MID SEMESTER ASSIGNMENT

FUNDAMENTALS OF FINANCIAL MANAGEMENT

“PROJECT REPORT ON GRASIM INDUSTRIES”

Submitted to – Dr. Iftekhar Khan

Submitted by – Ashley Infant Roberts

JLU09195

MBA 1st semester

Jagran Lakecity Business School

1
 DECLARATION

I declare that this report entitled "REPORT ON GRASIM INDUSTRIES” is

the outcome of my own original work and research conducted under the
supervision of Dr.Iftekhar Khan, Jagran, Lakecity University, Bhopal (M.P.).

I further declare that, to best of my knowledge, the report does not contain
any part of any work published, without due acknowledgment.

Signature:
Date:15/10/2024
Name of Student: Ashley Infant Roberts
JLU ID: JLU09195

Signature:
Name of the Professor: Dr. Iftekhar Khan

2
 ACKNOWLEDGEMENT

It is my pleasant duty to express my sincere regards, grateful obligations and

thanks to those who have helped me during the completion of this research.

First and foremost, I would like to express my sincere gratitude to my

supervisor Dr. Iftekhar Khan for his motivation, enthusiasm, and support. His
guidance, suggestions, and constructive criticism helped me in all time of
research and writing of this report.

Last but not the least a special thanks to my family. Words cannot express
how grateful 1 am to my parents and my brother for consistently providing
me support and many a times going out of the way for helping me in
completion of this research work.

3
GRASIM INDUSTRIES

Grasim Industries Limited is an Indian manufacturing company based in Mumbai.

Since its inception in 1947 as a textile manufacturer, Grasim has diversified into textile
raw materials like viscose staple fiber (VSF) and viscose filament yarn, chemicals[2] and
insulators, along with cement and financial services through its subsidiaries UltraTech
Cement and Aditya Birla Capital respectively. The company is a part of the Aditya Birla
Group.

Grasim Industries Limited was incorporated in 1947.

Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started
operations in 1970, this was Aditya Birla Group's first foray into international venture.
Aditya Birla Group incorporated P.T. Elegant Textiles in 1973 in Indonesia. Thai Rayon
incorporated in 1974, this was the second company in Thailand, operating in Viscose
Rayon Staple Fiber. Century Textiles Co. Ltd. is taken over by Aditya Birla Group in
1974; this company is a weaving and dyeing plant manufacturing and exporting variety of
synthetic fabrics. PT Sunrise Bumi Textiles incorporated in 1979, it produces yarn
exported over 30 countries in 6 continents. P.T Indo Bharat Rayon incorporated in 1980
produces Viscose Staple Fiber in Indonesia. Thai Polyphosphates and Chemicals was
started in 1984 in Thailand to produce Sodium Phosphates, and has merged with Thai
Epoxy and Allied Products Company Limited (1992), Thai Sulphites and Chemicals
Company Limited (1995) to form Aditya Birla Chemicals Ltd. This company supplies to
sectors such as food, textiles, electrical and electronics, composites, leather, plastics and
automobiles. PT Indo Liberty Textiles was incorporated in 1995 to manufacture synthetic
spun yarn.

In 1985, the firm's activities in its Mavoor facility ran into controversies after it shut
down, first temporarily and later on, permanently.
In late 1990s and later, the focus was the textile business following the end of Multi-Fiber
Arrangement (MFA).
AV Cell Inc., a joint venture between Aditya Birla Group and Tembec, Canada,
established operations in 1998 to produce softwood and hardwood pulp for the purpose of
internal consumption among different units of the Group.
In 2012, Grasim Industries Ltd. and Tembec, Canada acquired AV Nackawic Inc., which
produces dissolving pulp.

4
Listed subsidiaries
In 2004, Grasim acquired UltraTech Cement from Larsen & Toubro.[3] In 2010, Grasim
demerged its cement subsidiary, Samruddhi Cement, which contributed 76% of the
company's turnover in the previous financial year.[4] Later that year, Samruddhi Cement
was merged into UltraTech Cement.[5]

In 2017, it demerged Aditya Birla Capital, its financial services arm, which included
consumer finance, insurance and asset management divisions among others. After the
demerger, Grasim continued to hold a 55% stake in Aditya Birla Capital.

