Grasim Industries Ltd. · NSE:GRASIM
Grasim Industries — Investor Presentation (February 2025)
60 slides from Grasim Industries's investor presentation, February 2025
Slide 1: Investor Presentation February 2025: Grasim, a Play on India Growth Story
Investor Presentation February 2025 GRASIM : A PLAY ON INDIA GROWTH STORY Grasim Industries Limited Investor Presentation 1
Slide 2: Safe Harbor
SAFE HARBOR This presentation is issued by Grasim Industries Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute any recommendation or for
Slide 3: Driven by Our Purpose. Led by Our Values
DRIVEN BY OUR PURPOSE. LED BY OUR VALUES Passion Seamlessness Integrity Commitment Speed OUR TO ENRICH LIVES BY PURPOSE BUILDING DYNAMIC AND RESPONSIBLE BUSINESSES AND INSTITUTIONS, THAT INSPIRE TRUST.
Slide 4: Aditya Birla Group and Our Key Group Companies
ADITYA BIRLA GROUP IS… A US$ 66 billion* conglomerate Consolidated market cap of over US$ 100# billion OUR KEY GROUP COMPANIES Across 6 continents and 41 countries Present across 20+ sectors 180+ state-of-the-art manufacturing units globally 187,000+ employees of over 100 nationalities 300M+ Loyal c
Slide 5: Grasim's Leadership Across Key Components of Growing Economy
GRASIM’s LEADERSHIP ACROSS KEY COMPONENTS OF GROWING ECONOMY INDIA’s AMRIT KAAL KEY FACTORS Infrastructure & Housing RMC player Cement Producer Producer of White Demand Cement based Putty Strongest and fastest growing Increasing Diversified Financial Services among major economies Financialisation A
Slide 6: Stronglomerate: Key Strengths
STRONGLOMORATE : KEY STRENGTHS 1 2 3 4 A Legacy of Values Track record of Diversified Sustainable and Trust creating large Businesses with Manufacturing growing Businesses Stable cashflow and Brands generation Increasing share of Operating history Revenue growth Positive Free Renewable power of 75+
Slide 7: Stronglomerate: Key Strengths
STRONGLOMORATE : KEY STRENGTHS 5 6 7 History of continuous Strong Balance Sheet Value Creation Dividend Distribution with “AAA/Stable” rating ~2x/~2.5x For Consolidated outperformance >60 years D*/E 0.31x in stock returns vs. benchmark^ over 10Yr/5Yr period * Excluding Borrowing related to Financial
Slide 8: Value Creation Strategy
VALUE CREATION STRATEGY Grasim Industries Limited Investor Presentation 8
Slide 9: Pillars of Our Strategy
PILLARS OF OUR STRATEGY BUSINESS COST SUSTAINABILITY LEADERSHIP LEADERSHIP INNOVATION CAPITAL Eco-friendly Attain leadership products & responsible ALLOCATION Continuous cost position in all our Focus on innovation optimisation businesses manufacturing in products and Investments in core processes a
Slide 10: Leadership Across Diversified Businesses
LEADERSHIP ACROSS DIVERSIFIED BUSINESSES Building Materials Businesses Other Businesses Cellulosic B2B Financial Chemicals Cement Paints Textiles Renewables Insulators Fibres E-Commerce Services Leading Leading UltraTech: 2nd largest Digital Aditya Birla Premium Presence in Leading producer of produ
Slide 11: Track Record of Creating Large Businesses & Brands
TRACK RECORD OF CREATING LARGE BUSINESSES & BRANDS Cellulosic Fibres Chemicals Building Materials Financial Services* Revenue ( ₹ crore) 14,949 71,953 8,213 34,008 5,428 21,324 8,953 951 FY13 FY24 FY13 FY24 FY13 FY24 FY18 FY24 OUR LEADING BRANDS *Financials considered post-merger of Aditya Birla Nuv
Slide 12: R&D and Innovation
R&D AND INNOVATION WORLD CLASS R&D FACILITIES COMMERCIALISED A VARIETY OF HIGH-VALUE PRODUCTS 1 5 2 1 Cellulosic Fibres Chemicals Corporate R&D R&D Centres R&D Centres R&D Centre Centre (Cellulosic (Chemicals & (Paints) Fibres) Others) Primary building blocks for Traceability of Pulp source from for
