Grasim Industries Limited has disclosed receiving a stamp duty demand from the Madhya Pradesh Revenue Court, highlighting regulatory compliance challenges related to a decades-old business transfer agreement. The development was communicated to stock exchanges through a regulatory filing under the Securities and Exchange Board of India listing regulations.

Court Order Details

The Honorable Court of Revenue, Madhya Pradesh, Gwalior issued an order demanding stamp duty payment of ₹64.39 lakh (excluding interest). The demand relates to a Business Transfer Agreement dated May 7, 2002, concerning the valuation of factory structures.

Nature of Alleged Violations

The court order addresses several specific issues related to stamp duty compliance:

Financial and Operational Impact

Grasim Industries has stated that there is no material impact on financials, operations, or other activities due to this court order. This assessment suggests that while the demand exists, it does not pose significant operational challenges to the company's current business activities.

Regulatory Compliance Context

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company followed the requirements under sub-para 20 of Para A of Part A of Schedule III of the Listing Regulations.

Business Transfer Agreement Background

The stamp duty demand relates to a Business Transfer Agreement executed on May 7, 2002, involving the transfer of factory structures and residential colony facilities. The court's order specifically questions the valuation methodology used for factory structures and the exclusion of tree values in stamp duty calculations, suggesting that the original assessment may have undervalued the transferred assets for stamp duty purposes under the Indian Stamp Act, 1899.

Grasim Industries has announced significant changes in its senior management team, with the Board of Directors approving a leadership transition in the Cellulosic Fashion Yarn Business division. The changes, recommended by the company's Nomination and Remuneration Committee, involve both a resignation and a strategic appointment effective in January 2026.

Leadership Transition Details

The company disclosed two key management changes through its regulatory filing dated December 19, 2025:

Departing Executive Profile

Mr. Satyaki Ghosh is resigning from his position to pursue opportunities outside the company. His tenure with Grasim Industries spans over eight years, having joined the company in December 2016. Ghosh successfully led the Domestic Textiles business before transitioning to his current role as CEO-Cellulosic Fashion Yarn Business in December 2024.

Incoming Leadership

Mr. Ajit Rajagopalan will assume expanded responsibilities, managing both the Cellulosic Fashion Yarn and Insulators Business divisions. His appointment represents an internal promotion, leveraging his existing expertise within the organization.

Professional Background

Rajagopalan brings substantial experience from within the Aditya Birla Group ecosystem:

• Group Entry: Joined Aditya Birla Group in the Chairman's Central Cell in 2007
• Birla Carbon Experience: Moved to Birla Carbon in 2012, handling diverse roles in Business Development and Manufacturing Operations until 2021
• Previous Role: Head-India manufacturing operations of Birla Carbon before current position
• Educational Credentials: Computer Engineer and Postgraduate in Management from IIM-Ahmedabad

Strategic Implications

The leadership transition ensures continuity in the Cellulosic Fashion Yarn Business while consolidating expertise under Rajagopalan's expanded role. His dual responsibility across both Cellulosic Fashion Yarn and Insulators Business divisions reflects the company's confidence in his operational capabilities and strategic vision.

The seamless transition, with only a one-day gap between Ghosh's departure and Rajagopalan's assumption of responsibilities, demonstrates careful succession planning by the company's leadership team.