Grasim Industries Limited

- A Cement and VSF Major

• Grasim Industries Limited, company of the Aditya Birla Group, ranks among India's largest private sector companies.

• Starting as a textiles manufacturer in 1948.

• The Aditya Birla Group is the world’s largest producer of VSF.

• Grasim has a strong presence in fabrics and synthetic yarns through its subsidiary, Grasim Bhiwani Textiles Limited.

•Its textile plants are located at Bhiwani (Haryana) and Malanpur (Madhya Pradesh)

•Grasim's strong nationwide retail network includes exclusive showrooms, wholesalers and multi-brand.

•Grasim caters to international fashion houses in the USA and UK

Conti….

Viscose staple fibreGrasim is India's pioneer in viscose staple fibre (VSF).

CementGrasim has grown to become a leading cement player in India.

ChemicalsGrasim has India's second largest caustic soda unit.

TextilesGrasim has strong nation-wide retail network and also caters to international fashion houses in USA and UK.

Division Capacity

Viscose Staple Fibre (VSF) 333,975 tpa

Joint venture  Birla Jingwei Fibres Company Limited 30,000 tpa

Rayon grade pulp

Harihar, Karnataka 70,000 tpa

AV Cell Inc 122,500 tpa

AV Nackawic Inc. 189,000 tpa

Cement

Grey cement (Including UltraTech Cement Ltd's capacity) 48.8 million tpa

Ready-mix concrete (Including UltraTech Cement Ltd's capacity) 12.1 million cubic metres

White cement 560,000 tpa

Chemicals 258,000 tpa

Textiles

Yarn 8832 spindles

Subsidiaries  

Grasim Bhiwani Textiles Ltd.

Fabric 146 looms

Yarn 35,808 spindles

Capacity chart of Grasim

Viscose Staple Fibre (VSF)

World’s top producer– Capacity at 334K TPA (12% global share)– Group is world’s largest with 23% global market share– 1 pulp plant in India (70K TPA)– 2 JVs for Pulp in Canada (315K TPA)– Fibre plant (35K TPA) in China in JV– 258K TPA caustic capacity, largely for captive use

VSF : Sustainable Competitive Strengths

• Amongst the lowest cost producers globally

• Highly integrated operations

• Strong in-house R&D capabilities

•Global brand positioning :“Birla Cellulose”

VSF: Strategy for Growth

• Capacity increased from 270K TPA to 334K TPA with Kharach (Gujarat) expansion in March 08

• Focusing on value added products and market enlargement - Thrust on promoting specialty fibres, both in domestic and export markets

• Backward integration in pulp strengthened- AV Nackawick pulp mill converted to produce rayon grade pulp during FY09

VSF: Current Performance

• Sales volume impacted due to global - Reduction in consumer spending due to global recessionary trend

• Operating profit and margins reduced considerably- Lower volumes and realisations

• Improvement in volumes and margins in - Volumes up by 22%

Summary

• A Cement and VSF major- Global size operations- Strong competitive edge

• Domestic leadership in Cement- A play on Indian economic growth- Presence across India

• Leading global player in VSF- Global presence- Integrated business model from plantation to fibre