Name of the Student

Aamir Malik

Program

MBA(G)


Class Roll Number

B-43



Enrollment Number


A0101913169


Name of Faculty guide


Dr. Shalini Trivedi

Case study title Grasim Industries Ltd and VSF -
Expanding a Commodity Market
through Branding and CRM











Student Declaration
I declare (a)That the work presented for assessment is my own, that it has not previously been
presented for another assessment and that my debts (for words, data, arguments and ideas)
have been appropriately acknowledged (b) That the work conforms to the guidelines for
presentation and style set out in the relevant documentation. ( c ) The Plagiarism as taken by
Turnitin is ________ %.

Date : Student
Signature


(Faculty guide name & Signature)
Designation & Department










Abstract
Grasim Industries Ltd. is an overwhelming player in the Indian Viscose Stable Fiber business
and one of the heading players all inclusive. The case starts with a profile of the Indian VSF
market. It then blueprints the effect of changes in the costs of interchange strands, chiefly
cotton and polyester, on the interest for Grasim's VSF. The case portrays in detail the
remarkable business system, 'Benefit past VSF', received by Grasim with the expectation of
pushing the utilization of its VSF and diminishing the effect of value vacillations in substitute
strands. The case diagrams the quality included administrations, and marking and item
improvement activities, that the organization has completed to understand its targets. The
case closes with a discourse on the future prospects of Grasim.
ISSUES
To give experiences into the way of ware markets, and the business for man-made and
different filaments in India
To comprehend the effect of value vacillations of substitute items, on the interest for a ware
item
To like the different issues confronted by makers of ware items, and all the more
particularly, VSF producers
To give experiences into the methods by which a ware item can changed into a marked
item, with more steady request and less probability of substitution
To comprehend the commitment of new item advancement to the development of an
industry
Keywords
Viscose Staple Fiber, Birla, Branding, Value addition, Commodity, Cotton, Polyester,
Substitutes, Price fluctuation, Value chain, Spinners, Knitters , Yarn


There is no such thing as decline. When markets are not moving, there are two things that
you can do - take on competition and see that your offering is better in all ways, and the other
way is to grow your market."
Shailendra K. Jain, President of Grasim Industries Ltd., in 2004.
"Viscose has been underutilized because of a lack of awareness among fashion designers and
end-users. Internationally viscose blended fabrics are extensively used in apparels. This not
the case in India."
- M P Joseph, Secretary General, Association of Man-made Fiber Industry of India
(AMFII),3 in October 2005.
Introduction
In March 2006, Grasim Industries Ltd. (Grasim) reported arrangements to secure a
coordinated manor cum mash plant in Laos to source crude material for its Viscose Staple
Fiber (VSF) creation units in India, Thailand and Indonesia and additionally for future
generation offices.
The report came as an astonishment, showing to industry watchers that Grasim had not
recently succeeded in capturing the decrease in its offers of VSF, however was sure of future
development as well. Grasim began generation of fabric utilizing transported in VSF as a part
of 1950. VSF was then the least expensive accessible fiber and was alluded to as 'the poor
man's cotton'. In 1963, Grasim received a vertical reconciliation methodology and began
delivering it VSF. As an expense sparing measure, the organization even started delivering
significant crude materials (wood mash and burning pop) for VSF in-house. It additionally
created a more eco-accommodating methodology for assembling VSF. These measures,
however fruitful in expanding its deals, were not sufficient to switch the continuous loss of
piece of the pie of its VSF to its substitutes - cotton and polyester filaments.
By the 1990s, a blend of expanding crude material expenses and low polyester and cotton
costs made VSF the costliest fiber. Accordingly, interest for VSF declined quickly.

