Grasim Industries Limited — PPTs, 22-05-2025: Investor Presentation

1. Financial Highlights:

Grasim reported consolidated revenue of ₹44,267 Cr, up 17% YoY, led by Building Materials, Chemicals, and Financial Services. Consolidated EBITDA grew 6% YoY to ₹6,548 Cr with a 15% margin, somewhat constrained by investments in new ventures. PAT came in at ₹1,559 Cr. Cement volumes rose 10% YoY with domestic EBITDA/ton up 32% QoQ to ₹1,270. Chemicals EBITDA jumped 52% YoY despite a 6% drop in caustic soda volumes due to shutdowns. Cellulosic Fibres saw 8% revenue growth but a 36% EBITDA decline due to higher input costs. Financial Services’ lending portfolio expanded 27% YoY to ₹1.57 lakh Cr, with 16% revenue growth. Net debt/EBITDA increased to 1.77x from 0.74x, reflecting ongoing capex and investments.

2. Strategic Initiatives & Growth Drivers:

Capex of ₹9,352 Cr is focused on decorative paints expansion, Chemicals (chlor-alkali, specialty chemicals), and Cellulosic Fibres (55 KT lyocell fiber project commissioning by mid-2027). Paints business scales rapidly with a 6th plant launching soon and 176 SKUs introduced. B2B e-commerce platform Birla Pivot grows strongly with ₹5,000 Cr annualized revenue, aiming for ₹8,500 Cr by FY27. Financial Services is enhancing digital platforms and MSME lending through ABCD and Udyog Plus. Cement capacity approaching 190 MTPA with further expansions planned.

3. Business Developments:

Birla Opus decorative paints now holds 21%+ industry capacity share and presence in over 6,600 towns. Birla Pivot platform enhances product range, logistics, and financing options. Chemicals division progressing specialty plants at Vilayat (Lubrizol CPVC resin, Epichlorohydrin), boosting chlorine integration. Financial Services’ customer base grows to 5.5 million ABCD app users with rising MSME engagement.

4. Market Position & Competitive Advantage:

Grasim leads in Chlor-Alkali and specialty chemicals with strong integration and capacity ramp-up. UltraTech Cement is a top pan-India player, expanding premium product share to 30.8%. Birla Opus is scaling rapidly as India’s #3 decorative paints brand with a vast depot network. Birla Pivot is among India’s fastest-growing B2B building materials platforms. Cellulosic Fibres is positioned as a sustainability-driven play aligned with textile demand and ESG trends.

5. Investor Implications:

Diversified growth across paints, chemicals, cement, and financial services supports positive expansion potential. Margin pressures in fibers and ongoing EBITDA softness are balanced by volume gains and capacity additions. Rising net debt and active capex invite monitoring, but leadership in key segments and strong digital initiatives strengthen the medium-term outlook. Execution risk on ongoing projects and cost controls remain key for sustained profitability.