Industry: Textile
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India’s largest private sector companies, with consolidated net revenue of Rs.202 billion and a consolidated net profit of Rs.27.6 billion (FY2010).
Starting as a textiles manufacturer in 1948, today Grasim’s businesses comprise viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90 per cent of its revenues and operating profits.
The Aditya Birla Group is the world’s largest producer of VSF, commanding a 24 per cent global market share. Grasim, with an aggregate capacity of 333,975 tpa has a global market share of 11 per cent. It is also the second largest producer of caustic soda (which is used in the production of VSF) in India.
In cement, Grasim along with its subsidiary UltraTech Cement Ltd. has a capacity of 49 million tpa and is a leading cement player in India. In July 2004, Grasim acquired a majority stake and management control in UltraTech Cement Limited. One of the largest of its kind in the cement sector, this acquisition catapulted the Aditya Birla Group to the top of the league in India.
The cement business of the company is being restructured in a phased manner. In the first phase, Grasim’s cement business is being demerged into Samruddhi Cement Limited, a subsidiary of Grasim. In the second phase, Samruddhi Cement Limited will amalgamate with UltraTech. Upon completion of restructuring, the cement business will be consolidated in UltraTech, a pure play cement company.
