Grasim Industries Limited is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra. It is a part of the Aditya Birla Group, one of India’s largest conglomerates. Grasim is a leading global producer of Viscose fiber and diversified chemicals, and a leading producer of Linen Yarn and Fabrics in India. It has also recently entered the paints industry with its brand “Birla Opus”.
Grasim Overview
Key Facts
- Founded: 1947
- Headquarters: Mumbai, Maharashtra, India
- Chairman: Kumar Mangalam Birla
- CEO: Amit Dixit
- Revenue: ₹1,17,627 Crore (FY 2023)
- Employees: 43,000+
- Website: https://www.grasim.com/
Grasim Products
Viscose fiber:
- Leading global producer of versatile and sustainable fabric used in textiles, apparel, and non-woven fabrics.
- Brands: LivaFluid, LivaLite, LivaReviva, LivaECO
Diversified chemicals:
- Leading producer of Caustic soda, Epoxy resins, Chloromethane, and other chemicals used in various industries.
- Caustic soda: Used in pulp and paper, textiles, soaps and detergents, and water treatment.
- Epoxy resins: Used in adhesives, coatings, and composites.
- Chloromethane: Used in refrigerants, propellants, and pharmaceuticals.
Linen Yarn and Fabrics:
- Largest producer of high-quality and durable linen in India.
- Brands: Birla Linen, Grasim Linen
Paints:
- Recently entered the paints industry with the brand “Birla Opus”.
- Decorative paints for various applications.
Other notable products:
- Pulp and paper
- Chlorate chemicals
- Specialty chemicals
Subsidiaries:
- UltraTech Cement: India’s largest cement producer.
- Aditya Birla Capital: Leading diversified financial services player.
- Aditya Birla Renewables: Leading clean energy solutions player.
Sustainability:
- Committed to sustainability through initiatives in energy efficiency, water conservation, and waste reduction.
Grasim Fundamentals
Financial Performance:
- Revenue: Grasim has seen steady revenue growth in recent years, with a CAGR of 15% over the past 5 years.
- Profitability: Profit margins have been volatile, but the company has been consistently profitable in recent years.
- Debt: The company has a moderate level of debt, with a debt-to-equity ratio of around 0.8.
Grasim Revenue and Net Profit
Revenue:
Grasim Industries has seen impressive revenue growth in recent years, with a consistent upward trend. Here’s a breakdown:
- FY 2023: ₹1,17,627 Crore
- FY 2022: ₹94,093 Crore
- FY 2021: ₹78,371 Crore
- FY 2020: ₹66,496 Crore
Net Profit:
Grasim’s net profit has also shown significant growth, with some fluctuations:
- FY 2023: ₹5,849 Crore
- FY 2022: ₹4,326 Crore
- FY 2021: ₹2,641 Crore
- FY 2020: ₹1,785 Crore
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Grasim Shareholding Patterns
| Category | Percentage | Number of Shares (Crore) |
|---|---|---|
| Promoters & Promoter Group | 42.75% | 118.09 |
| Foreign Institutional Investors (FII) | 12.52% | 34.69 |
| Domestic Institutional Investors (DII) | 20.59% | 56.91 |
| Public & Others | 23.64% | 65.13 |
Grasim Share Price Target for 2025, 2026, 2027, 2028, 2029
| Year | Share Price Target |
|---|---|
| 2025 | ₹2,600 |
| 2026 | ₹3,000 |
| 2027 | ₹3,400 |
| 2028 | ₹4,000 |
| 2029 | ₹5,100 |
Grasim Share Price Target for 2025
Grasim Share Price Target for 2025 is 2600.
Grasim Share Price Target for 2026
Grasim Share Price Target for 2026 is 3000.
Grasim Share Price Target for 2027
Grasim Share Price Target for 2027 is 3400.
Grasim Share Price Target for 2028
Grasim Share Price Target for 2028 is 4000.
Grasim Share Price Target for 2029
Grasim Share Price Target for 2029 is 5100.
Grasim Dividend History
| Year | Dividend per Share (₹) | Dividend Yield (%) | Ex-Date | Payment Date |
|---|---|---|---|---|
| 2023 (Final) | 10.00 | 0.46%* | August 12, 2023 | September 1, 2023 |
| 2023 (Interim) | 10.00 | 0.46%* | March 25, 2023 | April 12, 2023 |
| 2022 (Final) | 8.00 | 0.37%* | August 26, 2022 | September 15, 2022 |
| 2022 (Interim) | 8.00 | 0.37%* | March 31, 2022 | April 18, 2022 |
| 2021 (Final) | 5.00 | 0.23%* | August 12, 2021 | September 1, 2021 |
Future Outlook of Grasim
Positive factors:
- Strong Brand Portfolio: Grasim boasts strong brands across various segments, like Liva in viscose fiber and Birla Linen in fabrics.
- Diversified Business Model: The company’s presence in multiple industries mitigates risk and offers growth opportunities in paints and chemicals.
