G.D. Birla is widely regarded as one of the most influential architects of India’s industrial growth. He began his career in Calcutta at the turn of the century, and entered the business world during the First World War. After the war, he quickly established himself as a major player in the industry.

Foreseeing a shortage of cotton, in 1947, G D Birla decided to establish a manufacturing centre for man-made fibres to supplement the textile fibre availability for clothing. He decided to set up a Rayon-based weaving unit at Gwalior.

The Gwalior Rayon Silk Manufacturing Weaving Company Ltd ( GRASIM ) was incorporated as a company limited by shares just 10 days after independence of India at 25th August 1947 in Gwalior.

During the 1950s, GRASIM experienced significant growth as the company expanded its operations. In 1950, the company’s first weaving unit began fabric production, marking a successful step forward for the company. The following year, the Maharaja of Gwalior Jiwaji Rao Scindia offered land in Nagda near Ujjain which was part of Gwalior State at that time to set up a VSF plant. The location was chosen due to its abundant water resources and proximity to textile markets in Bombay and Ahmedabad. By 1954, Grasim had established its second manufacturing plant in Nagda and started producing viscose staple fibre (VSF). This move proved to be a game-changer for India’s textiles industry, paving the way for future advancements in the field.

In 1960’s , industrial house of Birla also started a factory named ” Gwalior Rayons” at Mavoor ,  in Kozhikode district in Kerala, for producing pulp and fibre on 316 acres of land. An integrated township with schools, a hospital, and a police station also came up. 

in 1985 , Gwalior Rayon Silk Manufacturing Weaving Company Ltd was officially changed to Grasim Industries Ltd.