Grasim Industries Ltd
Grasim Industries Ltd (GRASIM)

Grasim Industries Ltd (GRASIM)

₹1697.42.04%

Key Stats

₹1690
Day's Price Range
₹1734.5
₹1276.6
52-Week Price Range
₹1929.8
1 Month Return6.63 %
3 Month Return30.94 %
1 Year Return7.83 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

PE
Rank 1
14.31
EPS
Rank 4
₹119.03
BVPS
Rank 2
₹1149.77
Dividend Yield
Rank 8
0.62%
ROE
Rank 9
6.66%
Price To Book Ratio
Rank 1
1.48
Debt To Asset
Rank 2
0.75

Company Information

Grasim Industries Ltd a flagship company of the Aditya Birla Group ranks among Indias largest private sector companies. It is a leading global player in viscose staple fibre VSF the largest chemicals ChlorAlkalis largest cement producer and diversified financial services NBFC Asset Management and Life Insurance player in India. The chemical business was set up given its 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. Grasims subsidiary UltraTech Cement Limited is a leading global cement manufacturer with a capacity of 93 MTPA in India includes 4 MTPA overseas. The total capex plan of Rs 7800 crore at standalone level is under execution for raising capacities in both the VSF and Chemical businesses apart from ongoing modernisation capex at various plants. This capital expenditure will be incurred over FY20FY22 and will be majorly funded from internal accruals.The company has four segments: Fibre and Pulp Chemicals Cement and Textiles. Fibre and Pulp segment includes Viscose Staple Fibre and Rayon Grade Pulp. Chemicals include Caustic Soda and Allied Chemicals. In cement Grasim through their subsidiary UltraTech Cement Ltd UltraTech has a capacity of 93 million tonnes per annum MTPA of grey cement. The cement segment includes Grey cement Readymix concrete and White cement. Textile segment includes yarn. Their textile subsidiary is Grasim Bhiwani Textiles Ltd. The companys other subsidiaries include Sun God Trading and Investments Ltd Harish Cement Ltd and Dakshin Cements Ltd.The company is Indias pioneer in viscose staple fibre VSF a manmade biodegradable fibre with characteristics akin to cotton. The companys 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. Grasim 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 Ltd was incorporated on August 25 1947. In the year 1950 the company started production of fabrics at Gwalior with imported manmade 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 companys 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 Indias third largest gasbased 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 companys fourth VSF plant at Kharach in Gujarat. In the year 1999 the companys viscose staple fibre VSF and rayon grade pulp units at Mavoor were closed down owing to lack of raw material.In the year 1998 the 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 ReadyMix Concrete plants with an aggregate capacity of one million cubic meters. In October 2002 the company acquired 10 stake in LT 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 readymix concrete plants. In the year 2008 the company commissioned brownfield expansion at Aditya Cement at Shambhupura Rajasthan.During the year 200910 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 201011 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 1570 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 UltraTechs 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 stateoftheart 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 postmerger 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 25000 tonnes of VFY. With Grasims VFY capacity of 21300 tonnes the combined capacity will increase to 46300 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 the Scheme 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 eight 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 companys epoxy plant at Vilayat Gujarat has increased from 82350 metric tonnes MT per annum to 1.23 lakh MT per annum through debottlenecking process.On 26 March 2019 your Company has issued and allotted 5000 7.65 fully paidup Unsecured Redeemable NonConvertible 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 Companys 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 COVID19 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 201920 Aditya Birla Capital Limited ABCL a subsidiary of the Company has made a preferential allotment of 210000000 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 77000000 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 agriinputs as a going concern on a slump sale basis to Indo Rama India Private Limited. The transaction is subject to the regulatory approvals including from SEBI and the jurisdictional National Company Law Tribunals. Shareholder and Creditors at the respective meetings held on 16th April 2021 have approved the said the Scheme.During the FY2021UltraTech Nathdwara Cement Limited UNCL through its subsidiary Krishna Holdings Pte. Ltd Krishna a company incorporated in Singapore has 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 commissioning of VSF expansion 2 lines of 300 TPD each at Vilayat is as per schedule. Line 1 is expected to be commissioned in Q2 and Line 2 in Q3 of the FY2022. In the Chloralkali business the commissioning of Rehla plant91KTPA and CMS plant54.8KTPA is expected in Q2 of FY22 the commissioning of BB Puram plant Phase1 73KTPA and Vilayat plant Phase1 73KTPA is expected in H2 of FY22 and the total capex to be spent for FY22 stands at Rs 2604 crore Excluding the Paints and Fertiliser.The Company has 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 2021b. 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.
OrganisationGrasim Industries Ltd
HeadquartersNagda
IndustryTextiles