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The margin in the Viscose Filament Yarn (VFY) Industry is adversely affected by steep rise in cost of input materials, e.g., Wood Pulp, Sulphur & Caustic Soda, which were at its peak during the first half of the year but showed declining trend subsequently. Due to global economic downturn, the demand of VFY was sluggish. However, suspension of manufacturing operations by some other manufacturing units made room for liquidating the inventory in the domestic market. The export demand was also impacted by global recession and competition from China. As a result, exports could be only 521 M.T. against 861 M.T. last year. At the same time, export realizations improved due to favourable exchange rate. To arrest cheap imports in the country, the application to review the Anti-Dumping Duty is still under active consideration of the Government of India

In line with market conditions, the production of T.P. was again scaled down during major part of the year. This coupled with high cost of raw materials, adversely affected the margins. However, the recent reduction in Excise Duty and fall in raw material rates are expected to give some relief. Exports were also lower at 306 M.T. against 357 M.T. in the previous year.
The market price and demand of various chemicals produced by the Section was adversely affected due to wide fluctuations in the cost of production. This had a major impact on profitability.
The Section continued to lay thrust on quality improvement and cost reduction. The technical performance of the Section continues to be satisfactory.
The relations with the employees were cordial during the year.
During the year under review, the plant has operated for one month, i.e., April 2008 only. Factory is under suspension of work on and from 2nd May, 2008 because of day-to-day low production, quality problems and high rejections. Due to the continued hostile attitude and rigid stand taken by a section of workmen and their Unions, the efforts made to reach a settlement were not fruitful. The blockade and barricade in front of the factory gate by a section of the workmen is still continuing. As a result, the Section continues to be under suspension of work.

There has been substantial recovery of outstandings during the year. In total Rs. 29.25 crore was collected against sales of Rs.16.32 crore. The finished stock has come down from 3010 M.T.in the previous year to 853 M.T. during the year under review. 
The production figures of the Section were as under :
Production 2008-09 2007-08
Caustic Soda 11,737 MT 12,064 MT
Sulphuric Acid(Commercial) 17,934 MT 17,640 MT
Hydrogen Gas 8,18,882 M3 5,78,774 M3
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