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Grasim Industries Ltd

BSE Code : 500300 | NSE Symbol : GRASIM | ISIN:INE047A01021| SECTOR : Textiles |

NSE BSE
 
SMC up arrow

1,632.70

1.00 (0.06%) Volume 780027

31-Mar-2023 EOD

Prev. Close

1,631.70

Open Price

1,635.70

Bid Price (QTY)

1,632.70(558)

Offer Price (QTY)

0.00(0)

 

Today’s High/Low 1,651.65 - 1,628.60

52 wk High/Low 1,839.50 - 1,276.60

Key Stats

MARKET CAP (RS CR) 107489.04
P/E 33.23
BOOK VALUE (RS) 735.9116378
DIV (%) 500
MARKET LOT 1
EPS (TTM) 49.12
PRICE/BOOK 2.21833697980418
DIV YIELD.(%) 0.61
FACE VALUE (RS) 2
DELIVERABLES (%) 79.54
4

News & Announcements

29-Mar-2023

Grasim Industries Ltd - Grasim Industries Limited - Analysts/Institutional Investor Meet/Con. Call Updates

28-Mar-2023

Grasim Industries Ltd - Analysts/Institutional Investor Meet/Con. Call Updates

27-Mar-2023

Grasim Inds rises on acquiring 220-acre land in Gujarat for Rs 255 cr

27-Mar-2023

Grasim Industries Ltd - Grasim Industries Limited - Updates

25-Mar-2023

Grasim Industries acquires 220 acres land in Gujarat

16-Feb-2023

Grasim Industries allots 30,440 equity shares under ESOS

07-Feb-2023

Grasim Industries to announce Quarterly Result

06-Feb-2023

Board of Grasim Industries appoints director

Corporate Actions

Bonus
Splits
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Board Meeting
AGM
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Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
Aafloat Textiles (India) Ltd 514476 AKAIMPEX
Aditya Birla Nuvo Ltd(Merged) 500303 ABIRLANUVO
APR Ltd 503749 APRAYON
Baroda Rayon Corporation Ltd 500270 BARODARAYN
Central India Polyesters Ltd(merged) 500099 CIPL
Century Enka Ltd 500280 CENTENKA
Chandra Synthetics Ltd(liquidated) 514232
Chetak Spintex Ltd 531655
CIL Nova Petrochemicals Ltd 533407 CNOVAPETRO
Consolidated Fibres & Chemicals Ltd(liquidated) 524260
Filaments India Ltd 514472
Filatex India Ltd 526227 FILATEX
Futura Polyesters Ltd 500720 INDIANORG
Garware Nylons Ltd 503744
GSL Nova Petrochemicals Ltd 530605 GSLNOVA
Gujarat Craft Industries Ltd 526965
Gujarat Filaments Ltd 514012
Gujarat Texspin Ltd 521129
Haryana Petrochemicals Ltd 506940 HARYANPETR
India Polyfibres Ltd(merged) 500203 INDIAPOLY
Indian Acrylics Ltd 514165 INDIANACRY
Indo Rama Synthetics (India) Ltd 500207 INDORAMA
JBF Industries Ltd 514034 JBFIND
Modern Syntex (India) Ltd 500281 MODRNSYNTX
NRC Ltd 503780 NRC
Orissa Synthetics Ltd (Merged) 514024
Orkay Industries Ltd 500320 ORKAY
Paras Petrofils Ltd 521246 PARASPETRO
Parasrampuria Industries Ltd 514040 PARASIND
Parasrampuria Synthetics Ltd 514017 PARSSYNTH
Pasupati Acrylon Ltd 500456 PASUPTAC
Prag Bosimi Synthetics Ltd 500192 PRAGBOSIMI
Rajashree Polyfil Ltd (Merged) 524620 RAJSREPOLY
Rajratan Synthetics Ltd 514430
RDB Rasayans Ltd 533608
Recron Synthetics Ltd(merged) 500362 RAYMONDSYN
Sanghi Polyesters Ltd 500375 SANGHIPOLY
Shree Synthetics Ltd 503800 SHREESYNTH
SIV Industries Ltd 500462 SIVIND
Sumeet Industries Ltd 514211 SUMEETINDS
Surat Textile Mills Ltd 530185
Sysco Industries Ltd 539842
Vardhman Acrylics Ltd 531106 VARDHACRLC
Vera Synthetic Ltd 535068 VERA
Yogi Polyesters Ltd 526913
Zenith Fibres Ltd 514266

Share Holding

Category No. of shares Percentage
Total Foreign 101169812 15.37
Total Institutions 134069049 20.36
Total Govt Holding 9710 0.00
Total Non Promoter Corporate Holding 56859338 8.64
Total Promoters 281464723 42.75
Total Public & others 84829054 12.89
Total 658401686 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Grasim Industries Ltd

Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies. It is a leading global player in n Viscose Staple Fibre (VSF), the largest chemicals (Chlor-Alkalis), largest cement producer and diversified financial services (NBFC, Asset Management and Life Insurance) player in India. The chemical business was set up given it's a critical input for manufacturing VSF, and to achieve backward integration. Grasim is the largest Caustic Soda producer in India with a capacity of 840 KTPA. Grasim's subsidiary UltraTech Cement Limited is a leading global cement manufacturer with a capacity of 93 MTPA in India (includes 4 MTPA overseas). The Company is India's pioneer in viscose staple fibre (VSF), a man-made, biodegradable fibre with characteristics akin to cotton. It is engaged primarily in Viscose (Pulp, Fibre and Yarn), Chemicals (Caustic Soda, Epoxy and allied Chemicals) and others (Insulators, Textiles, Fertilisers and Solar Power Designing, Engineering Procurement and Commissioning). The company's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka. The company is a global leader in viscose staple fibre (VSF), with 9% global share. The Company has presence in the financial services business through its holding in Aditya Birla Capital Limited (ABCL). ABCL is the holding company for all the financial service businesses of the Aditya Birla Group. ABCL has a strong presence across life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance businesses. Grasim Industries Limited was incorporated on August 25, 1947. In the year 1950, the company started production of fabrics at Gwalior with imported man-made rayon. In the year 1954, they commenced VSF production at Nagda in Madhya Pradesh. In the year 1962, they set up of Engineering Division for plant and machinery for VSF. In the year 1963, they started composite textile mill at Bhiwani in Haryana. In the year 1968, they commenced Rayon production at Mavoor, Kerala. In the year 1972, the Company commenced production of rayon grade caustic soda for VSF production at Nagada. In the year 1977, the Company started production at their third rayon plant at Harihar in Karnataka. In the year 1985, Vikram Cement, the Company's first cement plant went on stream at Jawad in Madhya Pradesh. In the year 1987, they commenced second production line of Vikram Cement. In the year 1991, they added the third production line of Vikram Cement. In the year 1992, the Company set up Birla International Marketing Corporation (BIMC), a merchant exporter. In the year 1993, they commissioned Vikram Ispat, India's third largest gas-based sponge iron plant. Also, they set up Birla Consultancy & Software Services to provide IT consulting services and for software development. In the year 1995, the Company commissioned two greenfield cement plants namely, Grasim Cement at Rawan in Chattisgarh and Aditya Cement at Shambhupura in Rajasthan. In the year 1996, they commissioned the first phase of the company's fourth VSF plant at Kharach in Gujarat. In the year 1999, the company's viscose staple fibre (VSF) and rayon grade pulp units at Mavoor were closed down owing to lack of raw material. In year 1998, cement business of Indian Rayon and Industries Ltd, a Group Company was demerged and transferred to the Company. Also, the Company in association with Timbec Inc. set up a Joint Venture Company namely, Atholville Pulp Mill at Canada. In the year 2000, the Company set up the Lawson Competency Centre as a division of Birla Consultancy & Software Services, the software arm of Grasim, following a tie up with Lawson Software (USA). In the year 2001, the Company demerged the Consultancy and software service into a separate entity, namely Birla Technologies Ltd. They commissioned four Ready-Mix Concrete plants with an aggregate capacity of one million cubic meters. In October 2002, the company acquired 10% stake in L&T and increased their stake to 15.3%. In the year 2002, the Company divested Gwalior textiles unit and the textile operations were consolidated at Bhiwani to manufacture 'Grasim' and 'Graviera' brands. Also, Dharani Cements Ltd merged with the company. The company set up VSF Research & Application Centre at Kharach in Gujarat. In the year 2004, the company acquired the controlling stake in UltraTech CemCo Ltd (now UltraTech Cement Ltd). In the year 2005, the company acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc. In the year 2006, the Company formed a Joint Venture Company, Birla Jingwei Fibres Company Ltd. Also, they acquired VSF plant in China. In the year 2007, the Company divested their share in Shree Digvijay Cement Company Ltd. They transferred textile units at Bhiwani to a subsidiary company, Grasim Bhiwani Textiles Ltd. Also, they commissioned eighteen ready-mix concrete plants. In the year 2008, the Company commissioned brownfield expansion at Aditya Cement at Shambhupura (Rajasthan). During the year 2009-10, the company completed their ongoing cement expansions and commissioned the 3.1 million TPA grinding capacity at Kotputli, Rajasthan. In May 22, 2009, the company hived off their sponge iron business by way of slump sale. As per the scheme of arrangement, the cement business of the company was demerged into Samruddhi Cement Ltd (Samruddhi), a subsidiary of the company with effect from October 1, 2009. Concurrently, Samruddhi Cement Ltd was amalgamated with UltraTech Cement Ltd with effect from July 1, 2010. During th eyear 2010-11, the company acquired 1/3rd stake in Aditya Holding AB, Sweden, a leading manufacturer of specialty pulp used in the manufacture of VSF, which acquired Domsjo Fabriker AB (Domsjo), Sweden, at an enterprise value of Swedish Kroner (SEK) 2.12 Billion (approx. Rs 1,570 crore). In September 2010, UltraTech completed acquisition of ETA Star Cement Company LLC comprising of 2.3 million TPA clinker facility and grinding units of 2.1 million TPA in UAE, 0.4 million TPA in Bahrain and 0.5 million TPA in Bangladesh. With this acquisition, UltraTech gained direct access to the markets in the Middle East and neighbouring regions. Consequent to this acquisition, UltraTech's capacity stands augmented at 52 million TPA. In August 2011, the company acquired Aditya Birla Power Ventures Ltd and thus Aditya Birla Power Ventures Ltd became a subsidiary company. In 2014, Grasim commissioned its state-of-the-art VSF plant at Vilayat in Gujarat. On 11 February 2015, the Board of Directors of Grasim Industries approved the proposed merger of Aditya Birla Chemicals (India) Limited (ABCIL) with Grasim. The swap ratio approved by the board was one equity share of Grasim for every 16 shares of ABCIL held on record date. On 5 January 2016, ABCIL announced the completion of merger process with Grasim Industries. The Board of Directors of Grasim Industries, Aditya Birla Nuvo Limited (ABNL) and Aditya Birla Financial Services Limited (ABFSL) at their respective meetings held on 11 August 2016 approved the merger of ABNL into Grasim and the subsequent demerger and listing of its financial services business through a composite scheme of arrangement. ABNL is a diversified conglomerate with various business interests including manufacturing of fertilizers, viscose filament yarn, chemicals, insulators, textiles etc., financial services and telecom. The financial services business is a division of ABNL and is engaged in the activity of fund based lending, making, holding and nurturing investments in financial services sector. As per the swap ratio for merger, each shareholder of ABNL will get 3 equity shares of Grasim for every 10 equity shares held in ABNL on record date. For demerger of financial services business into ABFSL, each shareholder of Grasim (post-merger) will receive 7 equity shares in ABFSL for every 1 equity share held in Grasim. On 1 June 2017, the National Company Law Tribunal (NCLT) approved the Composite Scheme of Arrangement involving the merger of Aditya Birla Nuvo (ABNL) with Grasim to be followed by the listing of Aditya Birla Financial Services Ltd (ABFSL). The merger of ABNL with Grasim became effective from 1 July 2017. The name of Aditya Birla Financial Services was changed to Aditya Birla Capital Limited (ABCL) on 21 June 2017. ABCL got listed on the stock exchanges on 1 September 2017. ABCL is the holding company of all the financial service businesses of the Aditya Birla Group. It has a significant presence across several business sectors including NBFC, asset management, life insurance, health insurance and wellness, housing finance, private equity, general insurance broking, wealth management, broking, online personal finance management, and pension fund management. On 12 December 2017, Grasim announced that it has received the rights to manage and operate Viscose Filament Yarn (VFY) business of Century Textiles & Ind. Ltd. (CTIL) from CTIL for a period of 15 years. Consequently, Grasim will have Right to Use' the relevant assets. The ownership of the assets will remain with CTIL. CTIL has installed capacity of 25,000 tonnes of VFY. With Grasim's VFY capacity of 21,300 tonnes, the combined capacity will increase to 46,300 tonnes. As part of the transaction, Grasim will pay to CTIL commuted value of royalty of Rs 600 crore, refundable security deposit of Rs 200 crore and net working capital at closing estimated at Rs 165 crore. The Scheme of Demerger amongst Century Textiles and Industries Limited ('Century') and UltraTech and their respective shareholders and creditors has been made effective from 1 st October, 2019 consequent to completion of conditions precedent specified in the Scheme. In terms of the Scheme, UltraTech has allotted issue 1 (one) equity share of the Company of face value Rs 10/- each for every 8 equity shares of Century of face value Rs 10/- each to the shareholders of Century on the record date as defined in the Scheme. On 16 March 2018, Grasim Industries announced that the production capacity of epoxy resin, reactive diluents and hardeners at the company's epoxy plant at Vilayat (Gujarat) has increased from 82,350 metric tonnes (MT) per annum to 1.23 lakh MT per annum through de-bottlenecking process. On 26 March 2019, your Company has issued and allotted 5,000, 7.65%, fully paid-up, Unsecured, Redeemable Non-Convertible Debentures aggregating to Rs 500 crore on private placement. During the FY2019, the Company has acquired the Chlor Alkali business from KPR Industries (India) Limited (KPR') by way of slump sale, for a cash consideration of Rs 253 Crore. The business consist of an underconstruction ChlorAlkali plant of 200 TPD capacity at Balabhadrapuram, Andhra Pradesh. The Company has taken over the identified assets and identified liabilities associated with KPR. On commissioning of this plant along with other ongoing expansion projects, the Company's caustic soda capacity will increase from 1.15 MMTPA to 1.38 MMTPA. The Company has acquired 100% equity shareholding of Soktas India Private Limited ('SIPL') (now known as Grasim Premium Fabrics Private Limited) from its current promoters SOKTAS Tekstil Sanayi Ve Ticaret A.S., Turkey for cash consideration of Rs 135.40 Crore. Consequent to acquisition, SIPL has become a wholly owned Subsidiary of the Company, w.e.f. 29 March 2019. The company won the Dun & Bradstreet Corporate Award 2019 for Top Company in the Indian Textiles sector. As per the directives of the Central and State Governments in the wake of COVID-19 pandemic, the Company had suspended operations across various locations, except for Fertiliser business, w.e.f. 25th March, 2020 which adversely impacting the businesses during the quarter. Operations have since been resumed at all the plants of the Company except plant located at Harihar, taking cognizance of the Governments' views around resuming manufacturing activities with controlled entry and exit facilities, and after obtaining necessary permissions in this behalf. During the year 2019-20, Aditya Birla Capital Limited (ABCL), a subsidiary of the Company has made a preferential allotment of 210,000,000 equity shares of Rs 10 each at a premium of Rs 90 per share to the certain investors, of which the Company has also subscribed 7,70,00,000 equity shares amounting to Rs 770 Crore. The Company has entered into an agreement on 12 November, 2020 for transfer of its Fertilizer business (Indo Gulf Fertilizers unit), comprising of manufacture, trading and sale of inter alia urea, soil health products and other agri-inputs as a going concern, on a slump sale basis, to Indo Rama India Private Limited at the respective meetings held on 16th April, 2021 on which the said Schme has been approved. During the FY 2021, UltraTech Nathdwara Cement Limited (UNCL) through its subsidiary, Krishna Holdings Pte. Ltd, a Company incorporated in Singapore completed the divestment of its entire equity shareholding of 92.5% in its cement subsidiary at a net consideration of USD 94.70 million. The Company commissioned following expansion/ new product capacities a. Viscose Staple Fibre brownfield expansion of 300 ton per day (TPD) Phase 1 at Vilayat on 1st November 2021, b. Caustic Soda expansion of 170 TPD Phase 1 at Rehla on 21st October 2021 and Chloromethane Plant of 150 TPD at Vilayat on 4th November 2021. During year 2021, the Company partnered with Lubrizol Advanced Materials (a Berkshire Hathaway Company) to manufacture and supply Chlorinated Polyvinyl Chloride (CPVC) resin in India. The Scheme of Arrangement between the Company and Indorama India Private Limited (IIPL) and their respective Shareholders and Creditors was approved by Board of Directors of the Company and IIPL for approving divestment of Business Undertaking, which were filed with respective jurisdictional National Company Law Tribunals (NCLT). The Hon'ble NCLT Indore Bench at Ahmedabad approved the Scheme vide its Order dated 2nd September, 2021, which became effective from 1st January, 2022. The Company set up a state-of-the-art Composite Hollow Core Insulators (CHCI) manufacturing plant (Phase-I) project at Halol, Gujarat, which costed about Rs. 74 Crore to serve power transmission and distribution industry, and was commissioned from Feb' 2022. The Scheme of Arrangement between Grasim Premium Fabric Private Limited (GPFPL) and Grasim Industries Limited and their respective Shareholders and Creditors was approved by Board of Directors of the Company and GPFPL respectively and necessary Petitions for amalgamation were filed with jurisdictional National Company Law Tribunals (NCLTs). The Hon'ble NCLT Mumbai Bench approved the Scheme vide its Order dated 23rd March 2021. The certified copy of Order of Hon'ble NCLT Mumbai Bench was filed with the ROC, Pune by GPFPL, and Scheme became effective from 21st June 2021 with Appointed Date, April 01, 2019. The Board of Directors of ABNL Investment Limited (wholly owned subsidiary of the Company) and Sun God Trading and Investment Limited (wholly owned subsidiary of ABNL Investment Limited) had approved Scheme of Amalgamation between Sun God Trading and Investment Limited (Transferor Company) and ABNL Investment Limited (Transferee Company) and their respective Shareholders and Creditors of Companies Act, 2013, vide its Order dated 3rd February, 2021, which became effective on 29th June 2021 with Appointed Date, 1st April, 2019. Aditya Birla Solar Limited (ABSL) and Aditya Birla Renewables Limited (ABReL), both wholly-owned subsidiaries of the Company had filed the Application and the Scheme of Arrangement with Hon'ble National Company Law Tribunal, Mumbai (NCLT) on 27th March 2020 for amalgamation of ABSL with ABReL. Subsequent to directions received from the Hon'ble NCLT, the meetings of shareholders and unsecured creditors of both Companies were dispensed with and both the Companies complied with directions of Hon'ble NCLT Order. The said Petition got transferred to Bench II of the Hon'ble NCLT Bench, Mumbai and was admitted on 27th April 2022 and is reserved for the orders. During the year 2021-22, Birla Advanced Knits Private Limited became a Joint Venture of the Company w.e.f. 14th July, 2021 and the Company holds 50% of the paid-up equity share capital. Renew Surya Uday Private Limited became an associate Company of the Company w.e.f. 25th November 2021 and the Company holds 26% of the paid-up equity share capital. ABReL Solar Power Limited (ABRSPL) was incorporated on 31st August 2021 as a wholly owned subsidiary of Aditya Birla Renewables Limited (ABReL) and the Company acquired 26% stake in ABRSPL w.e.f. 22nd October 2021. Grasim Premium Fabric Private Limited ceased to be subsidiary of the Company with effect from 21st June 2021.

