Grasim Industries Limited , a flagship company of the Aditya Birla Group, has announced plans to acquire a 26% equity stake in three Special Purpose Vehicles (SPVs) for renewable energy projects. The move is aimed at powering the company's captive green energy requirements for its plants located in Gujarat, Andhra Pradesh, and Odisha.

Investment Details

The total investment for these acquisitions amounts to ₹69.00 crore, to be made in one or more tranches. The breakdown of the investment is as follows:

Project Specifics

• The SPV for the Vilayat plant in Gujarat, named Pro-Zeal Green Power Eighteen Private Limited, has already been formed.
• SPVs for the Balabhadrapuram plant in Andhra Pradesh and the Ganjam plant in Odisha are yet to be incorporated.
• All three SPVs will be engaged in the generation and transmission of renewable energy.

Strategic Rationale

Grasim Industries stated that the objectives of these acquisitions are to:

1. Meet the green energy needs of its plants
2. Optimize energy costs
3. Comply with regulatory requirements for captive power consumption under electricity laws

Execution Timeline

The company expects to complete the acquisitions within 30 days from the execution of Share Purchase and Shareholders Agreement(s).

Industry Context

This move aligns with the growing trend of large industrial companies investing in renewable energy sources to meet their power needs while also fulfilling sustainability commitments. It reflects Grasim Industries' efforts to transition towards greener energy solutions and reduce its carbon footprint.

The investment in these SPVs demonstrates Grasim's commitment to sustainable practices and its strategy to secure long-term, cost-effective, and environmentally friendly power sources for its manufacturing operations.

Grasim Industries Limited , a flagship company of the Aditya Birla Group, has reported a strong financial performance for the quarter ended September 30. The company posted a net profit of Rs 804.55 crore, marking a significant turnaround from a loss of Rs 118.18 crore in the previous quarter.

Revenue Growth

The company's revenue from operations increased to Rs 10,394.92 crore, up from Rs 9,283.37 crore in the prior quarter. This substantial growth in revenue demonstrates Grasim's robust market position and effective business strategies across its diverse portfolio.

Paint Business Milestone

In a significant development for its paint business, Grasim Industries announced that its paint plant at Kharagpur commenced commercial production on October 15. This milestone brings all six of the company's green-field plants into operation, with the total decorative paints capacity reaching 1,332 Million Litres Per Annum under the Birla Opus brand.

Financial Highlights

Board Approval

The Board of Directors approved the unaudited financial results at a meeting held on November 5.

Outlook

With strong financial results and the successful operationalization of all its paint plants, Grasim Industries appears well-positioned for continued growth. The company's focus on diversification and operational efficiency may contribute to its performance in the coming quarters.