Grasim, one of India’s largest viscose staple fiber (VSF) producers, is expanding capacity by 2.4 times. The company plans to market VSF as the most sustainable fiber compared to polyester or cotton. Global demand for viscose staple fiber has been growing at a CAGR of six per cent compared with cotton’s one per cent and polyester staple fiber’s two per cent, making Grasim invest in the VSF business. In India, the demand growth for VSF at eight per cent is higher than global demand growth.
The demand for VSF as a percentage of total fiber is projected to grow to over six per cent by 2022 compared to 4.75 per cent in 2012. Grasim has ensured control over 80 per cent of the costs through backward integration, giving it an important competitive advantage over nonintegrated players. Its manufacturing input of caustic soda, power and steam and carbon disulfide is fully captive and the company has control over 60 per cent of the pulp requirements.
Grasim, a part of Aditya Birla, is the world’s fourth largest pulp producer. The company, after the successful introduction of its fabric brand Liva in 2015 in the Indian market, is planning to take the brand international. Grasim is planning to take Liva to Indonesia next, followed by Turkey. The company already has a design studio in New York and is tying up with international designers to promote Liva as the fabric of choice.
