Home / Knowledge / News / Textiles / VSF business of Grasim reports lower sales in Q2
VSF business of Grasim reports lower sales in Q2
23
Oct '08
Grasim Industries Ltd., an Aditya Birla Group Company, today announced its results for the 2nd quarter ended 30th September, 2008. Its Consolidated Revenues stood at Rs 47.89 billion against Rs 39.64 billion in 2nd quarter of last fiscal.

Net Profit was lower at Rs.486 crores against Rs.620 crores. Viewed in the backdrop of the general slowdown in the economy and rising input costs, which has affected all industries in general and the sectors that Grasim operates in, in particular, the performance has been satisfactory.

Production of Viscose Staple Fibre stood at 62,973 MT against 69,678 MT in the same period of previous year, registering a negative growth of 10 percent. Correspondingly sales volumes also fell to 62,536 MT from 70,183 to post a de-growth of 11 percent

The performance of VSF business was impacted due to the sluggish demand, given the global slowdown and liquidation of inventory in the value chain. The textile sector has been adversely affected due to the rising inflation and a shift in consumer preferences.

In line with market realities, the Company has scaled down its production. An unprecedented increase in the price of sulphur and high pulp and caustic soda prices, coupled with the weakening of the Indian rupee, led to a drop in operating profits and margins.

Demand is expected to remain subdued in the short to medium term until the global economic situation improves. Margins are expected to remain range bound due to lower volumes and high input costs. While the prices of pulp and sulphur have started declining, the positive impact thereof is partially offset by the weakening rupee.

The conversion of AV Nackawic plant from paper grade pulp to rayon grade pulp was completed during the quarter. According to the company the long-term outlook for the VSF business is positive.

Other than viscose staple fibre, Grasim has interests in cement, caustic soda and sponge iron.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Alizila

Apparel/Garments | On 24th Mar 2019

Barclaycard and Alipay become partners

UK-based Barclaycard and Alipay have become partners which will allow ...

Pic: True Fit

Apparel/Garments | On 24th Mar 2019

True Fit to reach 100 million registered users mark

True Fit, the data-driven platform that made the industry's Fashion...

Pic: Ecutopia

Information Technology | On 24th Mar 2019

Ecutopia & Jesta form supply chain optimising platform

Ecutopia, a powerful platform that enables collaborative trade and...

Interviews View All

Rahuul Jashnani, Jashn

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Saket Garg, Garg Corporation

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Ghanshyam Ghoghari, Kimora Fashion

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Deepprakash Agrawal,

Deepprakash Agrawal

Radhey Weaves is a Surat-based manufacturer of brocade fabrics. MD...

Anupam Arya,

Anupam Arya

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

Awanda Booth,

Awanda Booth

Held every year in New York City, Surtex is a global business-to-business...

Giulio Cesareo, Directa Plus SpA

Giulio Cesareo
Directa Plus SpA

Established in 2005, Direct Plus SpA, is one of the largest producers and...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

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

Mark Brill, Birmingham City University (BCU)

Mark Brill
Birmingham City University (BCU)

<div>A technological breakthrough could see people getting messages about...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

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

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

Leave your Comments


March 2019

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

news category


Related Categories:

Advanced Search