Sunday, July 21, 2024

Grasim gets ₹5,000 cr credit line from Axis

MUMBAI : Aditya Birla Group’s flagship Grasim Industries Ltd has secured a 5,000 crore credit line from Axis Bank for capital expenditure requirements, and repay some of its existing loans, the company said in an exchange filing on Tuesday.

Grasim Industries said it has entered three term loan agreements with the bank, totalling 5,000 crore, includinga term loan of 4,850 crore, which will be used to fund its capex needs and for reimbursing the capex incurred within the past one year, it added.

The remaining two term loans worth 150 crore will be unsecured and designated for specific projects, according to the exchange filing.

Grasim Industries, primarily known for its textile manufacturing unit, is a global major in viscose staple fibre, and is the largest chlor-alkali, linen and insulators player in India. It is also India’s largest cement producer and financial services provider as an NBFC, offering asset management and life insurance covers through its subsidiaries Aditya Birla Capital and UltraTech Cement.

Even though Grasim did not specify its capex plans in the filing, it had earlier announced plans to infuse 10,000 crore into its ambitious new venture in the paints segment. It is also in the process of setting up six manufacturing units for a pan-India distribution network.

Grasim is likely to launch its paints business commercially in FY24. In April-December 2022, Grasim invested 1,800 crore for its paints business. It is also expanding capacities in viscose staple fibre and chemicals verticals, while epoxy capacity will be doubled to 246 kilo tonnes per annum by 2023-24.

Of the total budgeted capex of 3,500 crore in FY2023, the company has spent close to 1,400 crore in the first three quarters.

On 24 March 2023, Grasim Industries made an acquisition of 220 acres of land in Gujarat Industrial Development Corporation from Century Textiles and Industries Ltd for 254.70 crore, which includes a Goods and Services Tax (GST) of 38.85 crore.

Grasim Industries’ shares closed 0.29% down at 1,627.95 per share on the NSE on Monday.

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