Aditya Birla Chemical merger with Grasim Industries
India: Aditya
Birla Chemical, a business unit of Aditya Birla Group announced its merger with
Grasim Industries, wherein the later company would issue 14.62 lakh equity
shares to the eligible shareholders of ABCIL. Each Grasim equity share of USD
0.15 would be issued for every 16 shares of USD 0.15 each of ABCIL.
Post-merger, share capital of Grasim Industries would increase from USD 13.82 million
to USD 14.04 million. Aditya Birla is one of the leading companies in the
Indian chlor alkali market. India is witnessing growing demand for chlor alkali
chemicals. Expansion of existing units as well as installation of new plants is
expected to strengthen the production capacity of chlor alkali chemicals in the
country. In addition, growing demand from end user industries like glass,
alumina, soap & detergent, etc. is likely to benefit the market further.
TechSci
Research depicts that the merger would strengthen the position of Aditya
Birla Chemical in India Chemical market. Grasim being one of the leading
Chlor-Alkali producer in India is expected to augment Aditya Birla Chemical in geographically
diversifying its presence in chemical business across the country.
According to the recent report published
by TechSci Research, “India Chlor-AlakliMarket Forecast & Opportunities, 2019”, Aditya Birla Chemical has been leading
the caustic soda market in India, one of the types of chlor-alkali. The overall
chlor-alkali market in India is expected to deliver considerable growth over
2015-19 due to local availability of major raw material coupled with increasing
demand from end user industries.