Grasim Industries’ VSF business switch focus to exports markets in June quarter, Retail News, ET Retail

Davida Erdahl

Mumbai: Grasim Industries’ textile business, viscose staple fibre reported a total gross sales of 43 kilo tonne out of which 38% accounted for exports in the June quarter of the present-day monetary 12 months 2021, a increase of 153% yoy, the place the organization exported all around 15% of total […]

Mumbai: Grasim Industries’ textile business, viscose staple fibre reported a total gross sales of 43 kilo tonne out of which 38% accounted for exports in the June quarter of the present-day monetary 12 months 2021, a increase of 153% yoy, the place the organization exported all around 15% of total gross sales in the similar quarter of FY twenty.

“VSF business switched aim to the export sector and devoted few output lines to cater to the export need of specialty products. The continual stream of yarn imports and weak need circumstances impacted the domestic spinning business,” the organization reported in a assertion

The operational and monetary effectiveness of the viscose business of Grasim was subdued for the months of April and Might 2020 thanks to lockdown, but witnessed regular improvement in the thirty day period of June 2020 and thereafter, with a increase in the capability utilisation throughout the vegetation to all around seventy nine% presently. In Q4 of FY20, the organization exported 26% of total gross sales of 136 KT.

The web earnings for the viscose phase stood at Rs 558 crore with a drop in the gross sales quantity. The share of worth-additional products in the over-all gross sales quantity improved to thirty% in Q1FY21, up by 6% on a sequential basis, the organization reported.

Grasim on Thursday reported a seventy two% 12 months-on-12 months decline in consolidated web revenue of Rs 353 crore in the June quarter of FY21 as against a web revenue of Rs one,294 crore in the similar quarter very last 12 months.

“The results are to be found in light-weight of the unprecedented disruption in financial activities thanks to the Covid-19 induced lockdown,” the organization reported in a assertion on Thursday.

For the present-day 12 months, the board has permitted a capex program for ₹1,615 crore trying to keep in head the momentary disruption in the company’s earnings. The capex involves elevating capacities in VSF in FY22, apart from ongoing modernisation capex at a variety of vegetation.

Grasim’s earnings fell 32% to Rs thirteen,621 crore for the quarter under evaluation as against Rs twenty, 103 crore a 12 months back. Earnings prior to desire, tax, depreciation and amortization fell by forty one% to Rs 2,613 crore.

To provide the growing need for anti-bacterial textile array, Grasim’s Liva brand name has launched Antimicrobial fibre. The fabric is generated making use of a distinctive fibre which inherently possesses Antimicrobial properties, and inhibits the expansion of microbes (bacteria and viruses) on apparels & property textiles and kills them to the extent of 99%, the organization reported.

“The organization has initiated a variety of steps to enhance functions throughout vegetation, lessen its mounted expenses and conserve money as portion of its extensive business continuity program,” Grasim reported.

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