Business Description

Grasim Industries Ltd. is involved in the production and sale of cement and chemicals. Ghanshyam Das Birla founded the company on August 25, 1947. It is headquartered in Mumbai. It operates in the following segments: Cement, Chemicals,  and Financial Services. Viscose Staple Fibre offers wood pulp, yarn, and other fibers.

Chemicals produce allied chemicals and caustic soda as well as epoxy. Cement provides grey cement, white concrete, and other allied products. Financial Services is responsible for non-bank financial services such as life insurance, equity and commodity broking, housing finance,  and wealth management. The Other segment deals with agribusiness, insulation, textiles, and solar power.

Key Financials

Revenue (US$ Mn)

• Grasim Industries Limited’s annual revenue for 2021 was US$ 9,605 Mn, a -9.46% decrease from 2020
• The annual revenue generated by Grasim Industries Limited in 2020 was US$ 10,608 Mn
• At a 4.01% increase, Grasim Industries Limited’s annual revenue of US$ 11,024 Mn was indexed in 2019
• Grasim Industries Limited generated total revenue of US$ 10,599 Mn in 2018

Operating Income (US$ Mn)

• US$ 1,982 Mn was Grasim Industries Limited’s operating income in 2021, a 25.85% increase from 2020 figures
• Grasim Industries Limited indexed a -63.2% decrease in operating incomes from 2019, amounting to US$ 1,575 Mn in 2020
• Grasim Industries Limited generated an operating income of US$ 4,280 Mn in 2019
• An operating income of US$ 1,837 Mn was indexed by Microsoft Corporation in 2018

Net Income (US$ Mn)

• US$ 580 Mn was the net income generated by Grasim Industries Limited in 2021
• Grasim Industries Limited’s net income for 2020 was US$ 590 Mn, a -4.99% decrease from 2019
• From 2018’s net incomes, Grasim Industries Limited registered a 143.53% increase in 2019, amounting to US$ 621 Mn
• A net income of US$ 255 Mn was generated in 2018 by Grasim Industries Limited

Operating Margin %

• Grasim Industries Limited’s operating margin for 2021 was 21%, a 35.53% increase from 2020
• The operating margin generated by Grasim Industries Limited in 2020 was 15%
• At a 124.86% increase, Grasim Industries Limited’s operating margin of 40% was indexed in 2019
• Grasim Industries Limited generated an operating margin of 18% in 2018

Gross Margin %

• 20% was Grasim Industries Limited’s gross margin in 2021, a -59.21% decrease from 2020 figures
• Grasim Industries Limited indexed a -20.6% decrease in gross margins from 2019, amounting to 48% in 2020
• Grasim Industries Limited generated a gross margin of 60% in 2019
• A gross margin of 48% was indexed by Microsoft Corporation in 2018

SWOT Analysis

Strengths

Grasim has a strategically placed manufacturing facility to support its business operations. UltraTech Cement, the company’s subsidiary, operates 23 integrated plants and 26 grinding units. It also has seven bulk terminals and more than 100 ready-mix concrete (RMC), plants in India, Bahrain, Bahrain, Sri Lanka, and the UAE. These manufacturing plants are all fully automated and strategically located near limestone mines. This allows for the consistent production of high-quality raw materials.

Grasim has Viscose Staple Fibre plants (VSF), at Nagda, Madhya Pradesh; Harihar, Karnataka; Karachi, Vilayat, Gujarat. Rehal, Jharkhand, Renukoot in Uttar Pradesh, Ganjam in Odisha, Nagda, Madhya Pradesh, Karwar, Karnataka, Vilayat Veraval, and Karachi, Gujarat, and Balabhadhrapuram (Andhra Pradesh) are some of the chemical plants that the company owns.

Grasim has textile plants in Rishra (West Bengal); Malanpur, and Madhya Pradesh. Shahad, Maharastra. Insulators manufacturing plants are located at Rishra West Bengal and Halol. Indo-Gulf Fertilisers provide agro-solutions. They manufacture various agro-inputs such as fertilizers, seeds, agrochemicals, and specialty products. Grasim can control its production and operational costs better through a strategic manufacturing setup. Grasim also has a high manufacturing capability that allows it to meet large-scale demand.

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