Grasim Industries has entered into three rupee term loan agreements with Axis Bank for a total amount of Rs 5,000 crore that will be used for capital expenditure and repayment of existing loans.

One secured term loan of the size of Rs 4,850 crore will be used for capital expenditure to be incurred, reimbursement of capex that has already been incurred in the last 12 months, and repayment of existing borrowings, the company said in an exchange filing on Tuesday.

Two other term loans of a total size of Rs 150 crore, which are unsecured, will be used for identified projects, it said.

Also read: Grasim Industries’ net up 70% to ₹4,454 cr on other income

Paints business

While the company did not specify the projects, it had announced that it would spend Rs 10,000 crore on its entry into the paints business. It is also expanding capacities in viscose staple fibre and chemicals, while epoxy capacity will be doubled to 246 kilo tonnes per annum by 2023-24.

It sees paints as a high-growth business and is setting up six manufacturing facilities for a pan-India distribution network. It is planning a commercial launch in the current fiscal year. In the first nine months of fiscal FY23, it has spent about Rs 1,800 crore on paints capex.

Of the total budgeted capex of Rs 3,500 crore in FY23, the company spent close to Rs 1,400 crore in the first three quarters.

Also read: Axis Bank-Citibank merger complete

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