OPERATIONS
Grasim is the largest exporter of Viscose Rayon Fiber in the country, with exports to over
50 countries. Grasim is headquartered in Mumbai and also has plants at Nagda (Madhya
Pradesh), Kharach (Kosamba, Gujarat), Veraval (Gujarat), Bharuch (Vilayat
GIDC, Gujarat) and Harihar, (Davangere, Karnataka).
Grasim Industries Ltd. supplies Viscose Staple Fiber (VSF). The Group's VSF business
operates through its three companies – Grasim Industries in India, Indo Bharat rayon in
Indonesia, Thai Rayon Corporation in Thailand, which also oversees its Chinese
operations at Birla Jingwei Fibres, China.
By 2021, Grasim industries, the flagship company of the global conglomerate Aditya Birla
Group, entered the paints business with an investment of INR 5,000 crore over three years.
Which was later increased to a capex of INR 10,000 crore over the same period of time
thus trying to disrupt the market.

Former businesses
 In 2008, Grasim sold its sponge iron business to the Welspun
Group for ₹1030 crore.[7]
 In 2015, it sold its consumer products business to Future Group.[8]
 In 2017, Grasim sold its wholly-owned subsidiary Grasim Bhiwani Textiles to
Donear Group.[9]
 In 2020, Grasim sold its entire stake in Indo Gulf Fertilisers to Indorama
Corporation for ₹2649 crore.

5
Recognition
Grasim Industries was ranked 154th in a list of the world's best regarded firms compiled
by Forbes.
In 2003, its Chemical Division was awarded the "Best of all" Rajiv Gandhi National
Quality Award.
It ranked 24th in the Fortune India 500 list in 2020.

Grasim Industries, a part of the Aditya Birla Group, has several key offices
across India. Here are some of the main locations:

Head Office
Mumbai: The corporate headquarters is located in Mumbai, Maharashtra.

Corporate Offices
Gurugram: One of the significant corporate offices is situated in Gurugram, Haryana.

Regional Offices
Grasim also has regional offices in various cities to manage its operations effectively.
Some of these locations include:
- Ahmedabad: Gujarat
- Bangalore: Karnataka
- Kolkata: West Bengal
- Raipur: Chhattisgarh

Manufacturing Units
In addition to corporate offices, Grasim has manufacturing facilities in several states,
including:
- Madhya Pradesh
- Gujarat
- Rajasthan

6
Grasim Industries operates in various sectors and offers a diverse range of
products and services. Here’s an overview:

1. Cement
 Portland Cement: Various grades of cement for construction.
 Ready Mix Concrete: Pre-mixed concrete for easy application.

2. Textiles
 Viscose Staple Fiber: Used in making textiles and apparel.
 Branded Apparel: Through its subsidiary, Aditya Birla Fashion & Retail.

3. Chemicals
 Chlor-Alkali Products: Such as caustic soda and chlorine.
 Other Specialty Chemicals: Including surfactants and textile chemicals.

4. Grasim Bhiwani Textile Ltd.

 Synthetic and Blended Fabrics: For various applications in apparel and home
textiles.

5. Building Materials
 Fiber Cement Sheets: Used in roofing and wall applications.

6. Financial Services
 Through Aditya Birla Capital, Grasim also engages in financial services, including
asset management and insurance.

