Aditya Birla on Rs 1,100cr VSF expansion spree

New Delhi, Apr 1 (UNI) Aditya Birla Group will invest Rs 1,170 crore to ramp up its Viscose Staple Fibre (VSF) capacity to 727 ktpa from 566 ktpa, primarily through brownfield expansion in its manufacturing plants in India, China, Thailand and Indonesia.

The 10-billion-dollar group has initiated steps for setting up of a 90 ktpa greenfield capacity in Mediterranean region that offers significant cost and logistics advantages to its existing VSF operations.

The capacity enhancement will cater to VSF demand in the West Asian and Latin American markets.

VSF is a core business for the group. After a ramp up of 120 ktpa recently, the present capacity of 566 ktpa represents 23 per cent global market share in the sector.

''Our growth, going forward, will be through all options. Over the years we have been moving away from being a pure commodity player to a value-added player for the niche segments of the market.

''In addition to spun dyed fibers, we have significantly enhanced our Speciality Fibre portfolio covering all generations of man made Cellulosic fibers. Our intent is to be an equally significant producer of fibres for non-woven applications,'' Group's Director (Global Pulp and Fibre business) Shailendra K Jain said.

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