Grasim Industries
Indian diversified manufacturing company and flagship of the Aditya Birla Group, known for viscose fibre, chemicals and major subsidiary businesses in cement and financial services.
Last updated August 27, 2026
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Overview
Grasim Industries Limited is an Indian diversified manufacturing company headquartered in Mumbai and the flagship listed enterprise of the Aditya Birla Group. Incorporated in 1947, it began as a textile manufacturer and subsequently developed into a broad industrial platform with operations and investments spanning textile raw materials, viscose fibre, chemicals, textiles, cement, financial services and, more recently, paints. Its historical development reflects the internationalisation and diversification of the Aditya Birla Group, which expanded from Indian manufacturing into Southeast Asia and other markets during the second half of the twentieth century. The company’s principal industrial identity is associated with cellulosic fibres. Grasim produces viscose staple fibre and has also been involved in viscose filament yarn, dissolving pulp and related textile materials. Through the wider Aditya Birla Group network, its viscose operations extend beyond India into Indonesia, Thailand and China. Grasim has been described as one of India’s largest exporters of viscose rayon fibre, with products sold in more than 50 countries. Its Indian manufacturing footprint includes facilities at Nagda in Madhya Pradesh, Kharach and Veraval in Gujarat, Bharuch in Gujarat and Harihar in Karnataka. Grasim’s chemicals portfolio serves industrial customers in areas including textiles, food, electrical and electronic products, composites, leather, plastics and automobiles. The group’s chemical activities have included chlor-alkali and allied products, sulphites, phosphates and epoxy-related materials. The company also has a long association with cement through UltraTech Cement. Grasim acquired the cement business of Larsen & Toubro in 2004, later demerged Samruddhi Cement in 2010, and subsequently combined that business with UltraTech Cement. UltraTech became the group’s principal cement platform and one of the most important businesses connected with Grasim. Financial services were another significant area of diversification. Grasim’s financial-services arm was demerged into Aditya Birla Capital in 2017. After the demerger, Grasim retained a substantial holding in the listed financial-services company, while the operating businesses included consumer finance, insurance and asset management activities. Grasim has also exited several activities over time, including sponge iron, consumer products, a textile subsidiary and its stake in Indo Gulf Fertilisers. In the early 2020s, Grasim entered the decorative paints sector, initially announcing a planned investment of INR 5,000 crore over three years and later increasing the proposed capital expenditure to INR 10,000 crore. The move represented an attempt to establish a new consumer-facing growth platform alongside the company’s established industrial materials businesses. Overall, Grasim is best understood as a diversified industrial holding and operating company rather than as a pure textile or energy brand. Its current business profile is centred on viscose and chemical materials, with major group-linked exposure to cement and financial services and expansion into paints.
