marches towards normalisation following the
lifting of its COVID-related restrictions. Both China and India are set to significantly
contribute to global economic growth in CY23, providing a much-needed stimulus as
developed economies grapple with challenges.
Meanwhile, global supply chain pressures have largely normalised, helping ease
commodity prices and peak inflation levels in most economies. Central banks, led by the US
Federal Reserve, appear to be nearing the end of their rate-hiking phase, signalling
cautious optimism for the global economy and financial markets. However, vigilance remains
crucial in the face of potential risk events in this fragile environment.
INDIA: THE SHINING STAR
India's economic narrative paints a much brighter picture. With a government-led push
to infrastructure investments and pragmatic policies such as the production-linked
incentives scheme, private capex has seen a surge. This rise
triggers a multi-year boom, providing valuable support to economic growth in the face
of softening global demand.
A decadal reshaping of supply chains is underway. As global corporations start to look
at countries across Asia as part of their China + 1 strategies, India is well positioned
to benefit. Supported by the dynamism of its tech-based 'new economy' enterprises and the
expanding digitisation across sectors, India's growth momentum continues to strengthen.
The Reserve Bank of India (RBI) projects India's economy to grow at 6.5% in FY24,
demonstrating the nation's resilience amidst subdued global economic conditions. Inflation
seems to have peaked globally and in India. Easing inflation, robust foreign exchange
reserves, and improving bank assets' quality provide a sizeable cushion against potential
destabilising events in global markets.
A key component of the rise of any industrial ecosystem is the presence of a confident
and skilled workforce. This year, India surpassed China in population and already has the
largest and younges' working age population globally. The lessons learnt from the
transformations of other economies through the last few decades point to the importance of
this demographic dividend.
In the grand theatre of global economic evolution, India stands not as a mere
spectator, but as a charismatic lead.
ADITYA BIRLA GROUP IN PERSPECTIVE
As India takes centre stage in this grand narrative, the Aditya Birla Group finds
itself in a unique position to contribute to this monumental journey. Our enduring success
amidst global uncertainties stems from our unyielding commitment to purpose, anchored in
principles that are much more than just words.
And therefore, the articulation of purpose was just the first step. We cultivated a
deep understanding of our Purpose across the depth and breadth of the Group, including the
last mile. To transform Purpose from a concept to an embodied experience, approximately
600 of our senior leaders and managers took the initiative to receive training and
facilitate introspective dialogues on Purpose. This facilitated their teams to
internalise, personalise, and actualise our Purpose in a manner that was both unique and
authentically representative of their roles within our dynamic Group.
Driven by purpose, the FY23 stands testament to the breadth and scope of
entrepreneurial ventures we have embarked upon. We are exploring uncharted territories,
backing our conviction with capital and talent. Our robust platform serves as a launch pad
for new initiatives, allowing us to tap into opportunities across traditional and sunrise
sectors.
This year, we have emphasised the implementation of our 3-year HR Strategy, guided by
our Purpose Principles. This approach has enabled us to build enduring bonds with our
stakeholders, including key employee segments, like early professionals, and attract
high-quality talent across traditional and digital businesses.
As we continue to expand, our employer brand has empowered us to attract over 11,000
employees in FY23-a diverse pool of new skills and capabilities. Furthermore, our
commitment to diversity is evident in the increasing representation of women in our
workforce. Culture champions have been instrumental in fostering an inclusive and
collaborative environment where every employee feels heard, valued, and respected.
Amidst shifting market dynamics, Learning and Leadership Development continues to be a
key pillar, helping us equip over 35,000 employees with the skills necessary to drive
business outcomes. Over 400 senior leaders, encompassing CEOs, CXOs, and Unit heads, have
bolstered their capabilities in fields such as geopolitical analysis, interpretation of
complex megatrends, inspirational leadership, and agile leadership methodologies. Our
adaptability was made apparent in our diverse learning approaches, both in terms of design
and implementation. Beyond the traditional classroom environment, we provided learning
through various accessible forms, including bite-sized modules, self-paced curricula, and
certification courses, thereby benefiting 87% of our management cadre employees.
With two-thirds of our workforce under 35, our attention is concentrated on equipping
early-career employees to fulfill their evolving aspirations and needs. Through a unique
programme titled 'CareerAbility', these employees have engaged in a series of self-guided
learning bytes, self-assessments, psychometric
evaluations, and leadership-led career guidance sessions. This diverse range of
resources has been utilised more than 40,000 times.
