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Grasim Industries > Company History > Diversified > Company History of Grasim Industries - BSE: 500300, NSE: GRASIM

Grasim Industries

BSE: 500300|NSE: GRASIM|ISIN: INE047A01021|SECTOR: Diversified
Dec 06, 16:00
-0.8 (-0.1%)
VOLUME 50,134
Dec 06, 15:57
-1.3 (-0.17%)
VOLUME 1,707,058
Company History - Grasim Industries
 - The Company was Incorporated on 25th August, at Gwalior.  The
 Company Manufacture viscose staple fibre, carbon-di-sulphide,
 sulphuric acid, sodium sulphate, rayon and cotton fabrics, rayon
 grade pulp, paper, etc.  The company also owns an engineering
 - 1,50,000 Right Pref. shares issued at par in prop. 3:1, 24,50,000
 Right Equity shares issued at par in prop. 49:1. 
 - 1,33,000 Right equity share of 1951 subscribed.  In October, 10
 lakh Rights equity shares issued at par (Prop. 5:6 Equity or Pref.).
 - In September 1955, 4,57,000 Right Equity shares issued at par
 (Prop. 1:2.50 equity and/or Pref.)
 - 50,000 Pref. shares issued at par in propn. 1:50 (Only 765 shares
 taken up).
 - The Company purchased a cotton textile mill at Bhiwani (Punjab)
 with an installed capacity of 18,000 spindles and 286 looms and named
 it as Bhiwani Textile Mills.
 - The Company applied to Government for permission to establish a
 polynosic fibre unit in Harihar (Karnataka) with a production
 capacity of 100 tonnes per day.
 - In December, 5,00,000 bonus equity shares issued in propn. 1:10.
 - In August 2,00,000 - 9.3% Pref. shares offered to public.  In
 August 1970, 11,00,000 bonus equity shares issued in propn. 1:5.
 - 765 `B' Pref. and 1725 `A' Pref. shares redeemed on 31.3.1972.
 - The Company received a letter of intent for setting up a polynosic
 fibre unit at Harihar (Karnataka) with a production capacity of 100
 - The Company revalued the machinery and equipment of its staple
 fibre and pulp units.  The Company again revalued the major items of
 plant and machinery installed in its staple fibre and
 pulp division as on 1st April, 1980.  The value of the assets of the
 Company's caustic soda plant and new power plants situated at
 Birlanagram, Nagda were revalued as on 1st April, 1985.
 - 39,60,000 Bonus equity shares were issued in prop. 3:5.
 - 52,80,000 Bonus Equity shares issued in the prop. 1:2.
 - The Company participated in a joint venture project in Bihar for
 the manufacture of 33,000 tonnes of caustic soda per annum. For this
 purpose, a new Company under the name and style Bihar Caustic &
 Chemicals, Ltd. was formed.
 - 20,00,000 No. of Equity Shares issued (Prem. Rs 25 per share)
 1,00,000 shares reserved and allotted to employees; 3,64,918 shares
 allotted as Rights to shareholders who were individuals
 in prop. 3:25 and 15,35,082 shar es offered to public.
 - The Company joined as co-promoter with Tamil Nadu Industrial
 Development Corporation, Ltd. for setting up an aluminium fluoride
 manufacturing plant in Ramnad, a backward district in
 Tamil Nadu.  For this purpose, a new company under the name and style
 Tamil Nadu Fluorine & Allied Chemicals, Ltd. was incorporated.
 - The Company entered into a collaboration agreement with the State
 Industrial and investment Corporation of Maharashtra  (SICOM) for
 setting up a gas-based sponge iron project with a
 capacity of 4 lakh tonnes per annum.
 - The Company issued 18,75,000-13 1/2% convertible bonds of the face
 value of Rs 160 each f or an aggregate amount of Rs 30 crores.  Rs.
 40 out of each bond is convertible into 2 equity
 shares of Rs 10 each at a premium of Rs 10 per share on 1st April
 1983.  The balance of Rs 120 per bond will be repayable at par in 5
 equal annual instalments commencing from the 8th year
 from the date of allotment.
 - The Company received a letter of intent for the manufacture of
 stable bleaching powder with an annual capacity of 10,000 tonnes to
 be implemented in two phases of 5,000 tonnes per annum each. 
 - A collaboration agreement was entered into with LVD Company N.V.,
 Belgium for the manufacture of sophisticated balers for the man-made
 fibre industry.
 - The Company joined as one of the co-promoters in Indo-Gulf
 Fertilisers and Chemicals Corporation, Ltd. (INDOGULF), which set up
 a project for the manufacture of 1,350 tonnes per day of ammonia and
 2,200 tonnes per day of urea at Jagdishpur, Uttar Pradesh.
