Home / Knowledge / News / Textiles / VSF business drives Grasim Inds Q1FY15 sales 15%
VSF business drives Grasim Inds Q1FY15 sales 15%
14
Aug '15
Driven by a notable growth in its viscose staple fibre (VSF) business, Kumara Mangalam Birla led Grasim Industries reported a 15 per cent year over year rise in consolidated revenues in the three months to June 30, 2015.

In a BSE filing, Grasim said its turnover for the first quarter of fiscal 2016 grew 15 per cent year on year to Rs 1,657 crore driven by sales in all its three business units, particularly the VSF business.

In the three months to June 30, 2015, the VSF division posted revenue of Rs 1254.07 crore, up 15 per cent from Rs 1094.03 crore in the same quarter of last fiscal.

“VSF sales were driven by higher sales volume at 103,000 metric tons, up 19 per cent over the first quarter of fiscal 2015,” Grasim added.

EBIDTA for the division surged 72 per cent to Rs 139 crore coming from expanded volumes and a drop in raw material costs like pulp and other input costs.

Grasim was able to achieve capacity utilisation of 82 per cent at its newly commissioned Vilayat plant in Gujarat in the quarter.

"Volume growth would have been higher, had there been no plant stoppage at the Nagda unit for two months due to the water shortage, which restarted operations on June 22, 2015,” it informed.

The company added further that prices of the VSF business can probably be influenced by developments in the Chinese VSF industry, mainly from restart of operations at some of the shut plants.

Chemical business sales soared 17 per cent from almost doubling of Epoxy volumes which came from ramping up plant utilisation. But, caustic soda sales volumes remained unchanged at 98,000 tons.

EBITDA for the chemical business rose 3 per cent year on year to Rs 94 crore in the first quarter of 2015.

The scheme of amalgamation of Aditya Birla Chemicals (India) Limited (ABCIL) with Grasim has been approved by the respective equity shareholders and creditors of the company and ABCIL.

The regulatory approval of the scheme from Competition Commission of India and approvals of the High Courts of Madhya Pradesh and Jharkhand are in process.

Post amalgamation of ABCIL, the company's production capacity of caustic soda will increase from 452 KTPA to 804 KTPA.

Revenue from other segments, which constitute mainly textiles, was Rs 136.65 crore compared with Rs 148.57 crore in the same period of last fiscal.

Its expenditure for the first quarter of fiscal 2016 reached Rs 7,585.05 vis-à-vis Rs 7,184.58 from the quarter ended June 30, 2014.

Must ReadView All

Textiles | On 27th Apr 2017

Maharashtra govt working on second textiles policy

The textiles department of the government of Maharashtra is working...

Apparel/Garments | On 27th Apr 2017

EC takes action to make garment sector more sustainable

The European Commission (EC) has presented a set of focused actions...

Textiles | On 27th Apr 2017

Seven new organisations join ZDHC Programme

The Zero Discharge of Hazardous Chemicals (ZDHC) Programme from...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kevin Nelson
TissueGen

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

Johan Berlin
InvestKonsult Sweden AB

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Igor Chapurin
Chapurin

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

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X