Rayon grade caustic soda is an important raw material in VSF production. To achieve a reliable and economical supply of this chemical, Grasim set up a rayon grade caustic soda unit at Nagda in 1972, with an initial capacity of 33,000 tpa. This has since grown to 258,000 tpa, making it the country's second largest caustic soda unit.

It uses cost-effective membrane cell technology and is 100 per cent self-sufficient in power. For gainful utilisation of chlorine, the unit has expanded its operations with the production of stable bleaching powder (SBP) used in water purification, sanitation and as a bleaching agent; poly aluminium chloride (PAC) used in water treatment, paper sizing and effluent treatment; and chloro sulphonic acid, used in vinyl sulphate, the raw material for dyes and intermediates, saccharin, drugs and pharmaceuticals, etc.

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