Kiri Industries Ltd has said that its dye intermediates plant at Dudhwada, Vadodara has resumed its operations from August 13, 2020. 

 

Company earlier had temporarily shut down the 47,200-metric tons/year plant, after it was reportedly issued a closure notice for violating environmental norms.

 

The company also announced a steep decline in sales which led to loss during Q1FY21 whereby its net sales dropped by 70.3% YoY and stood at Rs 108.83 from Rs. 366.40 crore in June 2019.

 

Net Loss also widened by 558.24% YoY and stood at Rs. 57.73 crore in Q1FY21 from Rs. 12.60 crore in June 2019.

 

The lockdown severely impacted the business operations of Kiri and capacity utilization of its production facilities have reduced by at least 50% during Q1FY21 as compared to corresponding quarter of previous year.

 

During Q1FY21, due to impact of Covid19 across the globe and specially countries in which Kiri exports its products, export sales have reduced by around 75% in Q1FY21 Y-o-Y impacting the revenues from Dyes which are generally exported outside India.

 

The average sales realization for Dyes Intermediates were reduced during Q1FY21 as compared to Q4FY20 impacting the revenues of dyes intermediates. Certain types of basic chemicals achieved better price realization, increasing revenues of basic chemicals during the current quarter.

 

Kiri’s management team foresees that the lost grounds during Q1FY21 because of Pandemic, could be regained in the coming two to three quarters by the company. The management team is keeping close tab on the geopolitical tensions and would take all concrete steps to expand business horizons and take advantage of the given situation.

 

During Q2FY21, the management expects to start commercial operations for certain high valued dyes intermediates enabling the company to earn better margins in certain product lines and to make it self-reliant for certain raw materials which are presently imported from China. Further, the capex plans have been halted since Q1FY21, which the management team anticipates to mainly remain on hold for the current financial year, FY21.

 

Recently, the company became System Partner of Blue Sign, enabling Kiri to adopt comprehensive sustainability solutions to foster higher standards of environment compliances, safer work environment, with increased levels of health & safety measures, resulting into increasing levels of environmental responsibility enabling to gain enhanced business value with deeper consumer trust. Blue Sign is a Swiss Company, formed in Year 2000 which stands through its professional commitment for environmentally sound textiles. They accompany partners throughout theworld in using fewer hazardous chemicals and improve resource processes.