Aditya Birla Group increases stake in AV Cell Inc, AV Nackawic Inc.

14 April 2008

The Aditya Birla Group has invested around Rs35 crore to  increase its stake by 20 per cent each in its two joint venture companies in Canada - AV Cell Inc and AV Nackawic Inc.

The Group has acquired the additional stake from the Tembec Group, its joint venture partner in these firms.
Grasim Industries, the flagship company of the group, which has a 25-per cent stake in  AV Cell Inc, has acquired the additional 20 per cent, increasing its holding to 45 per cent.

The Aditya Birla Group, which holds 75 per cent stake through a joint venture in AV Nackawic Inc, with the balance 25 per cent with Tembec, would acquire the additional 20 per cent, increasing its holding to 95 per cent.

PT Indo Bharat Rayon Indonesia, promoted by the Aditya Birla Group would get the additional 20 per cent stake in AV Nackawic.

Tembec's decision to dilute its stake in these two entities is part of its effort to focus resources on its core business units.

AV Cell Inc is a 50:50 joint venture between the Aditya Birla Group and Tembec, which commenced commercial production in July 1998. This venture supplies softwood and hardwood pulp, a critical input for the group's viscose staple fibre (VSF) business.