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The Textile Magazine
SEPTEMBER 2011
terms of colour, texture and other value-added prop-
erties. The trends promise huge innovations in spe-
cialty fibres and their applications.
Profitability in the short term will be governed by the
prices of competing fibres, inputs
and energy costs. Cotton production
in the forthcoming season will also
be the key influencing factor.
Leadership through consolidation
Mr. Birla observes: “Our growth
plans in the VSF sector continue to be
aggressive. We are the world’s No.1
in this sector with our group’s cur-
rent capacity in excess of 744,000
tons. In China, we have nearly
doubled our production capacity
from 36,000 tons to 70,000 tons.
At Harihar (Karnataka) a 36,500
tpa Brownfield expansion will go
on stream in the near future. Ad-
ditionally, a 120,000 tpa VSF plant
at Vilayat will be up and running by
2013. The Vilayat plant will cater to
the specialty fibre segment and take
us higher in the value added product
range. Our intent is to ramp up to 1
million tons”.
In the pulp and fibre business, the
acquisition of Domsjö Fabriker has
indeed been a high point. This is a world-class
company with cutting-edge technology. Its pro-
duction process, coupled with its state-of-the-art
biorefinery, adds enormous value. Its high qual-
ity pulp will enable us enhance the supply of
top quality premium VSF to our customers. The
acquisition is in line with the company strategy
of having a significant part of its speciality pulp
for consumption through a captive source. With
Domsjö it is closer to this goal.
With its greater focus now on speciality prod-
ucts, Grasim has begun manufacturing “micro
modal”, a finer denier modal widely used in knit-
wear and women’s wear. The company has also
tied up with leading textile manufacturers for the
use of its speciality fibres in denims for suitings
and school uniforms.
In the VSF sector, Grasim’s capex stands at
$540 million (Rs. 2,400 crores). This is towards
the Greenfield and Brownfield projects at Vilayat (Gu-
jarat) and Harihar (Karnataka).
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