Grasim Industries raises ₹3,000 Cr from BlackRock for renewable energy business expansion

Synopsis: Global Infrastructure Partners, which is part of the BlackRock Group, is investing Rs 2,000 crore in Aditya Birla Renewables, with an option to increase the total investment to Rs 3,000 crore, giving ABREN fresh capital to expand its renewable power portfolio.

This company is the flagship company of the Aditya Birla group, and its core businesses comprise viscose staple fibre (VSF), caustic soda, speciality chemicals, and rayon-grade wood pulp (RGWP) with plants at multiple locations. It is in the news today following the announcement of this funding, giving the company a boost to develop its renewable segment. 

With the market cap of Rs 1,86,908 crore, the shares of Grasim Industries Ltd had hit their intraday high at Rs 2775.40, rising by about 1 per cent compared to their previous day’s closing price of Rs 2745.70 The shares are trading at a PE of 43, whereas its industry PE is at 32.7.

About the Funding. 

Grasim Industries has announced a major investment deal in which Global Infrastructure Partners (GIP), through its entity GIP EM Star Pte Ltd, will invest Rs 2,000 crore into Aditya Birla Renewables Ltd (ABREN), with an option to add another Rs 1,000 crore, taking the total potential investment to Rs 3,000 crore.

This investment will be made through a combination of compulsory convertible preference shares and equity shares, and while ABREN will no longer remain a wholly owned subsidiary, it will continue as a subsidiary of Grasim. The deal values ABREN at an enterprise value of Rs 14,600 crore, making it one of the largest private equity commitments in India’s renewable energy sector.

A key highlight of this deal is the strategic importance of GIP EM Star: Global Infrastructure Partners (GIP) is officially part of BlackRock, the world’s largest asset manager with over $13.5 trillion under management.

This means ABREN is not just attracting any investor; it is bringing in BlackRock-linked capital, known globally for backing large-scale, long-term infrastructure and energy-transition projects The funding signals strong confidence in the Aditya Birla Group’s renewable energy ambitions and India’s clean-energy expansion.

For ABREN, this partnership turbocharges growth plans. The company already operates a 4.3 GW pan-India renewable portfolio across solar, hybrid, floating solar, and round-the-clock renewable power solutions.

Backing from a BlackRock-linked platform enhances its ability to scale toward its targeted 10 GW+ capacity, take on more complex projects, and strengthen its leadership in the Commercial & Industrial (C&I) renewable power space. For Grasim, the deal provides a strong capital inflow, de-risks expansion, and brings a globally renowned infrastructure investor on board—positioning ABREN as a major player in India’s rapidly evolving renewable energy landscape.

Financials and more. 

The revenue from operations for the company stands at Rs 39,900 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 34,223 crores, growing by about 16 per cent YoY. Similarly, the net profit stood at Rs 1,498 crore in Q2 FY26, up from Rs 983 crore in Q2 FY25, giving a growth of about 52 per cent. 

Grasim Industries Limited, the flagship of the Aditya Birla Group, has come a long way since its start as a textile manufacturer in 1947. Today, it is one of India’s most diversified and highly regarded listed companies, leading globally in cellulosic fibres and holding strong positions in diversified chemicals, fashion yarns, and fabrics.

As it enters a new phase of growth, Grasim has expanded into the paints business under the brand Birla Opus, with all six state-of-the-art greenfield plants now operational and offering a total installed capacity of 1,332 million litres per year. 

The company is also leveraging digital opportunities through Birla Pivot, its B2B marketplace for building materials. Through subsidiaries like UltraTech Cement, Aditya Birla Capital, and Aditya Birla Renewables, Grasim continues to remain India’s top cement producer, a major financial services provider, and an emerging clean-energy solutions leader—reflecting its broad capabilities and long-term vision.

Written by Leon Mendonca. 

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