Diversified production company Grasim Industries Ltd has halted manufacturing at its staple fibre plant in Nagda, central India, due to a lack of rain causing water shortages.

Grasim, which has also reduced operations at its chemical plant by 60 per cent due to dry conditions, says it will restart production as soon as it can get water into its reservoir.

Conversely, Grasim was last summer forced to shut down a staple-fibre manufacturing unit in Gujarat due to flooding.