Grasim Industries has acquired leasehold rights to approximately 220 acres from Century Textiles and Industries for Rs 254.70 crore.
This acquisition will allow Grasim Industries to set up manufacturing facilities in the future, and the land parcel is located at the Gujarat Industrial Development Corporation's Vilayat Industrial Estate in Bharuch district, Gujarat.
“The said transaction has been completed today i.e. 24th March 2023 and is not a related party transaction,” Grasim Industries said in an exchange notification on Friday, March 24.
At 10:13 am, shares of the company were trading 0.9 percent higher at Rs 1,607.65 on the BSE. The scrip has shot up 249 percent in the past three years but is down 7 percent YTD.
In the December quarter, the company reported consolidated net sales at Rs 28,637.86 crore, up 17 percent YoY while net profit surged 44 percent YoY to Rs 2,515.78 crore.
Earlier this month, the management of Grasim Industries highlighted growth opportunities in core businesses, near-term challenges, strengths and market positioning, diversified chemical portfolio, sustainability initiatives, and progress in high-growth businesses, said analysts.
Sharekhan by BNP Paribas said that the company’s Viscose business is expected to see gradual improvement with bottoming out of prices while its long-term growth outlook remains intact outpacing cotton and synthetic fibre growth rates.
The company’s chemical business continues to fare well, with expediting chlorine integration and capacity expansions. Its expedited expansion in paints is likely to provide the next leg of growth for the company. Further, the outlook for its key subsidiary UltraTech remains healthy, the brokerage firm added.