We introduce GCIS, a grammar compression algorithm based on the induced suffix sorting algorithm SAIS, introduced by Nong et al. in 2009. Our solution builds on the factorization performed by SAIS during suffix sorting. We construct a context-free grammar on the input string which can be further reduced into a shorter string by substituting each substring by its correspondent factor. The resulting grammar is encoded by exploring some redundancies, such as common prefixes between suffix rules, which are sorted according to SAIS framework. When compared to well-known compression tools such as Re-Pair and 7-zip, our algorithm is competitive and very effective at handling repetitive string regarding compression ratio, compression and decompression running time.