Slide 13: Sustainable Business Practices and Initiatives
SUSTAINABLE BUSINESS PRACTICES AND INITIATIVES SUSTAINABILITY RATINGS 71 BBB B 27.2 DJSI(4) MSCI CDP Sustainalystics Sustainable Products & Circular Economy Global ESG score ESG Ratings Climate Change, ESG Forest and Water ▪ Innovations - LivaEco, Lyocell, Dope dyed, Liva Reviva Risk Rating Security
Slide 14: Capital Allocation: Focus on Growth Businesses
CAPITAL ALLOCATION FOCUS ON GROWTH BUSINESSES Total Consolidated ₹11,388 Cr. Capex# (₹ Cr.) 20,199 23% 12,147 ₹50,178* Cr. 9,017 77% 4,860 3,954 ₹38,790 Cr. FY20 FY21 FY22 FY23 FY24 #Calculation based on the movement in gross block and CWIP. * Capex over 5-YR (FY20 to FY24). Grasim Industries Limite
Slide 15: Cost Leadership
COST LEADERSHIP CELLULOSIC FIBRES CHEMICALS PAINTS Strong Backward Integration Power Cost Efficient Manufacturing Caustic, pulp, power and Diversified sources (captive Right size plants with high steam + grid) of power with level automation and lean improving renewable energy systems mix Cost effici
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS Grasim Industries Limited Investor Presentation 16
Slide 17: Track Record of Consistent Growth
TRACK RECORD OF CONSISTENT GROWTH REVENUE (₹ Cr.) EBITDA (₹ Cr.) 1,39,944 1,30,978 20,837 1,17,627 19,666 17,772 17,723 95,701 15,766 76,404 FY21 FY22 FY23 FY24 TTM FY21 FY22 FY23 FY24 TTM FY21 FY22 FY23 FY24 TTM FY21 FY22 FY23 FY24 TTM Robust performance of Building Materials and TTM EBITDA decline
Slide 18: Consistent Growth Leading to Strong Financials
CONSISTENT GROWTH LEADING TO STRONG FINANCIALS CONSOLIDATED As on As on As on Particulars 31st Mar 2023 31st Mar 2024 31st Dec 2024 Net worth (₹ Cr.) 78,742 88,652 91,363 Debt - Equity Ratio 0.82x 0.97x 1.15x Debt* - Equity Ratio 0.15x 0.19x 0.31x Net debt* (₹ Cr.) 6,978 15,436 32,321 Total debts to
Slide 19: Cellulosic Fibres Business
CELLULOSIC FIBRES BUSINESS Grasim Industries Limited Investor Presentation 19
Slide 20: Cellulosic Fibres: Fastest Growing Fibre
CELLULOSIC FIBRES : FASTEST GROWING FIBRE GLOBAL INDIA 9.6% CAGR 3.9% CAGR INDIA CELLULOSIC FIBRE GROWING (0.2%) CAGR (0.4%) CAGR FASTEST WITH CAGR >2x 3.5% CAGR 5.4% CAGR CY15 CY24 CY15 CY24 OF OTHER FIBRES Synthetic Cotton Cellulosic Fibres Synthetic Cotton Cellulosic Fibres ~6% CELLULOSIC LIVA MO
Slide 21: Cellulosic Fibres: Innovation
CELLULOSIC FIBRES : INNOVATION Circular Fashion Traceability: Forest to Fashion Scan here to know more CANOPY HOT BUTTON - HIGHEST RATING 5 YEAR IN A ROW 2020 2021 2022 2023 2024 Grasim Industries Limited Investor Presentation 21
Slide 22: Cellulosic Fibres: Key Macro Trends
CELLULOSIC FIBRES : KEY MACRO TRENDS CHINA OPERATING RATE AND INVENTORY DAYS GLOBAL PRICES TREND ($/KG) 88 86 89 2.03 1.79 1.8 1.65 1.65 1.51 10 8 8 0.92 0.95 0.92 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 China Operating Rates China Plant Inventory CSF - CCF Cotton (Cotlook) PSF Globally there are
Slide 23: Cellulosic Fibres: Key Operational Metrics
CELLULOSIC FIBRES : KEY OPERATIONAL METRICS CELLULOSIC STAPLE FIBRE (CSF) SALES (KT) CELLULOSIC FASHION YARN (CFY) SALES (KT) 219 205 205 11.1 11.3 10.3 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Domestic CSF sales volume grew by 5% YoY, Specialty volumes CFY volumes grew by though overall volumes sh
Slide 24: Cellulosic Fibres: Financial Performance
