Grasim Industries Ltd of Aditya Birla group is to increase production of Viscose Staple Fibres (VSF) at its Nagda (near Ujjain, Madhya Pradesh) unit by setting up another unit by investing Rs55 crore.
Nagda is its largest unit with combined installed capacity of 2,51,850 tons per annum. The new unit at Nagda will manufacture eco-friendly solvent spun cellulosic fibre.
This new investment would help in manufacturing 3,650 metric tons of solvent spun cellulosic fibre, reported media.
The firm has asked for some allowances including 100 percent investment assistance for 10 years instead of 7 years from industry promotion policy. It has also requested entry tax exemption for 10 years, according to sources.
Sources also revealed that company is planning capacity expansion and modernisation of its VSF plants with a total capital of more than Rs533 crore to increase VSF capacity to 3,06,950 tons per annum from its current level of 2,57,325 tons.
marketing@alchempro.com
