Grasim Industries, an Aditya Birla Group company, has announced an investment of ₹12.5 billion (~$150.3 million) from the International Finance Corporation (IFC), the private sector arm of the World Bank Group.

The company said IFC’s investment was through subscription to non-convertible debentures.

The funds raised through the sustainability-linked debentures will help Grasim’s decarbonization initiatives, specifically focusing on enhancing renewable energy adoption and water recycling in its paint manufacturing processes.

H K Agarwal, Managing Director, Grasim Industries Limited, said, “We welcome the investment from the International Finance Corporation (IFC), recognizing our sustainability initiatives. We will work collaboratively with IFC to further enhance our sustainability footprints. We are addressing the transition to a low-carbon economy through our renewable projects and energy-efficient products and are looking forward to further aligning our activities to the global Sustainable Development Goals.”

Wendy Werner, India Country Head at IFC, said, “IFC’s financing will contribute to Grasim’s sustainable growth into the paints business and will encourage other manufacturing companies to follow by successfully adopting energy-efficient and water-saving technologies and practices. This partnership builds on our nearly three-decade-old partnership with Aditya Birla Group, and IFC is proud to support Grasim’s expansion in a climate-friendly way.”

As part of its renewable energy adoption, Grasim Industries has acquired equity shares of ABReL Solar Power in the past.

In 2022, the Aditya Birla Group signed an agreement with Suzlon, a wind turbine manufacturer, for 144.9 MW of wind power projects in Madhya Pradesh and Gujarat.

According to Mercom’s India Solar Market Leaderboard 1H 2023, Aditya Birla Renewables, another Aditya Birla Group company, emerged as one of the top utility-scale solar project developers in the first half  of 2023,