The merger proposal of the Aditya Birla Chemicals (India) Limited (ABCIL) for the swap ratio of 1 share of Rs. 10 each of Grasim for every 16 shares of Rs. 10 each of ABCIL has been approved by Grasim’s BoD. Grasim will issue Rs. 14.62 lakh new shares, which will increase its share capital to Rs. 93.31 crore, a press release from Grasim informed. With an installed capacity of around 452,500 tonnes per annum, Grasim is a leading manufacturer of caustic soda, which is inter-alia used as an input in the manufacturing of viscose staple fibre (VSF), which is a major business of Grasim. ABCIL is one of the leading chlor-alkali companies in India with three manufacturing plants located at Rehla (Jharkhand), Renukoot (UP) and Karwar (Karnataka) with an installed capacity of around 293,000 tonnes of caustic soda per annum and 110 MW of captive power plant. The merger of ABCIL with Grasim will consolidate Aditya Birla Group’s chlor-alkali business into Grasim, and strengthen its existing portfolio of VSF, caustic soda and allied chemicals in the standalone company.
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