Aditya Birla Group's flagship company, Grasim Industries Limited, secured a Rs 1,250 crore (approximately $150 million) investment from the International Finance Corporation (IFC), the private sector arm of the World Bank Group. The investment will be in the form of a subscription to non-convertible debentures (NCD) issued by Grasim. These sustainability-linked NCDs aim to bolster the company's endeavours in the paint manufacturing industry.
The infusion of funds from IFC is poised to accelerate Grasim's efforts towards decarbonisation. This will occur primarily through an augmented adoption of renewable energy and water recycling in the paint manufacturing process.
H K Agarwal, managing director of Grasim Industries Limited, expressed gratitude for the investment from IFC and recognised the company's sustainability initiatives.
Agarwal said, "We are addressing the transition to a low-carbon economy through our renewable projects and energy-efficient products and are looking forward to further aligning our activities to the global Sustainable Development Goals."
Wendy Werner, India country head at IFC, said, "IFC's financing will contribute to Grasim's sustainable growth into the paints business and will encourage other manufacturing companies to follow by successfully adopting energy-efficient and water-saving technologies and practices. This partnership builds on our nearly three-decade-old partnership with Aditya Birla Group, and IFC is proud to support Grasim's expansion in a climate-friendly way."
Kumar Mangalam Birla, the chairman of the Aditya Birla Group, announced the introduction of products and services under the new decorative paints brand, "Birla Opus," in February.
As earlier reported by Business Standard, all six manufacturing plants are slated to be fully sustainable, featuring zero liquid discharge and equipped with cutting-edge fourth-generation manufacturing technology aimed at enhancing supply chain processes, ensuring zero defects, and facilitating end-to-end traceability. The firm aims to achieve gross revenue of Rs 10,000 crore within three years of full-scale operations.
Furthermore, the company targets capturing a revenue market share of high single digits by the conclusion of the next financial year. It also envisions expanding its distribution network to 50,000 outlets by leveraging its existing dealer network from the white cement business to drive growth. Grasim Industries is set to extend its distribution reach to all towns with a population of 100,000 by July this year, with plans to further expand to 6,000 towns by the end of FY25.