New Delhi: Grasim Industries Ltd announced that the company will be deploying its largest- ever capital expenditure (capex) with a focus on two new businesses—paint and building materials.
It has already invested ₹1,979 crore in the paint business in fiscal year 2023, Kumar Mangalam Birla, chairman Grasim Industries Ltd, told the 76th annual general meeting.
“Your company has embarked on a transformational growth phase with the incubation of two new high-potential growth engines—paints and B2B e-commerce for building materials. In FY23, your company executed its largest ever capital expenditure investing ₹4,307 crore including ₹1,979 crore toward the paints business,” he added.
Birla said Grasim is progressing well in the paints business. “The project work is progressing as per plans at all the six sites, and commissioning of plants will start in phases from Q4FY24. The state-of-the-art research and development facility is fully operational.”
He said, ‘Birla Pivot’, is now operational, catering to customers in Madhya Pradesh, Maharashtra and Delhi. “This initiative aligns seamlessly with the government’s goals for Digital India and the empowerment of MSMEs (micro, small and medium enterprises),” he added.
Grasim recorded a year-on-year growth of 23% in consolidated revenue from operations, reaching an all-time high of ₹1.17 trillion. Consolidated earnings before interest, taxes, depreciation and amortization increased to ₹20,478 crore.
“FY23 was a milestone year for your company as consolidated revenue for the first time surpassed the ₹1 trillion mark,” Birla added.
Grasim’s VSF business recorded its highest-ever sales volume of 711KT (KiloTon) for FY23, up 18% YoY. The chemical business also reported revenue and Ebitda standing at ₹10,422 crore and ₹2,271 crore respectively. Overall chlorine integration improved to 60% compared to 58% in the previous year, he added.
The company, he said, is looking to maintain its domination in the Chlor-Alkali business, projecting a capacity of 1.5 million TPA (tons per annum) by the first quarter of FY25.
The textile business of Grasim recorded revenue and Ebitda at ₹2,293 crore and ₹240 crore respectively.
The company aims to achieve net zero in its operations by 2050, with key being implemented to reduce carbon footprint.
“Increasing circularity of re-utilization of various materials going to waste is one of the focus areas of your company, and the VSF business aims to grow circular products in FY24, using pre- and post-consumer waste and alternative feedstock,” he said.
“Water is life. Your Company has been focusing on water stewardship and the VSF business has been able to reduce water consumption by nearly 55% over the baseline of FY15.”
The total cumulative installed capacity of Aditya Birla Renewables, a subsidiary of the company, stood at 744MW in FY23, which is estimated to rise to 2GW by FY24, Birla added.
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Updated: 26 Aug 2023, 09:24 AM IST
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