Grasim records Rs 1.30 trillion revenue for FY24, driven by cement business

For FY24, Aditya Birla Group's flagship company, Grasim Industries' board of directors has proposed a dividend of Rs 10 per equity share, amounting to a total cash outflow of Rs 669 crore

Aditya Birla Group’s flagship company, Grasim Industries, has announced its highest-ever annual revenue of Rs 1,30,978 crore for the financial year 2023-24 (FY24), exceeding $15 billion in consolidated revenues. This achievement was revealed during the company’s 77th Annual General Meeting on Tuesday, reflecting a strong performance across its key business segments, especially cement and emerging businesses, such as  cellulosic fibres, chlor alkali, and the speciality chemicals businesses.

Grasim also reached its highest-ever consolidated earnings before interest, taxes, depreciation, and amortisation (Ebitda)  of Rs 20,837 crore.

At the end of FY23, Grasim Industries had clocked in Rs 1,17,627 crore in consolidated revenue from operations, surpassing the Rs 1 trillion mark.

 

Ultratech to cross 200 MTPA capacity by FY27

The record revenue was primarily fuelled by the robust growth in Grasim’s cement business, managed by UltraTech, which saw a significant increase in production capacity by 13.8 million tonnes per annum (MTPA).

Group Chairman Kumar Mangalam Birla, in a statement following the AGM, highlighted the company’s ongoing expansion plans, stating, “With the completion of ongoing projects across India and the upcoming acquisitions of Kesoram Cement and India Cements, our total cement capacity will surpass 200 MTPA by FY27.”

All paint plants to be active by FY25

In the paints segment, Grasim is making rapid progress, with all six of its plants expected to be fully operational by the end of FY25. The company has already invested Rs 4,471 crore in capital expenditure for this segment this year, bringing the total investment in the paints business to nearly Rs 7,000 crore since its inception.

Birla expressed confidence in this sector, stating, “We remain confident in our guidance of achieving Rs 10,000 crore in revenue within three years of full-scale operations.”

Birla Pivot reports Rs 1,000 crore revenue in its first year

Grasim’s B2B e-commerce platform, Birla Pivot, which focuses on building materials, achieved Rs 1,000 crore in revenue in its first year of operations. The platform has expanded rapidly, offering 35 product categories and over 18,000 SKUs sourced from more than 150 brands. Birla announced an ambitious target for Birla Pivot, aiming to reach $1 billion in revenue within the next three years.

Cellulosic Fibres revenue at Rs 14,949 crore

The Cellulosic Fibres segment also contributed significantly to Grasim’s success, with revenue reaching Rs 14,949 crore. This growth was driven by a 67 per cent year-on-year increase in Ebitda and a 14 per cent rise in sales volumes, totalling 810 KT for the year.

Birla emphasised sustainability in this segment, saying, “Our Cellulosic Fibre business consistently strives for excellence in customer centricity and product quality, with sustainability remaining a top priority.”

Chemicals business records Rs 8,213 crore revenue

In the Chemicals business, Grasim reported record caustic soda sales volumes of 1,205 KT and speciality chemicals sales volumes of 95 KT, contributing to a total segment revenue of Rs 8,213 crore.

Growing textile business

The Textiles business continues to evolve, with a strategic focus on transitioning from pure manufacturing to brand-building. Grasim’s textile brands like ‘Linen Club’, ‘Soktas’, and ‘Giza House’ are now available at over 230 Exclusive Brand Outlets and more than 9,000 multi-brand outlets. The business has also earned the ‘Great Workplace’ recognition from the Great Place to Work Institute.

Grasim’s financial services

Aditya Birla Capital, Grasim’s financial services subsidiary, is also poised for “transformational growth”, adopting a customer-first and digital-first approach. The subsidiary achieved its highest-ever combined loan book of Rs 1,24,059 crore and an assets under management (AUM) of Rs 4,36,442 crore, reflecting growth in its digital footprint.

Aditya Birla Renewables - key emerging player

In the Renewables sector, Aditya Birla Renewables is emerging as a key player in India’s clean energy solutions market. With a cumulative installed capacity of approximately 1 GW across 42 projects in 10 states, the business is on track to double this capacity to 2 GW by the end of the year. The Group’s major manufacturing businesses — Grasim, Ultratech, Hindalco, and Birla Carbon — have all committed to achieving ‘Net-Zero’ emissions by 2050, with Aditya Birla Renewables playing a crucial role in meeting these decarbonisation targets.

Grasim capital expenditures

Over the past five years, Grasim has invested Rs 50,000 crore in capital expenditures, with 77 per cent of this amount dedicated to growth initiatives. For FY24, the Board has proposed a dividend of Rs 10 per equity share, amounting to a total cash outflow of Rs 669 crore.