INDIA: Vardhaman Group Delivers Tepid Results

Vardhaman Group's three subsidiaries delivered tepid results for the last quarter. Combined year-on-year sales for the second quarter for Vardhaman Spinning, Mahavir Spinning, and Vardhaman Polytex grew six per cent from US$77.6m to US$82.4m, but profits declined eight per cent from US$6.4m to US$5.8m. The three companies have facilities for acrylic and acrylic-wool blended yarn, fabric and processing. The dominant player in this field for a generation now, the group is now facing a serious challenge from an Indian player who has set up shop in neighbouring Nepal, where Indian exporters can import goods free of customs duty. Just last year, one of the companies, Vardhaman Spinning and General Mills Ltd, invested US$21.5m to set up a fabric process house.