Grasim Industries Limited, part of the Aditya Birla Group, is one of India’s leading diversified companies. Established in 1947, it has evolved from a textiles manufacturer to a global leader in sectors such as Cellulosic Fibres, chemicals, cement, and financial services. Grasim is a top player in the production of cellulosic fibres, chemicals, and fashion yarns and fabrics in India. Recently, it entered the paints market with ‘Birla Opus’ and is expanding its reach with six manufacturing plants across India. Through subsidiaries like UltraTech Cement, Aditya Birla Capital, and Aditya Birla Renewables, Grasim strengthens its position in cement, financial services, and clean energy. In FY 2024, the company reported a consolidated net revenue of ₹1,30,978 crore and EBITDA of ₹20,837 crore. Grasim continues to focus on sustainable value creation and long-term growth across its diverse portfolio.
Business Model:
Textile & Fibre Production: Leading global producer of Cellulosic Fibres, fashion yarn, and fabrics, focusing on sustainability and innovation.
Chemicals Manufacturing: Produces a wide range of diversified chemicals for industries like agriculture, automotive, and construction, emphasizing environmental standards.
Cement Production (UltraTech Cement): Subsidiary UltraTech is one of India’s largest cement producers, providing a variety of products for infrastructure and construction.
Paints Business (Birla Opus): Entered the decorative paints market with plans to establish six plants across India under the brand ‘Birla Opus.’
Financial Services (Aditya Birla Capital): A prominent player in diversified financial services, offering a range of products in investment, insurance, and lending.
Clean Energy (Aditya Birla Renewables): Focuses on renewable energy solutions to enhance its sustainability footprint.
B2B Marketplace (Birla Pivot): A digital platform for building materials, connecting suppliers and buyers in the construction sector.
Synergies within Aditya Birla Group: Leverages group companies like UltraTech Cement, Aditya Birla Capital, and Aditya Birla Renewables to create integrated business opportunities and enhance growth.
Company Valuation
Sector
Diversified
NSE
GRASIM
BSE
500300
Market Capitalization
Rs 1,74,159 Crore (As of November 25, 2024)
Book Value Per Share
Rs 1365
Face Value
Rs 2
P/E ratio
39.44
52 week H/L
2,875 / 1,939
Dividend Yield (%)
0.39
Shareholding Pattern
Particulars
Dec-23
Mar-24
June-24
Sept-24
Foreign Promoters %
4.76
4.6
4.6
4.6
Indian Promoters %
37.99
38.46
38.46
38.51
DIIs %
16.69
16.69
16.66
17.75
FIIs %
12.52
12.7
13.7
13.78
Others %
28.04
27.55
26.58
25.36
Ratios (Consolidated)
Particulars
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
ROCE %
9.25
11.09
11.93
12.63
11.38
ROE %
10.71
11.18
15.21
14.41
11.93
ROA %
2.52
2.66
3.84
3.54
2.65
Interest Coverage Ratio
1.88
2.73
3.64
3.44
2.48
D/E
1.47
1.17
0.97
1.29
1.53
P/B
0.55
1.47
1.45
1.37
1.72
Balance Sheet (Consolidated Figures in Rs. Crores.)
(Year-end March)
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Share Capital
132
132
132
132
133
Reserves
56,257
65,088
75,265
78,200
87,976
Borrowings
83,100
76,045
73,187
1,01,348
1,35,102
Other Liabilities
1,04,789
1,25,586
1,40,566
1,57,143
1,88,906
Total Liabilities
2,44,278
2,66,851
2,89,149
3,36,823
4,12,116
Fixed Assets
87,552
85,008
88,981
94,882
1,00,480
Capital WIP
3,822
5,719
6,572
7,354
17,179
Investments (Long Term)
32,030
42,492
51,899
60,043
75,024
Other Assets
1,20,874
1,33,632
1,41,697
1,74,544
2,19,433
Total Assets
2,44,278
2,66,851
2,89,149
3,36,823
4,12,116
Profit & Loss (Consolidated Figures in Rs. Crores.)
(Year-end March)
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
TTM
Sales
77,847
76,561
95,701
1,17,627
1,30,978
1,37,116
Other Income
967
1,052
821
3,612
1,264
1,378
Expenses
60,343
57,795
75,270
96,038
1,03,783
1,09,609
Operating Profit
18,470
19,818
21,253
25,201
28,459
28,887
OPM%
24
26
22
21
22
21
Interest
6,926
5,723
4,776
6,044
9,277
10,695
Depreciation
4,041
4,033
4,161
4,552
5,001
5,437
Profit Before Tax
6,121
9,886
12,247
14,727
13,700
12,134
Tax%
0
31
16
25
28
32
Net Profit
4,425
4,366
7,550
6,827
5,624
4,482
PATM%
6
6
8
6
4
4
Cash Flows (Consolidated Figures in Rs. Crores.)
(Year-end March)
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
16,666
16,784
7,038
-12,685
-10,719
Cash from Investing Activity
-11,635
-9,217
-3,543
-13,687
-23,113
Cash from Financing Activity
-3,185
-8,014
-6,733
26,469
33,908
Net Cash Flow
1,845
-447
-3,239
97
76
Q2 FY25 Result Update:
Revenue: Consolidated revenue reached ₹33,563 Cr., an 11% YoY growth; TTM revenue at ₹1,37,116 Cr.
Cement: Increased grey cement capacity by 9.9 Mn TPA (current FY till Oct’24), bringing total capacity (domestic + overseas) to 156.1 Mn TPA.
Birla Opus: Production ramping up at three plants commissioned in Q1FY25; trial runs started at Chamarajanagar and Mahad.
Financial Services: Total Lending Portfolio* rose to ₹1,37,946 Cr., a 27% YoY increase.
Cellulosic Staple Fibre: Achieved highest-ever quarterly sales volume of 219 KT.
Chemicals: Improved profitability in Chlorine Derivatives and Specialty Chemicals.
Quarterly Results (Consolidated Figures in Rs. Crores)
Particulars
Jun 2023
Sep 2023
Dec 2023
Mar 2024
Jun 2024
Sep 2024
Sales
31,065
30,221
31,965
37,727
33,861
33,563
Other Income
296
285
256
427
300
395
Expenses
24,708
24,168
25,072
29,835
27,156
27,546
Operating Profit
6,653
6,337
7,150
8,320
7,005
6,412
OPM%
21
21
22
22
21
19
Interest
2,032
2,226
2,433
2,586
2,725
2,951
Depreciation
1,183
1,245
1,244
1,329
1,368
1,496
Profit Before Tax
3,438
2,866
3,473
3,835
2,944
1,882
Tax%
25
29
25
31
24
46
Net Profit
1,576
1,164
1,514
1,370
1,208
390
PATM%
5
4
5
4
4
1
Conclusion:
In conclusion, Grasim Industries demonstrates a robust and diversified business model with a strong presence across key sectors, including cement, chemicals, textiles, and financial services. The company’s consistent revenue growth, expansion in cement capacity, and strategic ventures like Birla Opus and Birla Pivot highlight its forward-thinking approach. Its focus on sustainable value creation and operational excellence further strengthens its position in the market. With a solid track record of growth, continued innovation, and a commitment to leveraging synergies within the Aditya Birla Group, Grasim is well-positioned for long-term success and value creation for its stakeholders.
