Grasim was part of the Aditya Vikram Birla Group founded by Shiv Narayan

Birla.
In 1919, Ghanshyam Das Birla set up a jute business.
Grasim was established on August 25,1947 at Gwalior.
In 1963, Bamboo was the raw material used for first time.
In 1974 and 1982, a VSF plant was built in Thailand and Indonesia respectively.
Grasim had diversified into cement, sponge iron and chemicals.
Viscose Staple Fibre (VFS) was the cheapest available fibre and was referred to
as the poor mans cotton.
VSF plant set in Nagda, Mavoor, Harihar and Kharach.
Grasims first overseas aquition was Atholville Pulp Mill.
By 1996, it had a market share of 90% in domestic and 12% share in global VSF
market.
In 2001-02, Oeko-Tex standard certification was given to Grasim.
Exporter to many countries.
Birla Cellulose-Fibres from nature.
 Grasim commanded a market share of 20% in the
global fiber market.
Inspired by the consumer awareness campaigns of
Cotton Inc. & Woolmark.
Grasim shut down the VSF unit of Mavoor plant.
 Made a brand of its VSF as Birla Viscose.

Major domestic competitor SIV Industry shut down.

Grasim introduced new variant of VSF ; Grasi-soft.
Reliance named its PSF as Recron.
Objectives-

To provide complete solutions for its customers.

Ensure maximum customer satisfaction

To achieve higher sales

To fully utilize its production capacity

To gain market share from cotton and polyester.

 Formed the Viscose Club.

Provide Value Added Services to key customers.

Attempted to address the key customers concern like;

Aesthetic, Logistics and Intrinsic.

Grasim introduced Quarterly Pricing for its key

customers.

Introduced measure like Online Order Processing and

Quality Line Mapping.
*January 2002 Grasim
industries entered into a
strategic and technical
alliance with pantaloons
*Pantaloons agreed to market
the garments made with VSF
fabric.
*Grasim tied up with Dhanam
group of companies
*Focus VSF Fabric production
campaign
* Liva SS16 knitwear collection of
garments showcased by LAPF
members at the India
International Yarn Exhibition in
Tirupur , India.
*Grasim formed a forum called
Clubknitsfor the knitting units
*In 2003 Grasim organized
seminar in Sholapur and Panipat .
 Other Efforts
A New Brand identity Birla Viscose with Birla
Cellulose.
Brand Building campaign

1. Birla Viscose Plus

2. Birla Model
3. Birla Excel
Sell fabrics under several brands like Ice touch, Clean
fab, etc.
Cross branding with Siyaram & Raymonds.
The Stockholm Industry water award for reducing the
water usage & limit the negative impact on the
environment.
 Generate Rs 1.71 billion revenue (2003-2004), and
save upto Rs 32 million as a result of the value addition
initiatives.
Increasing its key customers by 18% , fiber yarn
recovery by 1%, improvement 40% in quality
Share Market- 33 per cent to 38 per cent
Domestic Sales market 46% (2003) then 52% (2004)
2004 98% share in Domestic market
21% share in global market
 In 2004-05 in order to cater to the rising demand for its VSF, Grasim
increased the installed capacity of VSF by 3650 tpa to 257325 tpa
through de bottlenecking

Grasims factories which need large quantities of water of VSF

production faced problem due water scarcity at several location to
over come this problem the Grasim increased the height of the
reservoir at Nagda plant in 2004 and introduced many scheme

In 2005 company announced that it would be expanding in VSF

business to Pakistan and Bangladesh
Grasim generally sourced 45 % of its raw material requirement from
its own wood pulp plants and purchased the rest externally
 In September 2005 lenzing announced to plans to set up 60000 tpa
VSF plant in china to carter to demand for VSF in Asian region
especially china to India

In March 2006 Grasim announced to set up 7 billion greenfield

VSF plant in Andhra Pradesh

In February 2006 government of India reduced the exercise duty on

VSF and brought it par with cotton the excise duty was brought
from 16% to 8% the custom duty was also brought from 15 % to
10 %.

Grasim was also keen on building its position in global VSF

market and planned to attain 40% of global market share by 2010
New Products and services beyond VSF had succeeded in companys market share ,
in spite of low cotton prices.

Aim 40% Global Market Share by 2010

How By setting up pulp mills and VSF Production unit Across the
world.

Challenges Threat from Rival Fibers and Global Competitors

https://www.youtube.com/watch?v=Pky1_mBz
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