Mumbai, Aug 13 :     Bearish conditions and the lack of demand in the rayon industry have forced the Gaekwads-owned Baroda Rayon Corporation Ltd to shut down its viscose filament yarn (VFY) unit. The Surat-based plant, which used to manufacture about 20,000 tonnes of the commodity, contributed 20 per cent of the company?s revenues, analysts said. Baroda Rayon chairman S.P. Gaekwad said his company was facing a poor domestic market and a complete lack of export orders. As the prices of viscose filament yarn declined by Rs 25 to Rs 30 per kg during the past six months, the average unsold stock swelled to a size equivalent to 45 days. ?In such circumstances, there is no point in running the plant. Even if we start the unit, we would not have sold that much,? Gaekwad told The Telegraph. However, the BRC chief said the rayon industry was showing signs of recovery, and that the unit is likely to start operations once things look better. ?Though we have kept the plant closed, there has been a marginal improvement in the sector?s fortunes. Therefore, the present closure will not be a prolonged one,? he clarified. BRC wanted to sell its rayon division last year. The company was also reported to be in talks with the AV Birla group for this unit. However, as a result of the declining trend in the industry, the company could not find buyers. Despite the hiccups, Gaekwad was optimistic on the prospects of the industry, saying VFY is a good substitute for synthetic yarn and cotton. More recently, BRC was in the news when it decided to sell off its 15,000-tonne partially oriented yarn (POY) unit as part of a restructuring exercise. The company obtained the shareholders? approval for the sale at an extra-ordinary general meeting earlier this year. Once a blue-chip firm, Baroda Rayon ran into trouble and suffered huge losses due to the slump in the textile industry. Of late, however, it has initiated moves to generate more liquidity through the sale of non performing assets and real estate, apart from optimising production. Last year, the company had sold one of the floors of its corporate headquarters in Hoechst House at Nariman Point for Rs 11 crore. Gaekwad was optimistic that these measures would help the company turn the corner soon.