22 Oct 2019
Grasim announces formation of JVC – Aditya Birla Power Composites Limited
Grasim Industries Limited (“Grasim”) today signed a definitive agreement to form a Joint Venture Company (JVC) in India with Maschinenfabrik Reinhausen GmbH (“MR”) of Germany for the manufacturing and sale of Composite Hollow Core Insulators (“CHCI”) to serve the Power Transmission and Distribution industry globally. The JVC, Aditya Birla Power Composites Limited (“ABPCL”), will set up a state-of-the-art CHCI manufacturing plant at Halol, Gujarat, India.
This joint venture brings together Aditya Birla Insulators (a unit of Grasim), the 3rd largest global Porcelain Insulator player and Reinhausen Power Composites (a Unit of MR), the 2nd largest Hollow Composite Insulator player globally, with over five decades of combined experience in the insulator industry. ABPCL will build a fully integrated CHCI plant at Halol, bringing the latest technology for Composite Hollow Insulators from Europe. It will serve the insulator requirements of Indian and global OEMs in the Power Equipment industry, helping them to enhance their product proposition for the T&D Utilities worldwide.
Composite Hollow Core insulators is the fastest growing segment of insulators, and improves the performance as well as safety of power equipment. This facility will be the first such large scale plant for this range of products in India and will be the largest such plant outside of China.
Mr. Kalyan Ram Madabhushi, CEO – Global Chemicals and Group Business Head – Fertilisers and Insulators, Aditya Birla Group, says, “As an insulating solutions provider to power industry for over 50 years, this venture is a natural next step for Grasim to expand into the Composite Hollow Insulator segment and we are happy to partner with the global quality leader in this segment, MR. Through cutting-edge technology and world class manufacturing, this JV will offer high-end competitive, innovative and sustainable solutions to our customers globally, and reaffirms our commitment to Make-in-India to serve the world.”
Dr. Nicolas Maier-Scheubeck, CEO of the Reinhausen Group, says, “We look forward to expanding our presence to India, which is not just an attractive market but also a very competitive location for manufacturing such a high quality product. We are delighted to partner with such a large and reputed group, the Aditya Birla Group, for this venture, sharing our focus on quality and customer performance.”
Grasim Industries Limited, a flagship company of the US$48.3 billion the Aditya Birla Group, ranks amongst the top publicly listed companies in India. 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 Staple Fibre, the largest Chlor-Alkali, Linen and Insulators player in India. Through its subsidiaries, UltraTech Cement and Aditya Birla Capital, it is also India’s largest cement producer and a leading diversified financial services player. At Grasim, there is an endeavour to create sustainable value for 24,000+ employees, 230,000+ shareholders, society and customers. The company reported consolidated net revenue of over US$10 billion and EBITDA of over US$1.8 billion in FY2019.
Maschinenfabrik Reinhausen GmbH, which was founded in 1868, is a fifth generation family-owned company from Germany. With 42 subsidiaries and now seven affiliated companies, MR has enjoyed success in global niches of electrical energy applications. The attractiveness of the company is highlighted by its numerous awards, including the Great Place to Work Award, the Innovation Award of the German Economy and the Industry 4.0 Award, and is EFQM Recognized for Excellence 5 Star. It is the global leader for power transformer automation and control solutions, while 50 per cent of the electricity generated worldwide flows through MR products. It is also the leading global player for CHCI outside China and known for its cutting edge technology. With 3,400 employees, MR generated a revenue of EUR750 million in 2018.