The shares of the leading producer of Diversified Chemicals and Fabrics rose 2 percent to a 52-week high of Rs 2,175.55 per share after the company expanded its advanced materials capacity at the Gujarat Unit.
At 2:10 p.m, Grasim Industries shares were trading at Rs 2,155 per share, up 0.97 percent from the previous close price on the National Stock Exchange. The company has a market capitalization of Rs 1,41,556 crore.
Grasim Industries has commissioned an additional 123,000 tonnes of annual capacity of Advanced Materials of the chemical division (Epoxy resin and Formulation) at its manufacturing plant in Vilayat, Dist. Bharuch, Gujarat, according to the company’s exchange filing.
With this expansion, the company’s total capacity of Advanced Materials stands at 246,000 tons per annum. The expansion shall facilitate the growth in the specialty chemical business of the Company.
Grasim Industries shares have delivered a return of 16 percent in the last six months and 24 percent in a year.
The company’s revenue has increased 10 percent year on year, from Rs 27,486 crore in Q2FY23 to Rs 30,221 crore in Q2FY24. During the same period, Net profit has also increased by 34 percent from Rs 1,509 crore to Rs 2,024 crore.
The company’s chemicals revenue declined by 24% YoY in H1FY24 majorly due to a decline in caustic soda, while specialty chemicals performance improved in H1FY24 with an increase in demand from the wind segment.
Grasim Industries Limited is the Aditya Birla group’s flagship firm, and it is one of India’s largest private sector enterprises. It is a market leader in the chlor-alkali industry and one of India’s top caustic soda manufacturers. It is India’s major global manufacturer of Viscose, Diversified Chemicals, Linen Yarn, and Fabrics.
Currently, Grasim’s total caustic soda capacity is 1,290 KTPA. Through brownfield expansion, and company also planned to expand the caustic soda capacity to 1,530 KTPA from 1,290 KTPA by 2024.
Grasim is a Prominent producer of caustic soda and epoxy polymers & curing agents in India and also company is diversified in the business of agrochemicals, water treatment solutions, food & feed, and plastic additives through Chlorine derivatives.
Written by Omkar Chitnis
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