Grasim Industries registered a strong financial performance in the September quarter. In the last 18 months, the company has been working with value chain participants to increase the use of viscose staple fiber in garments. Being a fiber manufacturer, it has a disconnect with the garment industry. However, things are changing as Grasim is helping the textile industry launch new fashion lines using viscose staple fiber.

The company plans to invest about Rs 4,500 crores this fiscal including cement projects. It will be investing Rs 500 crores to increase caustic capacity by 2.08 lakh tons per annum to 10.48 lakh tons per annum through brownfield expansion at Gujarat and debottlenecking at other plants.

The board has agreed to distribute 25 to 45 per cent of the company’s profit as dividend per year. A broad range on dividend payout has been approved as payout to investors depend on various factors including company’s performance, cash flow, growth opportunities, capital expenditure and overall liquidity position.

The company has drawn an ambitious growth plan and expects demand for viscose staple fiber to grow. Demand for this fiber is expected to grow five per cent globally and in India it expected to register double-digit growth because of its varied application.