Core VSF business adds strength to Grasim

Vilayat expansion project and de-bottlenecking at other facilities will increase capacity

Grasim Industries’ March quarter results, especially profit, were driven by the viscose staple fibre (VSF) segment. The latter business contributes about a fifth to consolidated revenues. It saw earnings before interest, tax, depreciation and amortisation (Ebitda) grow 30 per cent over a year to Rs 345 crore. Higher realisation, improved operating efficiency and global prices helped. Due to water shortage, its captive pulp plant at Harihar (Karnataka) remained shut from February. Consequently, Grasim sourced pulp externally; else, Ebitda could have been Rs 45 crore higher. Importantly, pulp prices, which had risen from December, have softened and will benefit it.

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