 - The Company entered into collaboration agreement with Nevmag of W.
 Germany for the manufacture of a wide range of equipments from
 spinning down to cutter for polyester, polyamide, polypropylene and
 acryulic fibre machineries.  The Company also explored the
 possibilities for entering into collaboration for the manufacture of
 specialised equipment for petrochemical and other chemical
 - Stable bleaching powder (SBP) was marketed under the brand name
 Vikram SBP and a beginning was also made in the exports market.
 - The name of the Company was changed from Gwalior Rayond Silk Mfg. 
 (Wvg.) Co., Ltd. to the present one with effect from 22nd July.
 - The plant continued to remain closed.  The strike by workmen since
 7th July, 1985 was called off consequent to a conciliation agreement
 arrived at on 27th October, 1988 and resumed
 production on 29th June, 1989.
 - A letter of Intent was received to install 5,000 worsted spindles
 at Malanpur in Bhind District, a backward A class area. The licensed
 capacity of caustic soda plant was re-endorsed at
 90,000 tonnes per annum.
 - The Company proposed to participate in the Mangalore Refinery and
 Petrochemicals Ltd., a joint venture formed by Indian Rayon &
 Industries Ltd., Hindustan Petroleum Corporation, Ltd. to the extent
 of 12% in the equity capital of the Company.  This joint venture was
 to have a capacity of 3 million tonnes per annum a petrochemical
 complex to produce a minimum of 2,50,000 tonnes per annum of
 - A letter of intent was received to set up a gas-based sponge iron
 project with an installed capacity of 6 lakh tonnes per annum in the
 Raigad District of Maharashtra.
 - Approval from Government was received for setting up a project for
 the manufacture of colour T.V. glass shells in foreign technical
 collaboration with the Asahi Glass Company, Ltd.,
 - Kerala Spinners, Ltd., Gwalior Properties & Estates Ltd. (GPEL) and
 Seshasayee Properties Ltd. (SPL) are the subsidiaries of the Company. 
 During the year, Turquoise Investments & Finance Ltd.  and Trapti
 Trading & Investments Ltd. became subsidiaries of GPEL and SPL
 - The Company allotted 60,00,000 - 14% non-convertible secured
 debentures (VI series) of Rs 100 each.  These debentures are
 redeemable at a premium of 5% of face value in three annual 
 instalments commencing from 8.12.1994.
 - The Engineering Division entered into a technical agreement with
 Thai Acrylic Fibres, Ltd. for providing technical know-how. M/s.
 Andhra Pradesh Rayons entered into a technical collaboration
 agreement with the Company for the supply of 45 tonne/day viscose
 staple fibre plant on a turnkey basis valued at Rs 38 crores.
 - The Company introduced successfully during the year Grasim
 MASTERWEAR readymade shirts and trousers.
 - Steps were initiated to set up the poly aluminium chloride and the
 chlorosulphonic acid projects.  The Poly Aluminium Chloride (PAC)
 project was commissioned in the 3rd quarter of 1990.  The
 Commissioning of the Chlorosulphoric Acid project was delayed
 because of a strike in the supplier's plant which resulted in the
 delayed delivery of plant and machinery.
 - It was proposed to set up a hydrogen peroxide project with an
 installed capacity of 6,000 tonnes per annum at Nagda in
 collaboration with a renowned company of U.S.A.
 - During December, the Company offered 92,85,714 - 12.5% secured
 redeemable partly convertible debentures of Rs 70 each for cash at
 par of which the following were reserved for allotment on a
 preferential basis:
 - (i) 71,42,857 debentures to the equity shareholders of the Company
 in the proportion 7 deb: 40 equity shares and
 - (ii) 4,64,286 debentures to employees (including Indian working
 directors)/workers of the Company on an equitable basis. The
 remaining 16,78,571 debentures along with the unsubscribed portion,
 if any, from the preferential quota were to be offered to the public.
  Additional 13,92,857 debentures allotted to retain oversubscription.
 - The convertible portion of Rs 35 out of the face value of each
 debenture was converted into one equity share of Rs 10 each at a
 premium of Rs 25 per share on 31st March, 1989.  The non-convertible
 portion of Rs 35 out of each debenture was to be redeemed at par in
 three annual instalments of Rs 10, Rs 10 and Rs 15 on the expiry of
 7th, 8th and 9th years respectively from
 the date of allotment of debentures.
 - The cotton textile mill unit's working was affected by protracted
 labour unrest and strike by workmen.
