The turnover, net of excise, has declined 2.5 per cent at Rs 3,413.2 crore as compared with Rs 3,499.89 crore in 1997-98. While realisations of sponge iron was down 7.8 per cent, that of viscose staple fibre dropped by 0.9 per cent. Realisation of the cement division was higher marginally by 1.2 per cent. Sales figures released by the company show that sales of all the three divisions was significantly lower last fiscal as compared with the previous fiscal, with that of the sponge iron division being down by 26.3 per cent, cement by 7.8 per cent and VSF by 4.1 per cent.

Other income during thefiscal was also lower by 14.7 per cent at Rs 105.67 crore. Interest burden was higher by 2.6 per cent at Rs 262.26 crore as compared with Rs 255.67 crore. Depreciation provided for was also higher by 10 per cent at Rs 183.77 crore.

In an effort to improve margins of the VSF division in the current fiscal, the company has decided to place special thrust on export of speciality products like spun-dyed micro and macro denier fibres. Company officials said that it will also strive at product development in end-users. The VSF business has suffered primarily due to steep increase in cheaper import of blended textiles from south-east Asia coupled with a stagnant export market.

However, export of Grasim's finished textiles - from the Grasim Gwalior division and Vikram Woollens - has increased 250 per cent.

The Aditya Birla group has moved a step closer towards merging its cement business under flagship Grasim Industries, but not before the deadline it had earlier set. The high courts of Ahmedabad and Indorehave cleared the scheme of arrangement, but certain clearances from the --- are still awaited. Grasim officials had earlier said they hoped the proposed amalgamation would be complete effective from January 1999.

The board of directors of Grasim and Indian Rayon have now extended the deadline from March 31, 1999, by another three months till June 30. Following the merger of the cement division of the two companies, Grasim will be the third largest cement producer in India with a capacity of 10.6 million tonnes. It will also be India's largest white cement producer.