Grasim Industries Ltd Chairman Speech

Dear Shareholders,

For many years, we have been talking about increasing volatility and unpredictability.

The events of the last 24 months have heralded a new era of uncertainty where both the amplitude and frequency of shifts have vastly exceeded anything we have seen in recent decades. The unprecedented pandemic was followed by supply chain whiplash, and further disruption was brought on by the Russia-Ukraine war.

We are now staring at the spectre of a high-interest rate and high-inflation regime globally.

Over the years, corporations have tried to find a balance between efficiency and resilience, with successive decades of growth having swung the pendulum in the direction of efficiency. The events of the last two years have once again taught us all the virtues of reserves and resilience.

This era of disruption also presents a unique opportunity for renewal. The exigencies of this disruption have pushed the boundaries of innovation. A world that freed thinking from its conventional shackles. And we are clearly staring at a new age, with new paradigms and new ideas.

GLOBAL ECONOMY: THE STORM BEFORE THE CALM?

The global economy recovered from the pandemic shock in 2022 on the back of supportive fiscal and monetary policies and mass vaccination programmes. However, at the end of FY22, the war in Ukraine and the subsequent economic sanctions on Russia posed several challenges. It disrupted energy markets and supply chains and added to the already evolving inflationary pressures and concerns over consumer demand. Consequently, growth forecasts have been slashed. The International Monetary Fund (IMF) now expects the world economy to grow by 3.6% in CY22, which is 0.8 percentage points lower than its pre-war projections.

Many economies have experienced a sharp surge in inflation, particularly in food and fuel prices, taking their inflation rates to multi-decade highs. Central banks have been forced to respond to surging prices with aggressive rate hikes.

The pace of monetary tightening is turning out to be quite swift as central bankers attempt to catch up with the rising inflation from their ultra-accommodative stance during the pandemic.

As the stance of monetary policy shifts, there is greater turbulence in currency markets. The dollar has strengthened, while emerging economies have witnessed downward pressure on their currencies. At the same time, energy and commodity markets have witnessed heightened volatility. Global supply chain disruptions due to pandemic-induced lockdowns have been replaced by new disruptions caused by the war in Ukraine and the economic sanctions.

While the global economic backdrop remains challenging, there are reasons to remain optimistic. First, despite the slowdown, IMF's projection of world GDP growth in CY22 is still tracking the pre-pandemic average. Second, fiscal support in developed economies remains above the pre-pandemic trend, although diluted, versus past years. Third, mega-trends around sustainability, green investments, digitisation, and disintermediation remain well-entrenched and will support growth and productivity enhancement in the medium-term.

Thus, while businesses will need to remain on guard regarding financial market volatility and cost pressures this year, one could expect the medium-term growth recovery to remain on track.

INDIA: AN ENGINE OF GLOBAL GROWTH

The Indian economy has not remained unscathed by these global developments. Partly on account of the elevated commodity prices in global markets, India's inflation has pushed higher than the target of the Reserve Bank of India (RBI). To control inflationary risks and reduce the pressure on the rupee, the RBI has been selling reserves and unwinding the extraordinary liquidity support provided by it during the pandemic.

On the positive side, economic activity in India has witnessed a sharp recovery to pre-pandemic levels on the back of a rapid and widespread rollout of the vaccination programme. A strong digital ecosystem, fiscal and monetary policy and various government schemes helped small and medium enterprises and the worst affected sections of the population to survive while reviving demand and bringing the economy back on track.

Even as the global headwinds are being felt, India's growth recovery is progressing well, and most estimates peg economic growth during FY23 around the 7% range. India, therefore, is poised to be the fastest-growing major economy in the world and an engine of global growth.

India's exports are exhibiting a strong buoyancy, and economic sentiment has been supported by a robust pipeline of infrastructure projects as well as the government's pragmatic policies, such as the production-linked incentives schemes. Many industries have witnessed fresh project investment announcements. Foreign direct investment flows have remained strong. The burden of non-performing assets in the banking sector seems to have peaked out and is easing. Dynamism in India's digital ecosystem, diversification of global supply chains away from China and the greater emphasis of investors on sustainable finance offer new opportunities for India.

The above trends lend confidence to a robust economic narrative for India in the medium-term, which augurs well for the corporate sector as well.

ADITYA BIRLA GROUP: DYNAMISM AND RESILIENCE AT PLAY

The Aditya Birla Group's pace of activity, range of businesses, and depth of global presence provide a useful compass to navigate this age of disruption. Against the backdrop of our long history as a group, dynamism leaps out as a common theme. Over the years, we have witnessed multiple business cycles. Across businesses and markets, our evolution is a story of continuous renewal and regeneration, as we aggressively invested in growth and created long-term value for all stakeholders.

This institutional dynamism and resilience helped us navigate an unprecedented business environment in FY22.

The pandemic inordinately impacted the future of work, workforce, and workplace. We have moved with the new work ethic by focusing on a holistic employee experience that puts equal emphasis on growth, engagement, and well-being.

Our employees value and appreciate the One ABG culture, which is profoundly embedded across the organization. This culture lends the ultimate competitive edge in a world where business models are easily upended.

It has been a matter of great pride for us that our employee engagement has continued to be strong despite the stresses of the pandemic. 87% of our employees stated in a survey that they have a colleague/friend at work to lean on during difficult times. 96% of our employees experienced considerate behaviour from their managers during this period.

WE ARE ONLY AS STRONG AS OUR PEOPLE

The Group's continued focus and investment in its People Processes in good times have helped us build and sustain a robust and agile workforce that is able to be nimble and responsive at all times. When corporates across the world are facing a rather unusual phenomenon - The Great Resignation, our employee survey score for Intent to stay remained strong. It is higher than the global high-performing organizations and almost similar to pre-covid levels. This strong affinity is a testimony to our relentless commitment to delivering a world of opportunities with care to our employees.

Internal employee movements of over 5,000 (within the businesses) were up 18% from the average of the last two fiscals. We also focused on bringing in young talent, with 73% of new hires being under 35 years of age. Last year, over 9,000 new employees joined the Group refreshing our competence base.

Building an aspirational workplace for a diverse workforce was identified as one of the important aspects of our new HR strategy. Enhancing the diversity of our Group is a journey, and it is getting strengthened with targeted efforts over time. Our commitment to gender diversity is evident through the appointment of 7 women to senior leadership roles.

21% of all new hires were women, and we had 102 women engineering graduates join us at plant locations.

We have always looked for opportunities to showcase the power of our women leadership. This year, our cement business, UltraTech launched India's first 'all-women' operated Ready-Mix Concrete (RMC) manufacturing plant at Bhugaon, Pune. Our list of firsts includes Aditya Birla AMC's all-women Mutual Fund branch in Bhilai, Chhattisgarh and Aditya Birla Fashion and Retail's Madura manufacturing plants in the south zone, which have 85% women employees.

Our learning strategy evolved continually to adapt in response to the dynamic external environment. This was achieved by re-designing innovative learning properties and methodologies focusing on building contemporary and contextual skills. We shifted gears across digital, blended, and now hybrid learning, making it easier to navigate the various modes of learning for different sets of learners. We strategically increased the adoption and penetration of our digital learning platform (Gyanodaya Virtual Campus) to cover 94% of our employees in the management cadre. Leveraging the power of internal and external networks, 500+ high-quality digital content modules were created on various themes and topics across the Aditya Birla Group (ABG).

The spirit of ABG's resilience and dynamism was displayed at an individual, team, and business level. This has been reflected in the business results for FY22. This year also saw the launch of new businesses, units, capacity, products, and brands. This happened seamlessly, presenting a unique human story of innovation and grit, and bringing alive our Group values of commitment and passion. We have together navigated an unprecedented period of disruption and emerged stronger and sharper- demonstrating that care, empathy, and results are mutually compatible. And especially so in periods of turmoil.

YOUR COMPANY'S PERFORMANCE

Your Company's growth and evolution over 75 years is an instructive story of entrepreneurship, resilience, dynamism, audacity, and triumph. Grasim exemplified the pioneer spirit at every stage of its growth. Early generations of the company built the foundations for an industrial giant in a country that was still in its infancy. Over the years, we have aggressively invested in growth, accelerated the pace of value-accretive acquisitions, and continue to bet on the dynamism of this institution as we expand into new lines of business.

This inherent dynamism was more than visible in your Company's performance in FY22. FY22 has been a year of growth on the bedrock of a strong ESG foundation.

On a Consolidated basis, Grasim's Revenue for FY22 stood at ' 95,701 Crore, up 25% YoY, and EBITDA at ' 17,772 Crore, increased 13% YoY.

VISCOSE

The VSF business emerged stronger from the pandemic- induced disruption on the back of an unrelenting focus on core fundamentals-cost leadership, operational excellence, VAP Focus and sustainability-driven investments.

