Grasim Allots Rs 3,500cr to boost VSF capacity

Aditya Birla Group owned Grasim Industries which occupies as much business 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.

Dilip Gaur, managing director of Grasim Industries said, "The board has approved a brownfield expansion of Rs 3,523 crore at the Vilayat facility which will get commissioned by 2021, 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.”

Grasim which is the only fibre producer in the country 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.

Sushil Agarwal, group CFO of Grasim Industries said, “The money will be spent over the next two and a half years. We have a strong balance sheet."