Aditya Birla Chemicals (India) Ltd. to Merge with …Aditya Birla化学品(印度)有限公司合并与u2026.pdfVIP

Aditya Birla Chemicals (India) Ltd. to Merge with Grasim Grasim Industries Limited A VSF and Cement Major th 11 February 2015 Strategic Rationale for Proposed Merger of ABCIL with Grasim Leading producer • Post commissioning of Vilayat plant, Grasim is the leading producer of caustic soda in of caustic soda India with installed capacity ~ 453ktpa. in India •Combined capacity ~804ktpa (incl. Jayshree - ~59ktpa, under acquisition) • Given limited growth opportunities in VSF business due to current overcapacity and Growth challenging environment globally, ABCIL provides a stable and profitable revenue opportunity in stream Chemical • Strong thrust by Govt. on manufacturing and impending reforms, likely to result in Business higher growth in manufacturing activities leading to increased chemical consumption Chlor-alkali business on standalone basis has been profitable and added substantial value Profitable Chemical • Grasim Chemical Division : LTM Dec 2014 EBITDA ~ INR 293 crs, Margin 18% Business • ABCIL : LTM Dec 2014 EBITDA ~ INR 262 crs, Margin 23% • Combined Chemical Division : LTM Dec 2014 EBITDA ~ INR 555 crs, Margin 20% ABCIL is cost competitive with captive power plant (110 MW) and salt-works •Consolidate chemical business under one entity in line with Group’s philosophy to unify similar businesses •Create operational efficiencies, cost comp