Grasim Industries: Identifying Vietnam as an Export Market for Viscous Filament Yarn

Gaurav was tasked with identifying new export markets for Grasim Industries' viscous filament yarn. To do that, he first had to understand the product deeply enough to know where it could win.

He learned that India and China were the only two producers of viscous filament yarn, but they produced it differently. Indian manufacturers, including Grasim, added color during the liquid production stage, meaning the yarn was colored to its core. Chinese manufacturers produced white yarn and colored it afterward. The Indian method was more sustainable because it consumed significantly less water.

The Chinese method suited their primary application: fast-fashion brands like H&M and Zara, which wanted to color yarn themselves because they changed shades frequently. The Indian method suited traditional weavers who needed pre-colored yarn.

Spotting the Opportunity

Gaurav identified Vietnam as a market where embroidery was a major application. Vietnamese embroidery required pre-colored yarn in specific shades, similar to the Indian weaving application. China had geographic proximity and existing market share. But Gaurav saw a different angle: the end buyers for Vietnamese embroidery products were predominantly US and European brands, and he was tracking a clear trend toward sustainability requirements from those buyers.

If Grasim could obtain sustainability certification demonstrating its lower water consumption in production, it could compete on a dimension that Chinese producers could not match, regardless of their proximity advantage.

Validation

The team went to Vietnam with the product and the sustainability positioning. They were able to acquire customers. The thesis held.