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Non-Energy Minerals

Grasim Industries Ltd.

Company Background

Grasim Industries is a core unit of Aditya Birla Group, which is part of one of India's three largest conglomerates -- Birla Group. Founded in 1948, Grasim is a major player in the textile and cement businesses.

Birla's history goes back further; it started out as Marwari, a group of leading merchants in the northern state of Rajasthan. Ghanshyam Das Birla built the foundation between World War I and World War II. His family had close ties to Mohandas Gandhi, also known as Mahatma Gandhi; the pacifist leader was assassinated at the family's house in Delhi.

The group was divided after Ghanshyam Das Birla's death. Aditya Birla, which took over much of the group's operations, is led by Kumar Mangalam Birla, a great-grandson of Ghanshyam Das Birla.

Grasim Industries is now the world's largest producer of viscose staple fiber, a material for clothing. It is also a major producer of caustic soda. It went into the cement business in 1985 and presides over Ultra Tech Cement.

The founding family and group companies own more than 20% of the business.

Business Summary

Grasim Industries Ltd. engages in the production of chemicals and cement. It operates through the following segments: Viscose, Chemicals, Cement, Financial Services, and Others. The Viscose Staple Fibre segment offers wood pulp and yarn. The Chemicals segment produces caustic soda, allied chemicals, and epoxy. The Cement segment provides grey cement, white cement, and allied products. The Financial Services segment is responsible for the non-bank financial services, life insurance services, housing finance, private equity, equity and commodity broking, wealth management, general insurance advisory, and health insurance. The Others segment relates to textiles, insulators, agri-business and solar power. The company was founded by Ghanshyam Das Birla on August 25, 1947 and is headquartered in Mumbai, India.

Financial Highlights

Mar 2020 INRUSD
Revenue769,656.40M10,854.60M
Gross Profit306,108.40M4,317.10M
Operating income141,477.20M1,995.27M
Income before tax60,846.10M858.12M
Net income44,251.90M624.09M
EBITDA181,990M2,566.63M
Diluted EPS67.370.95
Dividends Per Share40.05
Total Assets2,464.11B32,571.97M
Total liabilities1,553.44B20,534.25M
Total equity566,523.30M7,488.61M
Operating cash flow130,793.30M1,844.60M
Currency in INRCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 343,650.50M 359,343.50M 554,554.90M 765,198.20M 769,656.40M
Gross Profit 130,074.20M 140,256.60M 207,154.80M 296,860.80M 306,108.40M
Operating income 45,827.80M 55,045.60M 96,231.40M 139,095.40M 141,477.20M
Income before tax 44,863.20M 59,523.10M 56,347.40M 51,344M 60,846.10M
Net income 24,681.40M 31,673M 26,785.80M 16,929.90M 44,251.90M
EBITDA 64,047.70M 73,499.50M 123,274.10M 174,693M 181,990M
Diluted EPS 52.83 67.77 44.16 25.74 67.37
Dividends Per Share 4.50 5.50 6.20 7 4
Total Assets 614,114.10M 644,323.30M 2,100.58B 2,436.93B 2,464.11B
Total liabilities 252,532.80M 233,329M 1,263.41B 1,551.33B 1,553.44B
Total equity 273,195.30M 313,870.80M 573,618.50M 580,195.20M 566,523.30M
Operating cash flow 52,407M 68,205.50M 63,847.20M 96,395.50M 130,793.30M
 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 5,248.90M 5,358.77M 8,602.27M 10,940.35M 10,854.60M
Gross Profit 1,986.75M 2,091.60M 3,213.39M 4,244.34M 4,317.10M
Operating income 699.97M 820.87M 1,492.74M 1,988.70M 1,995.27M
Income before tax 685.23M 887.64M 874.06M 734.08M 858.12M
Net income 376.98M 472.32M 415.50M 242.05M 624.09M
EBITDA 978.26M 1,096.07M 1,912.23M 2,497.65M 2,566.63M
Diluted EPS 0.80 1.01 0.68 0.36 0.95
Dividends Per Share 0.06 0.08 0.09 0.10 0.05
Total Assets 9,273.49M 9,922.58M 32,206.80M 35,177.70M 32,571.97M
Total liabilities 3,813.39M 3,593.27M 19,371.13M 22,393.90M 20,534.25M
Total equity 4,125.41M 4,833.61M 8,794.90M 8,375.24M 7,488.61M
Operating cash flow 800.46M 1,017.12M 990.40M 1,378.20M 1,844.60M

Valuation Measures

Mar 2020
PER7.05
ROA1.80%
ROE7.71%
Operating margin18.38%
Profit margin5.74%

Key executives

  • Managing Director & Executive Director: Dilip Roopsingh Gaur
  • President, Secretary & Compliance Officer: Hutokshi R. Wadia
  • Chief Operating Officer-Pulp Business: Vinod Tiwari
  • Chief Financial Officer: Ashish Adukia
  • Chief Technology Officer-Fibre & Pulp Business: Aspi Patel

Shareholders

  • Aditya Birla Group (22.0%)
  • Life Insurance Corp of India (11.8%)
  • IGH Holdings Pvt Ltd. (5.1%)
  • Hindalco Industries Ltd. (4.3%)
  • Umang Commercial Co. Ltd. (4.0%)
  • Pilani Investment & Industries Corp. Ltd. (3.7%)
  • ICICI Prudential Asset Management Co. Ltd. (1.9%)
  • The Vanguard Group, Inc. (1.7%)
  • ICICI Prudential Life Insurance Co. Ltd. (1.1%)
  • Franklin Templeton Asset Management (India) Pvt Ltd. (1.1%)

Contact Details

  • Website:http://www.grasim.com
  • Address: Aditya Birla Centre, S.K. Ahire Marg, Worli, Mumbai, 400030, India
  • Phone: +91.22.6652.5000

Related Companies

  • PT Anggana Energy Resources
  • UltraTech Cement Mozambique Ltda.
  • Aditya Birla Chemicals (Belgium) BVBA
  • KPR Industries India Ltd. /Chlor-Akali Business/
  • Grasim Premium Fabric Pvt Ltd.
  • Vikram Cement Pvt Ltd.
  • Grasim Industries Ltd. XXXVIII
  • Sun God Trading & Investments Ltd.
  • Aditya Birla Capital Ltd.
  • Samruddhi Swastik Trading & Investments Ltd.
  • Aditya Birla Money Mart Ltd.
  • GBTL Ltd.
  • Vikram Sponge Iron Ltd.
  • Grasim Industries Ltd. Spice 638
  • Aditya Birla Chemicals (India) Limited
  • UltraTech Cement Limited

Competitors

  • Huntsman Corporation
Last Updated on 20 Oct, 2020

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