Our commitment to the identification and cultivation of talent has remained resolute.
We have recognised over 900 pivotal roles within our Group for which a robust succession
pipeline is firmly in place. An avant-garde journey of learning is presently being
undertaken to equip our future Rs.-Suite leaders, encompassing roles such as CFOs,
CMOs, CIOs, and CHROs, with the skills and insights required for leadership in a
rapidly evolving business landscape.
This focus has significantly enhanced our internal versus external hiring ratio for
leadership positions.
This shift is facilitated by our integrated approach to talent identification,
development, and internal mobility.
Over the past three years, we have seen 14% of our employees and 27% of our talent pool
members transition into new roles, bringing our vision of 'A World of Opportunities' to
life and fostering enduring bonds within our organisation. This represents our steadfast
commitment to talent growth and mobility, crucial for building a resilient and adaptive
organisation.
YOUR COMPANY'S PERFORMANCE
FY23 was a milestone for your Company as consolidated revenues surpassed the I trillion
mark. Over the past three years, your Company has achieved exceptional growth, with nearly
140,000 crore added
to consolidated revenues, reflecting an impressive compounded annual growth rate (CAGR)
of approximately 16%. With a substantial share of revenue originating from the domestic
market, your Company plays a crucial role in driving India's growth narrative.
Furthermore, Grasim's unwavering commitment to India is reflected in its investment of
over $2 billion in the country over the past decade.
In the financial year 2023, we recorded an impressive year-on-year growth of 23% in
consolidated revenue from operations, reaching an all-time high of 11,17,627 crore, up
from 195,701 crore in FY2022. This robust all-round performance is noteworthy given the
challenging global environment.
Your Company has a well-established and time-tested track record of incubating diverse
businesses, guiding them towards leadership positions in their respective sectors, and
instilling the ethos and values of the Aditya Birla Group. This approach has been
demonstrated in sectors such as Cement, Viscose, Financial Services, Textiles, and
Chemicals. We aim to replicate this success in our emerging Paints and B2B e-commerce
ventures. Furthermore, we have been significantly investing in the Renewable business
sector, with a target to reach 2 GW by 2024. Over the years, we believe our conglomerate
approach has facilitated long-term value creation for our stakeholders.
We are currently directing significant investments and efforts into two new growth
areas - Paints and B2B e-commerce for building materials. These sectors were carefully
chosen due to their scalability and our deep understanding of their respective ecosystems.
They offer a clear path to profitability and allow us to leverage the strength and
reputation of the Aditya Birla brand. The launch of these promising new ventures is on
track and expected to significantly bolster our revenue streams in the years ahead.
Strength from Standalone
Standalone revenues in FY23 witnessed a robust growth of 29% y-o-y. Over the years,
your Company's standalone businesses have demonstrated resilience and consistency,
emerging stronger from each cyclical downturn. Our Viscose and diversified Chemicals
businesses command an undisputed market leadership in India, backed by consistent capacity
additions. The Viscose business, propelled by the "LIVA" brand, has created a
"pull demand", now selling close to sixty million co-branded labels across the
Spring-Summer and Autumn-Winter fashion cycles. Despite facing some challenges in the
second half of the year due to a demand-supply mismatch and a lack of level playing field
compared with FTA imports in the country, we remained profitable amid challenging market
conditions.
Our Chemicals business posted its best-ever annual performance, largely attributed to
the Chlor-Alkali segment. Your Company, bolstered by leadership, innovation, and cost
strengths, has successfully navigated market cyclicality to its advantage. For example,
over volatile cycles, your Company generated operating cash flows exceeding 113,000 crore
over FY19-23, a noteworthy 104% increase compared to 16,500 crore generated over the
FY2014-2018 period.
Executing our Growth Plans
Your Company is focused on its growth vision and remains committed to achieving set
objectives. We plan to ramp up investments in the identified growth sectors of Specialty
Viscose and Chemical Products, Paints, and B2B e-commerce over the next three to five
years. In FY23, your Company executed its largest ever capital expenditure, investing over
14,000 crore. Approximately half of this expenditure was allocated to the construction of
Decorative Paints plants. These investments will accelerate over the next two years,
positioning us as a formidable contender in the decorative paints sector in terms of
capacity.
