To tap the strong growth in demand for viscose staple fiber (VSF) and maintain its leadership position, Grasim Industries has committed a fresh capex of Rs. 3,523 crores for capacity expansion. Coupled with the existing expansion plan at a cost of Rs. 802 crores, the total capacity will increase by 58 per cent to 788 KTPA. The new project is expected to be commissioned by next year.
Grasim’s VSF business will continue focusing on expanding the market in India by partnering with the textile value chain, achieving better customer connect through brand Liva and enriching the product mix through a larger share of specialty fibre. The number of tagged garments doubled YoY to 17.6 million during the current year and the number of LIVA outlets multiplied 18 times year-on-year from 2,035 to 37,420 in the current year.
Recently Grasim signed agreement for the ‘Right to Manage & Operate’ VFY business of Century Textiles & Industries Ltd. for a period of 15 years. It has commenced operations from February 1.
VSF Business has continued its focus on expanding the usage and applications of VSF in the domestic market through the Liva initiative. The “Liva” brand for the company’s VSF-based products, launched in 2014-15, has been well established in the textile value chain and is creating a huge pull for viscose fibre in the market.
The company’s Liva brand for VSF-based products is making strong foothold in women’s wear market. Liva Crème, a premium version of brand Liva, was launched during the year, to cater to the niche market. It has established strong market presence with leading customers, and is helping expand market for speciality fibre in India.