Grasim Industries said an investment of Rs 1,250 crore, or $150 million, made by the World Bank Group's private sector arm, the International Finance Corporation (IFC), by way of subscription to non convertible debentures to be issued by the firm.
The sustainability-linked non convertible debentures (NCDs) will support the companys investment in paint manufacturing.IFCs investment will accelerate the companys decarbonization drive through the increased adoption of renewable energy and water recycling in the paint manufacturing process.
Recently, Aditya Birla Group Chairman, Kumar Mangalam Birla, announced the launch of products and services under its new decorative paints brand, Birla Opus, aiming for Rs 10,000 crore gross revenue within 3 years of full-scale operations. All six manufacturing plants will be fully sustainable with zero liquid discharge and equipped with 4th generation manufacturing technology to manage supply chain processes at lightning speed, zero defects and end-to-end traceability.
H K Agarwal, MD, Grasim Industries, said, "We welcome the investment from the International Finance Corporation (IFC), recognizing our sustainability initiatives. We will work collaboratively with IFC to further enhance our sustainability footprints. We are addressing the transition to a low-carbon economy through our renewable projects and energy efficient products, and are looking forward to further aligning our activities to the global sustainable development goals.
Wendy Werner, India Country Head at IFC said, IFCs financing will contribute to Grasims sustainable growth into the paints business and will encourage other manufacturing companies to follow by successfully adopting energy efficient and water saving technologies and practices. This partnership builds on our nearly three-decade old partnership with Aditya Birla Group and IFC is proud to support Grasims expansion in a climate friendly way.
Grasim Industries, a flagship company of the Aditya Birla Group, is a leading diversified player with leadership presence across many sectors. It is a leading global producer of viscose staple fibre and viscose filament yarn, the largest chlor-alkali, advanced material, linen yarn and fabrics producer in India. The company recently has entered paints business and setting up six plants across pan India locations.
The Aditya Birla Group companys consolidated net profit declined 39.8% to Rs 1,514.44 crore in Q3 FY24 as against Rs 2,515.78 crore Q3 FY23. However, revenue from operations rose 11.62% year on year (YoY) to Rs 31,965.48 crore in the quarter ended 31 December 2023.
The scrip shed 0.81% to Rs 2,185.25 on the BSE.
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