SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Grasim to invest 280 crore in Aditya Holding

04 May 2011 Evaluate

Grasim Industries will invest in the equity capital of a special purpose vehicle that recently acquired Swedish pulp company Domsjo Fabriker to reduce debt component. The board of the Aditya Birla flagship company has approved investment of Swedish Kroner 380 million (about Rs. 280 crore) to buy little more than 33% stake in Aditya Holding AB, the Birla group subsidiary that acquired Domsjo last month.

The two other shareholders in Aditya Holding AB are the group's international subsidiaries, PT Indo-Bharat Rayon, Indonesia and Thai Rayon Public Company. The transaction now brings Grasim in direct ownership of the Swedish pulp company. Pulp is the main raw material for making viscose staple fibre.

Grasim is among the world's largest makers of the fibre and the acquisition of the Swedish company was aimed at reducing the cost of raw material for the Aditya Birla group.

Aditya Holding acquired Domsjo for SEK 2.12 billion. While Aditya Holding AB invested SEK 1,140 million as equity, an interim funding of SEK 1,022 million has been done through bank loans.

Grasim will invest in the equity of Aditya Holding at the same price at which Indo-Bharat Rayon and Thai Rayon had invested. Aditya Holding will use the proceeds for repayment of the total loan of SEK 380 million contributed by Indo-Bharat Rayon and Thai Rayon. Grasim is a leading producer of VSF and is expanding its capacity by 156,500 tonnes through a Greenfield project at Vilayat in Gujarat and an expansion at Harihar in Karnataka.

Grasim Industries Share Price

2777.75 20.30 (0.74%)
21-Apr-2026 16:59 View Price Chart
Peers
Company Name CMP
Grasim Industries 2777.75
DCM Shriram 1200.00
3M India 31548.55
Hindustan Foods 496.85
Balmer Lawrie & Co 177.65
View more..

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×