History
Grasim Industries was incorporated in 1947 as a textile manufacturer and became one of the principal industrial companies associated with the Aditya Birla Group. Its early business was rooted in textiles, but the company gradually moved upstream into textile raw materials and related manufacturing. This shift led to the development of viscose staple fibre, viscose filament yarn and associated pulp and chemical capabilities. The group’s international expansion began in Southeast Asia. Indo-Thai Synthetics was incorporated in Thailand in 1969 and began operations in 1970, marking the Aditya Birla Group’s first international venture. Further investments followed in Indonesia, including P. T. Elegant Textiles in 1973, P. T. Sunrise Bumi Textiles in 1979 and P. T. Indo Bharat Rayon in 1980. Thai Rayon was incorporated in 1974, while Century Textiles was taken over by the group in the same year as part of its expansion into weaving, dyeing and synthetic fabrics. These businesses created a regional production and export network for fibres, yarn and textiles. Chemical activities expanded during the 1980s and 1990s. Thai Polyphosphates and Chemicals began producing sodium phosphates in Thailand in 1984. It was later combined with Thai Epoxy and Allied Products and Thai Sulphites and Chemicals to form Aditya Birla Chemicals. The resulting portfolio served a wide range of industrial sectors, including food, textiles, electrical and electronic products, composites, leather, plastics and automobiles. Additional textile manufacturing investments included P. T. Indo Liberty Textiles, incorporated in 1995. Grasim’s Mavoor facility became the subject of controversy when its activities were temporarily and later permanently shut down in 1985. In the late 1990s and subsequent years, the company’s textile strategy was influenced by changes in international trade, including the end of the Multi-Fiber Arrangement. The group also developed dissolving-pulp capabilities. AV Cell, a joint venture between the Aditya Birla Group and Canada’s Tembec, began operations in 1998 to produce softwood and hardwood pulp for internal group consumption. In 2012, Grasim and Tembec acquired AV Nackawic, a Canadian producer of dissolving pulp. Cement became a defining part of Grasim’s diversification. In 2004, Grasim acquired the cement business of Larsen & Toubro. In 2010, it demerged Samruddhi Cement, which had accounted for a large share of Grasim’s turnover in the preceding financial year. Samruddhi was later merged into UltraTech Cement, strengthening the group’s position in cement while placing the operating business within UltraTech. The company subsequently rationalised several non-core or separately managed businesses. In 2008, it sold its sponge iron business to the Welspun Group. In 2015, its consumer-products business was sold to Future Group. Grasim Bhiwani Textiles was sold to Donear Group in 2017. In the same year, the company demerged its financial-services arm into Aditya Birla Capital and retained a significant holding in the resulting company. During the 2020s, Grasim added paints to its strategic agenda. It announced a large investment programme intended to establish a new paints business, later increasing the planned capital expenditure from INR 5,000 crore to INR 10,000 crore over three years. This move broadened the company’s exposure from industrial materials and group infrastructure businesses into a large consumer and construction-related market. Grasim therefore evolved from a textile producer into a diversified industrial company whose principal areas include viscose fibres, chemicals and strategic holdings in cement, financial services and newer businesses.
- 2021
Entry into paints
[1]Grasim announces a major investment programme to build a paints business, later increasing the planned expenditure.
- 2020
Indo Gulf Fertilisers stake is divested
[1]Grasim sells its entire stake in Indo Gulf Fertilisers to Indorama Corporation.
- 2017
Financial-services arm is demerged
[1]Aditya Birla Capital is separated from Grasim, while Grasim retains a substantial ownership interest.
- 2017
Grasim Bhiwani Textiles is sold
[1]The wholly owned textile subsidiary Grasim Bhiwani Textiles is sold to Donear Group.
- 2015
Consumer-products business is sold
[1]Grasim sells its consumer-products business to Future Group.
- 2012
Acquisition of AV Nackawic
[1]Grasim and Tembec acquire AV Nackawic, a Canadian dissolving-pulp producer.
- 2010
Samruddhi Cement is demerged
[1]Grasim demerges Samruddhi Cement, which is subsequently merged into UltraTech Cement.
- 2008
Sale of sponge iron business
[1]Grasim divests its sponge iron business to the Welspun Group.
- 2004
Acquisition of Larsen & Toubro’s cement business
[1]Grasim acquires Larsen & Toubro’s cement business, creating a major platform for later integration with UltraTech Cement.
- 1998
AV Cell begins pulp operations
[1]The Aditya Birla Group and Tembec establish AV Cell in Canada to produce dissolving pulp for group use.
Products and positioning
Diversified Indian industrial company combining leadership in cellulosic fibres and chemicals with substantial group businesses in cement, financial services and newer consumer-facing categories.
Textile raw materials
Viscose staple fibre
Viscose staple fibre is Grasim’s core industrial product and is used by textile manufacturers to make yarns and fabrics. The business operates through manufacturing and affiliated companies in India, Indonesia, Thailand and China. Grasim has historically positioned its fibre activities as a major export business, supplying customers in more than 50 countries and serving apparel, home-textile and other textile applications.