 - The Company issued 115,00,000-14% secured redeemable
 non-convertible debentures of Rs 100/- each (VIIth Series) on rights
 basis to resident Indian equity shareholders, in the ratio of 245
 debentures for every 1000 equity shares held. Additional 15,74,982
 debentures were allotted to retain over subscription.  As per the
 terms, the entire amount of Rs 100/- will be redeemed in three equal
 annual instalments beginning at the end of 6th year from the
 allotment date with a premium of Rs 5/- per debenture.
 - During September, the Company issued 1,04,16,666-12.5% secured
 redeemable partly convertible debentures (IInd Series) of Rs 120/-
 each to the existing equity shareholders in the ratio of 21
 debentures for every 100 equity share held.  All were taken up. 
 Additional 15,62,500 debentures issued to retain oversubscription. 
 5,20,834 debentures were also offered to employees/workers of the
 Company but only 61,940 debentures were taken up.  The balance of
 4,58,894 debentures were allowed to lapse.
 - As per the term of issue, Rs 60 of each debenture was converted
 into one equity share of Rs 10 each at a premium of Rs 50 per share
 at the end of six months from the allotment date,
 i.e. on 1.6.1990.  The balance Rs 60/- of each debenture was to be
 redeemed at par in three equal annual instalments of Rs 20/ - each at
 the end of 7th, 8th and 9th years from the allotment
 date.  This issue was made to part fi nance the sponge iron project.
 - The Company received two letters of intent for setting up new green
 field site portland cement plants each having an annual capacity of
 one million tonnes-one in Baloda Bazar, Dist. Raipur
 (M.P.) and the other at Shamb hupura, Dist. Chittorgarh (Rajasthan).
 - The Company issued 1,30,00,000-14% secured redeemable
 non-convertible debentures of Rs 100/- each (IXth Series) and
 25,00,000-14% secured redeemable non-convertible debentures of Rs.
 100/- each (VIIIth Series) to finance new cement plant at Raipur
 - The Engineering division undertook to manufacture equipments for
 dairy and sponge iron plants.  It also manufactured and supplied the
 state of the art technology lift-box design baling
 press with autorotation and auto-bale weighing device.  It also
 explored the possibility of supplying know-how and consultancy
 services along with plant and machinery to existing and potential
 manufacturers of rayon - both fibre and filament, in China.
 - The working of the mill was affected to some extent by labour
 problem leading to a forced lock-out in the spinning section since
 February 17th, 1992 and resumed to work with effect from
 10th October.
 - The Company issued and allotted 15,00,000-14% non-convertible
 debentures (XI Series) of Rs 100 each.  These are redeemable in three
 instalments commencing from 26th March, 1997.  The Company issued and
 allotted 155,00,000-18% non-convertible debentures of
 Rs 100 each (X Series) redeemable in three annual instalments
 Commencing from 18th October, 1997.
 - An aggregate of 6,933,745 GDS were offered at an initial price of
 US .98 per GDS by managers concurrently to (i) qualified
 institutional buyers (UIBs) in the USA and (ii) persons in
 offshore transactions.
 - The Company proposed to issue Euro equity to the tune of UA 0
 million to investors abroad.  The Company proposed to issue another
 Euro equity to the tune of US 5 million.
 - The cotton textile mill unit undertook to set up a new unit Elegant
 Spinners with 14,000 spindles.
 - The Company issued the following debentures on private placement
 basis: (i) 160,00,000-16.5% (xiii Series) redeemable in 3 instalments
 commencing from 11.7.2000, (ii) 70,00,000-15%
 debentures redeemable in 3 annual instalments commencing from
 - A new range of fabric under the brand name ADONIS was introduced.
 - Birla Capital International AMC Ltd. an asset management Company
 was set up as a joint venture with Capital Group International Inc.,
 a major US based investment management
 organisation.  The Unit launched Birla Advantage Fund in February.
 - The Company undertook to set up joint venture power projects to be
 set up in U.P. & M.P.  These are to be set up in Collaboration with
 Powergen Plc., U.K. for Rosa power project of
 1000 MW and Bina Power project of 1000 MW detailed techno economic
 study was undertaken.
 - The Company undertook to set up a joint venture, Alexandria Carbon
 Black Co., in Egypt to produce 20,000 tpa of Carbon black at full
 capacity with an equity participation of an approximate value of US $
 2.25 million, i.e. Rs 7.10 crores representing 15% of the total equity
 - A new synthetic denim with an universal blend of polyster, viscose,
 cotton was launched under the brand name SUMO.
 - The Cotton textile division launched a novel denim brand `Jusilk'
 using a blend of polyester and jute, along with a unique water
 repellent denim.
