Hit by Covid-19 lockdown, Grasim puts capital expenditure for FY21 on hold

Aditya Birla group firm Grasim Industries has decided to put its entire capital expenditure for FY21 on hold, with demand for its products declining due to the extended lockdown.

Top company executives said the firm had earlier planned to invest about Rs 3,880 crore in the present financial year. “Looking at the situation — both due to the lockdown and liquidity position — we have kept all capex on hold. The cash outflow during the lockdown will not be significant, though some money will be spent to pay creditors, which was due in April and May,” they said.