Grasim Industries, an Aditya Birla Group Company, announced that due to water shortage caused by deficient rain last year (less than half of normal), the company has started reducing production of staple fibre at its plant located at Nagda (Madhya Pradesh) in a phased manner.

The production is expected to be fully suspended from Apr. 30, 2015 and will be resumed on the arrival of monsoon and availability of adequate water. The operations of Chlor Alkali plant will also be affected and will be run to the extent of availability of water.

The company will continue to cater to the requirements of all its customers from its other staple fibre plants located at Kharach and Vilayat (Gujarat) and Harihar (Karnataka), The company will complete major modifications of two lines and other major repair work during the period.

Shares of the company declined Rs 55, or 1.5%, to trade at Rs 3,611.15. The total volume of shares traded was 936 at the BSE (11.56 a.m., Monday).