The VSF Industry dynamics are driven by events in China, as it is the largest producer and consumer of VSF. The Chinese VSF industry experienced multiple headwinds like COVID- related curbs, restriction of energy consumption leading to production cuts, supply chain issues etc. All these factors impacted the industry operating rates and created price volatility. Inter-fibre dynamics also influenced the VSF prices.

The VSF business reported a robust increase of 38% YoY in production volume to 623 KTPA in FY22. Sales volume also witnessed a 30% YoY increase to 602 KTPA. The higher production and sales volume was on the back of the commissioning of the 600 TPD brownfield expansion at Vilayat. This makes it the single largest Integrated VSF plant globally.

The domestic sales volume surpassed the half million-ton mark in FY22 and accounted for 84% of the total sales volume. The share of value-added products (VAP) increased 57% YoY, driven by sales of Modal, Dyed and Excel fibre. The overall VAP share increased to 26% in FY22 from 22% in the previous fiscal. We are committed to improving the share of VAP products in the overall portfolio.

The Net Revenue for the Viscose business jumped 75% YoY to ' 12,210 Crore and EBITDA stood at ' 1,721 Crore, up 45% YoY in FY22. Strong operational performance, a cost-focused approach, and a higher share of VAP in the overall portfolio were the key factors that contributed to a sharp uptick in the financial performance.

The VSF business has taken a target to achieve Net Zero Carbon emissions across all its operations by 2040. The business also targets to reduce its greenhouse gas (GHG) emissions intensity to half by 2030.

The VSF Vilayat site became the first Indian site to achieve the EU Best Available Technology (BAT) compliance. The remaining Indian sites would achieve compliance by FY25.

The Nagda unit set a new benchmark by commissioning a Zero liquid Discharge plant (ZLD), a global first in Man Made Cellulose Fibre industry.

PULP JOINT VENTURES

The operational performance of the pulp plants was impacted by technical factors in the overseas plants. Better pulp prices and exceptional items supported the financial performance. The pulp JV's are of strategic importance to Grasim's operations as they cater to a significant portion of our pulp requirement and ensure consistency in the supply of prime quality pulp.

CHEMICALS

The Chemical business reported watershed performance in FY22, with both the Chlor-Alkali and Advanced material business clocking solid results.

Global caustic soda prices rallied through the year on the back of a robust recovery in demand due to the phasing out of covid-related restrictions and other geopolitical factors.

Indian caustic soda prices also trended global prices, but with a lag. The Indian demand for caustic soda was driven by pulp & paper, textile, and alumina. The prices of chlorine, a byproduct of caustic soda, turned negative in H2FY22 on the back of weak demand from the end-user industry.

Improving the percentage of chlorine integration is a key element of the strategy. The business is looking to enhance the rate of chlorine integration from 30% in Q4FY22 to 40% by FY25.

The performance of the Advanced Material (Epoxy) business was robust, driven by solid demand from the end-user segment (Auto and Wind Power) and substantial improvement in realisation. Witnessing a strong demand in the Advanced Material business, your Company has decided to double its capacity.

On the sustainability front, improving the share of renewable energy in the overall power mix, and setting up Zero Liquid Discharge plants are core to the strategy.

The Net Revenue for FY22 stood at ' 7,888 Crore, an increase of 72% YoY, and EBITDA at ' 1,534 Crore was up 160% YoY.

OTHER BUSINESSES

The execution of our strategic foray into paints business is on track. We have accelerated our pace of investments in the business. This will enable your Company to create a more significant Pan India presence and harness & expand the distribution network of our white cement business to serve customers with an unmatched product offering.

The Textile business witnessed a strong recovery in operational and financial performance with a rebound in the textile demand during H2FY22.

The performance of the Insulators business for FY22 improved, driven by demand from overseas markets, higher export realisation, and recovery of old dues.

CAPEX

The total capex spent by the Company towards capacity creation and modernisation of plants stood at ' 1,958 Crore in FY22 compared to ' 1,508 Crore excluding the paints business (standalone basis). The total capex spent by the paints business since inception stood at ' 605 Crore. The Board of your Company has approved a total capex amount of ' 10,000 Crore for the paints business. This amount will be invested till FY25 with commissioning of plants starting from Q4FY24.

ULTRATECH CEMENT LIMITED (A SUBSIDIARY OF THE COMPANY)

UltraTech recorded net revenues of ' 52,599 Crore and an EBITDA of ' 12,022 Crore in FY22.

The Indian cement industry is expected to add -80 million tonnes of capacity by FY24, the highest during the last ten years, driven by increased spending on housing and infrastructure. As India's building solutions champion, UltraTech is committed to meeting the nation's future needs for housing, roads, and other infrastructure.

ADITYA BIRLA CAPITAL LIMITED (A SUBSIDIARY OF THE COMPANY)

Aditya Birla Capital has built a platform with high quality, significant scale, and a retail franchise over the years. The company has tripled net profit over the last five years and nearly doubled over the previous two years, despite several external challenges.

Aditya Birla Capital's revenue grew 15% year-on-year to ' 22,230 Crore. The consolidated profit after tax (after minority interest) reflected a growth of 51% year-on-year to ' 1,706 Crore, the highest ever recorded by the Company.

The retailisation strategy has led to the active customer base growing to a significant -35 million, a 36% year-on-year growth. The scale achieved by the Company's subsidiaries is evident, with overall AUM across asset management, life insurance and health insurance businesses growing 10% year- on-year to ' 3,70,608 Crore, making it one of the largest fund managers in the country. The overall lending book (NBFC and Housing Finance) grew 11% year on year, to ' 67,189 Crore, making it a lending portfolio of scale. The gross premium (across Life and Health Insurance) grew 25% year on year to ' 13,867 Crore, reflecting the scale in the insurance businesses.

ADITYA BIRLA RENEWABLES

The cumulative installed capacity of Aditya Birla Renewables stood at 551 MW in FY22. The share of group captive capacity stood at 209 MW in FY22. This cumulative installed capacity is expected to rise to 941 MW by FY23.

CONCLUSION

The 'Next 25 years' of the Company's journey would be filled with new challenges and opportunities. Your company's well place to navigate these challenges given your company's solid fundamentals and futuristic approach. Climate Change is one such risk which we are trying to address through ongoing business transformation and technology-led innovation.

The forces of change engulfing the world are creating a whole new set of exciting possibilities and unbelievable opportunities. Many that didn't even exist yesterday. We are uniquely privileged in that we are not passive recipients of changing circumstances but can actively shape our destiny. And this tomorrow is for us to discover and build.

Across businesses, we are at the cusp of a transformational growth cycle. As a business house, we have always made investment decisions based on long-term fundamental drivers like market opportunity, demography, technology etc. Our strong leadership position across key businesses has come on the back of bold but calibrated long-term bets. Given the inherent strengths of your Company we are again at a moment where we are uniquely positioned to invest for long-term growth and explore new paradigms. An exciting journey beckons.

Yours sincerely,

Kumar Mangalam Birla

Chairman

   

