  We study the close circumstellar environment of the nearby S-type star Pi^1
Gruis using high spatial-resolution, mid-infrared observations from the
ESO/VLTI. Spectra and visibilities were obtained with the MIDI interferometer
on the VLT Auxiliary Telescopes. The cool M5III giant Beta Gruis was used as
bright primary calibrator, and a dedicated spectro-interferometric study was
undertaken to determine its angular diameter accurately. The MIDI measurements
were fitted with the 1D numerical radiative transfer code DUSTY to determine
the dust shell parameters of Pi^1 Gruis. Taking into account the low spatial
extension of the model in the 8-9 $\mu$m spectral band for the smallest
projected baselines, we consider the possibility of a supplementary molecular
shell. The MIDI visibility and phase data are mostly dominated by the spherical
21 mas (694 Rsol) central star, while the extended dusty environment is
over-resolved even with the shortest baselines. No obvious departure from
spherical symmetry is found on the milliarcsecond scale. The
spectro-interferometric observations are well-fitted by an optically thin
(tau(dust)<0.01 in the band) dust shell that is located at about 14 stellar
radii with a typical temperature of 700 K and composed of 70% silicate and 30%
of amorphous alumina grains. An optically thin (tau(mol)<0.1 in the N band)
H2O+SiO molecular shell extending from the photosphere of the star up to 4.4
stellar radii with a typical temperature of 1000 K is added to the model to
improve the fit in the 8-9 $\mu$m spectral band. We discuss the probable binary
origin of asymmetries as revealed by millimetric observations.
