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Grasim temporarily stops work at VSF and pulp plants
PTI - Mumbai
Grasim Industries has temporarily stopped work at its pulp and viscose staple
fibre (VSF) plants in Karnataka due to shortage in water supply.
This stoppage will not have a significant impact on current quarter’s profitability
as other two VSF plants at Nagda (Madhya Pradesh) and Kharach (Gujarat) are
already operating at more than rated capacity and the company has already built
up sufficient inventory level to meet the customer’s requirement, Grasim
informed the stock exchange here today.
Due to water scarcity in central part of Karnataka, arising out of poor monsoon,
the Bhadra Dam authorities have temporarily stopped release of water in Tungbhadra
canal system on February 1 to conserve water, it said.
They are expected to start the release again on February 23. The water level
in the Tungabhadra canal system from which the company’s VSF and pulp plants
at Harihar draw water reached a critical level forcing the stoppage of pulp
plant on February 16 and VSF plant the next day.
Based on restart of release of water, it is expected that the water levels will
be come to normal by March 5 when both plants are expected to resume production.
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