Grasim Industries Ltd Company History

Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies. It is a leading global player in n Viscose Staple Fibre (VSF), the largest chemicals (Chlor-Alkalis), largest cement producer and diversified financial services (NBFC, Asset Management and Life Insurance) player in India. The chemical business was set up given it's a critical input for manufacturing VSF, and to achieve backward integration. Grasim is the largest Caustic Soda producer in India with a capacity of 840 KTPA. Grasim's subsidiary UltraTech Cement Limited is a leading global cement manufacturer with a capacity of 93 MTPA in India (includes 4 MTPA overseas). The Company is India's pioneer in viscose staple fibre (VSF), a man-made, biodegradable fibre with characteristics akin to cotton. It is engaged primarily in Viscose (Pulp, Fibre and Yarn), Chemicals (Caustic Soda, Epoxy and allied Chemicals) and others (Insulators, Textiles, Fertilisers and Solar Power Designing, Engineering Procurement and Commissioning). The company's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka. The company is a global leader in viscose staple fibre (VSF), with 9% global share. The Company has presence in the financial services business through its holding in Aditya Birla Capital Limited (ABCL). ABCL is the holding company for all the financial service businesses of the Aditya Birla Group. ABCL has a strong presence across life insurance, asset management, private equity, corporate lending, structured finance, general insurance broking, wealth management, equity, currency and commodity broking, online personal finance management, housing finance, pension fund management and health insurance businesses. Grasim Industries Limited was incorporated on August 25, 1947. In the year 1950, the company started production of fabrics at Gwalior with imported man-made rayon. In the year 1954, they commenced VSF production at Nagda in Madhya Pradesh. In the year 1962, they set up of Engineering Division for plant and machinery for VSF. In the year 1963, they started composite textile mill at Bhiwani in Haryana. In the year 1968, they commenced Rayon production at Mavoor, Kerala. In the year 1972, the Company commenced production of rayon grade caustic soda for VSF production at Nagada. In the year 1977, the Company started production at their third rayon plant at Harihar in Karnataka. In the year 1985, Vikram Cement, the Company's first cement plant went on stream at Jawad in Madhya Pradesh. In the year 1987, they commenced second production line of Vikram Cement. In the year 1991, they added the third production line of Vikram Cement. In the year 1992, the Company set up Birla International Marketing Corporation (BIMC), a merchant exporter. In the year 1993, they commissioned Vikram Ispat, India's third largest gas-based sponge iron plant. Also, they set up Birla Consultancy & Software Services to provide IT consulting services and for software development. In the year 1995, the Company commissioned two greenfield cement plants namely, Grasim Cement at Rawan in Chattisgarh and Aditya Cement at Shambhupura in Rajasthan. In the year 1996, they commissioned the first phase of the company's fourth VSF plant at Kharach in Gujarat. In the year 1999, the company's viscose staple fibre (VSF) and rayon grade pulp units at Mavoor were closed down owing to lack of raw material. In year 1998, cement business of Indian Rayon and Industries Ltd, a Group Company was demerged and transferred to the Company. Also, the Company in association with Timbec Inc. set up a Joint Venture Company namely, Atholville Pulp Mill at Canada. In the year 2000, the Company set up the Lawson Competency Centre as a division of Birla Consultancy & Software Services, the software arm of Grasim, following a tie up with Lawson Software (USA). In the year 2001, the Company demerged the Consultancy and software service into a separate entity, namely Birla Technologies Ltd. They commissioned four Ready-Mix Concrete plants with an aggregate capacity of one million cubic meters. In October 2002, the company acquired 10% stake in L&T and increased their stake to 15.3%. In the year 2002, the Company divested Gwalior textiles unit and the textile operations were consolidated at Bhiwani to manufacture 'Grasim' and 'Graviera' brands. Also, Dharani Cements Ltd merged with the company. The company set up VSF Research & Application Centre at Kharach in Gujarat. In the year 2004, the company acquired the controlling stake in UltraTech CemCo Ltd (now UltraTech Cement Ltd). In the year 2005, the company acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc. In the year 2006, the Company formed a Joint Venture Company, Birla Jingwei Fibres Company Ltd. Also, they acquired VSF plant in China. In the year 2007, the Company divested their share in Shree Digvijay Cement Company Ltd. They transferred textile units at Bhiwani to a subsidiary company, Grasim Bhiwani Textiles Ltd. Also, they commissioned eighteen ready-mix concrete plants. In the year 2008, the Company commissioned brownfield expansion at Aditya Cement at Shambhupura (Rajasthan). During the year 2009-10, the company completed their ongoing cement expansions and commissioned the 3.1 million TPA grinding capacity at Kotputli, Rajasthan. In May 22, 2009, the company hived off their sponge iron business by way of slump sale. As per the scheme of arrangement, the cement business of the company was demerged into Samruddhi Cement Ltd (Samruddhi), a subsidiary of the company with effect from October 1, 2009. Concurrently, Samruddhi Cement Ltd was amalgamated with UltraTech Cement Ltd with effect from July 1, 2010. During th eyear 2010-11, the company acquired 1/3rd stake in Aditya Holding AB, Sweden, a leading manufacturer of specialty pulp used in the manufacture of VSF, which acquired Domsjo Fabriker AB (Domsjo), Sweden, at an enterprise value of Swedish Kroner (SEK) 2.12 Billion (approx. Rs 1,570 crore). In September 2010, UltraTech completed acquisition of ETA Star Cement Company LLC comprising of 2.3 million TPA clinker facility and grinding units of 2.1 million TPA in UAE, 0.4 million TPA in Bahrain and 0.5 million TPA in Bangladesh. With this acquisition, UltraTech gained direct access to the markets in the Middle East and neighbouring regions. Consequent to this acquisition, UltraTech's capacity stands augmented at 52 million TPA. In August 2011, the company acquired Aditya Birla Power Ventures Ltd and thus Aditya Birla Power Ventures Ltd became a subsidiary company. In 2014, Grasim commissioned its state-of-the-art VSF plant at Vilayat in Gujarat. On 11 February 2015, the Board of Directors of Grasim Industries approved the proposed merger of Aditya Birla Chemicals (India) Limited (ABCIL) with Grasim. The swap ratio approved by the board was one equity share of Grasim for every 16 shares of ABCIL held on record date. On 5 January 2016, ABCIL announced the completion of merger process with Grasim Industries. The Board of Directors of Grasim Industries, Aditya Birla Nuvo Limited (ABNL) and Aditya Birla Financial Services Limited (ABFSL) at their respective meetings held on 11 August 2016 approved the merger of ABNL into Grasim and the subsequent demerger and listing of its financial services business through a composite scheme of arrangement. ABNL is a diversified conglomerate with various business interests including manufacturing of fertilizers, viscose filament yarn, chemicals, insulators, textiles etc., financial services and telecom. The financial services business is a division of ABNL and is engaged in the activity of fund based lending, making, holding and nurturing investments in financial services sector. As per the swap ratio for merger, each shareholder of ABNL will get 3 equity shares of Grasim for every 10 equity shares held in ABNL on record date. For demerger of financial services business into ABFSL, each shareholder of Grasim (post-merger) will receive 7 equity shares in ABFSL for every 1 equity share held in Grasim. On 1 June 2017, the National Company Law Tribunal (NCLT) approved the Composite Scheme of Arrangement involving the merger of Aditya Birla Nuvo (ABNL) with Grasim to be followed by the listing of Aditya Birla Financial Services Ltd (ABFSL). The merger of ABNL with Grasim became effective from 1 July 2017. The name of Aditya Birla Financial Services was changed to Aditya Birla Capital Limited (ABCL) on 21 June 2017. ABCL got listed on the stock exchanges on 1 September 2017. ABCL is the holding company of all the financial service businesses of the Aditya Birla Group. It has a significant presence across several business sectors including NBFC, asset management, life insurance, health insurance and wellness, housing finance, private equity, general insurance broking, wealth management, broking, online personal finance management, and pension fund management. On 12 December 2017, Grasim announced that it has received the rights to manage and operate Viscose Filament Yarn (VFY) business of Century Textiles & Ind. Ltd. (CTIL) from CTIL for a period of 15 years. Consequently, Grasim will have Right to Use' the relevant assets. The ownership of the assets will remain with CTIL. CTIL has installed capacity of 25,000 tonnes of VFY. With Grasim's VFY capacity of 21,300 tonnes, the combined capacity will increase to 46,300 tonnes. As part of the transaction, Grasim will pay to CTIL commuted value of royalty of Rs 600 crore, refundable security deposit of Rs 200 crore and net working capital at closing estimated at Rs 165 crore. The Scheme of Demerger amongst Century Textiles and Industries Limited ('Century') and UltraTech and their respective shareholders and creditors has been made effective from 1 st October, 2019 consequent to completion of conditions precedent specified in the Scheme. In terms of the Scheme, UltraTech has allotted issue 1 (one) equity share of the Company of face value Rs 10/- each for every 8 equity shares of Century of face value Rs 10/- each to the shareholders of Century on the record date as defined in the Scheme. On 16 March 2018, Grasim Industries announced that the production capacity of epoxy resin, reactive diluents and hardeners at the company's epoxy plant at Vilayat (Gujarat) has increased from 82,350 metric tonnes (MT) per annum to 1.23 lakh MT per annum through de-bottlenecking process. On 26 March 2019, your Company has issued and allotted 5,000, 7.65%, fully paid-up, Unsecured, Redeemable Non-Convertible Debentures aggregating to Rs 500 crore on private placement. During the FY2019, the Company has acquired the Chlor Alkali business from KPR Industries (India) Limited (KPR') by way of slump sale, for a cash consideration of Rs 253 Crore. The business consist of an underconstruction ChlorAlkali plant of 200 TPD capacity at Balabhadrapuram, Andhra Pradesh. The Company has taken over the identified assets and identified liabilities associated with KPR. On commissioning of this plant along with other ongoing expansion projects, the Company's caustic soda capacity will increase from 1.15 MMTPA to 1.38 MMTPA. The Company has acquired 100% equity shareholding of Soktas India Private Limited ('SIPL') (now known as Grasim Premium Fabrics Private Limited) from its current promoters SOKTAS Tekstil Sanayi Ve Ticaret A.S., Turkey for cash consideration of Rs 135.40 Crore. Consequent to acquisition, SIPL has become a wholly owned Subsidiary of the Company, w.e.f. 29 March 2019. The company won the Dun & Bradstreet Corporate Award 2019 for Top Company in the Indian Textiles sector. As per the directives of the Central and State Governments in the wake of COVID-19 pandemic, the Company had suspended operations across various locations, except for Fertiliser business, w.e.f. 25th March, 2020 which adversely impacting the businesses during the quarter. Operations have since been resumed at all the plants of the Company except plant located at Harihar, taking cognizance of the Governments' views around resuming manufacturing activities with controlled entry and exit facilities, and after obtaining necessary permissions in this behalf. During the year 2019-20, Aditya Birla Capital Limited (ABCL), a subsidiary of the Company has made a preferential allotment of 210,000,000 equity shares of Rs 10 each at a premium of Rs 90 per share to the certain investors, of which the Company has also subscribed 7,70,00,000 equity shares amounting to Rs 770 Crore. The Company has entered into an agreement on 12 November, 2020 for transfer of its Fertilizer business (Indo Gulf Fertilizers unit), comprising of manufacture, trading and sale of inter alia urea, soil health products and other agri-inputs as a going concern, on a slump sale basis, to Indo Rama India Private Limited at the respective meetings held on 16th April, 2021 on which the said Schme has been approved. During the FY 2021, UltraTech Nathdwara Cement Limited (UNCL) through its subsidiary, Krishna Holdings Pte. Ltd, a Company incorporated in Singapore completed the divestment of its entire equity shareholding of 92.5% in its cement subsidiary at a net consideration of USD 94.70 million. The Company commissioned following expansion/ new product capacities a. Viscose Staple Fibre brownfield expansion of 300 ton per day (TPD) Phase 1 at Vilayat on 1st November 2021, b. Caustic Soda expansion of 170 TPD Phase 1 at Rehla on 21st October 2021 and Chloromethane Plant of 150 TPD at Vilayat on 4th November 2021. During year 2021, the Company partnered with Lubrizol Advanced Materials (a Berkshire Hathaway Company) to manufacture and supply Chlorinated Polyvinyl Chloride (CPVC) resin in India. The Scheme of Arrangement between the Company and Indorama India Private Limited (IIPL) and their respective Shareholders and Creditors was approved by Board of Directors of the Company and IIPL for approving divestment of Business Undertaking, which were filed with respective jurisdictional National Company Law Tribunals (NCLT). The Hon'ble NCLT Indore Bench at Ahmedabad approved the Scheme vide its Order dated 2nd September, 2021, which became effective from 1st January, 2022. The Company set up a state-of-the-art Composite Hollow Core Insulators (CHCI) manufacturing plant (Phase-I) project at Halol, Gujarat, which costed about Rs. 74 Crore to serve power transmission and distribution industry, and was commissioned from Feb' 2022. The Scheme of Arrangement between Grasim Premium Fabric Private Limited (GPFPL) and Grasim Industries Limited and their respective Shareholders and Creditors was approved by Board of Directors of the Company and GPFPL respectively and necessary Petitions for amalgamation were filed with jurisdictional National Company Law Tribunals (NCLTs). The Hon'ble NCLT Mumbai Bench approved the Scheme vide its Order dated 23rd March 2021. The certified copy of Order of Hon'ble NCLT Mumbai Bench was filed with the ROC, Pune by GPFPL, and Scheme became effective from 21st June 2021 with Appointed Date, April 01, 2019. The Board of Directors of ABNL Investment Limited (wholly owned subsidiary of the Company) and Sun God Trading and Investment Limited (wholly owned subsidiary of ABNL Investment Limited) had approved Scheme of Amalgamation between Sun God Trading and Investment Limited (Transferor Company) and ABNL Investment Limited (Transferee Company) and their respective Shareholders and Creditors of Companies Act, 2013, vide its Order dated 3rd February, 2021, which became effective on 29th June 2021 with Appointed Date, 1st April, 2019. Aditya Birla Solar Limited (ABSL) and Aditya Birla Renewables Limited (ABReL), both wholly-owned subsidiaries of the Company had filed the Application and the Scheme of Arrangement with Hon'ble National Company Law Tribunal, Mumbai (NCLT) on 27th March 2020 for amalgamation of ABSL with ABReL. Subsequent to directions received from the Hon'ble NCLT, the meetings of shareholders and unsecured creditors of both Companies were dispensed with and both the Companies complied with directions of Hon'ble NCLT Order. The said Petition got transferred to Bench II of the Hon'ble NCLT Bench, Mumbai and was admitted on 27th April 2022 and is reserved for the orders. During the year 2021-22, Birla Advanced Knits Private Limited became a Joint Venture of the Company w.e.f. 14th July, 2021 and the Company holds 50% of the paid-up equity share capital. Renew Surya Uday Private Limited became an associate Company of the Company w.e.f. 25th November 2021 and the Company holds 26% of the paid-up equity share capital. ABReL Solar Power Limited (ABRSPL) was incorporated on 31st August 2021 as a wholly owned subsidiary of Aditya Birla Renewables Limited (ABReL) and the Company acquired 26% stake in ABRSPL w.e.f. 22nd October 2021. Grasim Premium Fabric Private Limited ceased to be subsidiary of the Company with effect from 21st June 2021.

Grasim Industries Ltd Directors Reports

Dear Members,

Your Directors are pleased to present the 75th Annual Report in the form of Third Integrated Report of your Company along with the Audited Financial Statements for the year ended 31st March 2022.

FINANCIAL HIGHLIGHTS

The financial performance of the Company for the year ended 31st March 2022 is summarised below:

(Rs in Crore)

Particulars Consolidated Standalone
2021-22 2020-21 2021-22 2020-21
Continuing Operations
Revenue from Operations 95,701.13 76,404.29 20,856.84 12,386.36
Other Income 821.34 1,045.48 895.31 513.68
Total Revenue 96,522.47 77,449.77 21,752.15 12,900.04
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) 17,772.41 15,766.22 4,111.47 2,078.00
Less: Finance Costs 1,295.70 1,808.88 247.24 235.95
Less: Depreciation and Amortisation Expenses 4,161.07 4,033.40 913.96 828.17
Profit Before Share in Profit of Equity Accounted Investees, Exceptional Items and Tax 12,315.64 9,923.94 2,950.27 1,013.88
Share in Profit of Equity Accounted Investees 380.33 189.22 - -
Exceptional Items (69.11) (341.73) (69.11) (80.99)
Profit Before Tax (PBT) from Continuing Operations 12,626.86 9,771.43 2,881.16 932.89
Tax Expenses from continuing operations 1,936.31 3,022.19 185.71 122.44
Profit for the Period from Continuing Operations Attributable to: 10,690.55 6,749.24 2,695.45 810.45
Shareholders of the Company 7,102.37 4,128.41 2,695.45 810.45
Non-Controlling Interest 3,588.18 2,620.83 - -
Discontinued Operations
Profit Before Tax (PBT) from Discontinued Operations 352.52 162.79 155.98 145.44
Exceptional Items 670.71 166.50 510.79 -
Tax Expenses from Discontinued Operations (440.07) (66.10) (310.95) (50.89)
Provision of Impairment of Assets Classified as Held for Sale (67.42) (25.73) - -
Profit for the Period from Discontinued Operations Attributable to: 515.74 237.46 355.82 94.55
Shareholders of the Company 447.41 176.41 355.82 94.55
Non-Controlling Interest 68.33 61.05 - -
Other Comprehensive Income for the Year Attributable to: 3,280.80 4,840.92 3,219.07 4,588.91
Shareholders of the Company 3,281.85 4,780.54 3,219.07 4,588.91
Non-Controlling Interest (1.05) 60.38 - -
Total Comprehensive Income for the Year Attributable to: 14,487.09 11,827.62 6,270.34 5,493.91
Shareholders of the Company 10,831.63 9,085.36 6,270.34 5,493.91
Non-Controlling Interest 3,655.46 2,742.26 - -
Profit for the Period Attributable to Shareholders of the Company 7,549.78 4,304.82 3,051.27 905.00
Opening Balance in Retained Earnings 6,021.21 4,605.56 5,529.53 4,838.60
- Gain/(Loss) on Re-measurement of Defined Benefit Plans 23.18 81.96 24.71 48.58
- Gain on Sale of Non-Current Investments transferred to Retained Earnings from equity instruments through OCI (1.37) - - -
- Stake Dilution in Subsidiary Companies (14.82) (7.97) - -
Particulars Consolidated Standalone
2021-22 2020-21 2021-22 2020-21
Amount Available for Appropriation 13,577.98 8,984.37 8,605.51 5,792.18
Add/Less: Transfer (to)/from Debenture Redemption Reserve 110.60 (11.50) - -
Less: Transfer to General Reserve (2,752.48) (2,581.87) - -
Less: Transfer to Special Reserve Fund (190.75) (107.14) - -
Less: Dividend Paid on Equity Shares (592.26) (262.65) (592.26) (262.65)
Other movements during the year 6.63 - - -
Closing Balance in Retained Earnings 10,159.72 6,021.21 8,013.25 5,529.53

DIVIDEND

Based on your Company's performance, your Directors have recommended dividend of C 5/- per equity share and a special dividend of C 5/- per equity share, taking total dividend to C 10/- per equity share of face value of C 2/- each for the year ended 31st March 2022.

The dividend, if approved by the members, would involve a cash outflow of C 658 Crore.

In terms of the provisions of the Finance Act, 2020, dividend shall be taxed in the hands of shareholders at applicable rates of tax and your Company shall withhold tax at source appropriately.

The recommended divided is in line with your Company's Dividend Distribution Policy. Dividend Distribution Policy, in terms of the provisions of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations') is available on your Company's website at https://www.grasim.com/upload/pdf/ Grasim Dividend Policy 16.pdf

TRANSFER TO RESERVES

The Board of Directors of your Company has decided not to transfer any amount to the General Reserves, for the year ended 31st March 2022.

PERFORMANCE REVIEW

On a consolidated basis, the revenue from operations for FY 2021-22, stood at C 95,701 Crore registering a growth of 25% as compared to the previous year (C 76,404 Crore in FY 2020-21). The Consolidated EBITDA increased to C 17,772 Crore for FY 2021-22, which was 13% higher than that of the previous year (C 15,766 Crore in FY 2020-21).

On a standalone basis, revenue from operations for FY 2021-22 stood at C 20,857 Crore, registering a growth of 68% as compared to the previous year (C12,386 Crore in FY 2020-21). The standalone EBITDA is C 4,111 Crore for FY 2021-22 which was 98% higher than that of the previous year (C 2,078 Crore in FY 2020-21).

STRATEGIC INITIATIVES AND SIGNIFICANT DEVELOPMENTS

Divestment of Indo Gulf Fertiliser Business

The Scheme of Arrangement between the Company and Indorama India Private Limited (' IIPL') and their respective shareholders and creditors ('Scheme') under Sections 230 to 232 of the Companies Act, 2013 ('the Act') was approved by the Board of Directors of your Company and IIPL and necessary application/petitions for approving divestment of Business Undertaking (as defined in the Scheme) were filed with respective jurisdictional National Company Law Tribunals ('NCLT'). The Hon'ble NCLT Indore Bench at Ahmedabad approved the Scheme vide its order dated 2nd September 2021 along with the order for condonation of delay to file the requisite e-form with the Ministry of Corporate Affairs on 23rd December 2021. Your Company has filed the copy of the order with Registrar of Companies ('ROC'), Gwalior on 1st January 2022. The Scheme has been effective from 1st January 2022.