The upcoming years are expected to signify a transformative growth phase for your
Company. While our established businesses are set to consolidate their leading positions,
our newly identified growth engines are poised to create a powerful impact.
Conclusion
In conclusion, I hold the conviction that our Purpose broadens our perspective,
enabling us to pursue even greater horizons. It serves as the bedrock that propels us
towards the future, emboldening us to venture into more significant commitments and
pursuits.
As we grow, we expand our capacity to receive by enhancing our absorption of talent,
technology, and capital. Indeed, with each stride in growth, we deftly weave in more
threads of insights and capabilities, enriching the tapestry of our collective endeavour.
This, in turn, enables us to increase our ability to give back, create impact, and enrich
lives. This virtuous cycle is at the heart of being a successful purpose-driven
organisation.
Your Company doesn't just pride itself on being a purpose-driven entity— it
embodies it, living out this ethos in every endeavour, every relationship, and every
venture. This commitment to purpose is what continues to steer us towards an even
brighter, more impactful future.
Yours sincerely,
Kumar Mangalam Birla
Chairman
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Grasim Industries Ltd
Company History
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies. It is a leading global player in n Viscose Staple Fibre (VSF), the largest chemicals (Chlor-Alkalis), largest cement producer and diversified financial services (NBFC, Asset Management and Life Insurance) player in India. The chemical business was set up given it's a critical input for manufacturing VSF, and to achieve backward integration. Grasim is the largest Caustic Soda producer in India with a capacity of 840 KTPA. Grasim's subsidiary UltraTech Cement Limited is a leading global cement manufacturer with a capacity of 93 MTPA in India (includes 4 MTPA overseas).
The Company is India's pioneer in viscose staple fibre (VSF), a man-made, biodegradable fibre with characteristics akin to cotton. It is engaged primarily in Viscose (Pulp, Fibre and Yarn), Chemicals (Caustic Soda, Epoxy and allied Chemicals) and others (Insulators, Textiles, Fertilisers and Solar Power Designing, Engineering Procurement and Commissioning). The company's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka. The company is a global leader in viscose staple fibre (VSF), with 9% global share.
The Company has presence in the financial services business through its holding in Aditya Birla Capital Limited (ABCL). ABCL is the holding company for all the financial service businesses of the Aditya Birla Group. ABCL has a strong presence across life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance businesses.
Grasim Industries Limited was incorporated on August 25, 1947. In the year 1950, the company started production of fabrics at Gwalior with imported man-made rayon. In the year 1954, they commenced VSF production at Nagda in Madhya Pradesh. In the year 1962, they set up of Engineering Division for plant and machinery for VSF. In the year 1963, they started composite textile mill at Bhiwani in Haryana. In the year 1968, they commenced Rayon production at Mavoor, Kerala.
In the year 1972, the Company commenced production of rayon grade caustic soda for VSF production at Nagada. In the year 1977, the Company started production at their third rayon plant at Harihar in Karnataka. In the year 1985, Vikram Cement, the Company's first cement plant went on stream at Jawad in Madhya Pradesh. In the year 1987, they commenced second production line of Vikram Cement. In the year 1991, they added the third production line of Vikram Cement.
In the year 1992, the Company set up Birla International Marketing Corporation (BIMC), a merchant exporter. In the year 1993, they commissioned Vikram Ispat, India's third largest gas-based sponge iron plant. Also, they set up Birla Consultancy & Software Services to provide IT consulting services and for software development.
In the year 1995, the Company commissioned two greenfield cement plants namely, Grasim Cement at Rawan in Chattisgarh and Aditya Cement at Shambhupura in Rajasthan. In the year 1996, they commissioned the first phase of the company's fourth VSF plant at Kharach in Gujarat. In the year 1999, the company's viscose staple fibre (VSF) and rayon grade pulp units at Mavoor were closed down owing to lack of raw material.
In year 1998, cement business of Indian Rayon and Industries Ltd, a Group Company was demerged and transferred to the Company. Also, the Company in association with Timbec Inc. set up a Joint Venture Company namely, Atholville Pulp Mill at Canada. In the year 2000, the Company set up the Lawson Competency Centre as a division of Birla Consultancy & Software Services, the software arm of Grasim, following a tie up with Lawson Software (USA).
