Grasim Industries gained 1.32% to Rs 789 after the company said it entered into a definitive agreement with Lubrizol Advanced Materials to manufacture and supply chlorinated polyvinyl chloride (CPVC) resin in India.
The special type of polymer material that is widely used in hot and cold water pipes, will be manufactured at Chlor-alkali unit of Grasim located at Vilayat to take advantage of captive chlorine integration.Construction of the near 100,000 metric ton plant will take place in a phased manner, and once commissioned, this would be the single largest site capacity for CPVC resin production globally. The initial production is expected in late 2022, the Birla Group company added.
Commenting on the development, Kalyan Ram Madabhushi, CEO of Global Chemicals, Aditya Birla Group said, This collaboration with Lubrizol Advanced Materials is part of our long-term direction to bring in world class technologies to India and additionally complements our growth strategy in Chlor-Alkali and Derivatives platform.
Arnau Pano, Vice President, Lubrizol Advanced Materials said, This alliance will help to better serve CPVC customers in India and South Asia, as well as support the Indian economy.
Grasim Industries, a flagship company of the Aditya Birla Group, is a leading global producer of Viscose Staple Fibre, the largest Chlor-Alkali, Linen and Insulators player in India.
Grasim Industries' consolidated net profit slumped 66.61% to Rs 620.74 crore on 32.24% decrease in revenue from operations to Rs 13,621.10 crore in Q1 June 2020 over Q1 June 2019.
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