Home / Knowledge / News / Textiles / VSF sales volumes go up significantly by 40% at Grasim
VSF sales volumes go up significantly by 40% at Grasim
28
Jul '12
Grasim Industries Limited, an Aditya Birla Group company, announced its results for the 1st quarter ended 30th June 2012.

The company’s revenue increased by 16 per cent from Rs. 5,907 crore to Rs. 6,832 crore despite the challenging market conditions. PBIDT was marginally up at Rs. 1,767 crore (Rs. 1,748 crore) led by the enhanced performance of the cement business. However, due to higher taxes and increase in minority interest on higher cement profits, the net profit for the quarter was Rs. 718 crore against Rs. 752 crore in corresponding quarter.

Viscose staple fibre (VSF)

The weak global economic environment continues to impact the textile industry. Rupee depreciation led to higher input costs.

VSF sales volumes rose significantly by 40 per cent at 77,013 tonnes, driven by the uninterrupted operations at the company’s Nagda plant during the quarter. The plant was closed in the corresponding quarter for 27 days due to the water shortage. Average realisations were lower by 16 per cent on Y-o-Y basis despite the rupee depreciation, as prices were at their peak in the corresponding quarter of last year. The decline in realisations coupled with the increase in caustic soda and coal prices impacted profitability. The effect of higher caustic prices was however, reflected in the higher profitability of the chemicals business.

The acquisition of assets of Terrace Bay, a pulp mill in Ontario, Canada in a JV with Thai Rayon, a Group company was completed this week and the production should restart by October 2012. This will help in meeting the increasing pulp requirement after the mill is converted into a dissolving grade pulp mill.   

The chemicals business also reported good performance. The plant operated at full capacity on the strength of captive consumption of chlorine in value added products, though the industry capacity utilisation was impacted due to lower chlorine off take in markets. Caustic sales volumes increased by 28 per cent to 69,466 tonnes consequent to the uninterrupted plant operations. Caustic prices remained firm in line with international prices.

The VSF (156,000 TPA) and chemicals (182,500 TPA) expansions are on track. The expansion in Harihar, Karnataka will go on stream in two phases in the 2nd quarter and the 4th quarter during the current year. Projects at Vilayat, Gujarat are slated for commissioning towards the end of the current financial year.

Outlook

In VSF, stability in the Euro Zone and macro-economic policies will influence demand. The cotton crop in the ensuing season will influence realisations in the short term. In cement, despite the 8 per cent projected growth in demand, the surplus scenario is likely to continue for three years.

Capacity expansions under implementation in both VSF and cement will provide additional volumes, driving growth and will further consolidate the company’s leadership.

Grasim Industries Limited

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search