The proposed merger will consolidate Aditya Birla Group’s chlor-alkali business into Grasim and strengthen its existing portfolio of viscose staple fibre, caustic soda and allied chemicals in standalone company. “The merger will enable the geographical diversification for Grasim through the addition of ABCIL’s manufacturing facilities spread across the country. It also enables the business to capitalise growth opportunities by bringing in operational and financial synergies, backed by Grasim’s strength. The consolidation is in line with Aditya Birla Group’s philosophy to unify similar business in one company,” said Aditya Birla group in a press release.
Grasim is the leading manufacturer of caustic soda (sodium hydroxide) in India, with an installed capacity of 452,500 tonnes per annum. Its plants are located at Nagda (Madhya Pradesh) and a unit which was recently commissioned at Vilayat (Gujarat). Caustic soda is inter-alia used as an input in the manufacturing of viscose staple fibre, which is a major business of Grasim.
ABCIL is one of the leading chlor-alkali companies in India with three manufacturing plants located at Rehla (Jharkhand), Renukoot (UP) and Karwar (Karnataka) with an installed capacity of 293,000 tonnes of caustic soda per annum and 110 MW of captive power plant.