Aditya Birla Group's Grasim Industries' viscose staple fibre (VSF) brownfield expansion plan worth Rs 3,523 crore was approved by the board.

The project is expected to be commissioned by 2021. Dilip Gaur, managing director, Grasim Industries told reporters, "The company has a total CapEx plan of Rs 6,440 crore for expansion over the next two years. The board has approved VSF brownfield expansion plan at Vilayat in Gujarat at an estimated cost of Rs 3,523 crore."

The total capacity of Grasim is projected to be increased by 58% along with the expansion and debottlenecking plan.

According to Sushil Agarwal, the chief financial officer of Grasim Industries, the plans will be funded in a phased manner through internal accruals only as the company has a strong balance sheet net cash surplus of Rs 600 crore at standalone level.

"The company has already spent Rs 700 crore in the nine-month period ended December 2017," he said.

Inputs from PTI