CELLULOSIC FIBRES : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 4,125 3,934 494 3,715 402 331 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Revenue grew 6% YoY EBITDA declined by led by improved CSF CFY realisation 18% YoY mainly due realization, globally remains impacted to higher key RM and h
Slide 25: Chemicals Business
CHEMICALS BUSINESS Grasim Industries Limited Investor Presentation 25
Slide 26: Diversified Chemicals Portfolio
DIVERSIFIED CHEMICALS PORTFOLIO CHEMICALS PORTFOLIO CAPACITIES CHLOR- ALKALI FY26 1,168 Q1FY27 1,530 25 139 2% 14% 1,505 1,029 246 CHEMICALS CHLORINE DERIVATIVES PORTFOLIO Chlor-Alkali Chlorine Derivatives Speciality Chemicals Existing Capacity (KTPA) Capacity Expansion (KTPA) REVENUE BREAK-UP (%) S
Slide 27: Chemicals: Focus Areas
CHEMICALS : FOCUS AREAS CHLORINE INTEGRATION* LEVELS (%) 65% 62% Largest producer of Speciality Chemicals 60% (Epoxy Polymers & Curing Agents) in India. SPECIALITY 58% Evaluating further doubling of Epoxy CHEMICALS capacity with integrated ECH to maintain market share in the growing market. FY22 FY2
Slide 28: Specialty Chemicals: Epoxy Polymers and Curing Agents
SPECIALITY CHEMICALS : EPOXY POLYMERS AND CURING AGENTS EPOXY GROWTH DRIVERS PROTECTIVE COATING CONSTRUCTION RENEWABLES AUTOMOTIVE OTHERS India Industry Demand Mix (%) 26% 22% 19% 18% 9% 6% Market Share of Grasim's epoxy resin used in Total Patents filed GRASIM >50% 2 out of 3 cars 8 In India manufa
Slide 29: Chlor-Alkali: Key Operational Metrics
CHLOR-ALKALI : KEY OPERATIONAL METRICS CAUSTIC SODA SALES (KT) GRASIM – ECU (₹/TON) 303 34,041 299 295 31,383 30,650 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Caustic sales volume International average growth constrained to Caustic soda prices ECU grew by 8% YoY 1% YoY due to lower (CFR-SEA) improve
Slide 30: Chemicals: Financial Performance
CHEMICALS : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 2,226 329 1,996 2,054 264 273 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Specialty Chemicals EBITDA higher by 25% Chemicals business volume grew by 12% revenue grew by 12% YoY led by improved YoY, however lower realisation of Caustic Yo
Slide 31: Building Materials Business
BUILDING MATERIALS BUSINESS Grasim Industries Limited Investor Presentation 31
Slide 32: Cement Business
CEMENT BUSINESS Grasim Industries Limited Investor Presentation 32
Slide 33: India Cement Industry Growth Drivers
INDIA CEMENT INDUSTRY GROWTH DRIVERS India is the second largest cement but remains a highly underpenetrated market producer in the world, Global Cement Production Per capita Consumption (kg/annum) 1,410-1,420 1,110-1,130 32.2% 950-970 750-770 51.1% World Average: 500-550 1.6% 420-470 420-430 1.2% 1
Slide 34: Cement: Our Strengths, UltraTech India's Largest Selling Cement Brand
CEMENT : OUR STRENGTHS ULTRATECH : INDIA’S LARGEST SELLING CEMENT BRAND Leading Player of White One-stop building solution Scientifically engineered India’s Largest Largest manufacturer of Cement and Cement- 250 RMC plants in for the retail customer products to cater to Grey Cement Capacity RMC^ in
Slide 35: Cement: Performance Update
CEMENT: PERFORMANCE UPDATE During the year, Grey Domestic sales volume cement capacity expanded Q3FY25 EBITDA de-grew grew 10.5% YoY to 28.1 Green Power Mix by 25 MT (incl. India cement by 8% YoY at ₹3,131 Cr. million tons in Q3FY25 as improved to 33.4% capacity of 14.45 MTPA) till mainly impacted b
Slide 36: Decorative Paints Business
DECORATIVE PAINTS BUSINESS Grasim Industries Limited Investor Presentation 36
Slide 37: Decorative Paints: Growth Drivers