In the year 2001, the Company demerged the Consultancy and software service into a separate entity, namely Birla Technologies Ltd. They commissioned four Ready-Mix Concrete plants with an aggregate capacity of one million cubic meters. In October 2002, the company acquired 10% stake in L&T and increased their stake to 15.3%.
In the year 2002, the Company divested Gwalior textiles unit and the textile operations were consolidated at Bhiwani to manufacture 'Grasim' and 'Graviera' brands. Also, Dharani Cements Ltd merged with the company. The company set up VSF Research & Application Centre at Kharach in Gujarat. In the year 2004, the company acquired the controlling stake in UltraTech CemCo Ltd (now UltraTech Cement Ltd). In the year 2005, the company acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc.
In the year 2006, the Company formed a Joint Venture Company, Birla Jingwei Fibres Company Ltd. Also, they acquired VSF plant in China. In the year 2007, the Company divested their share in Shree Digvijay Cement Company Ltd. They transferred textile units at Bhiwani to a subsidiary company, Grasim Bhiwani Textiles Ltd. Also, they commissioned eighteen ready-mix concrete plants. In the year 2008, the Company commissioned brownfield expansion at Aditya Cement at Shambhupura (Rajasthan).
During the year 2009-10, the company completed their ongoing cement expansions and commissioned the 3.1 million TPA grinding capacity at Kotputli, Rajasthan. In May 22, 2009, the company hived off their sponge iron business by way of slump sale. As per the scheme of arrangement, the cement business of the company was demerged into Samruddhi Cement Ltd (Samruddhi), a subsidiary of the company with effect from October 1, 2009. Concurrently, Samruddhi Cement Ltd was amalgamated with UltraTech Cement Ltd with effect from July 1, 2010.
During th eyear 2010-11, the company acquired 1/3rd stake in Aditya Holding AB, Sweden, a leading manufacturer of specialty pulp used in the manufacture of VSF, which acquired Domsjo Fabriker AB (Domsjo), Sweden, at an enterprise value of Swedish Kroner (SEK) 2.12 Billion (approx. Rs 1,570 crore).
In September 2010, UltraTech completed acquisition of ETA Star Cement Company LLC comprising of 2.3 million TPA clinker facility and grinding units of 2.1 million TPA in UAE, 0.4 million TPA in Bahrain and 0.5 million TPA in Bangladesh. With this acquisition, UltraTech gained direct access to the markets in the Middle East and neighbouring regions. Consequent to this acquisition, UltraTech's capacity stands augmented at 52 million TPA. In August 2011, the company acquired Aditya Birla Power Ventures Ltd and thus Aditya Birla Power Ventures Ltd became a subsidiary company.
In 2014, Grasim commissioned its state-of-the-art VSF plant at Vilayat in Gujarat.
On 11 February 2015, the Board of Directors of Grasim Industries approved the proposed merger of Aditya Birla Chemicals (India) Limited (ABCIL) with Grasim. The swap ratio approved by the board was one equity share of Grasim for every 16 shares of ABCIL held on record date. On 5 January 2016, ABCIL announced the completion of merger process with Grasim Industries.
The Board of Directors of Grasim Industries, Aditya Birla Nuvo Limited (ABNL) and Aditya Birla Financial Services Limited (ABFSL) at their respective meetings held on 11 August 2016 approved the merger of ABNL into Grasim and the subsequent demerger and listing of its financial services business through a composite scheme of arrangement. ABNL is a diversified conglomerate with various business interests including manufacturing of fertilizers, viscose filament yarn, chemicals, insulators, textiles etc., financial services and telecom. The financial services business is a division of ABNL and is engaged in the activity of fund based lending, making, holding and nurturing investments in financial services sector. As per the swap ratio for merger, each shareholder of ABNL will get 3 equity shares of Grasim for every 10 equity shares held in ABNL on record date. For demerger of financial services business into ABFSL, each shareholder of Grasim (post-merger) will receive 7 equity shares in ABFSL for every 1 equity share held in Grasim.
