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

Grasim Industries' VSF business change focus to exports markets in June quarterMumbai: Grasim Industries’ textile business, viscose staple fibre described a total gross sales of forty three kilo tonne out of which 38% accounted for exports in the June quarter of the recent economic year 2021, a rise of 153% yoy, the place the corporation exported close to 15% of total gross sales in the exact quarter of FY twenty.

“VSF business switched focus to the export market place and committed couple of output traces to cater to the export demand from customers of specialty items. The ongoing stream of yarn imports and weak demand from customers circumstances impacted the domestic spinning field,” the corporation mentioned in a assertion

The operational and economic functionality of the viscose business of Grasim was subdued for the months of April and May possibly 2020 due to lockdown, but witnessed regular advancement in the month of June 2020 and thereafter, with a rise in the potential utilisation throughout the vegetation to close to 79% now. In Q4 of FY20, the corporation exported 26% of total gross sales of 136 KT.

The net income for the viscose segment stood at Rs 558 crore with a fall in the gross sales volume. The share of worth-additional items in the overall gross sales volume improved to thirty% in Q1FY21, up by six% on a sequential basis, the corporation mentioned.

Grasim on Thursday described a 72% year-on-year decline in consolidated net revenue of Rs 353 crore in the June quarter of FY21 as from a net revenue of Rs 1,294 crore in the exact quarter past year.

“The final results are to be noticed in gentle of the unparalleled disruption in economic actions due to the Covid-19 induced lockdown,” the corporation mentioned in a assertion on Thursday.

For the recent year, the board has accredited a capex plan for ₹1,615 crore retaining in thoughts the short term disruption in the company’s earnings. The capex features raising capacities in VSF in FY22, apart from ongoing modernisation capex at many vegetation.

Grasim’s income fell 32% to Rs 13,621 crore for the quarter less than critique as from Rs twenty, 103 crore a year in the past. Earnings ahead of fascination, tax, depreciation and amortization fell by 41% to Rs two,613 crore.

To provide the rising demand from customers for anti-bacterial textile range, Grasim’s Liva manufacturer has released Antimicrobial fibre. The fabric is generated applying a particular fibre which inherently possesses Antimicrobial qualities, and inhibits the development of microbes (bacteria and viruses) on apparels & house textiles and kills them to the extent of ninety nine%, the corporation mentioned.

“The corporation has initiated many actions to improve functions throughout vegetation, decrease its mounted expenses and preserve cash as element of its extensive business continuity plan,” Grasim mentioned.