Grasim Industries, a part of Aditya Birla Group, has earmarked over Rs. 2,600 crore as capital expenditure (capex) for financial year 2022 in the viscose staple fibre (VSF) business.
Addressing the company’s shareholders, Kumar Mangalam Birla, Chairman, Aditya Birla Group said, “Trial production has started at the new brownfield Vilayat project and with this Vilayat will become one of the largest single-location VSF facilities in the world with state-of-the-art technology delivering world-class fibre to Indian spinners.”
He further added that this expansion will increase Grasim’s VSF capacity by about 40 per cent, which will cater to the growing demand for sustainable man-made cellulosic fibres in the country.
He said that the Vilayat expansion project entailed an investment of over Rs. 3,500 crore and the capacity utilisation of the business recouped from single digit utilisation levels to full utilisation levels towards the end of the year.
In the long term, the endeavour of the company is to enhance its value-added products portfolio to create a meaningful speciality chemicals segment in Grasim.
The company is targeting to increase the share to 40 per cent for both VSF and chlorine value-added products by 2025.
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