Grasim cuts back on capacity at Nagda unit

Lack of water compounded by delayed monsoon cause of cutbacks.

Unable to access the daily requirement of 9 million gallons of water, Grasim's Nagda unit announced it will be working at reduced production capacity till the onset of monsoon, according to a report in Domain-B.

Grasim's production unit in Nagda functions with 8 million gallons of water for the viscose staple fibre plant and 1 million gallons for its chemical plant.

The company, ranked among India's largest private sector companies reported a net profit of Rs 2,200 crore in FY 08-09 with initial figures for year ended 31 Mar 2010 also suggesting positive returns.

Grasim had earlier demerged from its cement business and joined it with its subsidiary Samruddhi Cement Ltd. Reports indicate both the sectors have shown positive growth.

Meanwhile Grasim's other staple fibre plants in Gujarat and Karnataka are running at full capacity.