7. Renewable Energy
 Investment in renewable energy projects, focusing on sustainability.

7
ORIGINAL LOGO OF GRASIM INDUSTRIES

NAGDA (MADHYA PRADESH) PLANT

8
VILAYAT PLANT (GUJARAT)

BHIWANI PLANT ( HARYANA )

HALOL PLANT (GUJARAT)

9
HALOL PLANT (HARYANA)

VERAVAL PLANT (GUJARAT)

RISHRA PLANT (WEST BENGAL)

10
The Chairman of Grasim Industries Limited:

Mr. Kumar Mangalam Birla

Other Chairman of the Aditya Birla Group, which includes

roles: Grasim

Education: Chartered Accountant and MBA from London Business

School
Birla is also the Chairman of the Boards of other major companies in the
Aditya Birla Group, including Novelis Inc., Birla Carbon, and Hindalco
Industries Ltd.
Other members of the Grasim Industries Limited board of directors
include: Mrs. Rajashree Birla, Ms. Ananyashree Birla, Mr. Aryaman
Vikram Birla, and Ms. Anita Ramachandran.

11
 CEO: MR. JAYANT V DHOBLEY

Mr. Jayant V DhobleyBusiness Head and CEO

Global Chemicals, Fashion Yarn, & Insulators
Mr. Jayant V Dhobley joined the Aditya Birla Group in January 2021. Prior to
joining ABG, Jayant worked for Amcor Limited where he led Strategy &
Operations for the Asia Pacific region.
He has about 30 years of experience in the Specialty Materials, Polymers,
Packaging & Chemical Industries of which over 17 years were with the
Engineering Materials division of Royal DSM NV.
Mr. Dhobley has worked across multiple functions (P&L, Strategy, M&A,
Projects, Operations) in both regional and global roles. He has a deep
understanding of Asia Pacific markets after living in Shanghai, China for 10
years (2002-12) followed by 8 years in Singapore (2012-20).
Mr. Dhobley has a B.E. in Polymer Technology from the University of Pune
and is a Life Member of the Indian Institute of Chemical Engineers. He has
attended Executive Leadership Programs both at Wharton School of Business
12
USA and Duke CE USA.
SUBSIDIARIES:

1. UltraTech Cement: One of India's largest cement manufacturers.

2. Aditya Birla Capital Limited: A financial services company offering a

range of solutions.

3. Aditya Birla Insurance Brokers: Provides insurance solutions and

services.

4. Birla Carbon: A global leader in carbon black manufacturing.

5. Grasim Bhiwani Textiles: Engaged in the production of textiles and

apparel.

6. Grasim Industries (Chemicals): Focuses on the production of

chemicals, including caustic soda and chlorine.

13
SHAREHOLDINGS & MARKET CAP OF GRASIM:

Grasim Industries Limited typically has a diverse shareholding pattern that

includes various categories such as:
1. Promoter and Promoter Group: This group usually holds a significant
portion of the shares.
2. Public Shareholders: This includes individual and institutional investors,
both domestic and foreign.
3. Foreign Institutional Investors (FIIs): A portion of shares is often held by
FIIs.
4. Mutual Funds: Various mutual funds may hold shares in Grasim.

14
SHAREHOLDING PATTERN OF THE COMPANY AS ON 30th JUNE 2024:fy24-25

SHAREHOLDING PATTERN OF THE COMPANY AS ON 31st March 2024: fy23-24

15
SHAREHOLDING PATTERN OF THE COMPANY AS ON 31st March 2023: fy22-23

SHAREHOLDING PATTERN OF THE COMPANY AS ON 31st March 2022: fy21-22

16
SHAREHOLDING PATTERN OF THE COMPANY AS ON 31st March 2021: fy20-21

SHAREHOLDING PATTERN OF THE COMPANY AS ON 31st March 2020: fy19-20

17
SHAREHOLDING PATTERN OF THE COMPANY AS ON 31st March 2029: fy18-19

18
19
Board composition:

Composition of the committees of the board:

20
AUDIT COMMITTEE:

The Audit Committee of the Board comprises of 3 Independent Directors and 1 Executive
Director. The members of the Audit Committee are financially literate and have
accounting or related financial management expertise. The composition of the Audit
Committee complies with the requirements of the Listing Regulations and the Act. During
the year, 6 (Six) Audit Committee meetings were held on 26th May 2023, 10th August
2023, 5th October 2023, 13th November 2023, 8th February 2024 and 27th March 2024.

