Grasim Industries

Grasim Industries Limited is a Aditya Birla Group company that started in 1948 and which started as a textile manufacturer. Since then Grasim has successfully diversified into Viscose Staple Fiber (VSF), cement, sponge iron and chemicals [ [http://www.grasim.com/about_us/overview_business.htm#vsf_overview Bisiness overview] ]

Textile

Aditya Birla Group operates over 40 companies in 12 countries across 4 continents. Grasim is one of its flagship companies and It is the world’s second largest producer of Viscose Rayon Fiber with about 21% market share. Textile and related products contributes to 15% of the group turnover.

Grasim Industries Limited

Grasim Industries Limited was incorporated in 1948; Grasim is the largest exporter of Viscose Rayon Fiber in the country, with exports to over 50 countries. This, along with Aditya Birla Nuvo can be considered as the flagship companies of the AV Birla Group. Grasim is headquartered in Nagda.

Global footsteps

Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started operations in 1970, this was Aditya Birla Group’s first foray into international venture. Aditya Birla Group incorporated P.T. Elegant Textiles in 1973 in Indonesia. Thai Rayon incorporated in 1974, this was the second company in Thailand, operating in Viscose Rayon Staple Fiber. Century Textiles Co. Ltd. is taken over by Aditya Birla Group in 1974; this company is a weaving and dyeing plant manufacturing and exporting variety of synthetic fabrics. PT Sunrise Bumi Textiles incorporated in 1979, it produces yarn exported over 30 countries in 6 continents. P.T Indo Bharat Rayon incorporated in 1980 produces Viscose Staple Fiber in Indonesia to become a dominant player in the domestic market as well as export markets. Thai Polyphosphates and Chemicals was started in 1984 in Thailand to produce Sodium Phosphates, presently merged with Thai Epoxy and Allied Products Company Limited (1992), Thai Sulphites and Chemicals Company Limited (1995) to form Aditya Birla Chemicals Ltd. This company supplies to sectors such as food, textiles, electrical and electronics, composites, leather, plastics and automobiles. PT Indo Liberty Textiles was incorporated in 1995 to manufacture synthetic spun yarn.

Focus of Growth Post MFA

In late 1990’s and later, the focus was the textile business because of the end of Multi-Fiber Arrangement (MFA) which opened a host of opportunities to Indian exporters. In this period, Aditya Birla Group took a three route strategy for growth.

* Rapidly enhance existing capacities

* Acquire and Build Garment brands for local and international marketsJayashree textiles was acquired by Aditya Birla Nuvo (formerly Indian Rayon), is a leading producer and exporter of yarns and fabrics to 50 countries with a turnover of $413 million.It acquired Madura Garments in 2000 to enter the branded garments business. Has brands such as Louis Philippe, Van Heusen, Peter England, Allen Solly, SF Jeans among others and also a global supplier to global buyers such has Marks & Spencer’s, Polo etc.

* Vertical integration to get cost advantageAV Cell Inc., a joint venture between Aditya Birla Group and Tembec, Canada, established operations in 1998 to produce softwood and hardwood pulp for the purpose of internal consumption among different units of the Group.

Together, Aditya Birla Group and Tembec, Canada have acquired AV Nackawic Inc., which produces dissolving pulp, as a further step to integrate.Grasim industries Ltd. is a leading player in the Viscose Staple Fiber (VSP). The Aditya Birla Group's VSF manufacturing plants straddle Thailand, Indonesia, India and China. At each of these locations, further capacity expansions are under way — in Thailand by 31 ktpa; in Indonesia by 37 ktpa; in India by 64 ktpa and in China by 30 ktpa. These brownfield expansions, slated to be completed by the second quarter of 2008, will further notch up the Group's VSF production from 566 ktpa to 727 ktpa and entail an investment close to US$ 260 million.

Grasim wants to follow a strategy of backward integration, right from plantation stage to the final VSF stage. The Group's VSF business operates through its three companies — Grasim Industries in India, Thai Rayon Corporation in Thailand and Indo Bharat Rayon in Indonesia, which also oversees its Chinese operations at Birla Jingwei Fibres, China.

Joint ventures

;Thai RayonPromoted in 1974 by the Aditya Birla Group, Thai Rayon is the sole manufacturer of Viscose Rayon Staple Fibre (VSF) in Thailand. More than 50 per cent of Thai Rayon's VSF throughput is directly exported to more than 20 countries worldwide. The VSF meets the stringent quality expectations of customers in USA, Mexico, Europe, Turkey, Canada, Israel, Australia, South Korea, Philippines, Indonesia, Pakistan, Bangladesh and Sri Lanka.

;PT Indo Bharat RayonMarketed under the brand name of 'Birla Cellulose', the company produces a wide range of VSF in engineered specifications for textiles and non-woven applications. The company's strong focus on environmental protection is reflected through its investments in a sophisticated state-of-the-art waste-water treatment plant and scientific waste disposal systems.

ources of competitive advantage

;CostGrasim is the lowest cost producer of VSF in the world. It is the most integrated fibre producer with the chain stretching right from Forest to Pulp to Fibre to Yarn. All most all the intermediate inputs are captive. Besides, their in-house engineering division enables us to grow in a most cost effective way.

