Grasim Industries has announced a leadership realignment within its Cellulosic Fashion Yarn (CFY) business, effective 16 January 2026, as the company seeks to enhance operational efficiency and strengthen management oversight in a challenging industry environment.
Ajit Rajagopalan has assumed charge as Chief Executive Officer of the CFY business, succeeding Satyaki Ghosh. As part of the internal transition, leadership of the fashion yarn vertical has been combined with oversight of Grasim’s insulators business, a move aimed at driving greater synergies, streamlined decision-making and improved operational effectiveness.
The leadership change comes at a time when the Indian textile sector is facing a difficult operating landscape. While domestic demand is projected to grow at a compound annual growth rate of 5.3% through 2033, near-term pressures on exports continue to pose risks for manufacturers.
Uncertainty in the sector has been exacerbated by a proposed 20% safeguard duty by Bangladesh on Indian cotton and blended yarns. Nearly 30% of yarn output from major clusters such as Vidarbha is exported to Bangladesh, and the proposed tariff could lead to surplus supply in the domestic market, placing further pressure on prices and margins.
Grasim’s CFY business has also been contending with heightened competition from Chinese producers. Despite recording a modest volume growth of around 3% towards the end of 2025, pricing pressures have remained intense, weighing on overall profitability.
In response, Grasim has sharpened its focus on its flagship Liva and Raysil brands, with an increased emphasis on the sustainable apparel segment. Sustainable applications now account for nearly 67% of textile usage in the domestic market. Industry observers believe the consolidation of leadership could accelerate the execution of the company’s ‘Sustainability 3.0’ strategy, including deeper adoption of digital quality assurance systems and the development of circular fibre innovations to sustain competitiveness in premium fashion categories.
