VST records 11% increase in sales

Our Corporate Bureau

Hyderabad, May 22: DESPITE the cigarette industry continuing to face a difficult trading environment, Charms, the major filter brand of VST Industries Ltd has reported a 11 per cent growth in its sales, during the year 2000-01.

The repositioning exercise being implemented by the company, on the brand has evoked an encouraging response, according to company sources. As per the newly drawn strategy, VST plans to continue to add value to filter brands, with single-minded focus on its cigarette operations, sources added. The company had launched yet another filter brand - Charminar Special Filter- during last year, which was well received by the market. “The brand showed consistent growth in areas of its existence, enabling the company to increase its price under a fiercely competitive environment,” the sources said.

VST sources said that, due to a change in the consumer preference on filters, the company is losing heavily on the turnover of - Charminar Plain and Charminar Standard, in line with the industry decline. “The growth in filters has not been able to offset the decline of plains.” The sale of assets, to improve the liquidity, has realised Rs 11.10 crore. While the company has issued convertible redeemable preference capital to the tune of Rs 10 crore during June 2000 and raised Rs 25 crore from banks to fund the VRS and long term requirements.