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.

The mill's entire production is used exclusively for the Group's captive consumption, supplying dissolving grade chemical pulp to VSF units in India, Thailand and Indonesia.

The Aditya Birla Group and Tembec Inc, had jointly acquired the St. Anne Nackawic Pulp Mill, which was later renamed to AV Nackawic Inc. AV Nackawic currently produces paper grade pulp, and upon conversion to dissolving / specialty grades, would provide the required strategic flexibility to the Group's VSF operations.

Based in Canada, Tembec is a leading integrated forest products company, with operations in North America and France. The company that started in 1973 employs has sales of around $3.5 billion and employs 8,000 people.

The company has 50 manufacturing units producing pulp, paper and wood products.