Home / Knowledge / News / Textiles / VSF production down by 9% at Grasim
VSF production down by 9% at Grasim
Oct '10
Grasim Industries Limited, an Aditya Birla Group Company, announced its results for the 2nd quarter ended 30th September 2010.

The Company's performance was impacted by the stoppage of the Company's VSF Plant at Nagda for 25 days during the quarter on account of the water shortage due to the delayed monsoon. Its Consolidated revenue stood at Rs.4,503 crores (Rs.4,741 crores).

Net profit for the quarter was at Rs.323 crores as against Rs.781 crores in the corresponding quarter.

Viscose Staple Fibre (VSF)
VSF demand improved globally, after the initial weakness noticed during the quarter. This coupled with anticipated shortage in cotton crop has resulted into better prices.

Production at 69,802 MT was lower by 9%. With the advent of the monsoons, the plant is working to full capacity from 26th July, 2010. Though lower volumes and higher pulp prices led to a decline in the standalone profitability, a better performance from the Company's Pulp JVs in Canada resulted in softening the impact at the consolidated level. Pulp prices which rose by 52% in the last year, have since stabilized at the higher level.

The Company would continue to focus on market enlargement through product innovation and application development.

VSF Capex
The Company plans to set up an 120,000 TPA VSF plant at Vilayat, (Gujarat) at a cost of Rs.1,690 crores. The product mix will be in line with the market needs. The Company's capacity at Harihar (Karnataka) will be enhanced by 36,500 TPA through a brownfield expansion at a cost of Rs.449 crores. Both the projects are slated for commissioning by FY13.

The long term prospects of the Company remain positive with its leadership position in both Cement and VSF businesses, focus on profitable growth and strong fundamentals. Besides, the substantial increase in capacities, improved cost optimization and higher productivity bode well for the Company in the years to come. Therefore, the Company is positive that its long term journey to growth and profitability will not be hampered by the challenging quarter gone by.

Grasim Industries Limited

Must ReadView All

Textiles | On 7th Dec 2016

New Texprocil chairman bats for increased UPI adoption

Ujwal Lahoti, the new Cotton Textile Export Promotion Council...

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

The new OJ 59/1 B. Courtesy: Karl Mayer

Textiles | On 7th Dec 2016

Karl Mayer unveils new LACE.EXPRESS model for apparel

Germany’s leading textile machinery firm, Karl Mayer, has launched a...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Rajiv Sirohi

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

Lynda Kelly
Suominen Corporation

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mark Paterson
Technical Absorbents Ltd

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

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


Browse Our Archives


Advanced Search