Grasim Industries

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Grasim Industries Ltd

Type

Public (BSE: 500300) (NSE: GRASIM)

Industry

Textile, cement, sponge iron andchemicals

Founded

1948, Mumbai

Headquarters

Mumbai, Maharashtra, India

Key people

Kumar Mangalam Birla, Chairman &Managing director

Revenue

8,547.87 crore (US$1.85 billion) [1]

Net income

2,092.10 crore (US$453.99 million)[2]

Website

Official Website

Grasim Industries Limited (BSE: 500300|NSE: GRASIM) is a Aditya Birla Group company that started in 1948 and which started as a textile manufacturer. Since then Grasim has

successfully diversified into Viscose Staple Fiber (VSF), cement, sponge iron and chemicals [3]
Contents
[hide]

1 Textile 2 Grasim Industries Limited

o o o o

2.1 Global footsteps 2.2 Focus of Growth Post MFA 2.3 Joint ventures 2.4 Looking Forward

3 Footnote 4 External links

[edit]Textile

Aditya Birla Group operates over 40 companies in 12 countries across 4 continents. Grasim is one of its flagship companies and It is the worlds second largest producer of Viscose Rayon Fiber with about 21% market share. Textile and related products contributes to 15% of the group turnover.
[edit]Grasim

Industries Limited

Grasim Industries Limited was incorporated in 1948; Grasim is the largest exporter of Viscose Rayon Fiber in the country, with exports to over 50 countries. This, along with Aditya Birla Nuvo can be considered as companies of the AV Birla Group. Grasim is headquartered in Nagda kharach (kosamba)
[edit]Global

footsteps

Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started operations in 1970, this was Aditya Birla Groups first foray into international venture. Aditya Birla Group incorporated P.T. Elegant Textiles in 1973 in Indonesia. Thai Rayon incorporated in 1974, this was the second company in Thailand, operating in Viscose Rayon Staple Fiber. Century Textiles Co. Ltd. is taken over by Aditya Birla Group in 1974; this company is a weaving and dyeing plant manufacturing and exporting variety of synthetic fabrics. PT Sunrise Bumi Textiles incorporated in 1979, it produces yarn exported over 30 countries in 6 continents. P.T Indo Bharat Rayon incorporated in 1980 produces Viscose Staple Fiber in Indonesia to become a dominant player in the domestic market as well as export markets.

Thai Polyphosphates and Chemicals was started in 1984 in Thailand to produce Sodium Phosphates, presently merged with Thai Epoxy and Allied Products Company Limited (1992), Thai Sulphites and Chemicals Company Limited (1995) to form Aditya Birla Chemicals Ltd. This company supplies to sectors such as food, textiles, electrical and electronics, composites, leather, plastics and automobiles. PT Indo Liberty Textiles was incorporated in 1995 to manufacture synthetic spun yarn. In 2004, the Staple Fibre Division of Grasim Industries Ltd was presented with the Stockholm Industry Water Award for the company's efforts to reduce water usage and improve their overall environmental impact.[citation needed]
[edit]Focus

of Growth Post MFA

In late 1990s and later, the focus was the textile business because of the end of Multi-Fiber Arrangement (MFA) which opened a host of opportunities to Indian exporters. In this period, Aditya Birla Group took a three route strategy for growth.
 

Rapidly enhance existing capacities Acquire and Build Garment brands for local and international markets

Jayashree textiles was acquired by Aditya Birla Nuvo (formerly Indian Rayon), is a leading producer and exporter of yarns and fabrics to 50 countries with a turnover of $413 million. It acquired Madura Garments in 2000 to enter the branded garments business. Has brands such as Louis Philippe, Van Heusen, Peter England, Allen Solly, SF Jeans among others and also a global supplier to global buyers such as Marks & Spencers, Polo etc.


Vertical integration to get cost advantage

AV Cell Inc., a joint venture between Aditya Birla Group and Tembec, Canada, established operations in 1998 to produce softwood and hardwood pulp for the purpose of internal consumption among different units of the Group. Together, Aditya Birla Group and Tembec, Canada have acquired AV Nackawic Inc., which produces dissolving pulp, as a further step to integrate. Grasim industries Ltd. is a leading player in the Viscose Staple Fiber (VSP). The Aditya Birla Group's VSF manufacturing plants straddle Thailand, Indonesia, India and China. At each of these locations, further capacity expansions are under way in Thailand by 31 ktpa; in Indonesia by 37 ktpa; in India by 64 ktpa and in China by 30 ktpa. These brownfield expansions, slated to be

completed by the second quarter of 2008, will further notch up the Group's VSF production from 566 ktpa to 727 ktpa and entail an investment close to US$ 260 million. Grasim wants to follow a strategy of backward integration, right from plantation stage to the final VSF stage. The Group's VSF business operates through its three companies Grasim Industries in India, Thai Rayon Corporation in Thailand and Indo Bharat Rayon in Indonesia, which also oversees its Chinese operations at Birla Jingwei Fibres, China.
[edit]Joint

ventures

Thai Rayon Promoted in 1974 by the Aditya Birla Group, Thai Rayon is the sole manufacturer of Viscose Rayon Staple Fibre (VSF) in Thailand. More than 50 per cent of Thai Rayon's VSF throughput is directly exported to more than 20 countries worldwide. The VSF meets the stringent quality expectations of customers in USA, Mexico, Europe, Turkey, Canada, Israel, Australia, South Korea, Philippines, Indonesia, Pakistan, Bangladesh and Sri Lanka. PT Indo Bharat Rayon Marketed under the brand name of 'Birla Cellulose', the company produces a wide range of VSF in engineered specifications for textiles and non-woven applications. The company's strong focus on environmental protection is reflected through its investments in a sophisticated state-of-the-art waste-water treatment plant and scientific waste disposal systems.
[edit]Looking

Forward

They have recently acquired Pulp & VSF Plants in Canada and China respectively. They have also initiated a Pulp & Plantation Project in Laos.
[edit]