The company said its unit, Birla Cellulose, has signed a letter of intent with Renewcell, the Swedish textile-to-textile recycling innovator, concerning a long-term commercial collaboration for man-made cellulosic fiber production.
The agreement affirms the two companies' intent to work together to supply high quality Liva Reviva textile fibers made using Circulose, Renewcell's 100% recycled textile raw material, to global fashion brands and textile industry in the coming years.
The shared ambition is to use 30,000 tonnes of Circulose per year. The agreement has been facilitated by Ekman Group, Renewcell's exclusive global trading partner.
The letter of intent signed between Renewcell, and Grasim Industries provides the framework for an upcoming offtake agreement between the parties. The future offtake agreement will set out commercial terms for the delivery of certain volumes of Circulose dissolving pulp to Birla Cellulose over a number of years.
Birla Cellulose intends to use Circulose as one of the feedstocks in the production of man-made cellulosic fibers under the brand Liva Reviva, to be supplied to textile manufacturers and fashion brands worldwide.
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Birla Cellulose, the pulp and fibre business of the Aditya Birla Group, is a leading Man-Made Cellulosic Fibres (MMCF) producer. It operates 12 sites for pulp and fibre manufacturing that apply environmentally efficient closed loop technologies including recycle materials and enhanced conservation of natural resources.
Grasim Industries is a leading global producer of viscose staple fibre (VSF), the largest chlor-alkali, linen and insulators player in India. Through its subsidiaries, UltraTech Cement and Aditya Birla Capital, it is also India's largest cement producer and a leading diversified financial services player.
On a consolidated basis, Grasim Industries reported 26% rise in net profit to Rs 1,746 crore on 16% increase in revenue to Rs 24,402 crore in Q3 FY22 over Q3 FY21.
Shares of Grasim Industries fell 0.09% to Rs 1666.10 on the BSE.
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