Grasim boosts CSR budget by 90% in FY21; Spends Rs 85 Cr with major focus on Healthcare, Education

New Delhi, 17 December 2021: Grasim Industries Limited, an Indian manufacturing company based in Mumbai, has spent around 190% of its prescribed CSR budget for the financial year 2020-21. With a major focus on areas like education, healthcare, Environment and Livelihood, the company spent a total of Rs 84.66 crore on various Corporate Social Responsibility (CSR) activities for the financial year 2021.

An Aditya Birla enterprise, Grasim was incorporated in the year in 1947 as a textile manufacturer in Mumbai.

The average net profit of the company as per section 135(5) was Rs 2,253.08 crore and its two percent was calculated at Rs 45.06 crore. The prescribed CSR budget of a company is calculated as 2 percent of its average net profit of the immediate past three years.

The company however spent around Rs85 crore on its CSR activities, of which Rs 48.85 crore was spent towards mandatory CSR obligations of the company and additional Rs35.81 crore was spent towards voluntary CSR activities (totaling to around 3.76% of the average net profits of the past three financial years). It has spent an excessive amount of Rs 39.60 for the financial year 2020-21. The amount was mainly spent to bring about social change by advocating and supporting various social campaigns and programmes.

Grasim’s CSR Highlights of FY21

• CSR reach: Across 7 states
• CSR beneficiaries: 3,100,000+
• CSR reach: 298 villages
• CSR expenditure: Rs.84.66 crore

CSR focus areas identified by Grasim’s CSR policy    

• Education
• Healthcare
• Environment and Livelihood
• Rural Development
• Social Empowerment
• Water conservation and harvesting

The annual report of the company stated, “Our social outreach footprint is spread across 15 locations, spanning seven states in India. In FY21, we were able to impact the lives of over 31.6 lakh people through our interventions. Our CSR spend has been traditionally over and above the statutory requirement of 2% of average net profit. In FY21, our total spend touched Rs.8,466 lakh, an additional Rs.3,960 lakh above the mandatory expectation of Rs.4,506 lakh.”

CSR expenditure breakup

Composition of CSR committee

Rajashree Birla is the Chairman of the CSR committee at Grasim. Other key members are Shailendra K. Jain, Anita Ramachandran, and Dilip Gaur.