InvestorQ : Can you tell me about Grasim’s big plans for investments in paints and other businesses in the next few years?
vidhya Laxmi made post

Can you tell me about Grasim’s big plans for investments in paints and other businesses in the next few years?

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sarah Leo answered.
4 months ago
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Grasim of the Aditya Birla Group is certainly going aggressive on the capital expenditure front. Apart from the Rs.5,000 crore that Grasim has already allocated for foray into the paints business, there is an additional capex of Rs.2,600 crore that Grasim is planning in the core viscose staple fibre or VSF business, which is a part of the core Grasim model. The company sees a huge potential for the VSF business in the coming years.

On the paints side, the company will adopt a mix of organic and inorganic growth strategies. For example, one major approach of the group has been to scout for paints companies where the plant is located close to the actual consumption centres so as to reduce the time to market. On the Viscose Staple Fibre side, the Vilayat plant of Grasim is likely to become the world’s biggest VSF facility with modern state of the art technology deployed.

Grasim is also investing in renewable energy portfolio and plans cumulative installed capacity of 502 MW by the end of FY21 and further to 845 MW by FY23. In VSF, where the big story is panning out, the Rs.2,600 crore capex will help enhance their market share to 40% of the VSF market. It will cater to the growing demand for sustainable man made cellulosic fibres in India. VSF capacity utilization will touch 100% in the next one year.

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