Grasim Industries maintaining comfortable level of liquidity in uncertain biz environment: Birla

With optimistion of operations across plants, reduced fixed costs and conservation of cash, Grasim Industries continues to maintain a comfortable level of liquidity to navigate the uncertain business environment, company's chairman Kumar Mangalam Birla said on Monday.

With optimistion of operations across plants, reduced fixed costs and conservation of cash, Grasim Industries continues to maintain a comfortable level of liquidity to navigate the uncertain business environment, company's chairman Kumar Mangalam Birla said on Monday. "The inherent financial strength, operational excellence, and diverse product portfolio with cement, financial services, viscose, chemicals, and other businesses makes your company well prepared to withstand temporary disruptions and sustain its leadership across its portfolio," Birla told shareholders at the 73rd Annual General Meeting (AGM) of Grasim Industries.

"Your company has initiated measures to optimise operations across plants, reduce fixed costs and conserve cash. Your company continues to maintain a very comfortable level of liquidity to navigate this uncertain business environment," he added. Given the uncertain business environment, Grasim's current strategic focus is built on four pillars, that are broadly aligned with the company's long-term strategic roadmap, Birla said.

These pillars include demand creation through innovative products, cost rationalisation, agility and cash flow focus, he added. In the June quarter, the company tapped export markets when domestic markets were under lockdown and the Liva brand forayed into anti-microbial fibre that inherently possess anti-microbial properties, he said.

The chemicals business witnessed an upsurge in demand for chlorine value-added products, driven by disinfectants and hygiene-related products, he said. "Across the businesses, our fixed costs have reduced by 35 per cent, which amounts to savings of Rs 256 crore compared to the FY20 quarterly average," he said.

The company's capex plan for FY21 has been calibrated to Rs 1,615 crore as of now, he added. Further, Birla stated that Grasim Industries has decided to continue the Vilayat viscose stable fibre (VSF) brownfield expansion with revised timelines.

The COVID-19 pandemic has led to a lot of changes in the last six months, he told shareholders. "And there is more change in the air. After all, we can still not envisage all the changes COVID-19 will leave in its wake. But what will never change is Grasim's commitment to good governance and sustainable growth," he added.