They believe that the global market is still pulling itself out of the covid 19 era and now is starting to settle in for a new normal way of doing things. Because of the impact covid had the IMF has reduced the growth of the economy by a lot but developed country have faced more of a decline compared to un developed. India and china are one of the main economies that will play a part in the global scale. Global supply chain prices have also became close to normal which will make the prices of commodities and other stuff go back to normal also. Banks and other things have also been seen as on the top of their hike of interest rates. The Indian economy is one of the more profitable economy in the coming years as government PLI schemes are supposed to benefit the economy a lot. Their CAGR is 16 percent. They have a place in various segments and they are planning to enter the paints and B2b commerce segments also. These 2 sectors were chosen for a reason as they are easily scaleable and profitable. They plan to heavily invest in chemical and specialty viscous and paints and B2B commerce to grow and scale this part. They have spent approximately 4k crore to enter into the decorative paints business. The upcoming years are supposed to set the platform and make their business that they have right now into leadership and also use their new business as a growth engine. 

Last year their growth was mainly driven by the special viscous sector and their chemical sector. Ultratech cement also reached new heights and so did Aditya brila renewable and finance companies. Because of covid 19 inflation also hit a high and this is setting the future for a low demand and price world. Despite all the geopolitical tensions government program such as PLI schemes are making india one of the fastest growing economy with the per capita expected to increase from 2500 to 5500 by 2030. Their viscous staple fibre demand was at its best because of the high demand for reusable products. Their chemicals sector also saw a good year and their speciality chemicals sector is starting to get back to normal. They have capacity expansion plans for all three of these sub segments which are now back on track. Their textile brand has also seen one of their best years with their products being available in 210 Exclusive Brand Outlets and 8,500 Multi-Brand Outlets. The business also went onto an online platform which saw a lot of growth and they also launched their own website. They are also looking to do some strategical expansions into mens and women clothing categories. They are planning big entrances into 2 more sectors which are decorative paints and B2B e commerce for building materials. For tech they are using it for 2 main things which is innovation and customer experience. They think that in the long term their big earner will be viscous and their chemical business. Grasim is the holding company of the Aditya burl group and their 3 main subsidiary’s are Aditya birla capital, Ultratech cement and Aditya burl renewables. Their stand alone business include Viscouse and chemicals and other stuff and textiles and high growth areas. 

They have more than a century worth of experience in the viscose center. Their viscose is one of the only companies in the world to pass the most stringent safety and purity criteria. Because of this they also have very high quality in their products. Their products are also 100 percent sustainable and bio degradable. Birla excel is one of the finest fibres there is. Grasim is also the leading producer of the yarn and their signature brand raysil yarn is made from imported wood pulp and is also 100 percent bio degradable. Their chemical business is engaged in a lot of things like caustic sodas, chlorine derivatives and specialty chemicals. These chemicals also have a place in several different industries including aluminium processing, pulp and paper manufacturing, textiles, water treatment, hydrogenated fats production, and downstream chemicals manufacturing. For their chlorine derivatives they supply to various different segments such as Pharma, Agrochemicals, Water Treatment, Food and Feed, Plastic additives, and Industrial sectors. Their plan for this sector in the future is to add more specialised products. For their specialty chemicals they are number one in india and top 3 in the world. They keep on expanding their product portfolio and so far they cater to different industries such as Construction, Coating, Composites, Electronics, Adhesives, as well as specialised sectors like Wind, Aerospace, Automotive, Marine, and Sports. Their new business of paints have a few key growth drivers which is the government program housing for all, Increasing premiunisation and shortened repainting cycles and increasing income levels. For their B2B e commerce for building materials their main difference from other competitors are Competitive pricing, Assured quality, Guaranteed delivery, Financing solutions and their growth drivers are The industry has a big value but digital penetration is less then 2 percent. The building materials segment has witnessed a car of 14 percent. And the government digital india scheme. For their textile business their fabric is always of the highest quality as their wool comes from merino sheep whcih is one of the finest sheep. Their textile is one of the leafing in india and they are starting to expand their penetration. They are the largest electrical insulator in India and they are in the top 4 largest in the world. They have 3 key subsidiaries which are Ultratech cement, Aditya birla capital, and Aditya birla renewables.

 Viscose is a more stable fibre compared to cotton and is supposed to be the fastest growing fibre in the next 5 years. In the Indian market viscose is also one of the fastest growing and has car of more then 2x compared to the other fibres. The viscous industry is currently facing softness as the whole textile industry is. They believe that the rise of viscous is linked to the rise of per capita income because then the people will change their fashion styles also. Over 96 percent of goods need chemicals. China is the main buyer of chemicals with them buying up to 40 percent of all chemicals world wide. India is slowly becoming a very good market for chemicals and the estir producing efficiency. Caustic soda price is driven by supply and demand and remained high during the year while there chemical derivatives remained low and their specialty chemicals were flat. The demand for caustic soda is supposed to remain the same and they plan to emated CAGR of this sector is 10 percent. Their main goal is to expand their capacity and increase theixpand their capacity by 17 percent. Their textile business is also going to expand as the income per capital grows because then people would want more fashion and premium stuff. Especially because the new generation is so in to social media that is also going to help them a lot. Their brand linen club is one of the most premium brands in india. They are trying to shift their focus from pure manufacturing to creating iconic brands. 

Summary

Grasim is the holding company of Aditya birla and has 3 main subsidiaries which are Aditya birla capital, renewables and Ultratech cement. Grasim itself has a few standalone business which are viscose, different type of chemicals but their main chemical is chlorine and alkali. They also have a textile business and insulators. They are planning to expand into the paint and building material online shopping industry. They believe that their growth is going to increase because of the rising per capita income in India. 

Personal thoughts

I think that Grasim is a very good company because they have successfully scaled up a lot of companies and they have a very good name in industries. I also think that they can scale their paint and the B2B e commerce for building material easily. I also think since that since they have experience in making new business they can explore different areas easily.