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Grasim Ind draws up Rs 13,327 cr capex plan for expansion

Press Trust of India  |  Mumbai 

company Grasim Industries has drawn up a capital expenditure plan of Rs 13,327 crore for its fast-growing viscose staple fibre (VSF), and businesses.

"We are investing Rs 4,257 crore in brownfield expansion including de-bottlenecking of VSF segment and around Rs 1,400 crore in brownfield expansion in and business of division," Grasim Industries told here.

The company's board today also evaluated an additional Rs 1,000 crore investment for adding capacity in its caustic soda and chlorine facility, Gaur said.

The company will also be investing about Rs 5,900 crore in the cement, capacity expansion, modernisation, and upgradation and its logistics infrastructure project, Gaur added.

Last year, the company has a capex of around Rs 3,145 crore, which includes Rs 2,040 crore in its division. The capex will be mainly financed through debt and internal accruals as the company has a strong balance sheet and robust cash surplus.

In FY 18, the standalone businesses generated a free cash flow (FCF) of Rs 400 crore post capex of around Rs 2,000 crore, said.

Commenting on the growth plans, Gaur said, the company's VSF business will continue to focus on expanding in the domestic market by partnering with the textile value chain, achieving better customer connect through brand Liva and enriching the product mix through a larger share of specialty fibre.

The demand for caustic soda in is expected to grow with rising consumption from the alumina and textile sectors, he said.

Going forward, government spending on infrastructure, rural and affordable housing will be the key demand drivers for the sector.

The company is well positioned across the country to cater to this growth in demand, Gaur added.

Meanwhile, the company reported a consolidated net profit of Rs 853.62 crore for the fourth quarter ended March, against Rs 1,063.62 crore during the January-March period of the previous fiscal.

Total income during the quarter under review stood at Rs 17,691.80 crore. It was Rs 11,409.41 crore in the corresponding period of the previous fiscal.

The company said its result was not comparable as the consolidated result also includes the financial results of acquired by UltraTech, a subsidiary of the company from

The company's scrip ended 0.61 per cent up at Rs 1,046.65 on the today, against 0.88 per cent decline in the benchmark.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 23 2018. 20:31 IST