DECORATIVE PAINTS : GROWTH DRIVERS DECORATIVE PAINTS MARKET OPPORTUINITY Decorative Paints market is estimated to INDUSTRY SIZE UNORGANISED MARKET PER-CAPITA CONSUMPTION grow at CAGR of >10% over the next decade ₹ ~76,000 Cr. ~25% 3.5 kg (FY25e) (vs. Global average of 10 kg) Urbanisation Housing Dem
Slide 38: Road to ₹10,000 Cr. Revenue and Profitable Player
ROAD TO ₹ 10,000 Cr. REVENUE AND PROFITABLE PLAYER DESIGN DISTRIBUTE DELIGHT Industry first wide scale Building launch, offering Superior Pan India complete and distribution network Customer superior product across 6000 towns Industry leading experience portfolio across six 6 serviced by 150 depots
Slide 39: Birla Opus: Set to Become 2nd Largest Paints Brand
BIRLA OPUS : SET TO BECOME 2nd LARGEST PAINTS BRAND Biggest Launch in the Indian Decorative Paints Market MANUFACTURING 6 1,332 MLPA 120 500 MLPA Fully backward integrated plants with Greater than combined current scientists at state-of-the-art R&D center Option of adding at lower capital cost PROWE
Slide 40: New Growth Business Performance Update
Commercial production started at Chamarajanagar (Nov-24), out of total six plants four already operational with capacity of 866 MLPA Total capex spent 131 depots are operational NEW GROWTH stood at ~₹9,015 Cr. as across India, 2nd biggest on 31st December depot network in the BUSINESS 2024, ~90% of
Slide 41: B2B E-Commerce Business
B2B E-COMMERCE BUSINESS Grasim Industries Limited Investor Presentation 41
Slide 42: B2B E-Commerce for Construction Materials
B2B E-COMMERCE FOR CONSTRUCTION MATERIALS INDUSTRY OPPORTUNITY Market $100 bn <2% >10% MSME Demand Market Size of Digital 3-YR CAGR across enabling efficient Opportunity Penetration building material procurement and Drivers Construction Materials Industry categories wide reach VALUE PROPOSITION PROD
Slide 43: Birla Pivot: Strategy for Scale Up
BIRLA PIVOT: STRATEGY FOR SCALE UP ASPIRATION OF $1 BILLION REVENUE IN THREE YEARS BUILD FRONTLINE PRIVATE FINANCIAL UNASSISTED SUPPLY SALES LABELS CREDIT JOURNEYS Deep expertise Focus on good Scale up “Birla Pivot” Scale up Financial Increase ease of and partnerships, customer experience brand acro
Slide 44: Birla Pivot: Performance Update
BIRLA PIVOT : PERFORMANCE UPDATE Continuous Launched customised upgradation of the Launched ‘Birla Pivot Healthy revenue scale self-serve tools driving Logistics platform for Bathware’ expanding up across categories, digital adoption enabling a B2C like private label portfolio geographies and new ac
Slide 45: Building Materials: Financial Performance
BUILDING MATERIALS : FINANCIAL PERFORMANCE REVENUE (₹ Cr.) EBITDA (₹ Cr.) 18,784 17,013 16,683 3,261 2,806 1,886 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 EBITDA impacted by Revenue grew by 10% Cement business lower realisation in YoY to ₹18,784 Cr. led revenue stood at Cement Business and by growth
Slide 46: Financial Services Business
FINANCIAL SERVICES BUSINESS Grasim Industries Limited Investor Presentation 46
Slide 47: Financial Services: Our Strengths
FINANCIAL SERVICES : OUR STRENGTHS ADITYA BIRLA CAPITAL : DIVERSIFIED FINANCIAL SERVICES PLATFORM NBFC Housing Asset Management Life Health Insurance Insurance ₹ 1,46,151 Cr. ₹ 5,03,377 Cr. ₹ 16,942 Cr. Total Lending Portfolio1 Total AUM2 9MFY25 Gross Premium3 ₹ 77,011 Cr. ₹ 3,83,911 Cr. 4.5%/8.8% R
Slide 48: Aditya Birla Capital: Omni Channel Architecture