Update on Paints Business

The organised decorative paints industry has grown by 32% in terms of revenue during FY 2021-22 over previous year. It has grown at 12% CAGR from FY 2017-18 to FY 2021-22.

Considering the changing market dynamics of the decorative paints sector, the Company has accelerated the execution of paints capacity of 1,332 MLPA with commissioning of plants in phases from Q4 FY 2023-24 at 6 locations namely Panipat (Haryana), Ludhiana (Punjab), Chamarajanagar (Karnataka), Cheyyar (Tamil Nadu), Mahad (Maharashtra) and Kharagpur (West Bengal). The project cost is likely to be C 10,000 Crore by FY25.

The Company has got the land possession at all these sites and civil works have commenced at Panipat, Ludhiana, Cheyyar and Chamarajanagar sites. The project work at other sites will be started as soon as all relevant statutory approvals are received. Basic and detailed engineering contracts have been awarded for all the 6 sites. Ordering for equipment and other works for the project is going on. R&D Pilot plant is expected to be commissioned at Taloja by Q3 of FY 2023-24.

The Company aims to be number two player in decorative paint industry. Entry in the paints sector will add size, scale, and diversity to the existing business portfolio of the Company.

The Company has spent C605 Crore cumulatively up to FY 2021-22 primarily on acquisition of 6 land parcels for the Paints Business.

Update on B2B e-commerce platform

The Board of Directors of your Company has approved a foray into B2B e-commerce platform for the Building Materials segment with an investment of C2,000 Crore over the next 5 years. This investment adds a new high-growth engine with clear adjacencies within Company's standalone businesses as also that of its subsidiaries and associate companies.

Aditya Birla Power Composites Limited

Aditya Birla Power Composites Limited ('ABPCL'), is a joint venture between the Company and Maschinenfabrik Reinhausen Gmbh, Germany ('MR'), wherein the Company holds 51% of share capital and the balance share capital (49%) is held by MR. The Company has set up a state-of-the-art Composite Hollow Core Insulators ('CHCI') manufacturing plant (Phase-I) at Halol, Gujarat, India at a project cost of about C 74 Crore for the manufacture and sale of CHCI to serve the power transmission and distribution industry. The plant commissioned from February 2022.

Amalgamation of Grasim Premium Fabric Private Limited with your Company

The Scheme of Arrangement between Grasim Premium Fabric Private Limited ('GPFPL') and Grasim Industries Limited and their respective shareholders and creditors ('Scheme') under Sections 230 to 232 of the Companies Act, 2013 was approved by the Board of Directors of your Company and GPFPL respectively and necessary application/petitions for amalgamation were filed with jurisdictional National Company Law Tribunals (NCLTs). The Hon'ble NCLT Indore Bench at Ahmedabad approved the Scheme vide its order dated 12th November 2020 as amended vide its order dated 28th January 2021. Your Company had filed the copy of the order with Registrar of Companies ('ROC'), Gwalior. The Hon'ble NCLT Mumbai Bench approved the Scheme vide its order dated 23rd March 2021. The certified copy of the order of the Hon'ble NCLT Mumbai Bench was filed with the ROC, Pune by GPFPL. The Scheme has become effective from 21st June 2021 with appointed date being 1st April 2019.

Amalgamation of Sun God Trading and Investment Limited with ABNL Investment Limited

The Board of Directors of ABNL Investment Limited (wholly-owned subsidiary of your Company) and Sun God Trading and Investment Limited (wholly-owned subsidiary of ABNL Investment Limited) had approved the Scheme of Amalgamation between Sun God Trading and Investment Limited (Transferor Company) and ABNL Investment Limited (Transferee Company) and their respective shareholders and creditors ('Scheme') under Section 233 of the Companies Act, 2013. The Scheme was approved by the Hon'ble Regional Director (North-Western Region), Ahmedabad (Regional Director) vide its order dated 3rd February 2021. Transferee Company had filed copy of the order of Regional Director with the Registrar of Companies, Ahmedabad. A copy of the order of the Regional Director was received by the Transferor Company on 15th June 2021 and filed with Registrar of Companies, Gwalior on 29th June 2021. The Scheme has become effective from 29th June 2021 with appointed date being 1st April 2019.

Amalgamation of Aditya Birla Solar Limited with Aditya Birla Renewables Limited

Aditya Birla Solar Limited ('ABSL') and Aditya Birla Renewables Limited ('ABReL') are wholly-owned subsidiaries of your Company, both engaged in the business of electric power generation using solar energy. ABReL and ABSL had filed the Application and the Scheme of Arrangement with the Hon'ble National Company Law Tribunal, Mumbai ('NCLT') on 27th March 2020 for the amalgamation of ABSL with ABReL under Sections 230 and 232 of the Companies Act, 2013. Subsequent to directions received from the Hon'ble NCLT, the meetings of shareholders and unsecured creditors of both the Companies were dispensed with and both the Companies complied with the directions of the Hon'ble NCLT order. The Companies filed the petition on 18th June 2021 seeking sanction on the said scheme. The said petition got transferred to Bench II of the Hon'ble NCLT Bench, Mumbai and was admitted on 27th April 2022 and is reserved for the orders.

CONSOLIDATED FINANCIAL STATEMENTS

In accordance with the Companies Act, 2013 ('the Act') read with the Companies (Accounts) Rules, 2014, Listing Regulations and IND AS 110 - Consolidated Financial Statements and IND AS 28 - Investment in Associates/Joint Ventures, the Audited Consolidated Financial Statements forms integral part of this Annual Report.

SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES

Following were the additions during the year:

• Birla Advanced Knits Private Limited became a Joint Venture of the Company w.e.f. 14th July 2021 and the Company holds 50% of the paid-up equity share capital.

• Renew Surya Uday Private Limited became an associate Company of the Company w.e.f. 25th November 2021 and the Company holds 26% of the paid-up equity share capital.

• ABReL Solar Power Limited (ABRSPL) was incorporated on 31st August 2021 as a wholly owned subsidiary of Aditya Birla Renewables Limited (ABReL) and the Company acquired 26% stake in ABRSPL w.e.f. 22nd October 2021.

Grasim Premium Fabric Private Limited ceased to be the subsidiary of the Company with effect from 21st June 2021.

Apart from this, there were no changes in the direct subsidiaries, associates and joint venture Companies of your Company.

In accordance with the provisions of Section 129(3) of the Act, read with the Companies (Accounts) Rules, 2014, a report on the performance and financial position of each of the subsidiaries, associates and joint venture companies is provided, in the prescribed Form AOC-1, in Annexure 'A' to this Report.

In accordance with Section 136 of the Act, the Audited Standalone and Consolidated Financial Statements and related information of the Company and audited accounts of each of its subsidiaries are available on the website of the Company at https://www. grasim.com/investors/results-reports-and-presentations UltraTech Cement Limited and Aditya Birla Capital Limited are the material listed subsidiary Companies of your Company. Your Company does not have any material unlisted subsidiary Company. The Audit Committee and the Board reviews the financial statements, significant transactions and working of all subsidiary Companies, and the minutes of unlisted subsidiary Companies/Joint Venture are placed before the Board.

Your Company has in accordance with the Listing Regulations adopted the Policy for determining material subsidiaries. The said Policy is available on your Company's website at https://www. grasim.com/upload/pdf/Grasim Policy Material Subsidiary Cos.pdf

CONVENING ANNUAL GENERAL MEETING (AGM) THROUGH AUDIO-VISUAL MEANS FACILITY

The Ministry of Corporate Affairs ('MCA') has vide its General Circular No. 20/2020 dated 5th May 2020, General Circular No. 14/2020 dated 8th April 2020; General Circular No. 17/2020 dated 13th April 2020; and General Circular No. 02/2021 dated 13th January 2021 and General Circular No. 2/2022 dated 5th May 2022 and Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated 12th May 2020 and Circular No. SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated 15th January 2021 and SEBI circular No. SEBI/HO/CFD/CMD2/CIR/P/2022/62 dated 13th May 2022 issued by the Securities and Exchange Board of India ('SEBI') (collectively referred to as 'MCA and SEBI Circulars') permitted convening the Annual General Meeting through Video Conference ('VC')/Other Audio-Visual Means ('OAVM'), without the physical presence of the Members at a common venue. In compliance with the MCA and SEBI Circulars, applicable provisions of the Act and the Listing Regulations, the 75th Annual General Meeting of your Company will be convened and conducted through VC / OAVM.

ULTRATECH CEMENT LIMITED ('ULTRATECH')

The Indian Cement demand contracted by 10-12% in FY 2020-21, given the economic standstill in H1FY 2020-21. However, H2FY 2020-21 witnessed a steady demand recovery. The uptick in demand for cement was driven by affordable housing projects and Government infrastructure projects like roads, metro, irrigation projects and others.

The cement demand growth in FY 2022-23 is expected to remain strong considering the Government's thrust on infrastructure and roads development, housing, and rural infrastructure.

UltraTech reported net revenue of C52,599 Crore and EBITDA of C12,022 Crore during FY 2021-22. UltraTech has approved a fresh capex of C5,477 Crore towards increasing capacity by 12.8 MTPA with a mix of brownfield and greenfield expansion, in addition to a 6.7 MTPA capacity expansion currently underway. Upon completion of the latest round of expansion, UltraTech's capacity will grow to 136.25 MTPA, reinforcing its position as the third-largest cement company in the world, outside of China.

ADITYA BIRLA CAPITAL LIMITED ('ABCL')

ABCL reported a Consolidated Revenue of C 22,230 Crore (grew 15% year on year) and Net Profit was C 1,706 Crore (grew 51% year on year). On a Standalone basis, revenue of ABCL was C 453 Crore and Net Profit was C 345 Crore.

Active customer base at 35 Million (grew 36% year on year) aided by focus on granular retail growth across all businesses of the subsidiaries of ABCL. Overall AUM across asset management, life insurance and health insurance at over C 3,70,608 Crore (grew 10% year on year). Overall lending book (NBFC and Housing Finance) at C 67,185 Crore (grew 11% year on year). Gross premium (across Life and Health Insurance) at C 13,867 Crore (grew 25% year on year).

SHARE CAPITAL

Pursuant to the Scheme of Arrangement between Grasim Premium Fabric Private Limited and the Company, the Authorised Equity Share Capital of the Company has increased from C 294,50,00,000/- (147,25,00,000 equity shares of C 2/- each) to C 412,50,00,000/- (206,25,00,000 equity shares of C 2/- each).

Accordingly, the Authorised Share Capital of the Company stood at C 423,50,00,000/- comprising of 206,25,00,000 equity shares of C 2/- each and 11,00,000 Redeemable Cumulative Preference Shares of C 100/- each as at 31st March 2022.

Issued, subscribed and paid-up capital of the Company stood at C 1,31,65,90,852/- comprising of 65,82,95,426 equity shares of C 2/- each fully paid up as at 31st March 2022.

During the year, your Company allotted 2,50,582 equity shares of C 2/- each pursuant to the exercise of Stock Options and Restricted Stock Units in terms of the Employees Stock Option Schemes of your Company.

PURCHASE OF TREASURY SHARES

During the year, Grasim Employees' Welfare Trust ('Trust') acquired 4,21,880 equity shares of your Company from the secondary market. As per IND AS, purchase of own equity shares are treated as treasury shares. The Trust constituted in terms of the Company's Employee Stock Option Scheme 2018 ('ESOS 2018') holds 15,33,787 equity shares of your Company as on 31st March 2022 for allotment to the eligible employees under ESOS 2018.

DEPOSITS

During the year, your Company has not accepted or renewed any deposits within the meaning of Section 73 of the Act, read with the Companies (Acceptance of Deposits) Rules, 2014, and, as such, no amount of principal or interest was outstanding, as on the date of the Balance Sheet.

ISSUE OF NON-CONVERTIBLE DEBENTURES

During the year, your Company has issued 10,000 fully paid-up, Unsecured, Listed, Rated, Redeemable, Non-convertible Debentures of face value of C 10,00,000/- each aggregating to C1,000 Crore, at par, on private placement basis.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

Pursuant to Section 186 of the Act read with the Companies (Meetings of the Board and its Powers) Rules, 2014, disclosures relating to loans, advances and investments as on 31st March 2022 are given in the Notes to the Financial Statements. There are no guarantees issued or securities provided by your Company in terms of Section 186 of the Act read with the Rules issued thereunder.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis Report for the year, as stipulated under the Listing Regulations, is presented in a separate section and forms an integral part of this Annual Report.

CORPORATE GOVERNANCE

Your Directors re-affirm their continued commitment to the best practices of Corporate Governance. Corporate Governance principles form an integral part of the core values of your Company. Your Company was compliant with the provisions relating to Corporate Governance.

The Corporate Governance Report for the year, as stipulated under Regulation 34 of the Listing Regulations, is presented in a separate section, and forms an integral part of this Annual Report. A certificate from the Statutory Auditors on its compliance is given in Annexure 'B' to this Report.

DIRECTORS AND KEY MANAGERIAL PERSONNEL

Appointment/Re-appointment of Directors

In accordance with the provisions of the Act and the Articles of Association of the Company, Smt. Rajashree Birla and Mr. Shailendra K. Jain, Non-executive Directors of your Company, are liable to retire by rotation at the AGM and, being eligible, have offered themselves for re-appointment. Brief profiles of Smt. Rajashree Birla and Mr. Shailendra K. Jain are provided in the Corporate Governance Report.

The Board of Directors at its meeting held:

• On 1st September 2021, has appointed Mr. Harikrishna Agarwal (DIN: 09288720) as an Additional Director and Managing Director and Key Managerial Personnel ('KMP') of the Company, not liable to retire by rotation, with effect from 1st December 2021. The members of the Company have approved his appointment as Managing Director and KMP of the Company for a period of 2 years through Postal Ballot on 16th November 2021.

• On 12th November 2021, has appointed Mr. Raj Kumar (DIN: 06627311) as an Additional Non-executive Non-Independent Director, liable to retire by rotation, with effect from 12th November 2021. The members of the Company have approved his appointment as Non-executive Non-Independent Director of the Company, through Postal Ballot on 30th December 2021.

• Ms. Anita Ramachandran (DIN: 00118188) was appointed as an Independent Director at the AGM of your Company, held on 14th September 2018, for a period of 5 consecutive years.

