#NSE0069– Grasim Industries
Grasim Industries Limited, the flagship company of the Aditya Birla Group, ranks among India’s largest private sector enterprises. On a standalone basis, Grasim’s core businesses include viscose staple fiber (VSF), caustic soda, specialty chemicals, and rayon-grade wood pulp (RGWP), with production facilities located at multiple sites. Additionally, Grasim is involved in various other sectors such as fertilizers and textiles.
Grasim Industries Limited has achieved its highest-ever revenue and EBITDA in the fiscal year 2024, with figures reaching ₹1,30,978 crore and ₹20,837 crore, respectively. Over the past five years, the company has exhibited a compound annual growth rate (CAGR) of 15% in revenue and 11% in EBITDA. Additionally, Grasim has invested over ₹38,000 crore in capital expenditures during this period, demonstrating significant growth and expansion efforts.
Grasim Industries Limited raised its first Sustainability Linked Non-Convertible Debentures (NCD) amounting to ₹1,250 crore from the International Finance Corporation (IFC). The consolidated growth capital expenditure (capex) for the fiscal year 2024 stood at ₹16,817 crore, which represents approximately 83% of the total consolidated capex of ₹20,199 crore for the year.
Grasim Industries Limited is the largest caustic soda producer in India, with the market experiencing steady growth driven by demand from the alumina, organic and inorganic chemicals, textiles, and FMCG industries. Grasim is maintaining its market leadership position in the Chlor-Alkali business, with a projected capacity of 1.5 million metric tons per annum (MTPA) by the third quarter of FY25. The company also has significant capacity in chlorine derivatives, catering to high-growth markets such as pharmaceuticals, agrochemicals, water treatment, food and feed, plastic additives, and various industrial applications. Post commissioning of the ongoing projects, Grasim’s chlorine integration is expected to reach 70%.
Grasim Industries Limited is the largest producer of specialty chemicals (epoxy polymers and curing agents) in India. With the commissioning of a 123 KTPA expansion in December 2023, the total capacity has now doubled to 246 KTPA. This business segment caters to growing end-use markets such as construction chemicals and coatings, renewables, and electrical and electronics.
In the chlorine derivatives sector, Grasim has substantial capacity to serve high-growth markets, including pharmaceuticals, agrochemicals, water treatment, food and feed, plastic additives, and various industrial applications. The company’s chlorine integration is projected to reach 70% upon the completion of ongoing projects.
Birla OPUS Paints is positioned as the second-largest player in the Indian decorative paints industry. This significant market position reflects the brand’s strong presence and competitive edge within the sector.
Birla Opus: Progress Update
- Capex Spent in Q4FY24: ₹1,067 crore
- Total Capex Since Inception: ₹7,063 crore (approximately 70% of the planned capital outlay)
- Commercial Production: Commenced at three plants in April 2024
- Construction Status: The construction of the remaining three plants is progressing as per schedule
The construction materials market is undergoing a digital transformation, offering end-to-end solutions in a sector with a market size of $100 billion. Currently, digital penetration in this industry is less than 2%, indicating substantial growth potential as digital adoption increases.
Birla Pivot: One-Stop Destination for Construction Materials Needs
- Product Range: Over 18,000 SKUs (Stock Keeping Units)
- Brands: More than 150 brands
- Delivery Reach: Delivered orders to over 200 cities across 25 states and union territories
Birla Pivot serves as a comprehensive solution for construction materials, offering a wide range of products and brands with extensive delivery coverage.
Disclaimer-
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