Abstract

Grasim Industries Ltd. is a dominant player in the Indian Viscose Stable Fiber market and one of the leading players globally. The case begins with a profile of the Indian VSF market. It then outlines the impact of fluctuations in the prices of alternate fibers, mainly cotton and polyester, on the demand for Grasim's VSF. The case describes in detail the unique business strategy, 'Service beyond VSF', adopted by Grasim with the intention of promoting the usage of its VSF and reducing the impact of price fluctuations in substitute fibers. The case outlines the value added services, and branding and product development initiatives, that the company has carried out to realize its objectives. The case ends with a discussion on the future prospects of Grasim.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Appreciate the various problems faced by manufacturers of commodity products, and more specifically, VSF manufacturers
• Provide insights into the means by which a commodity product can transformed into a branded product with more stable demand and less likelihood of substitution
• Understand the contribution of new product development to the growth of an industry.

Keywords

Viscose Staple Fiber, Birla, Branding, Value addition, Commodity, Cotton, Polyester, Substitutes, Price fluctuation, Value chain, Spinners, Knitters, Yarn