Based on the report of performance evaluation and the recommendation of the Nomination and Remuneration Committee, the Board at its meeting held on 19th July 2022, has, subject to the approval of the shareholders, approved the appointment of Ms. Anita Ramachandran, Independent Director, for a second term of 5 years, commencing from 14th August 2023.

Resolution seeking the appointment of Ms. Anita Ramachandran as an Independent Director for a second term along with the brief profile, forms part of the Notice of the Annual General Meeting.

Your Directors recommend the resolution pertaining to appointment of Ms. Anita Ramachandran as an Independent Director for a second term for your approval.

Cessation of Directors

• Mr. Vipin Anand, Non-executive Non-independent Director resigned from the Board of Directors of the Company with effect from 14th October 2021, to avoid any potential conflict of interest consequent to his appointment as an Insurance Ombudsman, Bengaluru. There was no other material reason for his resignation except as stated.

• Mr. Dilip Gaur, Managing Director of the Company, took an early retirement and ceased to be the Managing Director and Key Managerial Personnel of the Company with effect from the close of business hours of 30th November 2021.

The Board placed on record its sincere appreciation for the valuable contribution and services rendered by Mr. Vipin Anand and Mr. Dilip Gaur during their tenure with the Company.

There is no pecuniary or business relationship between the Non-executive Directors and the Company, except for the sitting fees and commission payable to the Non-executive Directors, in accordance with the applicable laws and approval of the shareholders of the Company.

Key Managerial Personnel

Pursuant to the provisions of Section 203 of the Act, Mr. Harikrishna Agarwal, Managing Director, Mr. Ashish Adukia, Chief Financial Officer ('CFO') and Mr. Sailesh Daga, Company Secretary are the Key Managerial Personnel ('KMP') of the Company as on 31st March 2022.

Mr. Pavan Jain has been appointed as CFO and KMP of the Company with effect from 15th August 2022. The appointment comes in the wake of Mr. Ashish Adukia's plan to pursue career opportunities outside the Aditya Birla Group. He will be relieved from his current responsibilities as CFO and KMP of the Company with effect from 14th August 2022.

The Board placed on record its sincere appreciation for the valuable contribution made by Mr. Ashish Adukia during his tenure as the CFO and KMP of the Company.

MEETINGS OF THE BOARD

The Board of Directors of the Company met 6 (six) times during the year to deliberate on various matters. The meetings were held on 24th May 2021, 13th August 2021, 1st September 2021, 12th November 2021, 31st December 2021 and 14th February 2022.

Further details are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

INDEPENDENT DIRECTORS

Your Company has received declarations from all the Independent Directors of your Company, confirming that:

(a) they meet the criteria of independence as prescribed under Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations; and

(b) they have registered their names in the Independent Directors Databank.

Your Company's Board is of the opinion that the Independent Directors possess requisite qualifications, experience and expertise in Corporate Governance, Legal, Compliance, Financial literacy, General Management, Human Resource Development, Industry knowledge, Innovation, technology & digitisation, Marketing, Risk Management, Strategy and Sustainability and they hold highest standards of integrity.

FORMAL ANNUAL EVALUATION

Pursuant to the provisions of the Act and the Listing Regulations, the Board of Directors has carried out an annual evaluation of its own performance, its Committees, Independent Directors, Non-executive Directors, Executive Director and the Chairman of the Board.

The Nomination and Remuneration Committee ('NRC') of the Board has laid down the manner in which formal annual evaluation of the performance of the Board, its Committees and Individual Directors has to be made. It includes circulation of evaluation forms separately for evaluation of the Board and its Committees, Independent Directors/ Non-executive Directors/ Executive Director and the Chairman of your Company.

The performance of Non-independent Directors, the Board, as a whole, and the Committees of the Board has been evaluated by Independent Directors in a separate meeting. At the same meeting, the Independent Directors also evaluated the performance of the Chairman of your Company, after taking into account the views of Executive Director and Non-executive Directors. Evaluation as done by the Independent Directors was submitted to the NRC and subsequently to the Board.

The performance of the Board and its Committees was evaluated by the NRC after seeking inputs from all the Directors, on the basis of criteria such as the Board/ Committee composition and structure, effectiveness of the Board/ Committee process, information and functioning, etc.

The performance evaluation of all the Directors of your Company (including Independent Directors, Executive Director and Non-executive Directors and Chairman), is done at the NRC meeting and the Board meeting by all the Board Members, excluding the Director being evaluated on the basis of criteria, such as contribution at the meetings, strategic perspective or inputs regarding the growth and performance of your Company, among others. Following the meetings of Independent Directors and of NRC, the Board at its meeting discussed the performance of the Board, as a whole, its Committees and Individual Directors.

The Board expressed satisfaction on the overall functioning of the Board and its Committees. The Board was also satisfied with the contribution of Directors, in their respective capacities, which reflected the overall engagement of the Individual Directors.

The new Director inducted on the Company's Board attends an orientation programme. The details of the programme for familiarisation of Independent Directors are provided in the Corporate Governance Report, which forms an integral part of this Annual Report and is also available on your Company's website at https://www.grasim.com/Upload/PDF/familiarisation-programme-independent-directors.pdf

DIRECTORS' RESPONSIBILITY STATEMENT

The audited accounts for the year are in conformity with the requirements of the Companies Act, 2013 ('the Act') and the Accounting Standards. The financial statements reflect fairly the form and substance of transactions carried out during the year and reasonably present your Company's financial condition and results of operations.

Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of its knowledge and ability, confirms that:

a) i n the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

b) the accounting policies selected have been applied consistently, and judgements and estimates are made that are reasonable and prudent, so as to give a true and fair view of the state of affairs of your Company as at 31st March 2022, and of the profit of your Company for the year ended on that date;

c) proper and sufficient care have been taken for the maintenance of adequate accounting records, in accordance with the provisions of the Act, for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities;

d) annual accounts have been prepared on a 'going concern' basis;

e) the Directors have laid down proper internal financial controls, and that such internal financial controls are adequate and were operating effectively; and

f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo stipulated under Section l34(3)(m) of the Act, read with the Companies (Accounts) Rules, 2014, is given in Annexure 'C' to this Report.

INTEGRATED REPORT

The Company has provided Integrated Report. This report is prepared in alignment with the Integrated Reporting Framework laid down by the International Integrated Reporting Council and aims at presenting the value creation approach for our stakeholders.

AUDITORS AND AUDIT REPORTS Statutory Auditors

M/s. B S R & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 101248W/W-100022), were appointed as Statutory Auditors of the Company for a term of 5 (five) consecutive years, to hold office till the conclusion of the 79th Annual General Meeting of the Company. The Auditors have confirmed that they are not disqualified from continuing as Statutory Auditors of the Company.

Pursuant to the provisions of the Act, the term of office of M/s. S R B C & Co. LLP, Chartered Accountants (ICAI Firm Registration No. 324982E/E300003), shall complete at the conclusion of the ensuing Annual General Meeting.

Based on the recommendation of the Audit Committee, the Board has recommended the appointment of M/s. KKC & Associates LLP, Chartered Accountants (formerly known as Khimji Kunverji & Co. LLP) (Registration No. 105146W/ W100621), as a Joint Statutory Auditors of the Company, for a first term of 5 consecutive years from the conclusion of 75th AGM till the conclusion of 80th AGM of the Company, subject to the approval of the Members in the ensuing AGM.

They have confirmed their eligibility and qualification required under the Act for holding the office, as Statutory Auditors of the Company.

Accordingly, an Ordinary Resolution, proposing the appointment of M/s. KKC & Associates LLP, Chartered Accountants (Registration No. 105146W/ W100621), forms part of the Notice of the 75th AGM of the Company.

The observations made by the Joint Statutory Auditors on the Financial Statements (Standalone and Consolidated) of the Company, in their Report for the financial year ended 31st March 2022, read with the Explanatory Notes therein, are self-explanatory and, therefore, do not call for any further explanation or comments from the Board under Section l34(3)(f) of the Act. The Auditors' Report does not contain any qualification, reservation, disclaimer or adverse remark.

Cost Auditors

Your Company is required to prepare and maintain the cost accounts and cost records pursuant to Section 148(1) of the Act read with rules made thereunder (including any statutory modification(s) or re-enactment thereof for the time being in force).

Based on the recommendation of the Audit Committee, the Board of Directors appointed M/s. D. C. Dave & Co., Cost Accountants, Mumbai (Registration No. 000611), as the Cost Auditors to conduct the cost audit for all divisions of the Company for FY 2022-23 at a remuneration of C18.50 lakh plus applicable taxes and reimbursement of out-of-pocket expenses.

The Company has received consent from M/s. D. C. Dave & Co., Cost Accountants, to act as the Cost Auditors of your Company for FY 2022-23, along with certificate confirming their eligibility.

In accordance with the provisions of Section 148(1) of the Act and Rule 14 of the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditors is required to be ratified by the members of the Company. Accordingly, an Ordinary Resolution, for ratification of remuneration payable to the Cost Auditors for FY 2022-23, forms part of the Notice of the 75th AGM of the Company.

Secretarial Auditors

The Secretarial Audit Report, issued by M/s. BNP & Associates, Company Secretaries, Mumbai, for the financial year 2021-22, is given in Annexure 'D' to this Report. The Secretarial Audit Report does not contain any qualification, reservation, disclaimer or adverse remark. The Secretarial Compliance Report for the financial year ended 31st March 2022, in relation to compliance of all applicable SEBI Regulations/ circulars/ guidelines issued thereunder, pursuant to the requirement of Regulation 24A of the Listing Regulations, is available on the website of the Company at https://www.grasim.com/Upload/PDF/secretarial- compliance-report-aug22.pdf

Pursuant to the provisions of Section 204 of the Act and Rules made thereunder, M/s. BNP & Associates, Company Secretaries, Mumbai, are appointed as Secretarial Auditors to conduct the Secretarial Audit of the Company for FY 2022-23.

SECRETARIAL STANDARDS

During the year, your Company is in compliance with the Secretarial Standards specified by the Institute of Company Secretaries of India.

REPORTING OF FRAUDS BY AUDITORS

During the year, none of the Auditors of your Company, i.e, the Statutory Auditors, Cost Auditors and Secretarial Auditors has reported to the Audit Committee under Section 143(12) of the Act any instances of fraud committed against your Company by its officers and/or employees, details of which would need to be mentioned in the Board's Report.

DISCLOSURES

Contracts and Arrangements with Related Parties

During the year, all contracts/ arrangements/ transactions entered into by your Company with Related Parties were on arm's length basis and in the ordinary course of business. There are no material transactions with any Related Party as defined under Section 188 of the Act, read with the Companies (Meetings of Board and its Powers) Rules, 2014.

In line with the requirements of the Act and amendment to the Listing Regulations, all Related Party Transactions have been approved by the Audit Committee and reviewed by it on a periodic basis. Your Company has formulated a 'Policy on Related Party Transactions', which is also available on the Company's website at https://www.grasim.com/upload/pdf/ Grasim policy on RPT.pdf . The Policy intends to ensure that proper reporting, approval and disclosure processes are in place for all transactions between the Company and Related Parties.

The details of contracts and arrangements with Related Parties of your Company for the financial year ended 31st March 2022, are given in Notes to the Standalone Financial Statements, forming part of this Annual Report.

VIGIL MECHANISM / WHISTLE-BLOWER POLICY

Your Company has established a mechanism for directors and employees to report instances and concerns about unethical behaviour, actual or suspected fraud, or violation of your Company's Code of Conduct. It also provides adequate safeguards against the victimisation of employees who avail the mechanism and allows direct access to the Chairman of the Audit Committee in exceptional cases. During the year, no person was denied access to the Audit Committee.

The details of the Vigil Mechanism are also provided in the Corporate Governance Report, which forms an integral part of this Annual Report and the Whistle-Blower Policy is available on the website of your Company at https://www.grasim.com/ upload/pdf/whistle ?blower policv.pdf

CORPORATE SOCIAL RESPONSIBILITY

In terms of the provisions of Section 135 of the Act and Rules made thereunder, the Board of Directors has a Corporate Social Responsibility ('CSR') Committee, which is chaired by Smt. Rajashree Birla. The other Members of the Committee as on 31st March 2022, are Ms. Anita Ramachandran, Independent Director, Mr. Shailendra K. Jain, Non-executive Director and Mr. Harikrishna Agarwal, Managing Director. Dr. Pragnya Ram, Group Executive President - CSR is a permanent invitee to the Committee. The Corporate Social Responsibility Policy ('CSR Policy'), indicating the activities undertaken by your Company, is available on your Company's website at https://www.grasim. com/investors/policies-and-code-of-conduct.

Your Company is a caring corporate citizen and lays significant emphasis on development of the host communities around which it operates. Your Company, with this intent, has identified several projects relating to Social Empowerment and Welfare, Rural Development, Sustainable Livelihood, Health Care and Education, during the year, and initiated various activities in neighbouring villages around its plant locations. Your Company undertook several initiatives to help nation fight against COVID-19 crisis including supply of healthcare equipment, oxygen concentrators, organisation of medical camps, distributing face masks, hand gloves, sanitiser bottles, COVID-19 testing kits, PPE kit, creating COVID-19 related awareness, etc.

During the year, the Company spent C42.47 Crore, of which C38.40 Crore (excluding CSR of C4.75 Crore which remained unspent and has been transferred to separate bank account in April 2022 and classified as ongoing project by the Board) was spent towards mandatory CSR obligations of the Company and additionally C4.07 Crore was spent towards voluntary CSR activities.

The initiatives undertaken by your Company on CSR activities, during the year, are given in Annexure 'E' to this Report, in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended.

RISK MANAGEMENT AND SUSTAINABILITY

Your Company has constituted Risk Management and Sustainability Committee, which is inter alia, mandated to review the risk management plan/process of your Company. Risk evaluation and management is an ongoing process within the organisation. Your Company has a comprehensive Enterprise Risk Management framework to periodically assess risks in the internal and external environments and incorporates mitigation plans in its business strategy and operation plans. The same is periodically reviewed by the Committee. The scope of the Committee has been enhanced to include activities pertaining to overseeing sustainability activities, advising the Board on sustainability practices, etc, and accordingly, the Risk Management Committee was renamed as Risk Management and Sustainability Committee ('RMSC') effective from 24th May 2021. During the year, the RMSC met twice to review the risk management activities of the Company which includes Risk Identification, Assessment, Evaluation and Mitigation plans.