;TechnologyOn technology front, they produce all the three generations of man made cellulosic fibres from an in-house developed capability through research and development. Their research and development efforts are not limited to fibre stage alone but extend to entire textile value chain. While the plantation and related activity is carried out at Grasim Research Institute (GFRI, Harihar, India), the Product innovations are carried out at Birla Research Institute (BRI, Nagda, India). For value chain related activities, a state of art “Textiles Research & Application Development Centre” has been established at Kharach, Gujarat-India to entire textile value chain from yarn to fabric to garments.

;MarketsOn marketing front, their reach extends to the entire globe, through marketing offices. On a global level, their major strength is in spun-dyed fibres and now other specialities such as Non-woven, Modal and Excel have started penetrating in global markets. Their brand “Birla Cellulose” is firmly entrenched in the market. Their value added marketing services comprising of technical, logistical, financial, marketing and informational support have enabled us to emerge as the most preferred supplier of VSF in world.Our offerings whether from India, Thailand, Indonesia or China are all marketed under the mother brand “Birla Cellulose” and sub brands Birla Viscose, Birla Modal & Birla Excel. An umbrella brand has enabled us to create a common identity for our product across the globe irrespective of its production origin and creating of awareness and consumer pull.u have to come in kiet

Looking Forward

They have recently acquired Pulp & VSF Plants in Canada and China respectively. They have also initiated a Pulp & Plantation Project in Laos. Concurrently, brown field VSF capacity expansions, capable of producing Speciality Fibres Non-woven, Modal are taking place at all existing locations. They have increased our production capacity from 1250 to 1550 TPD during the last year, which will further increase to 1950 TPD by next year.

Going forward, the company's thrust will be on value-added new products and application development. The company's research and application centre at Kharach (Gujarat) will foster the development of new applications and value-added products, which is expected to translate into increased demand for VSF. Importantly, the Group has beefed up its existing R&D facilities for cellulosic fibres through the setting up of a state-of-the-art Textiles Research and Application Development Centre in Gujarat, India. The centre aims to provide R&D support at all stages of the textile value chain right from fibre to garments under one roof.

Competitive Position of Indian Textile Industry

Competitive strengths

# India has a large fiber base, and ranks as the world’s second-leading producer of cotton, accounting for 16 percent of the world’s cotton crop.
# India is the second largest cotton exporter after the U.S.A
# In the manmade fiber sector, India is the world’s fifth-largest producer of polyester fibers and filament yarns and the third-largest producer of cellulosic fibers and filament yarns
# India is the world’s second-largest textile producer (after China), and is diversified and capable of producing a wide variety of textiles.
# India’s textile and apparel industry benefits from a large pool of skilled workers and competent technical and managerial personnel.

Competitive Weaknesses

# Policies of the Government of India (GOI) favoring small firms have resulted in the establishment of a large number of small independent units in the spinning, weaving, and processing sectors.
# Discouraged investments in new manufacturing technologies, and limited large-scale manufacturing and the attendant benefits of economies of scale.
# Low levels of technology and produce mostly low value-added goods of low quality
# India’s textile industry depends heavily on domestically produced cotton.
# The GOI policy reserving apparel production for the SSI sector had restricted the entry of large-scale units and discouraged investment
# India has high energy and capital costs, multiple taxation, and low productivity, all of which add to production costs.

Footnote

External links

* [http://www.grasim.com/ Grasim Industries Ltd]


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Grasim Industries — Rechtsform Limited Sitz Indien Branche Textilien Website Grasim Grasim Industries Limited ist das Hauptunternehmen der …   Deutsch Wikipedia

  • Grasim Industries — Création 1948 modifier  …   Wikipédia en Français

  • Reliance Industries Limited — Reliance Industries Unternehmensform Gründung 1966 Unternehmenssitz Mumbai, Indien Unternehmensleitung Mukesh Ambani …   Deutsch Wikipedia

  • Reliance Industries Ltd. — Reliance Industries Unternehmensform Gründung 1966 Unternehmenssitz Mumbai, Indien Unternehmensleitung Mukesh Ambani …   Deutsch Wikipedia

  • Reliance Industries — Limited Тип Пуб …   Википедия

  • Hindalco Industries Ltd. — Hindalco Industries Unternehmensform Aktiengesellschaft[1] Gründung 1962 Unternehmenssitz Mumbai, Indien …   Deutsch Wikipedia

  • Reliance Industries — Rechtsform Limited Gründung 1966 Sitz Mumba …   Deutsch Wikipedia

  • Reliance Industries Limited — Reliance Industries Reliance Industries Limited Création 1966 (en tant que Reliance Commercial Corporation) Personnages …   Wikipédia en Français

  • Hindalco Industries — Rechtsform Aktiengesellschaft[1] Gründung 1962 Sitz Mumbai, Indien Leitung …   Deutsch Wikipedia

  • Nagda —   city   …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.