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Grasim
may close down staple fibre plant by this month end
PTI
- Mumbai
Grasim
Industries plans to shortly reduce production at its staple fibre
plant at Nagda due to water scarcity and may have to close it down
if rains do not arrive on time. At present, the plant was operating
at its full capacity, Grasim informed the Bombay Stock Exchange
recently.
Non-availability
of water has led to suspension of operations at the fibre and pulp
plants in harihar, Karnataka, since May 9, it said. This situation
has arisen as both Madhya Pradesh and Karnataka were rain deficit
states in 2002, it said.
However,
by running all its fibre plants (including Nagda and Harihar) at
full capacity earlier, Grasim has built up inventories to meet the
requirement of its customers.
“The
impact on profitability of viscose staple fibre (VSF) business for
the first quarter of the current financial year is expected to be
marginal. Further, such impact, barring unforeseen circumstances,
is likely to be largely neutralised in the remaining quarters”,
it added.
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