AV Birla Group-managed Grasim Industries has planned to make capital expenditure of Rs.1,522 crore for the next two years.Of this, Rs.920 crore has been set aside for the company’s grey cement business and the remaining Rs.602 crore for its textiles division.

Cement:  Grasim expects a favourable outlook for cement exports thanks to the construction boom in the Middle East region. Grasim would be expanding its cement business through its group companies -- Ultratech (former cement division of Larsen & Toubro) and Shree Digvijay Cement Co.

Grasim would also be setting up a 1.3 million tonne grinding unit in Dadri, near New Delhi, at a cost of Rs.112 crore.

A capex of Rs.151 crore has been earmarked for debottlenecking and strengthening production facilities. This is expected to result in an increase of blended cement production.

Captive power plants, with a combined capacity of 77 mw, have been planned at three locations with a outlay of Rs.332 crore.

Textiles: The company has also planned a capex of Rs.602 crore over two years for developing and commercialising its range of manmade fibres. This includes Rs.373 crore to be spent on expansion and debottlenecking, with an aim to increase capacity by 59,000 tpa at its Kharach unit in Gujarat. The balance amount of Rs.229 crore would be utilised as normal capex and modernisation initiatives.