The Chief Financial Officer of the Company is a permanent invitee to the Audit
Committee meetings. The Joint Statutory Auditors, the Internal Auditors and senior
executives as it considers appropriate are also invited to the Audit Committee meetings.
Cost Auditors are invited to the Audit Committee meetings, whenever matters relating to
the Cost Audit are considered. Mr. N Mohan Raj, Chairman of the Audit Committee was
present at the last AGM of the Company held on 25th August 2023. The Audit Committee
acts as a link between the management, the Statutory and Internal Auditors and the Board.
The Audit Committee monitors and effectively supervises the Company’s financial
reporting process with a view to provide accurate, timely and proper disclosure, maintain
the integrity and quality of financial reporting. The Audit Committee, inter alia, also
reviews, from time to time, the audit and internal control procedures, the accounting
policies of the Company, annual compliances under SEBI (Prohibition of Insider Trading)
Regulations, 2015, reviewing complaints under Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act, 2013 and reviewing complaints
received under Whistle-Blower Policy of the Company. The Committee also oversees the
performance of the Internal and Statutory Auditors and recommends their appointment
and remuneration to the Board. The minutes of the Audit Committee Meetings were noted
by the Board. The Chairman of the Audit Committee Meeting briefs the Board on the
discussions held during the Audit Committee Meetings. All the recommendations of the
Audit Committee have been accepted by the Board.
Financial Statement analysis:

21
22
23
24
MANAGEMENT DISCUSSION AND ANALYSIS REVIEW :

Grasim Industries, a flagship company of the Aditya Birla Group, has

demonstrated robust performance in the financial year 2023-2024 (FY24).
Below is a review of its Management Discussion and Analysis (MD&A) for
the year:
Financial Performance:
 Revenue Growth: The company achieved its highest-ever consolidated

revenue of ₹1,30,978 crore in FY24, surpassing the ₹1 trillion mark.

This growth was primarily driven by the cement business, which saw
significant capacity expansion

 Earnings Before Interest, Taxes, Depreciation, and Amortization

(EBITDA): Grasim reported a record consolidated EBITDA of
₹20,837 crore, indicating strong operational efficiency

 Net Profit: The consolidated net profit after tax and minority interest
for Q4 FY24 stood at ₹1,369.8 crore, reflecting a marginal increase
from the previous year

Business Segments:
 Cement: UltraTech Cement, a subsidiary of Grasim, played a

significant role in revenue growth, with a notable increase in

production capacity by 13.8 million tonnes per annum (MTPA)

 Viscose Staple Fibre (VSF): The VSF business faced challenges due
to global market conditions, impacting its performance.

 Chlor-Alkali and Speciality Chemicals: These segments showed

steady growth, contributing positively to the company's diversified
portfolio.
25
Strategic Initiatives:
 Capital Expenditure: Grasim, along with its subsidiaries, executed its

largest-ever capital expenditure, investing over ₹20,000 crore in FY24.

This investment underscores the company's commitment to capacity
building and pursuing new high-growth opportunities

 Sustainability and Innovation: The company continues to focus on

sustainable practices and innovation, aiming to develop global-scale
businesses while being environmentally responsible

Dividend:
The Board of Directors has proposed a dividend of ₹10 per equity share for
FY24, amounting to a total cash outflow of ₹669 crore

Challenges:
 Market Volatility: Certain segments, like VSF, have faced challenges

due to fluctuating global prices and demand.

 Regulatory Environment: The company navigates complex

regulatory landscapes, both domestic and international, impacting its

operations and strategic decisions.

Overall, Grasim Industries has showcased strong financial health and

strategic foresight in FY24, with significant contributions from its cement
business and prudent investments in capacity expansion and sustainability
initiatives.

