Grasim gains Rs 5,000 crore credit line from Axis Bank

Aditya Birla Group-owned flagship Grasim Industries Ltd availed a 5,000 crore credit line from Axis Bank Ltd. for capital expenditure and repayment of some of its existing loans. In an exchange filing, Grasim Industries said it has entered into three-term loan agreements with Axis Bank totaling Rs 5,000 crore.

One of the term loans, valued at Rs 4,850 crore, will be utilized for fresh capital expenditure and for the reimbursement of capital expenditure that has already been incurred within the past year, said the company.

The other two term loans worth a total of Rs 150 crore will be unsecured and designated for specific projects, according to the exchange filing. Grasim Industries, which is primarily known for textile manufacturing, is a global producer of viscose staple fiber, the largest chloralkali, linen and insulators player in India.

Grasim is also the country's largest cement producer and diversified financial services (NBFC, asset management and life insurance) firm in India through its subsidiaries UltraTech Cement and Aditya Birla Capital.

Even though Grasim did not specify its capex plan in filing, earlier it had announced spending around Rs 10,000 crore on the group's ambitious new venture in the paints business. The group is in the process of setting up six manufacturing facilities for a pan-India distribution network. Grasim is likely to announce a commercial launch of the paints business in the ongoing fiscal. During the April-December period of 2023, Grasim has spent about Rs 1,800 crore on the paints business capex plan.