In 1999, Grasim set out on a forceful showcasing crusade to rescue its VSF business. The
battle did succeed in expanding the interest for VSF to some degree. Be that as it may, in
2002, with the fall in cotton costs, interest for VSF fell once more.
It was at this crossroads that Grasim chalked out a method to lessen the effect of value
variances of substitute strands on interest for its VSF, while in the meantime moving to build
its experience the fiber market.
The system included a few item advancement activities and is accepted to have helped make
esteem for the organization and its clients.
Background Note:
Grasim was a piece of the Aditya Vikram (A.v) Birla Group established by Shiv Narayan
Birla (SN) in the late nineteenth century. A part of the Marwari4 group in Pilani, Rajasthan,
SN began exchanging cotton in Bombay (Mumbai).
The cotton business stretched quickly. In 1919, Ghanshyam Das Birla (GD), SN's grandson,
went to Kolkata, to set up a jute business. GD later set up units in aluminum, bond,
chemicals, materials, and fiber commercial ventures. He was likewise eagerly included in
India's opportunity battle and was a nearby partner of Mahatma Gandhi. Grasim was made on
August 25, 1947 at Gwalior in Madhya Pradesh by G.d. The organization was set up to
produce fabrics. Amid that period, most material plants utilized cotton fiber. At the point
when British India was parceled, the vast majority of the cotton-delivering ranges went to
Pakistan, with the come about that the Indian material industry confronted a genuine crude
material deficiency. Grasim searched for plan B to cotton, and decided to utilize VSF, which
was likewise the least expensive fiber accessible at the time.
It initiated generation of fabrics utilizing VSF foreign from Europe. In 1954, Grasim set up a
plant to create VSF in India surprisingly at Nagda in Madhya Pradesh, in this manner
accomplishing significant retrograde reconciliation.
In 1962, Grasim began a different building division to fabricate plant and hardware for VSF
generation. In later decades, Grasim manufactured all its plants utilizing indigenous
innovation and supplies.
In 1963, Grasim set up a VSF plant at Mavoor, Kerala which turned into the first to utilize
bamboo as crude material. Creation at the plant initiated in 1968.
In 1972, a totally indigenous plant was fabricated at Harihar, Karnataka that made utilization
of mash from eucalyptus trees. The plant utilized in-house engineering for creating wood
mash through a creative oxygen dying methodology which lessened the utilization of
chlorine.
VSF: Fluctuating Fortunes
Generally, the costs of substitute strands had regularly had an effect on the interest for VSF.
The interest for VSF was grinding away's top in the 1960s, when it summoned a piece of the
pie of 20% in the worldwide fiber market. Through the years, this had declined slowly.
Throughout the decades, the creation expense of VSF had climbed consistently, owing to
taking off crude material (particularly wood mash) costs and the exceptionally control
concentrated nature of the generation process. In the 1990s, the low cost of cotton and falling
polyester costs made VSF the costliest fiber, bringing on a decrease in its piece of the pie. In
the 1990s, VSF's worldwide piece of the pie had contracted to 4%...
Service Beyond VSF:
In 2002, Grasim started execution of its 'Administration past VSF' methodology. The
organization had the accompanying goals:
- to give complete answers for its clients' fiber related needs,
- to guarantee most extreme client fulfillment bringing about higher client maintenance,
- to attain higher deals by making clients build the use of VSF in their yarn,
- to completely use its creation limit, and
- to increase piece of the pie from cotton and polyester.
Offering Value Added Services to the Entire Value Chain
Grasim accepted that the business could be broadened just on the off chance that it worked
with each section of the VSF worth chain. Thusly, the organization executed the
Administration past VSF' procedure to blanket the whole VSF worth chain. It supported the
use of VSF by spreading data with respect to the key properties of the fiber. It gave a few
administrations to the different elements in the material quality chain which included article
of clothing producers, weavers, knitters, fabric getting done with/garmenting units, material
specialized experts, merchants/executors, processors, and significant purchasing
houses/operators who sourced fabric/piece of clothing supplies...
Product Development Initiatives
Grasim perceived that its endeavors to augment the business sector for its VSF would be
useless unless new applications and items were brought out customarily. Item improvement
in VSF was basically nonexistent as contrasted with different strands which normally turned
out in fresher forms. Subsequently, alongside its procurement of worth included
administrations, Grasim tried exertions to present more current variations of VSF...
Other Efforts
Grasim acknowledged that the business could be increased just if it worked with each one
segment of the VSF worth chain. In this way, the association executed the 'Organization past
VSF' system to cover the entire VSF worth chain. It upheld the utilization of VSF by
spreading information as for the key properties of the fiber. It gave a couple of organizations
to the diverse components in the material quality chain which included piece of attire makers,
weavers, knitters, fabric accomplishing with/garmenting units, material particular specialists,
traders/agents, processors, and critical buying houses/administrators who sourced fabric/bit of
apparel supplies...
The Impact of 'Service Beyond VSF'
Grasim saw that its tries to increase the business division for its VSF would be pointless
unless new applications and things were brought out usually. Thing change in VSF was
fundamentally nonexistent as appeared differently in relation to distinctive strands which
typically turned out in fresher structures. Accordingly, close by its acquisition of worth
included organizations, Grasim attempted efforts to present more present varieties of VSF...
Outlook
Grasim acknowledged that the business could be increased just if it worked with each one
segment of the VSF worth chain. In this way, the association executed the 'Organization past
VSF' system to cover the entire VSF worth chain. It upheld the utilization of VSF by
spreading information as for the key properties of the fiber. It gave a couple of organizations
to the diverse components in the material quality chain which included piece of attire makers,
weavers, knitters, fabric accomplishing with/garmenting units, material particular specialists,
traders/agents, processors, and critical buying houses/administrators who sourced fabric/bit of
apparel supplies...
Grasim saw that its tries to increase the business division for its VSF would be pointless
unless new applications and things were brought out usually. Thing change in VSF was
fundamentally nonexistent as appeared differently in relation to distinctive strands which
typically turned out in fresher structures. Accordingly, close by its acquisition of worth
included organizations, Grasim attempted efforts to present more present varieties of VSF...