Grasim Industries Q1 net profit jumps 64% to Rs 830 cr

"The scheme provides for merger of ABNL with the company and subsequent demerger of it's financial services business into ABFS and consequent listing of equity shares of ABFS," it added.

The merger is subject to requisite approvals inter-alia from shareholders, creditors, high courts and regulatory authorities, it said.

Its board also approved sub-division of shares of the firm from one equity share of face value Rs 10 each fully paid up to five equity shares of face value Rs 2 each fully paid up, subject to requisite approvals.

On outlook, the Grasim Industries said in viscose stable (VSF) business environment has improved globally. Capacity additions have slowed down, which have resulted in higher operating rates in the industry.

The company will continue to focus on expanding the VSF market in India by partnering with the textile value chain and better customer connect through Liva brand, it added.

Enriching product mix through larger share of specialty fibre in the portfolio will be yet another focus area, the firm said.

The demand for caustic in India is expected to grow with the rising demand from the end user industry. To meet this, caustic capacity is being raised by 208,000 TPA through brownfield expansion at Vilayat (Gujarat) and de-bottlenecking at other plants, it said.