ANS 10

Yes vertical integration does exist.Vertical integration is in the form of

backward intergration where a company either combines with the supplier of
raw materials or products useful in making the finished good or makes the
needed product itself. In this case, Grasim is into making of VSF. Grasim
started production of its fabric using imported VSF in 1950’s . VSF was then
the cheapest available fiber and was referred to as 'the poor man's cotton'.
But then, Grasim adopted a vertical integration strategy and started
producing its own VSF. The bye product of VSF is sodium sulphate which is
widely used in textile industry as well. As a cost-saving measure, the
company even began producing major raw materials (wood pulp and caustic
soda) for VSF in-house. It also developed a more eco-friendly process for
manufacturing VSF.

ANS 11

Merits and benefits to the society with this project could be that as VSF is a
versatile fabric and can be used in place of cotton hence the variety in the
hands of people have increased. It is known as the poor man’s cotton, so the
availability of a cheap textile that provides same comfort could have been a
help for the society. Also, VSF production requires labour and this must have
generated employment , especially in the 1950’s when India had just
become independent.

Also, the main aim of the country was to become self independent and not to
depend upon imports, so VSF being as good as cotton, would have fulfilled
the country’s demand for textile and cotton made goods to some extent
atleast. Research and Innovation were encouraged through this project and
the bent of mind shifted towards technology upgradation also. Pulp & Fibre
Business contributes significantly to the country’s earnings by way of Excise
duty and also to India’s foreign exchange reserves through export of Pure
and Blended Yarn as well as fabrics and Made-ups based on VSF. This was
beneficial for the economy as a whole,

The demerits could have been the immense pollution that is generated by
heavy machinery used in the production of VSF.

Also at the time of independence , the main source of work was agriculture.
It could have been the case that fertile Land that could have been used for
farming, was used up by the textile plant.