Grasim raises its first Sustainability Linked Non-Convertible Debentures (NCD) of INR 1,250 crore from the International Finance Corporation (IFC)

The sustainability-linked funding will support the company’s investment into the paints business

Mumbai: Grasim Industries Limited (“Grasim” or the Company), a flagship company of the Aditya Birla Group, today announced an investment from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, for INR 1,250 Crore (equivalent to approximately $150 million) by way of subscription to Non-Convertible Debentures (NCD) to be issued by the Company. The Sustainability-Linked NCDs will support the Company’s investment in paint manufacturing.

From Left To Right: Mr. Rahul Desai – Joint President – Treasury & Banking – Grasim Industries Ltd., Mr. Pavan K. Jain – Chief Financial Officer – Grasim Industries Ltd., Mr. Ramesh Ramanathan - Manager, MAS Asia - IFC, Mr. Ananthan Nallappa - Principal Investment Officer, MAS Asia - IFC

IFC’s investment will accelerate Grasim’s decarbonization drive through the increased adoption of renewable energy and water recycling in the paint manufacturing process.

Recently, Aditya Birla Group Chairman, Mr. Kumar Mangalam Birla, announced the launch of products and services under its new decorative paints brand, “Birla Opus”, aiming for Rs.10,000 Cr gross revenue within three years of full-scale operations. All six manufacturing plants will be fully sustainable with zero liquid discharge and equipped with 4th generation manufacturing technology to manage supply chain processes at lightning speed, zero defects and end-to-end traceability.

Mr. H K Agarwal, Managing Director, Grasim Industries Limited, said, "We welcome the investment from the International Finance Corporation (IFC), recognizing our sustainability initiatives.  We will work collaboratively with IFC to further enhance our sustainability footprints. We are addressing the transition to a low-carbon economy through our renewable projects and energy-efficient products, and are looking forward to further aligning our activities to the global Sustainable Development Goals.”

Ms. Wendy Werner, India Country Head at IFC said, “IFC’s financing will contribute to Grasim’s sustainable growth into the paints business and will encourage other manufacturing companies to follow by successfully adopting energy efficient and water saving technologies and practices. This partnership builds on our nearly three-decade old partnership with Aditya Birla Group and IFC is proud to support Grasim’s expansion in a climate friendly way.”

About International Finance Corporation

International Finance Corporation (IFC) — a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises.
For more information, visit www.ifc.org

About Grasim Industries Limited

Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks amongst the top publicly listed companies in India. Grasim has completed 76 glorious years of its existence. Incorporated in 1947, it started as a textiles manufacturer in India. Today, it has evolved into a leading diversified player with leadership presence across many sectors. It is a leading global producer of Viscose, Diversified Chemicals, Linen Yarn and Fabrics producer in India. The company recently has entered paints business under the brand name ‘Birla Opus’ and would be setting up six plants of manufacturing decorative paints across Pan India locations. Leveraging the Group synergies, Grasim has launched “Birla Pivot”, the B2B online marketplace for building materials. Through its subsidiaries, UltraTech Cement, Aditya Birla Capital and Aditya Birla Renewables, it is also India’s prominent cement producer, leading diversified financial services player and clean energy solutions player. At Grasim, there is an endeavour to create sustainable value for 43,000+ employees, 247,000+ shareholders, society, and customers. The company reported consolidated net revenue of ₹1,17,627 Cr. and EBITDA of ₹20,478 Cr. in FY 2023.