Grasim’s managing director Dilip Gaur said that, “Viscose is eating out of other fiber markets. Our domestic fiber business has grown by 22% (annually) during the March 2018 quarter,” adding that the bulk of the growth in the textile business is expected to come from the company’s VSF business in the future.On a consolidated basis, Grasim Industries will invest more than Rs13, 327 crore in capex into its textile and cement businesses till financial year 2021.
The company is expected to concentrate on its viscose staple fibre (VSF) business to register growth and expand its market in India.
Aditya Birla Group’s chief financial officer Sushil Agarwal said that, on a standalone basis, the total capex for Grasim Industries textile business stands at Rs6,427 crore, which is to be used by the company till financial year 2021.He also said that, “The board of directors (of the company) today also approved an additional Rs1,000 crore investment into the chemical business, taking Grasim Industries’ standalone capex plan (for its textile business) to Rs7,427 crore (till FY2021),”and “Cement plants belonging to Jaiprakash Associates were running at 15-20% capacity when we acquired them in June last year,” adding that the Kumar Mangalam Birla-led company has been able to turn around the assets and run them at 75% capacity in less than a year.
