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Aditya Birla Chemicals to merge with Grasim Industries

Feb 12, 2015 16:16 IST


The Board of Directors of Grasim Industries Limited on 11 February 2015 approved the proposed merger of Aditya Birla Chemicals (India) Limited (ABCIL) with Grasim.

Under the merger proposal, the shareholders of ABCIL will get one share of 10 rupees each of Grasim for every 16 shares of 10 rupees each, they hold in ABCIL. 14.62 lakh new shares will be issued by Grasim, which will help the company to increase its share capital to 93.31 crore rupees.

The proposed scheme is subject to approval of the high court and regulatory authorities.

About Grasim
Grasim is a leading manufacturer of caustic soda in India, with an installed capacity of 452500 tonnes per annum. Its plants are located at Nagda in Madhya Pradesh and at Vilayat in Gujarat. Caustic soda is inter-alia used as an input in the manufacturing of Viscose Staple Fibre (VSF), a major business of Grasim. Grasim is an Aditya Birla Group company.

Aditya Birla Chemicals (India) Limited (ABCIL
Aditya Birla Chemicals is a leading manufacturer of bulk and specialty chemicals and viscose filament yarn. The business is spread across multiple manufacturing locations in four countries namely India, Thailand, Germany and China.

ABCIL is one of the leading chlor-alkali companies in India with an installed capacity of 293,000 tonnes of caustic soda per annum and 110 MW of captive power plant. Its three manufacturing plants of India are located at Rehla in Jharkhand, Renukoot in Uttar Pradesh and Karwar in Karnataka.

Process of Merger and its effect
The proposed merger which will be undertaken through a Court approved Scheme of Amalgamation under Sections 391 to 394 of the Companies Act, 1956 read with other applicable provisions of the Companies Act, 1956 and the Companies Act, 2013. This merger will consolidate Aditya Birla Group's chlor-alkali business into Grasim and strengthen its existing portfolio of Viscose Staple Fibre, caustic soda and allied chemicals. The merger will enable the geographical diversification for Grasim through the addition of ABCIL's manufacturing facilities spread across the country.

 

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Read more Current Affairs on: Aditya Birla Chemical , Grasim , merger

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