Grasim SLL

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IFC is considering an investment of up to Indian Rupees 12.50 billion (approximately equivalent to US$150 million) in the form of subscription to Non-convertible Debentures (NCDs) issued by Grasim Industries Limited (“the Company” or “Grasim”). IFC’s investment will support the company’s capital expenditure in the ongoing construction of 6 integrated paint manufacturing plants, related working capital to start operations and establish warehouse and distribution network in India (“Project”).  This project marks IFC's first direct investment with the company, despite having a longstanding relationship with the Aditya Birla Group (https://www.adityabirla.com/) dating back to 1996. Grasim (https://www.grasim.com/) is a subsidiary company of Aditya Birla Group (“ABG” or the “Group”). In 2022, the Company publicly announced its foray into consumer-oriented decorative paints business and has started developing six (6), greenfield, integrated paint manufacturing plants in India and the details are presented below:Ludhiana, Punjab (30°56'14.0N 76°00'04.8E) – Paints and intermediates manufacturing capacity is 520,000 kilo liter per annum (KLPA). Cheyyar, Tamilnadu (12°42'30.6N 79°39'17.3E) – Paints and intermediates manufacturing capacity is 875,000 KLPA. Chamarajanagara, Karnataka (11°59'22.2N 76°53'51.2E) – Paints and intermediates manufacturing capacity is 875,000 KLPA. Paschim Medinipur, Kharagpur, West Bengal (22°21'57.2N 87°22'25.5E) – Paints and intermediates manufacturing capacity is 520,000 KLPA.Mahad, Maharashtra (18°06'15.2N 73°28'35.0E) – Paints and intermediates manufacturing capacity is 720,000 KLPA.Panipat, Haryana (29°28'12.9N 76°54'15.7E) – Paints and intermediates manufacturing capacity is 580,000 KLPA. All the plants except Kharagpur plant are nearing the end of construction phase and expected to be commissioned successively – three plants (Ludhiana, Panipat, and Cheyyar) are in the early commissioning and testing phase as of February 2024; two plants (Mahad and Chamarajnagar) before July 2024 and Kharagpur plant will be commissioned before December 2024.