Chemical Plant:
The Chemical plant bettered its performance during the quarter. Production of caustic soda, which was affected in the corresponding quarter on account of water shortage, moved up by 39% at 42,843 tons.
The stable caustic prices and steep fall in the prices of allied products affected realisations, which were lower by 10%. With new caustic soda capacity additions coming up, realisations are expected to be under pressure.
Textile Business:
The Board of Directors of the Company, at its meeting has approved the sale/transfer of the textile units at Bhiwani (Haryana) on a going concern basis to a proposed subsidiary of the Company. The sale/transfer is subject to shareholders' and other requisite approvals.
This move will enable the new entity to have a more focused approach to the development of textile business and pursue emerging growth opportunities. Besides, this will also enhance Grasim's shareholder value, through a greater focus on its two key business segments, viz, Viscose Staple Fibre and Cement.
Outlook:
Going forward, the Company will fortify its leadership position in the VSF and Cement sectors. With improved cost optimization, higher productivity, prudent financial management and strong fundamentals, the growth is expected to continue.
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Grasim Industries Limited
marketing@alchempro.com