26
Revenue Growth: The company's consolidated revenue has shown a
consistent upward trend:
 FY2018-19: ₹72,965 crore
Report Junction
 FY2019-20: ₹76,397 crore
Grasim Industries
 FY2020-21: ₹1,00,000 crore
Grasim Industries
 FY2021-22: ₹1,17,627 crore
Grasim Industries
 FY2022-23: ₹1,30,978 crore
Grasim Industries

EBITDA: Earnings Before Interest, Taxes, Depreciation, and

Amortization have also increased:
 FY2018-19: ₹10,883 crore
Report Junction
 FY2019-20: ₹11,618 crore
Grasim Industries
 FY2020-21: ₹15,766 crore
Grasim Industries
 FY2021-22: ₹20,477 crore
Grasim Industries
 FY2022-23: ₹20,837 crore
Grasim Industries

27
CORPORATE SOCIAL RESPONSIBILITY (CSR):

Key CSR Focus Areas:

1. Healthcare Initiatives:
o Medical Camps and Hospitals: Grasim runs medical camps and hospitals,
providing healthcare services to underprivileged communities, especially in
rural areas.
o Preventive Healthcare: Initiatives to promote health awareness, particularly
in areas of maternal and child health, immunization, and nutrition
programs.
2. Education:
o Schools and Scholarships: The company runs schools and offers
scholarships to meritorious students from marginalized communities. This
helps in promoting education, especially in rural areas.
o Infrastructure Development: Grasim supports the development of school
infrastructure and provides resources like books, uniforms, and learning
materials.
3. Livelihood Development:
o Skill Development Programs: Grasim has initiated vocational training
programs to improve employment opportunities for rural youth, helping
them become self-reliant.
o Agriculture Support: The company assists farmers with sustainable
agricultural practices, improving their income and livelihood through
innovative methods and techniques.
4. Sustainable Development and Environment:
o Water Conservation: Projects to improve water availability in drought-
prone regions, such as watershed development, water conservation
techniques, and rainwater harvesting.
o Afforestation and Biodiversity: Tree plantation drives and environmental
conservation activities are integral to Grasim's CSR agenda.
5. Rural Infrastructure Development:
o Roads and Housing: Grasim supports the development of rural
infrastructure, including the construction of roads, sanitation facilities, and
affordable housing for economically weaker sections.
28
 o Electricity and Clean Energy Access: Providing access to clean energy
solutions like solar lights and improving electricity access in rural areas.
6. Community Welfare:
o Women Empowerment: Grasim runs programs aimed at empowering
women through self-help groups, financial literacy initiatives, and
entrepreneurship training.
o Sanitation Initiatives: The company supports the construction of toilets,
promoting the Swachh Bharat (Clean India) mission, particularly in rural
areas.
o Disaster Relief: In times of natural disasters, Grasim is active in providing
aid, relief materials, and rebuilding infrastructure in affected regions.
7. Skill and Entrepreneurship Development:
o Encouraging entrepreneurship through technical training and support,
particularly among rural and economically disadvantaged populations, to
foster self-employment opportunities.

Approach and Implementation:

 Partnership with NGOs: Grasim partners with various non-governmental
organizations (NGOs) to implement its CSR programs, ensuring they reach the
most vulnerable communities effectively.
 Sustainability Goals: Grasim aligns its CSR initiatives with broader sustainability
and environmental goals, focusing on long-term societal benefits and impact.
 Employee Engagement: Employees of Grasim Industries actively participate in
volunteering efforts, contributing to community development projects.

CSR Spending:
Grasim complies with the mandatory 2% CSR spending requirement under the
Companies Act of India, with its CSR budget allocated towards projects in areas such as
health, education, environment, and rural development.
Recognition:
Grasim Industries has received numerous accolades for its CSR initiatives, highlighting
its commitment to corporate social responsibility and sustainable growth.
Grasim's CSR initiatives reflect its holistic approach to creating positive social,
economic, and environmental impacts, especially in the communities surrounding its
operations.

