Grasim Industries has received green nod for expanding the production of viscose staple fibre at Bharuch, Gujarat that would entail an investment of Rs 2,560 crore, according to an official document.

The company has four VSF (viscose staple fibre) plants in India, of which two are located in Gujarat, one each in Kharach and Vilayat in Bharuch district. As per the proposal, the company’s Grasim cellulosic division plans to expand its Vilayat plant. In a letter issued to Grasim Industries, the Union Environment Ministry has said it has given environment clearance to the company’s proposal for expanding Vilayat unit subject to compliance of certain conditions.

The company plans to increase the production capacity of VSF from 1,27,750 tonnes per annum (TPA) to Rs 2,55,500 TPA. It also wants to set up a facility for solvent spun cellulosic fibre with a production capacity of 36,500 TPA. Besides, the company plans to expand the production capacity of sulphuric acid from 1,02,300 TPA to 1,82,500 TPA, carbon di-sulphide from 23,725 TPA to 34,675 TPA and captive power plant capacity from 25 MW to 55 MW.

According to the document, Grasim Industries will undertake the proposed expansion within the existing plant area spread over 222.63 hectares at Vilayat. The project cost is estimated to be Rs 2,560 crore and will create about 2,500 jobs.

In its proposal, the Aditya Birla Group firm has said the proposed expansion of VSF production will cater to the increased demand for manmade fibres in the country. Among major staple fibres, VSF will have better growth due to perfect fit for higher growing categories in apparel retail segments like women and kids wear, it added.