Grasim raises Rs 1,250 crore from IFC

The company will use the sustainability-linked NCDs to support its investments for paint manufacturing. The funds would help in accelerating Grasim’s decarbonisation drive through the increased adoption of renewable energy and water recycling in the paint manufacturing process, Grasim said in a statement.

“We will work collaboratively with IFC to enhance our sustainability footprints. We are addressing the transition to a low-carbon economy through our renewable projects and energy-efficient products and are looking forward to aligning our activities to the global sustainable development goals,” Grasim Industries MD HK Agarwal said.

According to Wendy Werner, India Country head at IFC: “IFC’s financing will contribute to Grasim’s sustainable growth into the paints business and will encourage other manufacturing companies to follow by successfully adopting energy efficient and water saving technologies and practices”.

In February, Aditya Birla Group chairman Kumar Mangalam Birla announced the launch of the group’s decorative paints brand Birla Opus, marking its foray into the Rs 80,000-crore domestic decorative paints market. The business was launched as a division of Grasim.

Grasim profit falls 40 per cent to Rs 1,514 crore

The Aditya Birla Group, a diversified conglomerate with presence in cement to textiles, was expecting to rake in revenues of `10,000 crore from its new paints venture and become profitable within three years of full-fledged operation.

In January 2021, Grasim had announced its plans to foray into the paints business with an initial investment of `5,000 crore spread over three years. In May 2023, the company doubled its investments to Rs 10,000 crore, to be invested by FY25, in the wake of rising demand for decorative paints in the country.