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Updated:05 Dec, 2019, 15:58 PM IST

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Updated:05 Dec, 2019, 16:01 PM IST

Grasim Industries, the flagship company of the Aditya Birla Group was incorporated on August 25,1947. It ranks among India's largest private sector companies. Starting as a textiles manufacturer in 1948, today Grasim’s businesses comprise viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90 per cent of its revenues and operating profits.

The Aditya Birla Group is the world’s largest producer of VSF, commanding a 24 per cent global market share. It is also the second largest producer of caustic soda (which is used in the production of VSF) in India.

In cement, Grasim through its subsidiary UltraTech Cement Limited has a capacity of 52 million tpa and is a leading player in India. In July 2004, Grasim acquired a majority stake and management control in UltraTech. One of the largest of its kind in the cement sector, this acquisition catapulted the Aditya Birla Group to the top of the league in India.

The amalgamation of Samruddhi Cement Limited (SCL) with UltraTech w.e.f. 1 July 2010 completed the restructuring of the cement business. Earlier, Grasim's cement business was demerged into SCL.The merger has created the largest cement company in India, providing a platform that will help in pursuing aggressive growth going forward.

UltraTech Cement Limited in 2013 announced to acquire the Gujarat Cement Unit of 4.8mtpa of Jaypee Cement Corporation Limited in Gujarat by way of a demerger, comprising of an integrated cement unit at Sewagram and Grinding Unit at Wanakbori. JCCL is a wholly–owned subsidiary of Jaiprakash Associates Limited (JAL).

Business area of the company includes:

Viscose staple fibre – Grasim is India's pioneer in viscose staple fibre (VSF), a man–made, biodegradable fibre with characteristics akin to cotton. An extremely versatile and easily blendable fibre, VSF is widely used in apparels, home textiles, dress material, knitted wear and non–woven applications.

Grasim's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka, with an aggregate capacity of 333,975 tpa.

Cement Grasim ventured into cement production in the mid 1980s, setting up its first cement plant at Jawad in Madhya Pradesh and since then it has grown to become a leading cement player in India.

Grasim’s cement operations today span the length and breadth of India, with 11 composite plants, eight split grinding units, four bulk terminals and 53 ready–mix concrete plants. All the plants are located close to sizeable limestone mines and are fully automated to ensure consistent quality. All units use state–of–the–art equipment and technology and are certified with ISO 9001 for quality systems and ISO 14001 for environment management systems.

Chemicals – Rayon grade caustic soda is an important raw material in VSF production. To achieve reliable and economical supply of this chemical, Grasim set up a rayon grade caustic soda unit at Nagda in 1972 with an initial capacity of 33,000 tpa. This has since grown to 258,000 tpa, making it the country’s second largest caustic soda unit.

Textiles – Grasim has a strong presence in fabrics and synthetic yarns, through its subsidiary, Grasim Bhiwani Textiles Limited, and is well known for its branded suitings, Grasim and Graviera, mainly in the polyester – cellulosic branded menswear. Its textile plants are located at Bhiwani (Haryana) and Malanpur (Madhya Pradesh).

Products and services offered by the company:

  • Viscose staple fibre (VSF)
  • Grey cement
  • White cement
  • Fertilizers
  • Chemicals
  • Mining
  • Fatty Alcohol/Fatty Acids
  • Insulators
  • Software
  • BPO
  • Finance and Insurance
  • Retail
  • Sponge iron and
  • Textiles.

Subsidiaries of the company:

  • Hindalco Industries Ltd.
  • Aditya Birla Nuvo Ltd.
  • UltraTech Cement Ltd.

Milestones:

2012 – Acquired assets of Terrace Bay, a paper grade mill, in a JV with Group company Thai Rayon, in July 2012

2011 – Acquired Domsjo Fabriker AB (Domsjo), Sweden, in a joint venture with Group Companies

2010 – Consolidation of the cement business under UltraTech Cement Limited

2009 – Grasim hives off its sponge iron business by way of slump sale

Grasim commissions a greenfield cement plant at Kotputli (Rajasthan).Vikram Cement and Aditya Cement win the Federation of Indian Mineral and Industries' 'Social Awareness Award for the year 2008–09'.

Grasim's plants Vikram Cement (Khor, Madhya Pradesh) and Aditya Cement (Sambhupura, Rajasthan), have won the TERI (The Energy and Resources Institute) CSR Award for their sterling work in 37 villages among 12,550 families in the area of healthcare.

Mr. Ratan Shah, the Group Executive President and Chief Marketing Officer, Cement and Mr. R. M. Gupta, Sr. Executive President, Vikram Cement and Aditya Cement, received the Award at the hands of the honourable President of India, Mrs. Pratibha Patil on 5 June at Vigyan Bhavan, New Delhi.

2007 – Eighteen ready–mix concrete plants commissioned.

2002 – VSF Research & Application Centre set up at Kharach in Gujarat.