Based on the aforesaid review, there are no risks, which in the opinion of the Board, threaten the existence of the Company. However, key risks are set out in the Management Discussion and Analysis, which forms part of this Annual Report.

The Risk Management Policy is available on the Company's website at https://www.grasim.com/Upload/PDF/risk-management- policv.pdf

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

As per Regulation 34(2)(f) of the Listing Regulations, a separate section on Business Responsibility and Sustainability Report, describing the initiatives taken by your Company from environmental, social and governance perspective, forms an integral part of this Annual Report.

ANNUAL RETURN

Pursuant to Section 92 and Section 134 of the Act, read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return of your Company as on 31st March 2022 is available on Company's website at https://www. grasim.com/Upload/PDF/annual-return-aug22.pdf

INTERNAL CONTROLS

Your Company has in place adequate internal control systems (including internal financial control system) commensurate with the size and complexity of its operations. Internal control systems comprising of policies and procedures are designed to ensure sound management of your Company's operations, safe keeping of its assets, optimal utilisation of resources, reliability of its financial information and compliance. Systems and procedures are periodically reviewed to keep pace with the growing size and complexity of your Company's operations. During the year, no material or serious observation has been received from the Joint Statutory Auditors of your Company, citing inefficiency or inadequacy of such controls.

REMUNERATION POLICY

The Company's remuneration policy is directed towards rewarding performance based on review of achievements. The remuneration policy is in consonance with existing industry practice. There has been no change in the policy during the year.

The Remuneration Policy of your Company, as formulated by the Nomination and Remuneration Committee of the Board of Directors, is given in Annexure 'F' to this Report and is also available on your Company's website at https://www.grasim.com/upload/pdf/ABG-executive-remuneration-philosophv-policv.pdf

STATUTORY COMMITTEES OF THE BOARD Audit Committee

The Audit Committee comprises of Mr. N. Mohan Raj, Chairman, Mr. V. Chandrasekaran, Dr. Thomas M. Connelly Jr. and Mr. Harikrishna Agarwal as its members. Majority of the members including Chairman of Audit Committee are Independent Directors. The CFO of your Company is the permanent invitee at the Audit Committee Meetings.

Further details relating to the Audit Committee are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

All the recommendations made by the Audit Committee, during the year, were accepted by the Board of Directors of your Company.

Nomination and Remuneration Committee

The Nomination and Remuneration Committee ('NRC') comprises of Ms. Anita Ramachandran, Chairperson, Mr. Kumar Mangalam Birla, Mr. Cyril Shroff and Mr. Adesh Kumar Gupta as its members. Majority of the members including Chairperson of NRC are Independent Directors.

Further details relating to the NRC are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

Corporate Social Responsibility Committee

The Corporate Social Responsibility ('CSR') Committee comprises of Smt. Rajashree Birla, Chairperson, Ms. Anita Ramachandran, Mr. Shailendra K. Jain and Mr. Harikrishna Agarwal as its members.

Further details relating to the CSR Committee are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

Stakeholders' Relationship Committee

The Stakeholders' Relationship Committee ('SRC') comprises of Ms. Anita Ramachandran, Chairperson, Mr. Shailendra K. Jain and Mr. Harikrishna Agarwal as its members.

Further details relating to SRC are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

Risk Management and Sustainability Committee

The Risk Management and Sustainability Committee ('RMSC') comprises of Mr. N. Mohan Raj, Chairman, Mr. V. Chandrasekaran, Dr. Thomas M. Connelly, Jr., Mr. Harikrishna Agarwal, Mr. Kalyan Ram Madabhushi, Mr. Jayant Dhobley and Mr. Thomas Varghese.

Mr. Surya Valluri was appointed as Chief Sustainability Officer ('CSO') of the Company w.e.f. 16th June 2022. He is the permanent invitee at the RMSC.

Further details relating to the RMSC are provided in the Corporate Governance Report, which forms an integral part of this Annual Report.

RESEARCH AND DEVELOPMENT (R&D)

The R&D projects portfolio is focused on improving the relative market position of your Company's businesses in the face of increasingly volatile and competitive business environment. The focus is on developing and commercialising premium differentiated products, improving our competitive cost position, product quality and environmental sustainability. To support these goals, the businesses are managing a pipeline of projects that are addressing near and mid-term needs, as well as the exploration of future opportunities.

PULP AND VISCOSE STAPLE FIBRE (VSF)

The Pulp Technology team continues with the quality improvement drive. Implementation of advanced quality assurance practices like first pass yield and uptime have been initiated in the pulp manufacturing units to ensure continual improvement. AI and machine learning based models and tools continue to be explored to improve consumption ratios the performance on major quality parameters like pulp viscosity, brightness, and purity. Considering the abundance of agro-waste in India, your Company has initiated exploration of alternate sustainable cellulosic feedstocks at R&D scale for manufacturing of dissolving grade pulp.

Fibre production units have created new benchmarks in releasing hidden capacity. Your Company has also set new global benchmarks in consumption ratios. This was facilitated by developing new recipes, piloting them quickly and gradually implementing at commercial scale while sustaining best in class Fibre quality. The novel recipes integrated with improved digitalisation-based process control strategies helped challenge the conventional norms and resulted in significant productivity increase in some of our units, while paving way of similar initiatives in other units. Your Company has progressed on sustainability initiatives of reducing freshwater consumption and at the same time, recovering and recycling chemicals from effluent streams. These schemes are now thoroughly tested and are being implemented at multiple sites. Your Company progressed further on commitments for reducing its environmental footprint and commissioned a state-of-the-art effluent RO system at Vilayat and Nagda. This enabled Vilayat to effectively double capacity without significant change in freshwater usage or effluent load.

Aditya Birla Science and Technology Company Private Limited ('ABSTCPL') actively provided fundamental R&D support to the business in the areas of process intensification, digitalisation, sustainability, and value-added products. Post successful piloting, these novel processes are moving to advanced stages of engineering for commercialisation. Process fundamentals- based solutions have been developed for the improvement of H2S treatment and the CS2 recovery process. Combined with the plant's operational know-how, these solutions are being tested at the plant for improving efficiency and robustness of emission control processes. Similarly, fundamental science based digitalisation programme continue to be focusses on improving energy efficiency, asset uptime, quality and productivity.

Our product innovation initiatives took a stride this year by successfully developing and scaling up phosphate-based textile grade FR fibre. These fibre are technical textile grade specialty products, and are now registered as 'Active Chemical Product' by reputed certifying agencies. Another specialty product Purocel EcoFlush non-woven Fibre(s), was tested by international customers and qualified for regular commercial usage for making of flushable wet wipes. In view of SUPD in Europe we have initiated work on developing 100% cellulose-based fibre solutions for making of disposable products like non-woven wipes. Similarly, cellulosic hydrophobic fibres Purocel, EcoDry have been developed and are being tested to replace plastic based top sheet in hygiene products like sanitary pads. Our textile recycling innovation, Liva Reviva, is gaining recognition and acceptance in the trade. Establishment of a semi-commercial scale facility completed at Vilayat site, which will give us a capacity to upcycle -3 tons/day of textile waste. This will establish your Company as a front-runner in innovations related to chemical recycling of textile waste. Your Company has also initiated work on creating a larger recycling ecosystem to include both chemical and mechanical recycling. We are in the process of putting up a pilot facility for demonstrating novel ways of mechanically upcycling textile waste to new fabrics. We actively collaborate with global innovators and start-ups in the field of sustainability and recycling. LivaEco, offering a rich sustainability quotient, has grown in volume and reach, is now also being offered in specialty segments like Modal and Purocel.

All units have institutionalised quality system driven metrics FPY (First Pass Yield) and Uptime for process/product consistency. These metrics are continuously upgraded based on learnings and customer feedback.

New product development initiatives to increase the value-added product portfolio within Excel fibre have progressed well with projects such as coarse denier Excel for fibrefill and carpet application reaching pilot scale demonstration and initial customer evaluation. The first pilot scale spinning of eco-friendly lyocell fibre containing 20% Nanollose microbial cellulose (Nullarbor- 20TM) was accomplished. This demonstrates the potential for making lyocell fibre from agro-waste using existing industrial equipment. Successful pilot scale demonstration of producing lyocell fibre with 31% textile waste recycled pulp marks another important milestone in our commitment to continually raise the bar on sustainability front.

VISCOSE FILAMENT YARN (VFY)

Your Company has been consistently developing new product variants according to consumer's needs. During the year, your Company has successfully developed Monofilament yarn in CSY by two routes - Mother Yarn (splitting of multi-filaments to single filament) and increasing regeneration length, High DPF (Denier Per Filament) products in SSY and Low dpf in PSY. On new application side, your Company has developed Lycra covered yarn (Spandex covered with PSY), which is stretchable, having usage in garment and denim. Development of space dyed yarn is under progress for usage in fashion fabrics.

CHEMICAL

Your Company's Research and Development ('R&D') efforts stand on the five pillars of - Customers, Innovation, Quality, Sustainability and Profitability. R&D department is putting concerted efforts on Innovation, Process improvement for cost optimisation, product development, application development and introducing new products and innovative solutions to the customers. Your Company's innovation practices are led by proactive identification of customer needs, and then expanding value-added chlorine derivative products portfolio for meeting explicit and latent needs of the customers.

Your Company's R&D model involves collaborative working with all major customers for long-term development of innovative products, and continuously looking at new technologies that will help enhance performance of your Company's offerings. Water Treatment Business being focus, your Company leveraged its R&D Centre - Aditya Birla Application and Product Development Centre ('ABAPDC') for solving water treatment problems in potable water, some major health problems (removal of fluoride from ground water-jointly with MNIT), working on STP supporting the 'Namami Gange' project, providing water & waste-water treatment solutions to Oil & Gas, Power, Pulp & Paper and Textile industry.

ABAPDC is also working on improvement of existing processes and enhancements of existing chemicals, in addition to identification, development, and production of new chemicals. ABAPDC has filed 3 patents in the last 12 months. Your Company's R&D Centre has been approved by the Dept. of Scientific and Industrial Research (DSIR) and is executing collaborative project with many renowned institutes like DST, NEERI, cife, ciba, clri, MNIT, iits, iict, ncl, etc. Your Company received NSF/ANSI and Kosher certifications for its operating Units and certifications from FSSAI for food grade calcium chloride products. R&D Centre published more than 10 research articles/papers and presentations in the area of Water Treatment at various forums like EA Water Magazine, EA Water Virtual Conference, Finest-50 Global Case Studies - Smart Water & Waste World Magazine.

Your Company's R&D Centre has also collaborated with the Aditya Birla Science and Technology Company Private Limited ('ABSTCPL) and the academia in the scientific and technical forums. Innovation is the driving force of our product stewardship, benefiting not just our customers but the industry as a whole. R&D Centre has worked with the Industry to develop multiple coagulants for water treatment with unique specifications (e.g, low cost product for CETP, decolourant for coloured effluent, new product for coating and PVC sheets based on long chain chlorinated paraffin for export markets) based on specific end uses, in addition to the development of various water treatment products. Your Company is also developing specialty blends (plastics, water treatment, etc.) and new chemicals for personal care and pharmaceutical applications.

Various enhancements in production process have also been undertaken by the team to enhance its efficacy and quality of deliverables. Your Company observed an improvement in production in HSBP plant, resolution of issues in Phosphoric Acid plant, modified recipes in PAC liquid production for better product and standardisation of shelf life for all products. This has helped your Company to focus on process improvements of basic raw material blends to achieve process accelerations and engineering improvements.

ADVANCED MATERIALS (EPOXY)

Your Company's R&D team is leading and driving the Sustainability portfolio through New Product Development in the area of Bio-Based products, waterless, solvent free, green processes and chemistries, as well as innovation in the area of Recyclability & Circularity of Materials. R&D team is working with leading Universities, Institutes and Global experts in building the innovation footprint and speeding up the research to commercialisation of product. Teams are involved in synthesising new molecules and in developing products and applications that drive growth of specialty segment for the business.

R&D team is engaged in development of various bio-based products. Bio-based and high performing molecules are developed via combination of the Company's formulation expertise and properties in new bio-based chemistries developed by reputed agencies through business collaboration/partnerships. Various reactive bio-based epoxy diluents of desired viscosities, Epoxy Equivalent Weight ('EEW') and Hydrolyzable chloride ('HyCl') content, mono, di and multi-functional epoxy building blocks are developed by R&D.

R&D team is involved in application development in epoxy system solutions for composite segment, wind segment, pipes, LPG gas storage tanks, products for electrical and electronic industries, powder coating segment, adhesive product development, water soluble coating solution for can coating applications, developing products for floor coating and construction segments.

INSULATORS

Your Company's R&D efforts were focusses on innovation and introduction of new products to meet customer requirements. Developments during the year included the following:

• New product development with specifications of narrow strength variations in product to meet export customers' requirement.

• Design optimisation of Composite Long Rod Insulators by controlling Electric Field Magnitude using latest 3D Simulation Software to comply with international standard.

• First time development of polymer solid core insulators for optical fiber technology application to cater to special customer needs.

• Development of stainless steel cap design for Station Post Insulators to meet customers special application.

TEXTILES

Your Company is involved in driving innovation, servicing new customers with focus on sustainability and customers emerging needs, and constantly improving its processes.

Your Company has launched self-cleaning performance finish range named as 'SmartCare' with stain repellency properties reducing frequency of washes and increasing durability without compromising natural properties of linen.

Your Company continues to develop blends in both linen and wool with sustainable fibres, such as Silk, Lyocell, Bamboo, etc, that offer organic product certifications with complete traceability from farm to fashion.

In collaboration with Birla Cellulose, your Company developed Cotton blends with sustainable fibres like Liva Eco, Lyocell, Bamboo, etc.

As a response to the consumers' demand, your Company has developed wool and wool blends for athleisure/active wear using Super wash technology (First in India) and yarn for protective wear applications using merino wool blended with Pyrotex?.

Your Company is also working in collaboration with Aditya Birla Science and Technology Company Private Limited ('ABSTCPL') and other vendor for exploring feasibility of developing a hemp value chain in India. Your Company is also working with global partners, e.g., CELC, LP Studio, Wool Mark, etc., and other specialty fibre suppliers to explore and develop innovative yarns and fabric.

