Views:4 Author:Site Editor Publish Time: 2019-09-20 Origin:Site
The VSF business has posted good operating performance with production and sales volume of 140KT and 138KT respectively recording an increase of 4 per cent and 5 per cent YoY.
The net revenue for the quarter stood at Rs.2,509 crore. EBITDA for the quarter stood at Rs.442 crore (up 7 per cent on QoQ basis). Profitability was impacted on YoY basis as the Chinese VSF prices saw a sharp decline of ~21 per cent YoY and ~8 per cent QoQ. This was on account of new capacities commissioned in recent past (CY2018) and the negative impact of US China Trade War. Profitability was further impacted due to currency depreciation which partly offset the gains of reduction in pulp prices which is currently trending downwards. With our better product and market mix we have been able to contain the impact of the adverse global conditions.
Taking forward the tremendous success of the company's popular VSF brand 'Liva', the brand has been extended to the new product line of sarees. The company is working with its value chain partners to make 'LIVA' sarees as popular as the ‘LIVA’ tagged garments in the women's wear segment.
Today, Liva partners with over 40 retail brands and is available across 3,500 outlets in Exclusive Business Outlets and Large Format Stores in addition to many more MBOs in 250 cities of India.
On the sustainability front, through the focused water management efforts, the business has been able to bring down the water consumption by over 50 per cent in last three years and by more than 15 per cent since FY19 at multiple sites. The VSF business is now the lowest water consumer globally. This initiative has also helped in maintaining continuity of operation at Nagda plant, which in the past faced a prolonged shutdown during the peak summer season.
The production ramp up of the of the 3rd generation value added speciality fibre line of 16 KTPA at Kharach (commissioned in May 2019) is progressing well. The plant has achieved 100 per cent designed capacity utilisation during the quarter.
The 219 KTPA Vilayat Brownfield capacity expansion is progressing well and is expected to be commissioned by FY21.