Aditya Birla Group company Grasim Industries today said it has suspended production at its Nagda plant in Madhya Pradesh due to requisition of water from one of its reservoirs by district administration following shortage of water in the area.
"Water shortage at Nagda (Madhya Pradesh), arising due to requisition of water stored in one of its reservoirs by district administration for meeting drinking water scarcity in Ujjain during this year, the company has suspended production at the plant," it said in a Bombay Stock Exchange filing.
The company further said that it has built up inventories and is operating its other two plants at Kharach (Gujarat) and Harihar (Karnataka) at full capacity to meet regular requirement of Viscose staple fibre (VSF)-- a man-made, biodegradable fibre with characteristics akin to cotton-- during the stoppage period.
It, however, said in view of the measures taken by the company and the normal onset of monsoon expected, the impact on profitability of VSF business of the company for the first quarter of FY10 is expected to be marginal.