Thus, the wide span of the R&D activities address the present and future needs of the Textile business.

MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF YOUR COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR, TO WHICH THE FINANCIAL STATEMENT RELATES, AND THE DATE OF THE REPORT

No material changes and commitments, which could affect your Company's financial position, have occurred between the end of the financial year and the date of this Report. There has been no change in the nature of business of your Company.

PARTICULARS OF EMPLOYEES

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is given in Annexure 'G' to this Report.

In accordance with the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the names and other particulars of employees drawing remuneration in excess of the limits, set out in the aforesaid rules, forms part of this Report. In line with the provisions of Section 136(1) of the Act, the Report and Accounts, as set out therein, are being sent to all the Members of your Company, excluding the aforesaid information about the employees. Any Member, who is interested in obtaining these particulars about employees, may write to the Company Secretary at grasim.secretarial@aditvabirla.com.

EMPLOYEE STOCK OPTION SCHEMES (ESOS)

ESOS-2006

During the year, the Stakeholders' Relationship Committee of the Board of Directors allotted 16,800 equity shares of C2/- each of the Company to Stock Option Grantees, pursuant to the exercise of the Stock Options under ESOS-2006.

ESOS-2013

During the year, the Stakeholders' Relationship Committee of the Board of Directors allotted 2,33,782 equity shares of C2/- each of the Company to Stock Option and Restricted Stock Units ('RSUs') Grantees, pursuant to the exercise of the Stock Options and RSUs, under ESOS-2013.

ESOS-2018

During the year, the Nomination and Remuneration Committee ('NRC') of the Board of Directors approved grant of 4,02,606 Stock Options and 1,26,798 Restricted Stock Units ('RSUs') to the eligible employees, including Managing Director of the Company, under ESOS-2018 and also approved vesting of 4,35,952 Stock Options and 2,18,800 RSUs. NRC also approved 52,847 Stock Options not be vested, due to vesting criteria not being met in accordance with the provisions of ESOS-2018. The ESOS-2018

is being administered through the Grasim Employees' Welfare Trust ('Trust').

2,06,437 equity shares were transferred from the Trust account to the employees account on account of exercise of Stock Options and RSUs by the grantees.

The details of Stock Options granted pursuant to ESOS-2006 and the Stock Options and RSUs granted pursuant to ESOS-2013 and ESOS-2018, and the other disclosures in compliance with the provisions of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, is available on your Company's website at https://www.grasim. com/Upload/PDF/esos-disclosure-aug22.pdf

A certificate from the Secretarial Auditors, with respect to implementation of your Company's ESOS, will be available electronically for inspection, without any fee, by the members from the date of circulation of the Notice of the Annual General Meeting up to the date of Annual General Meeting. Members seeking to inspect such documents can send an e-mail at grasim.secretarial@adityabirla.com.

ESOS-2022

The Company intends to reward, attract, motivate and retain employees and directors of the Company, its subsidiary or associate company(ies) for their high level of individual performance, by offering them equity shares by way of an Employee Stock Options Scheme.

Towards this, the Company seeks the approval of the members to adopt the 'Grasim Industries Limited Employee Stock Option and Performance Stock Unit Scheme, 2022' (hereinafter referred to as 'the Scheme 2022') in terms of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 ('SEBI SBEB & SE Regulations'). The Company intends to offer not more than 44,14,000 Equity Shares of C2/- each (which represents 0.67% of the paid-up equity share capital as on 31st March 2022) in one or more tranches, in accordance with the Scheme 2022, SEBI SBEB & SE Regulations or other provisions of law as may be prevailing at that time.

The Scheme 2022 shall be implemented through the Grasim Employees' Welfare Trust ('Trust'), since it is proposed that the equity shares of the Company would be acquired by the Trust from the secondary market. The Company proposes to extend financial assistance to the Trust for this purpose, subject to the overall limits specified under the applicable laws.

The broad framework of the Scheme 2022 is detailed in the Notice of the AGM. Your Directors recommend the resolutions seeking your approval for Scheme 2022 and related matters form part of the Notice of the AGM.

POLICY ON PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT WORKPLACE

Your Company has zero tolerance for sexual harassment at workplace. Your Company has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at Workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ('POSH Act'), and the Rules framed thereunder. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

Your Company has constituted Internal Complaints Committee to redress and resolve any complaints arising under the POSH Act. There were 3 (Three) complaints received during the year, out of which 2 (Two) were outstanding as on 31st March 2022. As on the date of this report, there is no outstanding complaint. The Company is committed to providing a safe and conducive work environment to all its employees and associates.

HUMAN RESOURCES

Your Company's human resource is the strong foundation for creating many possibilities for its business. The efficient operations of manufacturing units, market development and expansion for various products was the highlight of our people effort.

Continuous people development for developing knowledge and skills coupled with the Talent Management practices will deliver the talent needs of the Organisation. Your Company's employee engagement score reflects high engagement and pride in being part of the Organisation.

The Group's Corporate Human Resources plays a critical role in your Company's talent management process.

AWARDS AND ACCOLADES

Some of the significant accolades earned by your Company during the year include:

• Ranked 7th among the India's Top Companies for Sustainability and CSR by The Economic Times, and Futurescape Responsible Business Rankings 2021.

• Gold Shield Award for Integrated Reporting in Manufacturing Sector and Excellence in Financial Reporting - 'ICAI Sustainability Reporting Awards 2020-21'.

• Economic Times and Machinist awarded the Promising Plant 2021 Award to Staple Fibre Division, Nagda Unit.

• Jaya Shree Textiles, Rishra has been declared the Winner of 'Golden Peacock Environment Management Award' for the year 2021.

• Birla Cellulose won the first edition of the 'National Innovative and Sustainable Supply Chain Awards' by UN Global Compact Network India.

• Grasilene Division awarded 'Platinum Award 'under the category 'Occupational Health and Safety Award -2021' by Grow Care India, Delhi.

• Birla Cellulose Ranked No. 1 in 2021 Hot Button Ranking by the Canada-based environmental not-for-profit Canopy Planet Society.

• Birla Cellulosic Kharach received the award for Excellence in Environment Management CII-ITC Sustainability Awards 2021.

• Grasilene Division, Harihar has won the Silver Medal in the National Awards for Manufacturing Competitiveness 2021.

• Synthetic & Rayon Textiles Export Promotion Council ('SRTEPC') 2019-20 and 2020-21 award for the second-best overall export performance in synthetic and rayon textiles and Gold for Viscose Staple Fibre.

• TERI-IWA-UNDP Water Sustainability Awards 2022 under Category 'Water for All' to Nagda Unit.

• National Awards for Excellence in CSR - 7th Edition 2021, Special Covid Category - Best COVID-19 Solution for Community Care to Nagda Unit.

• Manufacturing Today Conference & Awards 2021, Excellence in CSR- Grasim Industries Limited - Vilayat Unit, Bharuch, Gujarat.

• Apex India CSR excellence gold award, 2021 for Livelihood creation by ABI - Halol.

UPDATE ON MATERIAL ORDERS PASSED BY THE REGULATORS

• Competition Commission of India ('CCI') had passed an order under Section 4 of the Competition Act, 2002, dated 16th March 2020, imposing a penalty of C301 Crore on your Company in respect of its domestic man-made fibre turnover for the period from 2008-09 to 2011-12. Your Company had filed an appeal against the order before the Hon'ble National Company Law Appellate Tribunal ('NCLAT'), and has obtained a stay by depositing C30 Crore with NCLAT. While the matter is pending before the NCLAT, CCI has passed another order dated 3rd June 2021, and levied a penalty of C3.49 Crore on your Company (@ C 1 lakh per day for a period of 349 days and continuing thereafter) for non-compliance with its order passed on 16th March 2020. Your Company has filed a writ petition with the Hon'ble Delhi High Court, and the Hon'ble Delhi High Court has stayed the operation of the CCI order.

• The CCI has passed another order dated 6th August 2021, under Section 4 of the Competition Act, 2002, for the period of 2017-18. However, because of the penalty of C301 Crore has already been imposed on the Company in a previous order; the CCI deemed it appropriate not to impose any further monetary penalty on the Company. The Company filed an appeal before the NCLAT.

• The Deputy Commissioner of Income Tax ('Assessing Officer') has vide order dated 14th March 2019 raised a demand of C5,872 Crore on account of dividend distribution tax (including interest) alleging that the demerger of financial services business is not a qualified demerger and holding that the value of shares allotted by Aditya Birla Capital Limited ('ABCL') to the shareholders of the Company in consideration of the transfer and vesting of the financial services business into ABCL pursuant to duly approved Scheme of Arrangement, amounted to distribution of dividend by the Company.

Your Company had challenged the said order by filing an appeal before the Commissioner of Income Tax ('CIT') (Appeal). The CIT (Appeal) upheld the order of the Assessing Officer and reduced the quantum of demand from C5,872 Crore to C3,786 Crore. The Company has filed an appeal against the order of CIT (Appeal) before the Tribunal and has obtained stay on demand by furnishing the requisite security to the Assessing Officer. The appeal is presently pending before the Tribunal.

Further, the Assessing Officer has passed draft assessment order for the AY 2018-19 on 30th September 2021. As a corollary to the earlier order referred above, the Assessing Officer has also made addition of C22,772 Crore towards capital gains in draft assessment order passed by him. The Assessing Officer valued shares issued by ABCL to shareholders of your Company at C24,037 Crore and treated it as sale consideration for transfer of Financial Services Business undertaking.

Your Company has filed objections before Dispute Resolution Panel ('DRP') against the draft order passed by the Assessing Officer. The DRP has passed an order dated 30th June 2022 and allowed the objection of the Company that the demerger was a tax compliant demerger as all the conditions of Section 2(19AA) of the Act are fulfiled. The Assessing Officer needs to pass the final assessment order and quantify the tax liability for AY 2018-19 by following the directions of the DRP.

Your Company, backed by independent expert's opinion, believes that the above orders of the Assessing officer are not tenable in law. Accordingly, no provision has been made in the books of account on account of these matters.

GENERAL

Your Directors state that no disclosure or reporting is required in respect of the following items as there were no transactions on these matters during the year:

1. Issue of equity shares with differential rights as to dividend, voting or otherwise;

2. Issue of shares (including sweat equity shares) to employees of your Company under any Scheme save and except ESOS referred to in this report;

3. The Managing Director of the Company does not receive any remuneration or commission from any of its subsidiaries;

4. There were no revisions in the financial statement(s);

5. There has been no change in the nature of business of your Company;

6. No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and your Company's operations in the future. The update on the status of material orders passed by the Regulators or Court or Tribunals is provided in this Report;

7. There were no proceeding initiated under the Insolvency and Bankruptcy Code, 2016;

8. There was no instance of one time settlement with any Bank or Financial Institution; and

9. There was no failure to implement any Corporate Action. ACKNOWLEDGEMENT

Your Directors express their deep sense of gratitude to the banks, financial institutions, stakeholders, business associates, Central and State Governments for their co-operation and support and look forward to their continued support in future.

Your Directors very warmly thank all our employees for their contribution to your Company's performance. We applaud them for their superior levels of competence, dedication and commitment to your Company.

For and on behalf of the Board
Kumar Mangalam Birla
Chairman
Mumbai, 19th July 2022 (DIN: 00012813)

   

Grasim Industries Ltd Company Background

Kumar Mangalam BirlaH K Agarwal
Incorporation Year1947
Registered OfficeBirlagram,
Nagda,Madhya Pradesh-456331
Telephone91-07366-246760/246761/2/3/4/5/6,Managing Director
Fax91-07366-244114/246024
Company SecretarySailesh Daga
AuditorS R B C & Co LLP/BSR & Co LLP/KKC & Associates LLP
Face Value2
Market Lot1
ListingBSE,Luxembourg,MSEI ,NSE,
RegistrarKFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Grasim Industries Ltd Company Management

Director NameDirector DesignationYear
Kumar Mangalam BirlaChairman (Non-Executive)2022
Rajashree BirlaNon-Exec & Non-Independent Dir2022
Cyril ShroffNon-Exec. & Independent Dir.2022
Shailendra K JainNon-Exec & Non-Independent Dir2022
Thomas M ConnelyNon-Exec. & Independent Dir.2022
Anita RamachandranNon-Exec. & Independent Dir.2022
N Mohan RajNon-Exec. & Independent Dir.2022
Venkatadri ChandrasekaranIndependent Director2022
Adesh Kumar GuptaIndependent Director2022
Santrupt MisraNon-Exec & Non-Independent Dir2022
Sailesh DagaCompany Sec. & Compli. Officer2022
Raj KumarDirector2022
H K AgarwalManaging Director2022

Grasim Industries Ltd Listing Information

Listing Information
NIFTY
BSE_500
BSE_100
BSE_200
BSEDOLLEX
CNX500
CNX100
CNXINFRAST
CNX200
CNXCOMMODI
BSEGREENEX
BSECARBONE
NIFTY50V20
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEMETERIA
BSEMANUFAC
SENSEX50
ESG100
LMI250
BSEDSI
NFT50EQWT
BSE100LTMC
NFTYLM250
NF500M5025

Grasim Industries Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Sale of Products NA 00018361.27
Other Operating Income NA 00080.49
Export incentives NA 00064.44
Scrap NA 00062.99
Service Income NA 00019.14
Power NA 00017.8
Rental Income NA 0003.27
Coffee-Traded MT 0000
Spices-Traded MT 0000
Cement MT 0000
White Cement MT 0000
Others NA 0000
Others - Traded NA 0000
Ready Mix Concrete CuM0000
Inter-Divisional Transfers NA 0000
Chlorine MT 0000
Chloro Sulphonic Acid MT 0000
Sulphuric Acid MT 0000
Carbon Disulphide MT 0000
Caustic Soda-Rayon Grade MT 0000
Poly Aluminium Chloride MT 0000
Bleaching Powder-Stable MT 0000
Sodium Sulphate MT 0000
Putty MT 0000
Pulp-Rayon Grade MT 0000
VSF/Polynosic/HWM/Spe.Fibre MT 0000
Manmade Fibre Yarn Kg 0000
Manmade Fibre Yarn-Spindles No 0000
Manmade Fibre Fabrics Kg 0000
Manmade Fibre Fabrics Mtr0000
Manmade Fibre Fabrics (Looms) No 0000
Sponge Iron MT 0000
Industrial Machinery MT 0000

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