India’s Grasim Industries Ltd has earmarked a capital expenditure (capex) of ₹2,600 crore for this fiscal that would be primarily meant for its viscose staple fibre (VSF) and chemicals business, according to the group's chairman Kumar Mangalam Birla, who recently said the company would also expand its solar business where its cumulative installed capacity is expected to rise to 845 megawatt (MW) by 2022-23 based on the current pipeline.
This capex is in addition to the investments announced by Grasim's subsidiaries cement-making firm UltraTech and Aditya Birla Capital. Earlier this month, a growth plan for UltraTech with an investment of over ₹6,500 crore was announced.India's Grasim Industries has earmarked a capex of ₹2,600 crore for this fiscal, primarily for its viscose staple fibre and chemicals business, according to group chairman Kumar Mangalam Birla, who said the firm would also expand its solar business where its cumulative installed capacity is expected to rise to 845 MW by 2022-23 based on the current pipeline.#
Grasim Industries is the flagship company of the Aditya Birla Group.
Birla told shareholders in the annual general meeting of Grasim Industries that the company is making progress in line with its plans to enter the paint business, for which an initial capex of ₹5,000 crore has been approved. The funds will be invested over the next three years and the company is now identifying plant sites close to consumption hubs, he said.
Sharing update over the expansion of its projects at Vilayat, Gujarat, which entails an investment of over ₹3,500 crore, Birla said trial production has started at the new brownfield project.
"With this expansion, 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 was quoted as saying by a news agency.
This expansion will increase Grasim's VSF capacity by about 40 per cent, which will cater to the growing demand for sustainable manmade cellulosic fibres in the country.
Fibre2Fashion News Desk (DS)
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