Let G be a group and let S = g∈G Sg be a G-graded ring. Given a normal subgroup N of G, there is a naturally induced G/N -grading of S. It is well-known that if S is strongly G-graded, then the induced G/N -grading is strong for any N . The class of epsilon-strongly graded rings was recently introduced by Nystedt,Öinert and Pinedo as a generalization of unital strongly graded rings. We give an example of an epsilon-strongly graded partial skew group ring such that the induced quotient group grading is not epsilonstrong. Moreover, we give necessary and sufficient conditions for the induced G/N -grading of an epsilon-strongly G-graded ring to be epsilon-strong. Our method involves relating different types of rings equipped with local units (s-unital rings, rings with sets of local units, rings with enough idempotents) with generalized epsilon-strongly graded rings.