On 1 June 2017, the National Company Law Tribunal (NCLT) approved the Composite Scheme of Arrangement involving the merger of Aditya Birla Nuvo (ABNL) with Grasim to be followed by the listing of Aditya Birla Financial Services Ltd (ABFSL). The merger of ABNL with Grasim became effective from 1 July 2017. The name of Aditya Birla Financial Services was changed to Aditya Birla Capital Limited (ABCL) on 21 June 2017. ABCL got listed on the stock exchanges on 1 September 2017. ABCL is the holding company of all the financial service businesses of the Aditya Birla Group. It has a significant presence across several business sectors including NBFC, asset management, life insurance, health insurance and wellness, housing finance, private equity, general insurance broking, wealth management, broking, online personal finance management, and pension fund management.
On 12 December 2017, Grasim announced that it has received the rights to manage and operate Viscose Filament Yarn (VFY) business of Century Textiles & Ind. Ltd. (CTIL) from CTIL for a period of 15 years. Consequently, Grasim will have Right to Use' the relevant assets. The ownership of the assets will remain with CTIL. CTIL has installed capacity of 25,000 tonnes of VFY. With Grasim's VFY capacity of 21,300 tonnes, the combined capacity will increase to 46,300 tonnes. As part of the transaction, Grasim will pay to CTIL commuted value of royalty of Rs 600 crore, refundable security deposit of Rs 200 crore and net working capital at closing estimated at Rs 165 crore. The Scheme of Demerger amongst Century Textiles and Industries Limited ('Century') and UltraTech and their respective shareholders and creditors has been made effective from 1 st October, 2019 consequent to completion of conditions precedent specified in the Scheme. In terms of the Scheme, UltraTech has allotted issue 1 (one) equity share of the Company of face value Rs 10/- each for every 8 equity shares of Century of face value Rs 10/- each to the shareholders of Century on the record date as defined in the Scheme.
On 16 March 2018, Grasim Industries announced that the production capacity of epoxy resin, reactive diluents and hardeners at the company's epoxy plant at Vilayat (Gujarat) has increased from 82,350 metric tonnes (MT) per annum to 1.23 lakh MT per annum through de-bottlenecking process.
On 26 March 2019, your Company has issued and allotted 5,000, 7.65%, fully paid-up, Unsecured, Redeemable Non-Convertible Debentures aggregating to Rs 500 crore on private placement.
During the FY2019, the Company has acquired the Chlor Alkali business from KPR Industries (India) Limited (KPR') by way of slump sale, for a cash consideration of Rs 253 Crore. The business consist of an underconstruction ChlorAlkali plant of 200 TPD capacity at Balabhadrapuram, Andhra Pradesh. The Company has taken over the identified assets and identified liabilities associated with KPR. On commissioning of this plant along with other ongoing expansion projects, the Company's caustic soda capacity will increase from 1.15 MMTPA to 1.38 MMTPA.
The Company has acquired 100% equity shareholding of Soktas India Private Limited ('SIPL') (now known as Grasim Premium Fabrics Private Limited) from its current promoters SOKTAS Tekstil Sanayi Ve Ticaret A.S., Turkey for cash consideration of Rs 135.40 Crore. Consequent to acquisition, SIPL has become a wholly owned Subsidiary of the Company, w.e.f. 29 March 2019.
The company won the Dun & Bradstreet Corporate Award 2019 for Top Company in the Indian Textiles sector.
As per the directives of the Central and State Governments in the wake of COVID-19 pandemic, the Company had suspended operations across various locations, except for Fertiliser business, w.e.f. 25th March, 2020 which adversely impacting the businesses during the quarter. Operations have since been resumed at all the plants of the Company except plant located at Harihar, taking cognizance of the Governments' views around resuming manufacturing activities with controlled entry and exit facilities, and after obtaining necessary permissions in this behalf.
During the year 2019-20, Aditya Birla Capital Limited (ABCL), a subsidiary of the Company has made a preferential allotment of 210,000,000 equity shares of Rs 10 each at a premium of Rs 90 per share to the certain investors, of which the Company has also subscribed 7,70,00,000 equity shares amounting to Rs 770 Crore.
The Company has entered into an agreement on 12 November, 2020 for transfer of its Fertilizer business (Indo Gulf Fertilizers unit), comprising of manufacture, trading and sale of inter alia urea, soil health products and other agri-inputs as a going concern, on a slump sale basis, to Indo Rama India Private Limited at the respective meetings held on 16th April, 2021 on which the said Schme has been approved.