 - In order to establish its own viscose fibre spinning facilities the
 Company entered into a leave and licence agreement with Eastern
 Spinning Mills & Industries, Ltd., Calcutta for running its spinning
 unit for a period of 3 years from 27th July, 1984.  This spinning
 unit had an installed
 capacity of about 25,000 spindles. 
 - A new division, Vikram Premium RMC was formed for production of
 Ready Mixed Concrete.  The Company applied for an industrial licence
 to set up a gas-based fertiliser plant for the 
 manufacture of 4.5 lakh tonnes of ammonia and 7.5 lakh tonnes of urea
 per annum in U.P.
 - The flagship company of the Aditya Birla group, Grasim is setting
 up yet another plant to manufacture rayon grade pulp.
 - Grasim Industries Ltd., a flagship company of the Aditya Birla
 Group, has reached final stages of negotiation with the Rajasthan
 Government for setting up 200 TPD rayon grade pulp 
 plant at Amarpura, about 100 km from Bikaner.
 - Grasim Industries Ltd., has signed an agreement with National
 Securities Depository Ltd., (NSDL) and MCS Ltd. to dematerialise its
 shares.  Grasim has its in-house share department.
 - The company is setting up a new plant in Pondicherry for the
 production of radial tyres.
 - Grasim Industries Limited (GIL) has claimed to have developed a
 synthetic suiting for the first time in the country.
 - Vikram Ispat, a unit of Grasim Industries and a part of the Aditya
 Birla group, has bagged Maharashtra Government's export award for
 highest export of hot briquetted iron (HBI) which is
 an integral ingredient of the steel sector.
 - Shareholders of Indian Rayon Ltd. will get three shares of Grasim
 Ltd. for every ten shares held, as a part of the cement business
 restructuring by the A.V. Birla group.
 - Vikram Cement, a unit of Grasim Industries, Mandasaur has won the
 IMC's Ramakrishna Bajaj National Quality Award Trophy, and Hindustan
 Lever's unit at Chindwara has bagged its certificate of merit for
 - Grasim Industries Ltd. has suspended production at its pulp and
 staple fibre units located at Mavoor, Kerala for want of raw
 - Grasim Industries Ltd, the Aditya Birla group company, has launched
 market-seeding for its new micro grade viscose staple fibre - Grasi
 - Grasim Industries Ltd. proposes to merge its wholly owned
 subsidiary Dharani Cements Ltd. with the company.
 - The Company has hived off the Software Division, called Birla
 Consultancy and Software Services into a separate subsidiary.
 - The Company has launched Kool Wool, a polyester viscose blended
 suiting fabric, under the Graviera Suiting umbrella name.
 - The Textiles division of Grasim Industries Ltd. has introduced a
 trouser fabric, Aquasoft.
 - Dharani Cements Limited, a wholly owned subsidiary of the company,
 has been amalgamated with the Company under the Scheme of Arrangement
 in terms of section 391/394 of the Companies Act 1956 effective from
 1st November, 2000.
 - The Company has transferred its Software Division to its wholly
 owned subsidiary company Birla Technologies Limited, effective 1st
 - Birla Technologies ceases to be subsidiary of Grasim Industries
 -Grasim, Pantaloon in technical tie up to manfacture Viscose Staple
 Fibre (VSF)
 -Grasim, L&T set up joint task force for logistics, promotion and
 procurement of raw materials
 -Acquires additional 2.84% stake of L&T, increases the stake to
 -Stops production at Staple Fibre Plant located at Nagda due to water
 -Restarts production at Staple Fibre Plant located at Nagda
 - Grasim Industries hikes its holding further in Larsen & Toubro
 (L&T) which stands at 13 per cent as on June 30
 -Approves sale of equity shares in Mangalore Refineries to ONGC
 -Mops up Rs 50cr through inverse floater
 -Acquires 1.26 lac shares of Larsen & Toubro, takes its stake to
 -Increases its stake in L&T to 15.15 per cent
 -SEBI asks Grasim to put on hold L&T open offer
 -Sends legal notice, challenging Larsen & Toubro's attempt to demerge
 the cement business into a separate company
 -Puts forward alternate proposal for L&T cement demerger
 -Agrees to pay Rs 130 per share for acquiring the cement company
 formed by splitting engineering and construction major Larsen &
 -Acquires L&T's cement business
 -SEBI clears the hurdle, allows Grasim to make open offer for L&T
 -Enhances L&T open offer size by 10.49 lakh shares
 -Delists from Bangalore Stock Exchange
 -Grasim's open offer for L&T pie fetches poor response, grabs only 2%
 through open offer
 -Grasim mops-up -ml loan from SBI
 -Revises open offer price for L&T cement division to Rs 170 per share
 from Rs 130 per share
 -Resumes operations at Nagda plant
 -Divests its holding in Indo Gulf Fertilisers Ltd (IGFL), holding in
 the company comes down from 12.6% to nil
 - Re issuance of GDR
 -Appointed Shri Y P Gupta as an Additional Director.
