Grasim extends production cutbacks at Nagda unit

Grasim Industries Ltd, the flagship company of the Aditya Birla group, today said the company's chemical plant at Nagda, Madhya Pradesh, will be running at 20 per cent of its rated capacity of 700 TPD till the onset of monsoon.

Grasim had, on 4 June, announced a temporary suspension of production at its staple fibre plant at Nagda for non-availability of water. Grasim has now informed BSE that as the monsoon has been delayed, the suspension of production at the unit will remain till the onset of monsoon.

The Nagda plant requires 9 million gallons of water a day, including 8 million gallons for the viscose staple fibre (VSF) plant and 1 million gallons for the chemical plant.

Grasim had said that the company's other two staple fibre plants at Kharach (Gujarat) and Harihar (Karnataka) were running at their full capacity.

Grasim Industries Limited ranks among India's largest private sector companies, with consolidated net turnover of Rs18,400 crore and a consolidated net profit of Rs2,200 crore in the 2008-09 financial year.

Grasim had reported improved performance during the 4th quarter of the year ended 31 March 2010 and for the entire year. These results, announced post demerger of the cement business of the company to its subsidiary, Samruddhi Cement Ltd, have been driven by improvement in both its cement and VSF businesses.

While the Cement business has performed well supported by higher output from the new capacities, including its captive power plants, the VSF business has recovered from the extreme downturn of the last year leading to an impressive performance.