Grasim to invest Rs 1,800 crore on expansion of VSF unit

By

Maverick Martins

Published
Feb 26, 2018

Aditya Birla Group firm Grasim Industries is all set to expand its viscose staple fibre (VSF) unit in Bharuch Gujarat which has finally got the nod from the Environment ministry. The total investment in the project is expected to be around Rs 1800 crore (approx $278 million).
 

“In a letter issued to Grasim Industries, the union environment ministry said it has given clearance to the company’s proposal for expanding Kharach unit subject to compliance of certain conditions,” news agency PTI reported citing an official source.
 
The new unit is expected to help the firm expand its presence in India especially after a poor third quarter in which its profits declined to Rs 787 crore (approx $123 million) from Rs 952 crore (approx $ 149 million) it posted last year.

Even though the company’s profits plummeted in the last quarter, the VSF business saw strong growth and now the company is eyeing to expanding the market in India by partnering with the textile value chain.
 
In its results statement recently, the company had committed a fresh capex of Rs 3,523 crore (approx $551.3 million) for capacity expansion to tap the strong demand growth of VSF and maintain its leadership position.