 -Delisted the shares of the Company from its Stock Exchange.
 -Shri Shailendra K Jain has been reappointed as the Whole Time
 Director of the Company for a period of 3 years wef December 1,
 -Acquires majority stake in Ultra Tech CemCo Ltd (Ultra Tech), the
 demerged Cement business of L&T
 -AV Birla Group flagship Grasim Industries' textile and apparel unit
 has launched 'Venetia' range of fabric, with the promise of
 delivering international class suite-length at an 'affordable' Rs
 -Grasim Industries signs an agreement with ST Telemedia & TM
 International to acquire stake in Idea Cellular
 -Delist from the Madhya Pradesh Stock Exchange (MSE), with effect
 from December 13, 2004
 - Grasim acquired St. Anne Nackawic Pulp Mill, Canada with Tembec
 - Grasim formed joint venture company, Birla Jingwei Fibres Company
 Limited and acquired VSF plant in China.
 - Grasims commissioned  Eighteen ready-mix concrete plants
 -Grasim commissions brownfield expansion at Aditya Cement at
 Shambhupura (Rajasthan).
 -Grasim Industries Ltd has informed that the Board of Directors of
 the Company at its meeting held on October 23, 2008, has appointed
 Shri. A K Dasgupta as an Additional Director of the Company.
 -Grasim commissions brownfield expansion at Aditya Cement at
 Shambhupura (Rajasthan).
 -Grasim hives off its sponge iron business by way of slump sale 
 -Grasim commissions a greenfield cement plant at Kotputli
 -Grasim's plants Vikram Cement and Aditya Cement win the Federation
 of Indian Mineral and 
 Industries' Social Awareness Award.
 -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 at Vigyan Bhavan,
 New Delhi.
  - Grasim Consolidates the cement business under UltraTech Cement
 - Grasim acquired stake in Domsj Fabriker AB.
 - Forbes magazine ranks Grasim among the fabulous 50 companies in
 - Grasim Industries Ranks 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. 
 - Grasim Industries Ranked as the Best Investor Relations
 Company-Building Materials in Asia by Institutional Investors
 - The CII - Leadership and Excellence Award in Safety, Health and
 Environment presented to Grasim's Staple Fibre Division, Nagda.
 - The Asian Corporate Social Responsibility Award presented to
 Grasim's Staple Fibre Division, Nagda.
 - Grasim Industries has signed an agreement through AV Terrace Bay
 Inc.,Canada, a Special Purpose Vehicle (SPV), to acquire the assets
 of the Terrace Bay Pulp Inc., a paper grade pulp mill in North
 America. Grasim will be holding 40% interest in the proposed SPV
 while Thai Rayon Public Co. Ltd.
 - Aditya Birla Group-led Grasim Industries Ltd entered into an
 agreement with Japan-based Omikenshi for developing global markets of
 functional rayon products.
 -Grasim Industries Ltd has recommended a dividend @ Rs. 22.50 (Rupees
 Twenty two and Paise Fifty only) per equity share.
 -Grasim Industries Commencement of Commercial Production at Viscose
 Staple Fibre Plant at Vilayat (Gujarat).
 -Grasim Industries Ltd has recommended dividend @ Rs. 21 (Rupees
 Twenty-one only) per equity share.
 -Grasim Industries Ltd has submitted a copy of the Presentation on
 Aditya Birla Chemicals (India) Limited to Merge with Grasim
 -Grasim Industries Ltd has completed the last phase of its Greenfield
 Viscose Staple Fibre (VSF) Plant at Vilayat (Gujarat) for production
 of Specialty Fibre, by commissioning the 4th line
 -Grasim Industries Ltd has received Competition Commission of India
 (CCI) approval on marger of Aditya Birla Chemicals (India) Ltd with
 Grasim Industries.
 -Grasim Industries Ltd has informed BSE that the Scheme of
 Amalgamation of Aditya Birla Chemicals (India) Ltd with Grasim
 Industries Ltd has been sanctioned by the Hon'ble High Court of
 Madhya Pradesh
 -Aditya Birla Chemicals (India) Ltd merged with Grasim Industries
 -Grasim Industries has been awarded the US Department of Agriculture
 (USDA) certified biobased product label for its dope dyed fibres-
 Birla Spunshades. 
Source : Dion Global Solutions Limited
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