Gracing Investors With Profits: How Grasim Industries Yielded 8642% Returns

Published by Trinkerr Academy on

If you had ā‚¹1 lakh invested in Grasim Industries in November 1997, you could have had ā‚¹87.42 lakhs today! This multibagger has given its investors returns of ā‚¹86,42,000 and dividends of ā‚¹25,62,500 in 25 years. Here’s a quick peek at the company.

šŸ¤µšŸ¼ Stock Name: Grasim Industries Ltd.

ā­ About The Company
Founded in 1947 and headquartered in Mumbai, Grasim Industries is a flagship company of the Aditya Birla Group. The company is a manufacturing company that deals with textiles, chemicals and insulators.

Its subsidiaries are:
šŸ’« UltraTech Cement: Deals with the manufacturing of cement and is the largest in India
šŸ’« Aditya Birla Capital: The financial arm of the company

The company started off as a textile manufacturing company and diversified into other sectors after 1980. Led by CEO Jayant V. Dhobley, the company now has a workforce of more than 24,000 employees. Currently, it is a $10 billion conglomerate.

šŸŒ Revenue Giant
Grasim Industries has a strong national presence with 20 manufacturing plants, 7 registered offices and 4 research centres. The company earned ā‚¹96,522 crores in revenue. Its first international venture was in Thailand, where it established the Indo-Thai Synthetics Company in 1970. In 1973, Grasim Industries entered the Indonesian market with the incorporation of Indo-Bharat Rayon. At present, the company is the leading exporter of viscose rayon fibre and has a 24% market share, exporting it to over 50 countries.

šŸŒ± Growth Plans
A ā‚¹6000 crore capital expenditure plan (CAPEX) is underway for the leading integrated manufacturing chain. The plan allocates ā‚¹3,542 crores for the expansion of the company’s paint business. The company has reportedly discussed an e-commerce B2B platform for its building materials and cement manufacturing units. The platformā€™s main objective is to help MSMEs with an extensive product range, timely delivery and reasonable pricing.

šŸ’° Stock Value
šŸ’µ On November 15, 1997, the company’s shares were trading at ā‚¹20, while they were priced at ā‚¹1748.5 as of November 14, 2022.


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