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

Pakistani textile associations want uniform energy pricing

Textiles | On 21st Feb 2018

Pakistani textile associations want uniform energy pricing

Pakistan’s textile industry association representatives have...

Japan’s JICA promoting energy-saving devices in Bangladesh

Apparel/Garments | On 21st Feb 2018

Japan’s JICA promoting energy-saving devices in Bangladesh

The Japan International Cooperation Agency (JICA) is promoting use of ...

Over 100% subsidy target in 2016-17 for PMEGP by KVIC

Textiles | On 21st Feb 2018

Over 100% subsidy target in 2016-17 for PMEGP by KVIC

India’s Khadi and Village Industries Commission (KVIC) has achieved...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Urmil Arya

Sushila International, a well established textile organisation established ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Prathyusha Garimella
Prathyusha Garimella

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

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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

February 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search