Home / Knowledge / News / Textiles / Grasim completes ABCIL merger with itself
Grasim completes ABCIL merger with itself
05
Jan '16
Aditya Birla Group's Grasim Industries has completed the merger of the group company Aditya Birla Chemicals (India) (ABCIL) with itself on January 4.

Grasim will issue 14.62 lakh equity fresh shares to shareholders of Aditya Birla Chemicals, who will receive one share of Grasim for 16 shares of ABCIL they hold. The share capital of Grasim will increase from Rs 91.88 crore to Rs 93.34 crore.

In February 2015, the board of directors of both companies approved the decision to merge ABCIL with Grasim and fixed April 1, 2015, as the appointed date. ABCIL received shareholders' approval in July 2015 for merging the company with Grasim Industries. The Competition Commission of India's (CCI) approval came in September 2015.

The merger of ABCIL with Grasim industries is expected to strengthen the company's existing portfolio of viscose staple fibre, caustic soda, and allied chemicals in a standalone company.

With the merger becoming effective, Grasim's standalone earnings before interest, tax, depreciation and amortisation for the first half of fiscal increased to Rs 883 crore, from Rs 728 crore announced earlier.

Grasim is the largest chlor-alkali manufacturer and the merger will further consolidate its leadership, the company said in a statement. The installed capacity of caustic soda will move up to 804,000 tonnes per annum from 453,000 tpa.

The merger has resulted in geographical diversification of the chlor-alkali business and enables to capitalise growth opportunities backed by Grasim, it said.

As of September quarter, Grasim's consolidated net debt including 60 per cent stake it owns in Ultratech Cement was at Rs 5,893 crore and it reported net surplus of Rs 310 crore on a standalone basis. ABCIL debt was at Rs 2,123 crore as of September quarter. (SH)

Fibre2Fashion News Desk - India

Must ReadView All

Textiles minister Smriti Irani at a press conference with minister of state for textiles, Ajay Tamta, the principal director general (M&C), PIB, AP Frank Noronha and other dignitaries. Courtesy: PIB

Apparel/Garments | On 23rd May 2017

Special package for knitwear coming soon: Irani

Union textiles minister Smriti Irani said that the government of...

Apparel/Garments | On 23rd May 2017

Apparel, footwear use may rise by 63% in 2030: Report

The apparel and footwear consumption is projected to rise by 63 per...

Apparel/Garments | On 23rd May 2017

Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc's net sales for the first quarter of fiscal year 2017 were...

Interviews View All

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search