In the fourth quarter of fiscal 2019, Grasim has reported the production and sales volume of 130KT and 139KT respectively, an increase of 15 per cent and 13 per cent year-on-year. In 2019, VSF business saw reported record production and sales volume of 541KT in FY19 up 8 per cent and 6 per cent year-on-year, led by capacity debottlenecking. The share of the domestic sales in the overall sales rose to 86 per cent in the fourth quarter from 83 per cent in the fourth quarter of previous year.
In 2019, net revenue from viscose stood at Rs. 10,325 cr, up by 23 per cent and EBITDA at Rs. 2,052 cr, gain of 22 per cent, driven by better sales volume and realisation. The net revenue for the fourth quarter was Rs. 2,625 cr, up by 18 per cent and EBITDA at Rs. 413 cr, a growth of 3 per cent vis-à-vis the comparable quarter of the previous year. The company’s popular VSF brand ‘Liva’ for the VSF business has been extended, to home textile category with launch of ‘Liva Home’.
Today, Liva is a partner 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. This has resulted in doubling the viscose fibre consumption in the country over past 4 years. Viscose business has been registering a double digit growth in the last few years and market share of Viscose in overall fibre basket has gone up from 3.5 to 5 per cent in the last four years. Value added speciality fibre line of 16 KTPA capacity based on in-house technology has been commissioned at Kharach in May 2019.
The Brownfield capacity expansion plan of 219 KTPA at Vilayat is progressing well with construction work in full swing, scheduled to be commissioned in FY21. 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 brand Liva, extensions into new categories and enriching the product mix through a larger share of speciality fibre. However, the new capacities recently commissioned in Asia may create short-term demand supply mismatch and resultant pressure on prices.