Grasim Industries’ Viscose Staple Fibre (VSF) business has recorded volume growth, supported by increased capacity at Harihar. Production increased by four per cent over the last years. Sales volume at 97,049 MT was up by 24 per cent, led by better performance in both domestic and exports markets.
The company was able to maintain the realisations despite the sharp fall in international prices, supported by the rupee depreciation. The input costs have gone up with the increase in pulp prices, coupled with rupee depreciation.
The performance of the pulp JVs was affected on account of planned maintenance shutdowns. The anti-dumping duty levied in China impacted realisations and the volumes of pulp sold in China.
The VSF project of 120,000 TPA at Vilayat is expected to go on stream in a phased manner from the fourth quarter. The commissioning of major projects by the company will help improve volume and profitability.