During the FY 2021, UltraTech Nathdwara Cement Limited (UNCL) through its subsidiary, Krishna Holdings Pte. Ltd, a Company incorporated in Singapore completed the divestment of its entire equity shareholding of 92.5% in its cement subsidiary at a net consideration of USD 94.70 million.
The Company commissioned following expansion/ new product capacities a. Viscose Staple Fibre brownfield expansion of 300 ton per day (TPD) Phase 1 at Vilayat on 1st November 2021, b. Caustic Soda expansion of 170 TPD Phase 1 at Rehla on 21st October 2021 and Chloromethane Plant of 150 TPD at Vilayat on 4th November 2021.
During year 2021, the Company partnered with Lubrizol Advanced Materials (a Berkshire Hathaway Company) to manufacture and supply Chlorinated Polyvinyl Chloride (CPVC) resin in India.
The Scheme of Arrangement between the Company and Indorama India Private Limited (IIPL) and their respective Shareholders and
Creditors was approved by Board of Directors of the Company and IIPL for approving divestment of Business Undertaking, which were filed with respective jurisdictional National Company Law Tribunals (NCLT). The Hon'ble NCLT Indore Bench at Ahmedabad approved the Scheme vide its Order dated 2nd September, 2021, which became effective from 1st January, 2022.
The Company set up a state-of-the-art Composite Hollow Core Insulators (CHCI) manufacturing plant (Phase-I) Project at Halol, Gujarat, which costed about Rs. 74 Crore to serve power transmission and distribution industry, and commissioned from Feb' 2022.
Grasim Premium Fabric Private Limited (GPFPL) and Grasim Industries Limited got amalgamated through the Scheme of Arrangement, which became effective from 21st June 2021 with Appointed Date, April 01, 2019.
The Board of Directors of ABNL Investment Limited (wholly owned subsidiary of the Company) and Sun God Trading and Investment
Limited (wholly owned subsidiary of ABNL Investment Limited) had approved Scheme of Amalgamation between Sun God Trading and Investment Limited (Transferor Company) and ABNL Investment Limited (Transferee Company) and their respective Shareholders and Creditors of Companies Act, 2013, vide its Order dated 3rd February, 2021, which became effective on 29th June 2021 with Appointed Date, 1st April, 2019.
During the year 2021-22, Birla Advanced Knits Private Limited became a Joint Venture of the Company w.e.f. 14th July, 2021 and the Company holds 50% of the paid-up equity share capital. Renew Surya Uday Private Limited became an associate Company of the Company w.e.f. 25th November 2021 and the Company holds 26% of the paid-up equity share capital. ABReL Solar Power Limited (ABRSPL) was incorporated on 31st August 2021 as a wholly owned subsidiary of Aditya Birla Renewables Limited (ABReL) and the Company acquired 26% stake in ABRSPL w.e.f. 22nd October 2021. Grasim Premium Fabric Private Limited ceased to be subsidiary of the Company with effect from 21st June 2021.
During the year 2022-23, the Company's subsidiary, UltraTech commissioned 12.4 mtpa additional capacity of grey cement. It further commissioned a 2.2 mtpa brownfield cement capacity at Patliputra in April 23.
During the year 2022-23, Grasim Business Services Private Limited was incorporated as a wholly-owned subsidiary of the Company on 4th January 2023 to provide business support service including Staffing solutions.
During the year 2023, full leadership team hiring and on-boarding was commissioned for B2B E-Commerce Business.
