Demand triggers, expansion to drive growth for Grasim

Deleveraging and traction in paints business key for further gains

The sharp rise in the share price of Aditya Birla group’s Grasim Industries (Grasim) can be explained by changes in the dynamics of underlying commodity markets. The US has just banned cotton imports from Xinjiang in China given persistent allegations of human rights abuses against the local Uighur community including the use of forced labour.

Since the region produces close to 20 per cent of global cotton, it would likely lead to a search for cotton substitutes. This could create more demand for viscose staple fibre (VSF), an artificial biodegradable fibre which would be a boost to Grasim. In the