2001 – Four Ready–Mix Concrete plants commissioned with an aggregate capacity of one million cubic meters.

2000 – The Lawson Competency Centre is set up as a division of Birla Consultancy & Software Services, the software arm of Grasim, following a tie up with Lawson Software (USA), among Fortune's top five private software companies. 

1999 – Grasim's viscose staple fibre (VSF) and rayon grade pulp units at Mavoor are closed down owing to lack of raw material. 

1996 – The first phase of Grasim's fourth VSF plant is commissioned at Kharach (Gujarat).

1995–Grasim commissions two Greenfield cement plants — Grasim Cement at Rawan (Chattisgarh) and Aditya Cement at Shambhupura (Rajasthan).  Vikram Woollens, spinning unit at Malanpur (Madhya Pradesh) set up. 

1993 – Vikram Ispat, India's third largest gas–based sponge iron plant is commissioned. Birla Consultancy & Software Services is set up, to provide IT consulting services and for software development. 

1992 – Grasim sets up Birla International Marketing Corporation (BIMC), a merchant exporter.

1991 – A third production line is added at Vikram Cement. 

1987  – Vikram Cement's second production line is commissioned.

1985 – Vikram Cement — Grasim's first cement plant goes on stream at Jawad (Madhya Pradesh).

1977 – Grasim's third rayon plant – at Harihar, Karnataka – goes into production.

1972 – VSF and Pulp plant at Harihar (Karnataka) based on in–house engineering and know–how. Nagda commences production of rayon grade caustic soda — for VSF production.

1968 – Rayon production commences at Mavoor, Kerala.

1963 – Composite textile mill at Bhiwani (Haryana). 

1962 – Inception of Engineering Division for plant and machinery for VSF.

1954 – VSF production commences at Nagda (Madhya Pradesh).

1950– Production of fabrics at Gwalior with imported man–made rayon.

Acquisitions and restructuring

  • 2010 Consolidation of the cement business under UltraTech Cement Limited
  • 2009 – Grasim hives off its sponge iron business by way of slump sale
  • 2007– Grasim divests Shree Digvijay Cement Company Limited. Textile units at Bhiwani transferred to a subsidiary, Grasim Bhiwani Textiles Limited.
  • 2006 – Formed joint venture company, Birla Jingwei Fibre Company Ltd. and acquired VSF plant in China.
  • 2005 – Acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc.
  • 2004 – Completion of the implementation process to de–merge the cement business of L&T and completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech.
  • UltraTech Board reconstituted with Mr Kumar Mangalam Birla taking over as Chairman. 
  • 2003 – The board of engineering major, Larsen & Toubro Ltd (L&T) decides to de–merge its cement business into a separate cement company, UltraTech CemCo Ltd., now UltraTech Cement Ltd.
  • 2002 – Grasim divests Gwalior textiles unit. Textile operations consolidated at Bhiwani to manufacture Grasim and Graviera brands. Merger of Dharani Cements Limited in Grasim Industries Limited.
  • 2001–Consultancy and software services spun off; becomes separate entity, Birla Technologies Limited.
  • Grasim acquires 10 per cent stake in L&T. Subsequently increases stake to 15.3 per cent by October 2002.
  • 1998 – Atholville Pulp Mill at Canada – a joint venture with Tembec Inc. Dharani Cements Limited. Shree Digvijay Cements Limited. The cement business of Group company, Indian Rayon and Industries Ltd transferred to Grasim. 

Achievements/ recognition:

  • Forbes magazine ranks Grasim among the fabulous 50 companies in Asia.
  • Ranked second for Best Corporate Governance Practices in Asia–Pacific by IR Global Rankings. Also ranked best company in Corporate Governance Practices in Basic Materials Industry, globally.
  • Ranked as the Best Investor Relations Company — Building Materials in Asia by Institutional Investors Magazine.
  • The CII – Leadership and Excellence Award in Safety, Health and Environment presented to Staple Fibre Division, Nagda.
  • The Asian Corporate Social Responsibility Award presented to Staple Fibre Division, Nagda. 
  •  The 2004 Stockholm Industry Water Award presented to Staple Fibre Division, Nagda.
  • The Deming Quality Award presented to Birla Cellulosic, Kharach.
  •  The IMC Ramkrishna Bajaj National Quality Award presented to Birla Cellulosic, Kharach.
  • Golden Peacock Environment Management Award presented to the VSF unit at Harihar.
  • Global Cement Award for lowest injury incidence rate presented to Grasim South, Reddipalayam. 
  • National Award for Quality Excellence in Indian Cement Industry presented to Grasim Cement, Raipur.
  • National Award for Electric Energy Excellence in Indian Cement Industry presented to Vikram Cement, Jawad

2007

IMC Ramakrishna Bajaj National Quality Special Award for performance excellence 2007 in the manufacturing category

