Aditya Birla Group-owned Grasim Industries, which has businesses as diverse as telecom, cement, and textiles, would spend more than Rs 3,500 crore on expanding the output of viscose staple fibre (VSF) that finds key use in making textiles.
“The board has approved a brownfield expansion of Rs 3,523 crore at the Vilayat facility which will get commissioned by 2021,” said Dilip Gaur, managing director of Grasim Industries. Coupled with the existing expansion and debottlenecking plan of Rs 802 crore, the total capacity for VSF will be increased by 58% to 788 KTPA from the current 498 KTPA, he said.
Grasim is the only producer of the fibre in the country. The company already has expansion projects worth Rs 2,900 crore in process for both its VSF and chemicals businesses, taking the total spend on expanding capacities to more than Rs 6,400 crore.
The money will be spent over the next two and a half years. “We have a strong balance sheet,” said Sushil Agarwal, group CFO of Grasim Industries.