Grasim Industries Secures ₹1,250 Crore from IFC for Birla Opus

On Tuesday, Grasim Industries Limited informed in an exchange filing that the company has raised ₹1,250 crore from the International Finance Corporation through non-convertible debentures.

Details of the Funding

On March 19, 2024, the flagship company of Aditya Birla Group, Grasim Industries Limited, stated in an exchange filing that they have raised ₹1,250 crore (equivalent to approximately $150 million) from the International Finance Corporation (IFC), which is the private sector arm of the World Bank Group. The company raised the funds through Non-Convertible Debentures (NCD). The funds will be invested in the company’s recently launched paints manufacturing business, Birla Opus.

Grasim Industries Limited also stated that the International Finance Corporation’s investment will accelerate Grasim’s decarbonisation drive through the improved adoption of renewable energy and water recycling in the paint manufacturing process.

Recently, the Chairman of Aditya Birla Group, Mr. Kumar Mangalam Birla, reported the launch

of products and services under its new decorative paints brand, Birla Opus. The new brand aims for ₹10,000 crore gross revenue within 3 years of full-scale operations. He added that all six manufacturing plants will be completely sustainable with no liquid discharge and supplied with 4th generation manufacturing technology to efficiently manage supply chain processes at lightning speed, end-to-end traceability and zero defects.

The Managing Director of Grasim Industries Limited, Mr. H K Agarwal, stated in the exchange filing that the company welcomes the investment from the International Finance Corporation, recognising their sustainability initiatives. They will work together with IFC to improve their sustainability footprints further. He also added that the company is addressing the transition to a low-carbon economy through their renewable projects and energy-efficient products. They are looking forward to further aligning their activities to the global Sustainable Development Goals (SDGs).

India Country Head at IFC, Ms Wendy Werner, said, “IFC’s financing will contribute to Grasim’s 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 Grasim’s expansion in a climate-friendly way.”

On Wednesday, March 20, 2024, the share price of Grasim Industries Limited opened at ₹951.00, touching the day’s high at ₹971, as of 12:25 PM on the NSE.

About Grasim Industries Limited

Grasim Industries Limited started as a textiles manufacturer in India and expanded its presence across various sectors. It is a leading producer of viscose, linen yarn, fabrics and diversified chemicals. Recently, the company has entered the paint manufacturing business through their brand Birla Opus.

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