The Hindu Business Line : Grasim grabs SIV market share

GRASIM Industries, the lone indigenous supplier of viscose staple fibre (VSF), is sitting pretty in the south Indian market for VSF that was vacated by its business rival SIV Industries which has ceased operations from October last.

Undoubtedly, Grasim has gained from the fall of SIV as almost the entire market share for VSF in Tamilnadu/Karnataka — estimated anywhere between 25-30 tonnes per day catered hitherto by the troubled SIV — has gone to the former now, market sources said.

Though this shift in market volume may appear to be insignificant when compared to Grasim's 500-550 tonnes per day VSF sale (on an all-India basis), the strategic advantage the company will be looking at in tapping the much needed extra market space for its cellulosic fibre cannot be ignored.

In fact during their hay-days, both SIV and Grasim have had a competitive marketing in the southern textile belt. Grasim is reported to have been selling around 3,000-3,500 tonnes of VSF per month in the southern market. With SIV out of action, perhaps the customer-textile mills traditionally producing VSF spun yarn may nurture the fear on the flow of VSF supplies from Grasim which is known to be fluctuating, especially during the period between January to March. This is the time when the sophisticated EU market for 100 per cent VSF yarn would pick up forcing a demand on VSF. There were occasions in the past of complaints of erratic fibre supplies from Grasim, especially during these months when it used to curtail production in its main Nagda plant for want of water for processing.

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Grasim grabs SIV market share