2006

  • Greentech Environmental Excellence Award by Greentech Foundation
  • Distinguished Achiever Award to Mr. Ravi Uppal from the Aditya Birla Group
  • Young Achiever Award to Mr. Rakesh Jha from the Aditya Birla Group

2005

  • Environmental and Ecological Gold Award by Greenland Society
  • Golden Peacock Eco–Innovation Award by IOD
  • Safety awards for longest accident–free period (Membrane Cell) and lowest average frequency rate (CSA plant) by the Government of India
  • CII National Energy Management Award for the most energy efficient unit
  • Certificate for Strong Commitment to Excel CII–Exim Bank Award for business excellence
  • Rajiv Ratna National Award — Best Chief Executive Gold Award by Greenland Society
  • Greentech Environment Excellence Award by the Greentech Foundation
  • Rajiv Ratna National Award – Best Pollution Control Implementation Gold Award by Greenland Society
  • Greentech Safety Gold Award by the Greentech Foundation
  • National Safety Award by the Government of India
  • Indira Gandhi Memorial National Award by the Greenland Society
  • Vishkarma National Award by the Government of India

2004

Grasim, Nagda received the FICCI Annual Award 2003–2004 in recognition of corporate initiative in rural development.

Vikram Cement : TERI CSR Award presented to Vikram Cement.

Social Awareness Award won by Vikram Cement.

The first Indian unit to win the coveted TPM award from the Japan Institute of Plant Maintenance, Tokyo, in 1995

The Ramakrishna Bajaj National Quality award in 1998

The first cement unit in the world to receive IQRS level 5 rating from DNV, The Netherlands

The first cement unit in India to be certified ISO 14001 (1997) and OHSA 18001 (certifications from DNV, Rotterdam, The Netherlands, in 2001)

SA 8000 certification achieved

Aditya Cement

TERI CSR Award presented to Aditya Cement.

Social Awareness Award won by Aditya Cement

2004 – Aditya Limestone Mines wins the following awards at the Mines Safety Week 2004, Udaipur:

Mines machinery and maintenance: first

Safety, occupational health and VTC: first

Mine working: second

Environment protection, publicity, propaganda and housekeeping: second

Overall performance: second

1999 – Best productivity award by the National Productivity Council

2000 – National energy conservation award by Ministry of Power, Government of India Best energy efficient unit award by CII IQRS level 6 rating from DNV, The Netherlands

2001 – First in India to be certified ISO 9001:2000, by DNV, The Netherlands (2001) TPM Excellence award, first category, by JIPM, Tokyo.

Rajashree Cement2004 – Birla Super Cement received the Environment Excellence Award under the silver category by GreenTech Foundation

Birla Super Cement certified with the OHSAS 18001:1999 for their occupational health and safety management system by Det Norske Veritas (DNV)

 2001 – National award for 'Quality excellence in the Indian Cement Industry' from the National Council for Cement and Building Materials 

1999 – IMC Ramakrishna Bajaj National Quality award (certificates of merit)

Golden Peacock Environment Management Award presented to the VSF unit at Hariharz – Jamnalal Bajaj Uchit Vyavahar Puraskar for fair business practices

1993 – Rajiv Gandhi National Quality award

Viscose Staple Fibre Asian Corporate Social Responsibility Award presented to Staple Fibre Division for its 'Healthcare' programmes.

The CII – Leadership and Excellence Award in Safety, Health and Environment presented to Staple Fibre Division, Nagda. 

The Asian Corporate Social Responsibility Award presented to Staple Fibre Division, Nagda. 

The 2004 Stockholm Industry Water Award presented to Staple Fibre Division, Nagda

2004– The 2004 Stockholm Industry Water award

2003 – Deming Quality Control award

IMC Ramkrishna Bajaj National Quality award

IMC Ramkrishna Bajaj National Quality award — commendation certificate for Grasilene Division 

CII Exim Bank award — commendation for business excellence  Greentech Gold award for environmental excellence

2002– Chairman's Gold award for manufacturing excellence

CII Exim Bank award — commendation for commitment of TQM

Rajiv Gandhi National Quality award — best of all

ISO – 9001 certification

ISO – 14001 certification

2001 – Rajiv Gandhi National Quality award — commendation certificate

Corporate Citizen award for excellent contribution in the area of social development

Rajiv Gandhi National Quality award — commendation certificate Corporate Citizen award for excellent contribution in the area of social development 2000– Chairman's Silver award for manufacturing excellence Rajiv Gandhi National Quality award — commendation certificate

2000: Chairman's Silver award for manufacturing excellence

Rajiv Gandhi National Quality award — commendation certificate

Birla White Birla White wins The Golden Peacock Award for Corporate Social Responsibility.

Birla Cellulosic, Kharach The Deming Quality Award presented to Birla Cellulosic, Kharach.

The IMC Ramkrishna Bajaj National Quality Award presented to Birla Cellulosic, Kharach. 

VSF, Harihar

Golden Peacock Environment Management Award presented to the VSF unit at Harihar.

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