Grasim Industries has provided a Letter of Awareness to JP Morgan Chase Bank, N.A., Canada, for AV Group NB Inc. This letter pertains to AV Group NB Inc., a joint venture where Grasim holds a 45% stake. The letter expresses Grasim’s intention to support the joint venture in maintaining capital and liquidity levels, without creating any financial commitment or guarantee.
Letter of Awareness Details
Grasim Industries has issued a Letter of Awareness to JP Morgan Chase Bank, N.A., Canada, on January 28, 2026, concerning AV Group NB Inc. This action is in line with standard practices for supporting its joint venture operations.
Joint Venture Context
AV Group NB Inc. is a joint venture company that specializes in the manufacturing of dissolving grade wood pulp. Grasim Industries holds a 45% stake in this venture. The remaining 55% stake is held by two promotor group companies: M/s P.T. Indo Bharat Rayon, Indonesia, and M/s Thai Rayon Public Company Limited, Thailand. The issuance of the letter is conducted at arm’s length.
Terms of Awareness Letter
AV Group NB Inc. has secured credit facilities amounting to CAD 27 million. The Letter of Awareness issued by Grasim indicates the company’s intention to support the joint venture in maintaining adequate capital and liquidity to meet its financial commitments. This support is expressed without any direct financial obligation or guarantee of repayment to the lenders.
Impact on Grasim
The issuance of this Letter of Awareness is not expected to have any direct impact on the listed entity, Grasim Industries.
Source: BSE
