Grasim Industries confirmed that its Canadian joint venture, AV Group NB Inc. (AVNB), will temporarily idle its pulp operations at the Nackawic facility in New Brunswick. The shutdown is scheduled for around the end of October 2026.

Facility and ownership details

AVNB operates two dissolving grade pulp mills in New Brunswick, Canada, with a combined capacity of ~332K TPA. The Nackawic facility alone accounts for ~190K TPA of this capacity. Grasim Industries holds a 45% stake in the joint venture.

The company’s total investment in AVNB stands at ₹187.41 crore. This comprises an equity share of ₹153.04 crore and a preference share of ₹34.37 crore.

Reason for idling

The decision to idle the Nackawic facility follows an assessment of continuing challenges posed by prevailing market conditions and broader macroeconomic factors. The move is described as temporary.

What the Numbers Show

The Nackawic plant represents a significant portion of the joint venture’s output, accounting for approximately 57% of AVNB’s total ~332K TPA capacity. The temporary idling of this larger facility suggests that market pressures are severe enough to require reducing output from the primary production site rather than just the smaller Atholville unit.

Grasim Industries Limited has completed the full repayment of ₹500 crore in Commercial Papers on their maturity date. The company redeemed the instruments on September 17, 2026, clearing the obligation without any outstanding balance.

The repayment pertains to the series identified by ISIN INE047A14BA4. The company issued a corporate announcement on July 1, 2026, specifying the record date for the redemption process. This action aligns with the maturity schedule previously disclosed to investors and regulatory bodies.

Repayment Details

The company redeemed a total of 10,000 units of the Commercial Papers. The transaction was executed on the exact due date, ensuring timely settlement for all holders. No partial repayments were involved in this specific tranche.

This repayment was communicated to the BSE Limited under script code 500300. The company also notified relevant custodial and depository services, including Citi Bank N.A., to facilitate the settlement process for international holders.

Regulatory Compliance

The redemption was conducted in accordance with SEBI Master Circular No. SEBI/HO/DDHS/DDHS-PoD/P/CIR/2025/0000000137, dated October 15, 2025. Neelabja Chakrabarty, Company Secretary and Compliance Officer, signed off on the disclosure, confirming adherence to regulatory timelines.