Global chemical manufacturer Grasim Industries plans to commission chemical plants with the capacity of 439 Kilo Tonnes Per Annum (KTPA) during the next three years. Among these are BB Puram (Andhra Pradesh) with 47 KTPA capacity (Phase -1) during Q1 of FY23. The same plant at BB Puram will add 73 KTPA (Phase -2) during Q3 of FY23. 

The company's Vilayat plant in Gujarat will add 146 KTPA during Q1 of FY24. The epoxy expansion plant will add 123KTPA in Q1 of FY24 and finally the epichlorohydrin (ECH) project will add 50 KTPA during Q1 of FY25. Through brownfield expansion, the company plans to expand the caustic soda capacity to 1,530 KTPA from 1,264 KTPA by FY24.

In 2016, Grasim’s merger with Aditya Birla Chemicals helped catapult the company’s caustic soda capacity from 452 KTPA to 884 KTPA making it the largest producer of caustic soda in India back then. Today, Grasim’s total caustic soda capacity is 1,264 KTPA. The company has eight caustic soda manufacturing units across India. There are 1,147 KTPA total caustic soda capacity and 123 KTPA capacity epoxy plant. It records ~1 million tonnes of caustic sales annually.

In the caustic soda category, the company has increased its capacity from 1,147 KTPA in 9 months of FY 21 to 1,264 KTPA in 9 month of FY22 at 10% change year on year. The production increased from 629 KT to 775 KT with a YoY change of 23%. The sales volume was 634 KT to 771 KT with a YoY change of 22%.

The flagship company of the Aditya Birla Group has the capacity utilization of caustic soda business scaled up to a multi- year high of 93% in the third quarter (Q3) of FY22, an improvement of 7% quarter on quarter (QoQ). During the fiscal year 2022, the company added 171.8 KTPA including 91KTPA at Rehla plant during third quarter (Q3) of FY22; 54.8 KTPA at Vilayat CMS in Q3 of FY22. At BB Puram plant, it added 26 KTPA (Phase -1) in Q3 of FY22.

The business’ epoxy products range from basic products like liquid epoxy resins to value added products like formulated resins, reactive diluents and hardeners. The manufacturing complex at Vilayat houses a 123 KTPA capacity epoxy plant. Through expansion, the company plans to double the epoxy capacity to 246 KTPA by FY24. 

The company reported strong performance with the revenue in chemical business standing at Rs. 3,108 crore in 9 months of FY21 to Rs. 5,401 crore in 9M FY22 at a YoY change of 74%. It recorded EBITDA of Rs. 528 crore on back of better volumes and all-time high electrochemical unit (ECU) realization. The domestic caustic soda prices witnessed a significant increase taking a cue from the global caustic prices and on back of strong domestic demand. The ECU realization does not entirely reflect the gains from caustic soda prices on account of negative chlorine realization. 

At Rs. 2,338 crore up to Q3 FY22, the company recorded 83% YoY increase in revenue as compared to Rs. 1,281 crore. It also translated into a 44% QoQ increase in revenue which was Rs. 1,627 crore in Q3 FY21. The YoY EBITDA stood at 198% and the QoQ EBITDA was 127%.  

Grasim's chlor-alkali business reported one of the best quarterly performance with significant improvement in the ECU and operational performance on QoQ and YoY basis, offsetting escalation in input cost. 

The chlor-alkali business is on the path to increase the share of green power to 10% (FY23) from 3.4% (9M FY22) in the overall power mix which will lead to reduction of carbon emissions and cost competitiveness. Advanced Material business witnessed a YoY improvement in the operational and financial performance driven by better product mix on back of strong demand from the wind segment. 

Among India's largest chlor-alkali producers, the company is top 5 and pioneers in the manufacture of epoxy resins globally (manufacturing facilities in India, Thailand and Germany). The company is a leading producer of sodium and potassium phosphates. It is among the top 3 globally in sodium sulphite and sodium metabisulphite.