29
 INTELLECTUAL CAPITAL OF GRASIM –
COMPENENTS & MIX :

Intellectual Capital represents the intangible assets of an organization that contribute to

its competitive advantage. In the case of Grasim Industries, its intellectual capital is a
combination of human resources, innovative processes, technological advancements,
brand value, and relationships. Here's a breakdown of the key components of Grasim's
intellectual capital, along with relevant statistical data and context where applicable:

1. Human Capital
Human capital refers to the knowledge, skills, and experience possessed by the
employees of Grasim Industries.
 Employee Strength: Grasim Industries had a workforce of over 24,000
employees as of FY 2023.
 Skill Development Programs: The company invests heavily in the training and
development of its workforce, ensuring skill upgradation in line with
technological and industrial advancements.
 Diversity and Inclusion: Grasim promotes a diverse work environment with an
increasing focus on gender diversity and inclusion initiatives across its various
business verticals.
 Employee Productivity: Metrics like employee productivity per unit produced or
per revenue generated indicate efficient use of human capital, though specific
numbers may vary across business segments like cement, VSF, and chemicals.

2. Structural Capital
Structural capital refers to the processes, intellectual property, technology, and
infrastructure that enable Grasim to operate efficiently.
 R&D Investment: Grasim has consistently invested in Research &
Development (R&D) to enhance its production processes, innovate in product
offerings, and improve operational efficiencies. In FY 2023, Grasim allocated
approximately ₹250 crore to R&D, particularly in the areas of sustainability,
new product development, and operational efficiency.
 Patents and Intellectual Property: Grasim’s R&D has resulted in patents and
proprietary technologies, particularly in the Viscose Staple Fibre (VSF) segment
30
 and the specialty chemicals business. These innovations contribute significantly
to cost savings and environmentally friendly practices.
 Technology and Digitalization: Grasim has implemented digital solutions and
Industry 4.0 technologies, particularly in the cement and chemical businesses, to
optimize production, reduce energy usage, and improve safety standards.

3. Relational Capital
Relational capital involves the relationships that Grasim maintains with external
stakeholders, including customers, suppliers, and the community.
 Brand Value: Grasim Industries, being part of the Aditya Birla Group, has a
strong brand reputation in the cement, VSF, and chemicals sectors. The strong
market presence of UltraTech Cement (a subsidiary) adds significant value to
the company’s relational capital.
 Customer Relationships: Long-standing relationships with clients, distributors,
and business partners, especially in the cement and chemical industries, enable
Grasim to maintain consistent demand for its products.
 Sustainability Relationships: Grasim works with regulatory bodies,
environmental agencies, and communities to promote sustainable practices. For
instance, it collaborates with suppliers to ensure sustainable raw material sourcing
and engages with communities through its CSR initiatives.

4. Innovation Capital
Innovation capital focuses on the organization’s ability to innovate and maintain a
competitive edge through continuous improvements and new product developments.
 VSF Business: Grasim's innovative processes in the VSF segment have led to the
development of environment-friendly fibers, which are becoming increasingly
popular in the global textile industry. It has introduced products like Livaeco, a
sustainable fabric, helping expand its market share in the textile space.
 Specialty Chemicals: The specialty chemicals business, particularly in epoxy
resins and chlor-alkali, continues to evolve, driven by Grasim’s investment in
innovation and R&D.
 Digital Innovation: Grasim is increasingly adopting AI-based technologies for
predictive maintenance, supply chain management, and customer engagement,
particularly in the UltraTech cement business.

31
5. Social and Environmental Capital
Social and environmental capital includes Grasim's contributions to environmental
sustainability and its commitment to corporate social responsibility.
 Sustainability Leadership: Grasim is a leader in adopting sustainable production
methods, particularly in the cement and VSF businesses. The company has
invested in reducing carbon emissions and water conservation projects.
o Water Positive: Grasim has achieved water positivity in many of its
operational locations through initiatives like rainwater harvesting and
recycling.
o Carbon Emission Reduction: Grasim and UltraTech have outlined
ambitious targets to achieve net-zero carbon emissions by 2050, and in
FY 2023, they achieved a CO2 reduction of 25% compared to the 1990
baseline in cement production.

