Mumbai: Grasim Industries Ltd, a maker of viscose staple fibre, on Friday said it would suspend operations at its staple fibre plant in Madhya Pradesh due to a water shortage.

“Due to water shortage caused by deficient rain last year, the company has started reducing production of staple fibre at its plant located at Nagda (in Madhya Pradesh) in a phased manner," the company said in a statement to the BSE.

Production at the Nagda plant is likely to be fully suspended by 30 April and would be resumed once water becomes available. Grasim’s Nagda plant can produce 162 kilo tonnes of viscose stable fibre a year.

The company expects its operations at its Chlor Alkali plant in the same location to be affected due to unavailability of water. It plans to continue supply to its customers from its other plants in Gujarat and Karnataka.

On Friday, Grasim Industries closed at Rs3,666.15 a share, flat from its previous close of Rs3,639.10.

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