Grasim Industries Ltd
Directors Reports
Grasim Industries Ltd
Company Background
| Incorporation Year | 1947 |
| Registered Office | Birlagram,
Nagda,Madhya Pradesh-456331 |
| Telephone | 91-07366-246760/246761/2/3/4/5/6,Managing Director |
| Fax | 91-07366-244114/246024 |
Kumar Mangalam BirlaH K Agarwal| Company Secretary | Sailesh Daga |
| Auditor | B S R & Co LLP/KKC & Associates LLP |
| Face Value | 2 |
| Market Lot | 1 |
| Listing | BSE,Luxembourg,MSEI ,NSE, |
| Registrar | KFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032 |
Grasim Industries Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| Kumar Mangalam Birla | Chairman (Non-Executive) | 2023 |
| Rajashree Birla | Non-Exec & Non-Independent Dir | 2023 |
| Cyril Shroff | Non-Exec. & Independent Dir. | 2023 |
| Thomas M Connely | Non-Exec. & Independent Dir. | 2023 |
| Anita Ramachandran | Non-Exec. & Independent Dir. | 2023 |
| N Mohan Raj | Non-Exec. & Independent Dir. | 2023 |
| Venkatadri Chandrasekaran | Independent Director | 2023 |
| Adesh Kumar Gupta | Independent Director | 2023 |
| Santrupt Misra | Non-Exec & Non-Independent Dir | 2023 |
| Sailesh Daga | Company Sec. & Compli. Officer | 2023 |
| Raj Kumar | Director | 2023 |
| H K Agarwal | Managing Director | 2023 |
| ANANYASHREE BIRLA | Director | 2023 |
| Aryaman Birla | Director | 2023 |
Grasim Industries Ltd
Listing Information
| Listing Information |
|---|
| NIFTY |
| BSE_500 |
| BSE_100 |
| BSE_200 |
| BSEDOLLEX |
| CNX500 |
| CNX100 |
| CNXINFRAST |
| CNX200 |
| CNXCOMMODI |
| BSEGREENEX |
| BSECARBONE |
| NIFTY50V20 |
| NFT100EQWT |
| BSEALLCAP |
| BSELARGECA |
| BSEMETERIA |
| BSEMANUFAC |
| SENSEX50 |
| ESG100 |
| LMI250 |
| BSEDSI |
| BSEEVI |
| BSELVI |
| NFT50EQWT |
| BSE100LTMC |
| NFTYLM250 |
| NFTY100ESG |
| NFTYALV30 |
| NF500M5025 |
| NFTYTOTMKT |
| NMIF503020 |
Grasim Industries Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Sale of Products | NA | 0 | 0 | 0 | 26574.21 |
| Scrap | NA | 0 | 0 | 0 | 106.65 |
| Other Operating Income | NA | 0 | 0 | 0 | 82.92 |
| Export incentives | NA | 0 | 0 | 0 | 74.07 |
| Service Income | NA | 0 | 0 | 0 | 1.86 |
| Others | NA | 0 | 0 | 0 | 0 |
| Others - Traded | NA | 0 | 0 | 0 | 0 |
| Ready Mix Concrete | CuM | 0 | 0 | 0 | 0 |
| Inter-Divisional Transfers | NA | 0 | 0 | 0 | 0 |
| Rental Income | NA | 0 | 0 | 0 | 0 |
| Coffee-Traded | MT | 0 | 0 | 0 | 0 |
| Spices-Traded | MT | 0 | 0 | 0 | 0 |
| Cement | MT | 0 | 0 | 0 | 0 |
| White Cement | MT | 0 | 0 | 0 | 0 |
| Power | NA | 0 | 0 | 0 | 0 |
| Chlorine | MT | 0 | 0 | 0 | 0 |
| Chloro Sulphonic Acid | MT | 0 | 0 | 0 | 0 |
| Sulphuric Acid | MT | 0 | 0 | 0 | 0 |
| Carbon Disulphide | MT | 0 | 0 | 0 | 0 |
| Caustic Soda-Rayon Grade | MT | 0 | 0 | 0 | 0 |
| Poly Aluminium Chloride | MT | 0 | 0 | 0 | 0 |
| Bleaching Powder-Stable | MT | 0 | 0 | 0 | 0 |
| Sodium Sulphate | MT | 0 | 0 | 0 | 0 |
| Putty | MT | 0 | 0 | 0 | 0 |
| Pulp-Rayon Grade | MT | 0 | 0 | 0 | 0 |
| VSF/Polynosic/HWM/Spe.Fibre | MT | 0 | 0 | 0 | 0 |
| Manmade Fibre Yarn | Kg | 0 | 0 | 0 | 0 |
| Manmade Fibre Yarn-Spindles | No | 0 | 0 | 0 | 0 |
| Manmade Fibre Fabrics | Kg | 0 | 0 | 0 | 0 |
| Manmade Fibre Fabrics | Mtr | 0 | 0 | 0 | 0 |
| Manmade Fibre Fabrics (Looms) | No | 0 | 0 | 0 | 0 |
| Sponge Iron | MT | 0 | 0 | 0 | 0 |
| Industrial Machinery | MT | 0 | 0 | 0 | 0 |