Grasim Inaugurates CPVC Resin Plant in Gujarat; Shares Slip Marginally

Mumbai, June 16: Grasim Industries has inaugurated the first phase of its Chlorinated Polyvinyl Chloride (CPVC) resin manufacturing plant at Vilayat, Gujarat, a project being developed in collaboration with Lubrizol Advanced Materials India Private Limited.

The inauguration marks the latest step in a project that has been in the works for several years. Grasim had earlier informed investors about its agreements with Lubrizol and plans to establish what it described as the world’s largest single-site CPVC resin manufacturing facility.

According to the company’s exchange filing, the newly inaugurated Phase I facility has a planned capacity of around 50,000 metric tonnes per annum. The broader project envisages a total capacity of 100,000 metric tonnes annually once fully completed.

While commercial production has not yet commenced, the inauguration signals that the project has moved from the construction stage toward operational readiness. The company said it would update investors separately regarding the start of commercial production.

Stock Market Snapshot

Despite the operational milestone, investors remained cautious during Tuesday’s trading session.

Grasim share price was trading at ₹3,160.20, down 0.14%, as of 11:15 IST on June 16, 2026.

The muted market reaction suggests investors may have already factored the project’s progress into valuations, given that the CPVC venture has been under development for several years. Market participants are likely to focus more closely on commissioning timelines, production ramp-up and the eventual contribution of the facility to earnings.

The Grasim share price has also been influenced by broader market conditions and developments across the Aditya Birla Group’s diverse businesses, including cement, chemicals, paints and financial services.

CPVC Plant Strengthens Domestic Manufacturing Capability

The project is strategically important for Grasim’s chemicals business and for India’s broader specialty materials ecosystem.

CPVC resin is widely used in plumbing systems, industrial piping and infrastructure applications due to its heat and corrosion resistance. Domestic production capacity has historically been limited, leading to reliance on imports for a significant portion of demand.

By establishing a large-scale manufacturing base in Gujarat, Grasim aims to strengthen local supply chains and support growing demand from the construction, infrastructure and housing sectors.

The collaboration with Lubrizol also provides access to technology and manufacturing expertise in CPVC resins, a specialised segment of the chemicals industry.

Once fully operational, the facility is expected to enhance Grasim’s presence in value-added chemical products and diversify its revenue streams beyond its traditional businesses.

Company Background

Grasim Industries, the flagship company of the Aditya Birla Group, operates across a range of sectors including cellulosic fibres, chemicals, building materials and financial services.

The company is also the parent of UltraTech Cement, India’s largest cement manufacturer, and has been expanding into newer growth areas such as decorative paints and specialty chemicals.

In recent years, Grasim has increased investments in downstream and value-added businesses as part of its strategy to build multiple long-term growth engines.

Conclusion

The inauguration of the CPVC resin plant’s first phase represents an important execution milestone for Grasim’s chemicals expansion plans.

Although the stock traded slightly lower during the session, the development moves the company closer to commercial production in a high-value specialty chemicals segment. Investors will now watch for commissioning timelines, capacity utilisation trends and the project’s contribution to future earnings growth.

Source:

• https://www.nseindia.com/get-quote/equity/GRASIM/Grasim-Industries-Limited
• https://nsearchives.nseindia.com/corporate/GRASIM_16062026110407_SEIntimationInauguration.pdf