Aditya Birla Group’s Grasim Industries has reportedly put its Rs 3,880 crore capital expenditure plan on hold forecasting poor demand.
Due to the ongoing coronavirus lockdown, the company’s plants are operating at a very low utilisation level. According to The Hindu BusinessLine, only one of the four Grasim viscose staple fibre (VSF) plants and two out of the 13 chemical plants are currently operating at 30 to 40 percent capacity.
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Grasim is expected to reinstate the capex and execute the projects in a staggered manner, once demand picks up. The company expects the production levels to get back to normal levels by April-end and has all the raw materials required to restart production within four days after the lockdown is lifted.