Aditya Birla Group firm Grasim has allocated capital expenditure (CapEx) of a whopping Rs 2,600 crore for the upcoming financial year 2022 in the PSF business. This comes in as an attachment to the statement released by the company before that it proposes to invest Rs 5,000 crore in its paint business for successive three years.
While speaking to the company shareholders in an official meet, Aditya Birla Group chairman Kumar Mangalam Birla said, “We are currently in the process of carefully identifying plant sites that are close to consumption hubs for the paint business.”
“Our solar power business contains a portfolio of solar assets across the states with the cumulative installed capacity at 502 Mw in FY21. We have tripled our capacity in the past two years, aided by the Group’s focus on increasing the share of the renewable power mix in each of our large ABG businesses,” Birla said. The cumulative installed capacity is expected to rise to 845 Mw by FY23 based on the current pipeline, Birla added.
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Commenting on its VSF business status, Birla said trial production has started at the new brownfield vilayat project and with this Vilayat will become one of the largest single-location Viscose Staple Fibre (VSF) facilities in the world with state-of-the-art technology delivering world-class fibre to Indian spinners.
“This expansion will increase Grasim’s VSF capacity by about 40 per cent, which will cater to the growing demand for sustainable man-made cellulosic fibres in the country.” The Vilayat expansion project entailed an investment of over Rs 3,500 crore and the capacity utilisation of the business recouped from single-digit utilisation levels to full utilization levels towards the end of the year, Birla averred.
“In the long term, the endeavour will be to enhance our value-added products portfolio to create a meaningful speciality chemicals segment in Grasim. Our aim is to increase the share to 40 per cent for both VSF and chlorine value-added products by 2025,” he said. Before this, the company introduced an astonishing CapEx of $3 billion in the upcoming five years by Hindalco in order to amplify its reach across different countries.
