A leading industrial chemical manufacturer is set to significantly boost its production capabilities with a major expansion project. The strategic investment focuses on increasing sodium hydroxide production capacity at a key manufacturing facility in Gujarat.
This substantial upgrade represents a critical move to meet growing market demands and enhance the company’s competitive positioning. The expansion will substantially increase production output, translating to a projected annual revenue boost of approximately ₹500 crore.
Share Price Movement
The share price of Grasim Industries Limited went up by 0.27 percent to Rs. 1,783 per share on Monday, an increase from its previous close of Rs. 1,778.05 per share. The market capitalisation now stands at approximately Rs. 3,856 crore as of December 09, 2024.
What happened
The company has expanded its Caustic Soda Lye production capacity at the Vilayat Plant, Gujarat, by 400 TPD, increasing total capacity to 1,400 TPD. This project, commissioned on December 8, 2024, is expected to generate additional annual revenue of Rs. 500 crore.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Grasim Industries ’s consolidated revenue from operations has increased by 11.05 percent YOY from Rs. 30,221 crore in Q2 FY24 to Rs. 33,563 crore in Q2 FY25 and declined by 0.8 percent QoQ from Rs. 33,861 crore in Q4 FY24.
The company’s consolidated net profit has declined by 45.6 percent, from Rs. 2,024 crore in Q2 FY24 to Rs. 1,100 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has declined by 51.5 percent QoQ from Rs. 2,268 crore.
Market Outlook
The Indian textiles and apparel industry, one of the largest globally, has shown strong growth in recent years, driven by domestic and export demand. However, FY 2023-24 has been a challenging period with fluctuating cotton prices, diminished demand, and capacity under utilization.
Government initiatives aim to transform India into a global manufacturing hub with a $250 billion production target and $100 billion export goal by 2030. The industry is exploring new opportunities, such as the growing market for blended fabrics and CFY-based silk-alike yarns, to drive future growth.
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Shareholding Pattern
As of the December 2024 shareholding pattern, Grasim Industries Limited is primarily held by the promoters at 43.11 percent, foreign institutional investors hold 13.76 percent, and the public with 25.04 percent.
About Company
Grasim Industries Limited is a leading Indian conglomerate, established as a flagship company of the Aditya Birla Group on August 25, 1947. From its beginnings as a textiles manufacturer, Grasim has evolved into a diversified global entity with operations spanning multiple sectors. Its headquarters are in Mumbai, Maharashtra, and the company employs over 45,000 people worldwide, reflecting its substantial global footprint.
Grasim Industries operates in several key sectors: viscose staple fibre (VSF), chemicals, cement, textiles, paints, and financial services. As the largest producer of VSF in India, it commands a 9% share of the global market. The company’s chlor-alkali segment, through its largest caustic soda production in India, supports its VSF operations.
UltraTech Cement, its subsidiary, makes Grasim India’s top cement producer with 93 MTPA capacity domestically and overseas. Grasim’s textile division maintains its market leadership by producing a range of linen yarns and fabrics. In 2023, the company entered the decorative paints market under the brand ‘Birla Opus’. Financial services through Aditya Birla Capital Limited offer life insurance, asset management, and corporate lending.
Grasim Industries exemplifies a successful transformation from a traditional textiles manufacturer to a diversified global leader. Its strategic expansions into new markets and commitment to sustainability, such as Birla Pivot, a B2B online marketplace for building materials, position it well for future growth. Grasim’s ongoing innovation and eco-friendly practices are set to drive its success in both Indian and international markets.
Written By Fazal Ul Vahab C H
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