ADITYA BIRLA CAPITAL : OMNI CHANNEL ARCHITECTURE ABCD*-D2C platform Robust & agile for customers Udyog Plus-B2B digital platforms platform for MSMEs B2D platform for channel partners One ABC Dedicated customer 866 co-located locations branches across 238 service managers for cross One locations sell
Slide 49: ABCD D2C Platform: FY25 Key Feature Launches
ABCD D2C PLATFORM : 4.1 Mn+ APP CUSTOMERS ABCD APP & REFRESHED WEBSITE LAUNCHED IN APRIL 2024 FOR COMPLETE OMNICHANNEL2 EXPERIENCE Everything Finance As Simple As ABCD Pocket Insurance Affordable coverage against everyday risks 4.1Mn+ 2.0Mn+ 24+ DigiGold Gifting App VPAs3 Product FY25 KEY FEATURE LA
Slide 50: Aditya Birla Capital: Financial Performance
ADITYA BIRLA CAPITAL : FINANCIAL PERFORMANCE TOTAL LENDING BOOK* (₹ Cr.) ASSET QUALITY TREND# (₹ Cr.) 1,46,151 98,444 1,14,205 1,17,700 1,37,946 1,15,139 2.27% 2.59% 2.50% 2.26% 1.74% 1.98% 95.15% 95.76% 95.75% Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Gross Stage 1 Gross Stage 2 Gross Stage 3 TOTAL
Slide 51: Aditya Birla Capital: Financial Performance
ADITYA BIRLA CAPITAL : FINANCIAL PERFORMANCE REVENUE# (₹ Cr.) PAT^ (₹ Cr.) 10,252 9,396 8,786 829 703 675 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 Consolidated Revenue stood at ₹9,396 Cr. up 7% YoY, All segments reported PAT^ for the quarter as consolidated robust growth: NBFC up by 12% YoY, stood
Slide 52: Others
OTHERS Grasim Industries Limited Investor Presentation 52
Slide 53: Other Businesses: Financial Performance
OTHER BUSINESSES* : FINANCIAL PERFORMANCE REVENUE* (₹ Cr.) EBITDA* (₹ Cr.) 782 778 815 125 99 45 Q3FY24 Q2FY25 Q3FY25 Q3FY24 Q2FY25 Q3FY25 TEXTILES Revenue de-grew by 3% YoY to ₹558 Cr. with EBITDA of ₹6 Cr. mainly due to exceptionally high input prices in linen segment RENEWABLES The cumulative ins
Slide 54: Appendix
APPENDIX
Slide 55: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT Particulars (₹ Cr.) Q3FY25 Q3FY24 % Change Q2FY25 % Change Revenue from Operations 34,793 31,965 9 33,563 4 Other Income 369 256 44 395 -7 EBITDA* 4,668 5,150 -9 4,042 15 EBITDA Margin (%) 13% 16% 12% Finance Cost 699 433 61 581 20 Depreciation 1,532 1,244 23 1,496 2 Sh
Slide 56: Standalone Income Statement
STANDALONE INCOME STATEMENT Particulars (₹ Cr.) Q3FY25 Q3FY24 % Change Q2FY25 % Change Revenue from Operations 8,120 6,400 27 7,623 7 Other Income 102 120 -16 1,294 EBITDA 372 643 -42 1,619 EBITDA Margin (%) 5% 10% 18% Finance Cost 181 107 69 161 12 Depreciation 421 296 42 406 4 PBT (230) 239 1,052
Slide 57: Standalone Capex Plan
STANDALONE CAPEX PLAN Planned Capex Capex Spent Particulars (₹ Cr.) FY25 9MFY25 Cellulosic Fibres Business 826 319 Capacity Expansion (including debottlenecking) 218 50 Modernisation and Maintenance Capex 608 269 Chemicals Business (A+B+C) 800 462 (A) Capacity Expansion - Chlor-Alkali & Chlorine Der
Slide 58: Balance Sheet
Standalone (₹ Cr.) BALANCE SHEET Consolidated (₹ Cr.) 31st Dec'24 31st Mar'24 EQUITY & LIABILITIES 31st Dec'24 31st Mar'24 (Unaudited) (Audited) (Unaudited) (Audited) 52,434 52,115 Net Worth 91,363 88,652 - - Non Controlling Interest 58,748 50,286 - - Borrowings related to Financial Services 1,26,15
Slide 59: Grasim Group Structure
GRASIM GROUP STRUCTURE Grasim Industries Limited Cellulosic Fibres Chemicals New Businesses Textiles Overseas Pulp & Fibre Subsidiaries JVs Staple Fibre Vilayat Paints Rishra UltraTech Cement (57.27%)** AV Group NB Inc. Grey Cement Vilayat Nagda Panipat Malanpur (Canada) (45.0%)* o India Operations
Slide 60: Thank You
THANK YOU Investor Relations Team grasim.ir@adityabirla.com +91 22 2499 5657
Grasim Industries — Investor Presentation (February 2025) on 6ix