Water shortage forces Grasim to stop staple fibre production at Nagda plant

Grasim Industries Limited, a flagship company of the Aditya Birla Group, has decided to temporarily shut down production of staple fibre at its Nagda plant in Madhya Pradesh due to lack of water availability. “Due to water shortage caused by deficient rain last year (less than half of normal), the company has started reducing production of staple fibre at its plant located at Nagda (Madhya Pradesh) in a phase manner,” said Grasim Industries in a BSE filing.
 
The production is expected to be fully suspended from April 30, 2015 and will be resumed on the arrival of monsoon and availability of adequate water, added the company.
 
Grasim’s Nagda is its largest unit producing a wide range of VSF to suit customer requirements in terms of length, denier and colour and also second and third generation fibres. Nagda is also the largest producer of spun-dyed specialty fibre in the world.
 
The company has informed BSE that the operations of chlor alkali plant will also be affected and will be run to the extent of availability of water.
 
Grasim Industries will continue to cater to the requirements of all its customers from its other staple fibre plants located at Kharach and Vilayat (Gujarat) and Harihar (Karnataka). The company will complete major modifications of two lines and other major repair work during the period.