Grasim approves composite restructuring to consolidate renewable energy assets under Aditya Birla Renewables, aiming for scale, efficiency, and streamlined operations.
Grasim Industries Ltd has announced that its board of directors has approved a comprehensive composite scheme of arrangement designed to bring together and streamline renewable energy operations across select group entities. The proposed restructuring involves Essel Mining & Industries Ltd, Aditya Birla Renewables Ltd—a wholly owned subsidiary of Grasim—and certain other related companies within the group.
As part of this approved scheme, the renewable energy business currently housed within Essel Mining & Industries will be transferred to Aditya Birla Renewables. This transfer will take place through a slump sale arrangement, meaning the entire renewable energy undertaking will be moved as a going concern without assigning individual values to specific assets or liabilities. The transaction structure is intended to ensure continuity of operations while enabling operational consolidation. Importantly, the transfer will be executed in compliance with the applicable provisions of the Income Tax Act, ensuring tax efficiency and regulatory adherence.
In addition to the slump sale, the board has sanctioned the amalgamation of Electrotherm Renewables Private Ltd, a wholly owned subsidiary of Essel Mining & Industries, into Aditya Birla Renewables. This move further strengthens the renewable portfolio of the transferee company by absorbing complementary assets and capabilities that align with its clean energy focus.
The scheme also includes the merger of three wholly owned subsidiaries of Aditya Birla Renewables into the parent renewable entity. These subsidiaries are ABREL EPCCO Services Ltd, ABREL Renewables EPC Ltd, and ABREL EPC Ltd. By merging these engineering, procurement, construction, and services-focused arms into a single entity, the group aims to simplify corporate structures and eliminate duplication of functions. This consolidation is expected to result in streamlined decision-making, reduced administrative overheads, and better coordination across renewable energy projects.
Overall, the proposed composite arrangement is strategically designed to create a unified and scalable renewable energy platform supported by integrated ancillary services. By consolidating multiple renewable and EPC entities under Aditya Birla Renewables, the group intends to unlock operational efficiencies, benefit from economies of scale, and enhance synergies across project development, execution, and management. The simplified structure is also expected to improve governance clarity and strengthen the group’s ability to pursue growth opportunities in the renewable energy sector.
However, the scheme is still subject to several regulatory and procedural approvals. These include clearances from shareholders and creditors, sanction by the National Company Law Tribunal, and approvals from other relevant statutory and regulatory authorities. Only after these approvals are secured will the arrangement be implemented.
Following the announcement, investor sentiment appeared positive. Shares of Grasim Industries ended the trading session higher, closing at Rs. 2,846 on the BSE, reflecting a gain of 1 percent on the day.
