Aditya Birla Group firm Grasim aims to increase the share of VSF and chlorine value-added products in its business to 40 per cent by 2025. The firm has earmarked over Rs 2,600 crore as capital expenditure for financial year 2022 in the Viscose Staple Fiber (VSF) business. The Aditya Birla Group is also investing in renewable energy businesses. It has tripled its renewable energy capacity in the past two years, aided by the Group’s focus on increasing the share of the renewable power mix in each of its large ABG businesses. The cumulative installed capacity is expected to rise to 845 MW by FY23 based on the current pipeline.

The group has started the trial production at its new brownfield vilayat project that is set to become one of the largest single-location VSF facilities in the world with state-of-the-art technology delivering world-class fiber to Indian spinners. The vilayat expansion project entailed an investment of over Rs 3,500 crore and the capacity utilization of the business recouped from single digit utilization levels to full utilization levels towards the end of the year

Earlier Birla had also announced a capex of up to $3 billion in the next five years by Hindalco to increase its capacity in India and overseas. Part of the capex will be deployed by Hindalco subsidiary, Novelis Inc for its auto-finishing lines in the US and China as well as for rolling and recycling capacity expansion in Brazil.