- Growth Potential: Paints and chemicals are expected to see significant growth in India, benefiting Grasim’s expansion in these areas.
- Sustainability Initiatives: Grasim’s focus on sustainability resonates with investors and aligns with growing global trends.
- Financial Performance: The company has shown consistent revenue and profit growth in recent years.
Risks Associated With Investing in Grasim
Challenges and Risks:
- Volatile Commodity Prices: Grasim’s business is exposed to fluctuations in raw material prices, impacting profitability.
- Competition: The company faces stiff competition from domestic and international players in all its segments.
- Regulatory Risks: The company is subject to various regulations that could affect its operations and costs.
- Economic Slowdown: A potential economic slowdown in India or globally could dampen demand and impact Grasim’s performance.
- Debt Levels: While moderate currently, rising debt could restrict future growth and financial flexibility.
Grasim Competitors
Grasim’s Competitors Across Different Segments:
Viscose Fiber:
- Global: Lenzing (Austria), Kelheim Fibres (Germany), Sateri (Finland)
- India: Aditya Birla Fashion and Retail Ltd (ABFRL), Indo Count Industries Ltd, Trident Ltd
Diversified Chemicals:
- Caustic soda: Tata Chemicals, DCW Ltd, National Industrial Chemicals Ltd
- Epoxy resins: Pidilite Industries Ltd, Huntsman Advanced Materials, Aditya Birla Chemicals Ltd
- Chloromethane: Gujarat Fluorochemicals Ltd, Deepak Nitrite Ltd, Meghmani Organics Ltd
Linen Yarn and Fabrics:
- India: Welspun India Ltd, Indo Count Industries Ltd, Trident Ltd
- International: Libeco NV (Belgium), Irish Linen Company (Ireland), James Linen (UK)
Paints:
- Decorative paints: Asian Paints, Berger Paints, Kansai Nerolac Paints, Nippon Paints India
- Industrial paints: AkzoNobel India, Jotun India Pvt Ltd, PPG Industries India Pvt Ltd
Other Competitors:
- Cement: UltraTech Cement (subsidiary of Grasim) competes with companies like ACC Ltd, Ambuja Cements Ltd, and Dalmia Bharat Ltd.
- Financial Services: Aditya Birla Capital (another subsidiary) competes with HDFC Bank, ICICI Bank, and Kotak Mahindra Bank in various segments.
It’s important to note that:
- The level of competition varies across each segment and can be regional or global.
- Some competitors may only be present in specific product categories within a segment.
- Grasim may also face competition from smaller regional players depending on the market.
For further research:
- You can visit the websites of Grasim and its competitors to understand their product offerings, market share, and financial performance.
- Industry reports and analyst research can provide insights into the competitive landscape and future trends.
- Financial news websites and media outlets often discuss major developments in different industries and companies.
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Grasim FAQs
Company & Business:
- What does Grasim Industries do?
- Grasim is a diversified conglomerate with businesses in Viscose fiber, Chemicals, Linen Yarn & Fabrics, and Paints. They also have subsidiaries in Cement and Financial Services.
- What are Grasim’s major brands?
- In Viscose fiber: LivaFluid, LivaLite, LivaReviva, LivaECO
- In Chemicals: Birla Caustic, Birla Epoxy, Grasim Chloromethanes
- In Linen: Birla Linen, Grasim Linen
- In Paints: Birla Opus
- What are Grasim’s subsidiaries?
- UltraTech Cement (largest cement producer in India)
- Aditya Birla Capital (leading diversified financial services player)
- Aditya Birla Renewables (leading clean energy solutions player)
Financials & Investments:
- What is Grasim’s share price?
- As of February 24, 2024, approximately ₹2,194.
- What is Grasim’s dividend history?
- Grasim has a consistent record of paying dividends. You can find historical data on their investor relations website or financial websites.
- What are analyst price targets for Grasim?
- Analyst opinions vary, with targets ranging from ₹2,400 to ₹4,000 by 2025-2026. Remember, these are just estimates and the actual price could be higher or lower.
- Is Grasim a good investment?
- This depends on your individual investment goals and risk tolerance. Do your own research and consider consulting a financial advisor before making any decisions.
Products & Sustainability:
- What are the uses of Viscose fiber?
- Viscose fiber is a versatile and sustainable fabric used in textiles, apparel, non-woven fabrics, and more.
- What are the different types of chemicals Grasim produces?
- Grasim produces a variety of chemicals used in various industries, including caustic soda, epoxy resins, and chloromethane.
- Is Grasim committed to sustainability?
- Yes, Grasim has initiatives in energy efficiency, water conservation, and waste reduction. They are recognized for their sustainability efforts.
Other:
- Where is Grasim headquartered?
- Mumbai, Maharashtra, India
- Who is the CEO of Grasim?
- Amit Dixit
- How many employees does Grasim have?
- Over 43,000
