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Grasim Industries takes a 33 percent stake in Domsjö

May 4 2011  Grasim Industries, a flagship company of Indian Aditya Birla Group, plans to acquire a 33 percent stake in leading Swedish speciality pulp and biorefinery company Domsjö Fabriker, from Aditya Holding AB.

Grasim will invest in the equity of Aditya Holding AB at the same price at which IBR and TRC had invested. The proceeds will be used by Aditya Holding AB to repay the total loan of 380 million Kronor contributed by IBR and TRC in an equal proportion, Grasim writes in a press release.With the acquisition of a stake in Domsjö, Grasim will be assured of supply of high quality dissolving pulp. This will enable it to increase its share in the speciality fiber market. Domsjö is a profitable company and is expected to add to the consolidated profit of Grasim from day one.Grasim Industries ranks among India's largest private sector companies. Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise viscose staple fiber (VSF), cement, chemicals and textiles.

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