Within six weeks of buying a 10 per cent stake in Larsen & Toubro, the Aditya Birla group flagship Grasim Industries appears to be heading for a tiff with the management of the engineering and cement major.
The issue at stake, according to sources familiar with the development, is the attempt by the Birlas to work out a cross-branding strategy in cement, wherein either of the companies will roll out each other's brands from their plants.
While the move would significantly benefit Grasim as L&T enjoys a premium of around Rs 5-7 per 50 kg bag of cement compared with other brands, the same would not apply to L&T, as Grasim
