Grasim Industries Overview
Fundamentals of Grasim Industries
|P/E Ratio (TTM)||19.54|
|Debt to Equity||1.31|
Financials of Grasim Industries
|Sep 2022||Dec 2022||Mar 2023||Jun 2023|
|Profit before tax||2,356.02||5,086.66||3,415.03||3,437.87|
|EPS in Rs||16.32||38.33||20.85||24.01|
About Grasim Industries
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 larges ... t 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. Read More
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What is the total Asset of Grasim?
The total asset of Grasim is Rs. 289,149 Crores.
What is the main business of Grasim?
Grasim is the biggest manufacturer of linen, insulators, chlor-alkali, and viscose staple fibre in India.
Who are the promoters of Grasim?
The promoters of Grasim are Birla Group Holdings Private Limited, Igh Holdings Private Limited, Hindalco Industries Limited, Umang Commercial Company Private Limited, Pilani Investment And Industries Corporation Ltd. and P.T. Indo Bharat Rayon.
What are the Brands that comes under Grasim?
The brands that come under Grasim are UltraTech Cement Limited., Aditya Birla Capital Limited, Sun God Trading and Investment Limited, Samruddhi Swastik Trading and Investment Limited., Grasim Premium Fabrics Private Limited, ABNL Investment Limited, Aditya Birla Renewables Limited and Aditya Birla Solar Limited.