Textile raw materials
Viscose filament yarn
Viscose filament yarn is a continuous regenerated-cellulose yarn used in textile production. It formed part of Grasim and the wider Aditya Birla Group’s move beyond basic textile manufacturing into higher-value fibre and yarn materials. The product is associated with the group’s Southeast Asian and Indian textile-materials network.
Chemicals
Industrial chemicals
Grasim’s chemical activities include products and intermediates associated with phosphates, sulphites, epoxy materials and other industrial chemistry. These materials serve customers across food processing, textiles, electrical and electronics, composites, leather, plastics and automotive manufacturing. The chemical operations developed through the Aditya Birla Group’s Thai and other international businesses.
Cellulosic materials
Dissolving pulp
Dissolving pulp is a highly purified cellulose input used to manufacture regenerated fibres and other cellulose-based products. Grasim’s exposure to this material expanded through the group’s Canadian ventures, including AV Cell and the acquisition of AV Nackawic with Tembec. The business supported the group’s integrated fibre-materials strategy.
Cement and building materials
UltraTech Cement
UltraTech Cement is the principal cement business associated with Grasim following the acquisition of Larsen & Toubro’s cement operations in 2004 and the later combination of Samruddhi Cement with UltraTech. It supplies cement and related building materials and represents one of the most significant diversification platforms in Grasim’s corporate history.
Financial services · 2017
Aditya Birla Capital
Aditya Birla Capital houses financial-services activities that were separated from Grasim in 2017. Its historical scope included consumer finance, insurance and asset management. Grasim continued to hold a significant stake after the demerger, giving the company ongoing exposure to financial services without operating the businesses directly within the parent company.
Paints and coatings · 2021
Decorative paints
Decorative paints became a new strategic business for Grasim in the early 2020s. The company announced a large capital programme intended to establish a competitive paints platform in India. The move broadened Grasim’s portfolio toward a consumer and construction-related category beyond its traditional industrial materials businesses.
Controversies
Brand decisions
2021
Enter the paints marketStrategyBackground
Grasim identified paints as a new growth category adjacent to construction and consumer markets.
Action taken
The company announced an initial three-year investment plan of INR 5,000 crore and later raised the proposed capital expenditure to INR 10,000 crore.
Aftermath
The decision marked a significant expansion from industrial materials into a consumer-facing business and increased Grasim’s strategic breadth.
Planned capital expenditure. INR 5,000 crore → INR 10,000 crore (Three-year investment programme announced in the early 2020s)
2017
Demerger of financial servicesStrategyBackground
Grasim separated its financial-services activities from its industrial operating businesses.
Action taken
The financial-services arm was demerged into Aditya Birla Capital, while Grasim retained a substantial stake.
Aftermath
Financial services became a separately listed group platform while remaining an important part of Grasim’s investment exposure.
2010
Demerger and combination of Samruddhi CementM&ABackground
Grasim reorganised its cement holdings after Samruddhi Cement had become a substantial contributor to company turnover.
Action taken
Samruddhi Cement was demerged and later merged into UltraTech Cement.
Aftermath
The restructuring consolidated the group’s cement operations under UltraTech Cement.
2004
Acquire Larsen & Toubro’s cement businessM&ABackground
Grasim sought to expand beyond fibres and textiles into a large-scale building-materials business.
Action taken
The company acquired Larsen & Toubro’s cement business, which became the foundation of its later UltraTech Cement structure.
Aftermath
Cement became one of the most important businesses associated with Grasim and the Aditya Birla Group.
Recent events
Grasim divests Indo Gulf Fertilisers to Indorama[3]
Reported:
Grasim Industries announced the divestment of its entire stake in Indo Gulf Fertilisers to Indorama Corporation in a slump sale for ₹2,649 crore. The transaction remained subject to statutory and regulatory approvals.
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