Grasim Industries Witnesses Growth In First Quarter Sales

Sales figures for the first quarter (Q1) at Grasim Industries went up by a handsome 182% to touch Rs. 3,763 crore as compared to Rs. 1,336 crore in the same period in the earlier financial year. The company posted net losses of Rs. 283 crore in the first quarter of FY2020-2021 and this surged to Rs. 482 crore in profits for the quarter reported, ending on 30th June, 2021. The EBITDA of the company went up considerably to stand at Rs. 805 crore. The company stated that the impact on overall demand for textiles owing to the coronavirus second wave was not as devastating as compared to the very first wave. India implemented stringent limitations for business activities for a major part of the first quarter of FY2021-22 and this affected textile product sales, leading to a major inventory accumulation throughout the entire value chain. 

VSF (Viscose Staple Fibre) prices came to RMB 12,871 in June, 2021 (China) and remains stable at the present level as per Grasim Industries, the parent entity of Grasim Premium Fabrics Private Ltd or GPFPL. Sales of the viscose division were affected with total business surpassing Rs. 2,103 crore. However, sales figures went up for the chemicals segment with sales figures touching Rs. 1,436 crore. Demand was higher for advanced materials throughout India and also global markets. Demand majorly came from the automotive and wind categories as per reports. 

Grasim Industries has also integrated its JV entity named Birla Advanced Knits on 14th July, 2021, for implementing the knit manufacturing division as a partnership with CTIL or Century Textiles and Industries Limited. The two entities will have 50% each in the JV Company and it will produce man-made fibre knit fabrics. Both companies will have rights for nominating three directors each on the JV Company’s board. Grasim Industries is one of India’s and the world’s biggest producers of Chlor-alkali, viscose staple fibre, insulators and linen and has subsidiaries like Aditya Birla Capital and UltraTech Cement, making it the country’s biggest producer of cement and a highly diversified player in financial services.