6. Financial Performance as a Measure of Intellectual Capital Effectiveness

The company’s financial performance often reflects the effectiveness of its intellectual
capital management.
 Revenue Growth: From ₹72,965 crore in FY 2018 to ₹1,30,978 crore in FY
2024, showcasing strong business growth supported by efficient use of
intellectual and relational capital.
 EBITDA Growth: A steady rise in EBITDA from ₹10,883 crore in FY 2018 to
₹20,837 crore in FY 2024, indicating operational efficiency, improved
technology, and innovation.

Key Statistics Related to Intellectual Capital:

 R&D Spending (FY 2023): ₹250 crore.

 Revenue CAGR (2018-2024): ~12.5%, indicating sustained growth across core
business segments.
 VSF Production Capacity: Over 600,000 tonnes per annum, reflecting Grasim’s
investment in advanced technologies and processes.
 Cement Capacity (UltraTech): 131.25 MTPA (Million Tonnes Per Annum), a
result of continuous capacity expansion and optimization.

32
Conclusion:
Grasim Industries’ intellectual capital, comprising human capital, innovation,
technology, and strong stakeholder relationships, has been instrumental in driving its
growth and competitive edge across various sectors. The company's sustained
investment in R&D, technology, and skill development ensures it remains at the
forefront of its industries while contributing to its long-term sustainability goals.

MERGERS, ACQUISITIONS AND JOINT VENTURES:

Grasim Industries, as part of the Aditya Birla Group, has been active in pursuing
mergers, acquisitions, and joint ventures to expand its market presence and diversify its
business operations. Over the past 7 years (2017-2024), Grasim has made significant
moves, particularly in the cement, chemical, and textile sectors. Below is a detailed
overview of the major mergers, acquisitions, and joint ventures (M&A/JVs) along with
some key statistics during this period:

1. UltraTech Cement Acquisitions (2017-2024)

UltraTech Cement, a subsidiary of Grasim, has been at the forefront of Grasim’s
inorganic growth strategy, especially in the cement business.
 Jaypee Cement Plants (2017):
o Deal Value: ₹16,189 crore (~US$ 2.3 billion).
o Details: UltraTech Cement acquired 21.2 MTPA (Million Tonnes Per
Annum) of cement capacity from Jaiprakash Associates (Jaypee) in 2017.
This acquisition made UltraTech the largest cement manufacturer in India
and one of the top global players.
o Impact: The acquisition increased UltraTech’s capacity from 66.3 MTPA
to over 87 MTPA.
 Binani Cement Acquisition (2018):
o Deal Value: ₹7,950 crore.
o Details: UltraTech Cement acquired Binani Cement under India’s
Insolvency and Bankruptcy Code (IBC). This acquisition added around
6.25 MTPA to UltraTech’s capacity.
33
 o Impact: The deal further strengthened UltraTech's market share,
particularly in the northern and western regions of India.
 Century Textiles Cement Business (2019):
o Deal Value: ₹8,621 crore.
o Details: UltraTech acquired Century Textiles’ cement business, adding
around 13.4 MTPA capacity.
o Impact: The acquisition helped UltraTech Cement achieve over 100 MTPA
cement production capacity, solidifying its position as India’s leading
cement producer.
 Acquisition of Jaiprakash Power Ventures' Assets (2023):
o Deal Value: ₹1,537 crore.
o Details: In 2023, UltraTech completed the acquisition of Jaiprakash Power
Ventures' 2.1 MTPA cement grinding capacity.
o Impact: This move further strengthened UltraTech’s production footprint
and cemented its position in the central region of India.

2. Aditya Birla Capital (Merger in 2017)

 Deal Value: Not applicable.
 Details: In 2017, Grasim merged its financial services business with Aditya Birla
Capital Ltd. (ABCL), consolidating all financial services (such as asset
management, life insurance, and lending) under one entity. This was part of
Grasim's strategy to streamline its operations and focus on core sectors.
 Impact: This created a comprehensive financial services powerhouse, expanding
Grasim's portfolio beyond traditional manufacturing into financial services.

