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Grasim commences commercial VSF production at new plant
Jul '14
Grasim Industries Ltd., a flagship company of the Aditya Birla Group, has informed the Bombay Stock Exchange (BSE) that it has commenced commercial production at its Greenfield Viscose Staple Fibre (VSF) plant at Vilayat village in Bharuch district of Gujarat.
The commercial production has started with the commissioning of 2 Lines with a capacity of 77,000 MT per annum of Grey/Dyed Fibre.
The work on the remaining 2 Lines to produce Modal/Micro Modal Fibre is at an advanced stage of commissioning. On completion, the capacity at Vilayat plant will increase to 120,000 MT per annum.
During January-March 2014 quarter, Grasim’s VSF volume continued its upward trend and crossed 99,000 tonnes, recording a growth of 4 percent year-on-year. During the quarter, market development activities in the domestic markets led to an improvement in the demand, supported by higher production at the company’s plant at Harihar in Karnataka.
Although demand supply imbalance and liquidity crunch in China impacted VSF prices in global markets, the company was able to maintain its realisations, supported by the rupee depreciation.
However, the rupee depreciation led to an increase in pulp costs, which created pressure on margins, according to the company.

Fibre2fashion News Desk - India

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