Home / Knowledge / News / Textiles / ABNL, Grasim amalgamation gets shareholders' nod
ABNL, Grasim amalgamation gets shareholders' nod
Apr '17
The shareholders of Grasim Industries Ltd, Aditya Birla Nuvo Ltd (ABNL) and Aditya Birla Financial Services Ltd (ABFSL) have approved the Scheme of amalgamation of ABNL with Grasim followed by the demerger and listing of the Financial Services business, creating a large combination of manufacturing and service businesses with leadership positions.
The approval by shareholders paves way for consolidation of common businesses and investments of Grasim and ABNL resulting in leadership positions for the company across the textiles, chemicals, cement and telecom sectors.
The merged entity Grasim, will have proforma consolidated turnover of Rs 59,766 crore, EBITDA of Rs 11,961 crore and a net profit of Rs 4,245 crore for the year ended March 31, 2016. It will be: a leading player in textiles and chemicals, the no.1 cement company in India with the largest selling brand, no.3 telecom operator in India, and among the top four private sector life insurers and asset management companies in India.
With all major approvals in place, the Scheme is now subject to final approval from NCLT and the BSE and the NSE. The scheme is expected to be effective during the second quarter of the current financial year.
“It augurs well that the public shareholders of both Grasim and ABNL have approved the merger by much more than the requisite majority. The merger will create one of the India’s largest companies. It will undeniably lead to shareholders’ value by bringing together the strong balance sheet of Grasim and the high growth potential of ABNL’s businesses. The portfolio will now span the manufacturing and services businesses with leadership positions in the cement, financial services, telecom, textiles and chemicals sectors. I believe, the merged entity provides a splendid play on India’s growth story. Additionally, the demerger and listing of the financial services business will unlock shareholders’ value,” said Aditya Birla Group chairman Kumar Mangalam Birla.
“We ardently believe that the strong parentage of Grasim will enable the financial services business in enhancing its competitive advantage and growth momentum. The shareholders of both the companies will get to participate in the structural growth story of the financial services business while sharing the strong returns generated by other market leadership businesses. The recent corporate actions (FII limit enhancement, share split, setting out dividend policy, etc.) reflect that shareholders’ value creation will continue to remain high on the management’s radar in the merged entity,” said Sushil Agarwal, Group CFO, Aditya Birla Group. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Top 15 US fashion brands are collectively worth $70 bn

Fashion | On 22nd Jul 2018

Top 15 US fashion brands are collectively worth $70 bn

The top 15 American fashion brands are collectively worth close to...

Courtesy: Covestro

Textiles | On 22nd Jul 2018

Covestro's new products for waterproof textile coating

Covestro, which is among the largest polymer companies, has unveiled...

Evogene, IMAmt to work together in insect resistance

Textiles | On 22nd Jul 2018

Evogene, IMAmt to work together in insect resistance

Evogene, a leading biotechnology company developing novel products...

Interviews View All

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search