3. Entry into the Paints Business (2021 Onwards)

 Investment Plan: ₹10,000 crore.
 Details: In FY 2021, Grasim announced its foray into the paints sector, a move
aimed at diversifying into a high-growth, high-margin industry. The project
involves setting up a new paints manufacturing business, expected to commence
operations by FY 2024-25.
 Impact: Grasim aims to become a strong player in India’s decorative paints
market, competing with established companies like Asian Paints and Berger
Paints. This move marks Grasim’s strategic push into consumer-facing
businesses.

34
4. Grasim’s JV with Lubrizol (2020)
 Deal Value: Not disclosed.
 Details: In 2020, Grasim Industries entered into a joint venture (JV) with
Lubrizol, a Berkshire Hathaway company, to manufacture and supply chlorinated
polyvinyl chloride (CPVC) resins in India. CPVC is used in the manufacturing of
pipes for the plumbing industry.
 Impact: The JV positions Grasim as a key player in the fast-growing CPVC
segment in India, tapping into rising demand in the housing and infrastructure
sectors.

5. Acquisition of Soktas India (2019)

 Deal Value: ₹165 crore.
 Details: Grasim acquired the Indian subsidiary of Soktas, a Turkey-based
premium fabric manufacturer, in 2019. Soktas India is known for producing high-
quality fabrics for the textile industry.
 Impact: The acquisition strengthened Grasim’s presence in the premium fabric
segment and enhanced its portfolio of value-added textile products, particularly in
Viscose Staple Fibre (VSF) and branded apparel businesses.

6. Stake in Aditya Birla Fashion and Retail Limited (ABFRL) (2021)

 Investment: ₹1,500 crore.
 Details: Grasim announced plans to infuse ₹1,500 crore into Aditya Birla Fashion
and Retail Limited (ABFRL) to increase its stake. This was part of Grasim’s
strategy to support ABFRL’s expansion in the retail and fashion segments.
 Impact: This investment further solidified Grasim’s control and interest in the
growing retail fashion space through its subsidiary ABFRL, which is one of
India’s largest fashion retail companies.

7. UltraTech Cement – Multiple Brownfield Expansions (2020-2024)

 Total Capacity Addition: ~30 MTPA (2020-2024).
 Investment Value: Over ₹12,000 crore.
 Details: UltraTech Cement has undertaken multiple brownfield and greenfield
expansions across India to increase its cement production capacity. These include
plants in West Bengal, Odisha, Bihar, and Rajasthan.
 Impact: These expansions have helped UltraTech Cement maintain its market
leadership in India and remain a dominant player globally.
35
8. Acquisition of RMC Plants (2019-2023)
 Details: UltraTech has been acquiring Ready-Mix Concrete (RMC) plants to
expand its downstream operations. These acquisitions align with its strategy of
vertical integration to support its core cement business.
 Impact: The expansion of the RMC business has enabled UltraTech to capture a
larger portion of the construction market, particularly in metro cities.

Key M&A Stats (2017-2024):

 Total Value of Major M&A Activities: Over ₹55,000 crore (approx. $7.4 billion).
 Cement Capacity Growth: From 66.3 MTPA in 2017 to 131.25 MTPA in 2024,
making UltraTech Cement the largest in India and among the top five globally.
 New Ventures: Foray into paints and CPVC businesses to diversify the product
portfolio and tap into new high-growth markets.
 Strengthening Textiles: Acquisition of Soktas India to bolster Grasim’s premium
textile segment.
Conclusion:
Over the past 7 years, Grasim Industries has pursued a well-rounded strategy of
mergers, acquisitions, and joint ventures aimed at consolidating its leadership in key
sectors like cement and textiles while diversifying into new areas such as paints and
chemicals. These strategic moves have significantly contributed to Grasim’s growth,
positioning it as one of India's leading conglomerates with global influence.

References for the data driven –

www.grasimindustries.com
pictures – pinterest.com

36