Grasim Industries Ltd
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BSE Code:
500300
NSE Code:
GRASIM
Business Profile
Business Profile
Grasim Industries (GRASIM), a flagship company of the Aditya Birla group was incorporated in Aug. 25, 1947. The company`s principal business is manufacturing of viscose staple fibre (VSF), cement, sponge iron, chemicals and textiles. GRASIM operates in five segments: fibre & pulp, which includes viscose staple fiber and rayon grade pulp; chemicals, which include caustic soda and allied chemicals; cement, which includes grey and white cement; sponge iron, and textiles, which includes fabrics and yarn. GRASIM`s VSF operations are fully integrated, from pulp to garments, drawing upon resources from group companies located in Canada, Thailand and Indonesia
Grasim Industries has its manufacturing facilities spread across India. Between Grasim and its subsidiaries, the Group has 11 composite plants, 7 split grinding units, 4 bulk terminals, inclusive of 1 in Sri Lanka and 10 ready-mix concrete plants.
The company`s Grasim and Graviera range of fabrics signify the power of fashion.
GRASIM` s subsidiaries include UltraTech Cement, Shree Digvijay Cement Company, Samruddhi Swastik Trading And Investments, and Sun God Trading And Investment. On Sep. 07, 2006 Grasim Industries acquired Harish Cement, located in Himachal Pradesh, India. In September, the company announced that it has incorporated a new subsidiary, Grasim Bhiwani Textiles.
Financials
The company reported a steep drop in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the company declined 40.49% to Rs 3295.60 million from Rs 5537.90 million in the same quarter last year. Net Sales for the quarter rose marginally 0.90% to Rs 26535.70 million, while total income for the quarter rose marginally 0.10% to Rs 26976.4 million, when compared with the prior year period. It posted earnings of Rs 35.94 a share during the quarter, registering 40.50% decline over previous year period.
Recent Developments
30-MAR-09
The company commissioned its new 3.3 MTPA Clinkerisation Plant at Kotputli (Rajasthan).
29-APR-08
The Board of Directors of Grasim Industries has recommended payment of dividend on equity shares for the year ended March 31, 2008 at Rs 30 per share.
14-APR-08
Grasim Industries has increased its stake in AV Cell Incorporation, a joint venture company in Canada, from 25% to 45%, at a total consideration of around CAD 6 million. Thus, Aditya Birla Group's total stake in AV Cell has increased from 75% to 95%.
Future Plans
The company`s expansion plans at Shambhupura and Kotputli in Rajasthan are progressing as scheduled. While the Shambhupura plant is likely to be commissioned by the end of FY08, the Kotputli plant is expected to go on stream in Q1FY09. The company would also be setting up thermal power plants at both these places. The company has so far invested Rs 8.34 billion on these projects. Additionally, it has envisaged a total capital outlay of Rs 23.45 billion over the next two years, which includes the cost of modernization, de-bottlenecking, setting up of a grinding unit in Dadri, RMCs and captive power plants. Upon completion of these expansions and the commissioning of the grinding unit in Dadri, the company`s cement capacity will go up from 9.5 million tons to 22.6 million tons.
The CAPEX plan of UltraTech, which includes setting up of a 4 million TPA project in Tadpatri (Andhra Pradesh) and captive power plants at different locations is on track.
UltraTech plans to invest over Rs 19 billion in the next two years on capacity expansion, thermal power plants, modernisation, RMCs, ..etc.