Aditya Birla Nuvo to be merged with Grasim

Kumara Mangalam Birla led Aditya Birla Group is merging Aditya Birla Nuvo Ltd into Grasim Industries Ltd, in a bid to unlock shareholder value. The merger will create an entity with Rs 60,000 crore in annual revenue. The venture was approved by the board of both, Aditya Birla Nuvo and Grasim Industries, at their respective board meetings.

Aditya Birla Nuvo has in its portfolio, financial services, textiles, telecom and insulators. Among textiles, Nuvo has in its fold Jaya Shree Textiles, the biggest linen producer in India and Indian Rayon, the biggest manufacturer of exporter of viscose filament yarn.

While Grasim apart from the cement division, also has in its fold the viscose staple fibre division in Birla Cellulose, a manufacturer and exporter of value added fibres like viscose and modal.

"The new entity will have a mixture of mature and new-age businesses with steady cash flows, which is one of the primary objectives of the merger,” Kumar Mangalam Birla said while announcing the merger.