08 Feb 2019
Grasim VSF business delivers highest production in Q3
The VSF business at Grasim has delivered highest ever production in the third quarter of 2019 at 141KT, an increase of 11 per cent and the sales volume at 134 KT. The share of the domestic sales in the overall sales rose to 89 per cent in the third quarter as compared to 77 per cent in the third quarter of 2018, led by a robust demand.
The net revenue for the quarter was Rs.2,617 crore, up by 20 per cent and Rs.477 crore EBITDA which was ahead of comparable quarter last year despite the rise in the input costs, Grasim said in a press release.
The company recently launched its eco enhanced VSF variant 'Livaeco' on the back of the tremendous success of its brand Liva. Livaeco is a unique brand pivoted on sustainability. It is derived from FSC (Forest Stewardship Council) certified pulp which is based on wood sourced from sustainable forests, helps conserve biodiversity and protect endangered forest. Every Livaeco garment has a unique tracer which helps trace the origin and full journey of the garment across the entire supply chain. Furthermore, it promises minimal usage of water which is turning into a scarce resource in our country vis-à-vis other natural fibres in its manufacturing process and lower greenhouse gas emissions. Livaeco is a splendid extension of Liva.
Today, Liva has partnered with more than 40 retail brands and is available across 3,500 outlets in Exclusive Business Outlets and Large Format Stores. Additionally, it can be sourced from many more MBOs in 250 cities across India. This, supported by the Liva Accredited Partner Forum network, has resulted in doubling the viscose fibre consumption in the country over the past 4 years. Viscose business has been registering a double digit growth in the last few years, added the release.
The Brownfield capacity expansion plan of 219 KTPA at Vilayat is progressing well. The construction work at the project site is in full swing. The Basic and Detailed Engineering stands completed and long lead items have been ordered. Construction of specialty fibre line at Kharach has been completed and is scheduled for commissioning in Q4FY19.
Caustic soda production and sales are up 9 per cent and 10 per cent respectively to 250 KT each in the reported quarter as the demand remained buoyant.
For 2019, the VSF business will continue to focus on expanding the market in India by partnering with the textile value chain, achieving better customer connect through its brands Liva and Livaeco and enriching the product mix through a larger share of specialty fibre. VSF continues to be fastest growing textile fibre globally. However, the new capacities likely to come on stream in China may impact the global VSF prices in the near term.
The Chemical business is witnessing a healthy growth with the completion of its recent capacity expansion. Additional growth is expected from the proposed caustic soda expansion and new product lines for specialty chemicals.