Financial Daily from THE HINDU group of publications
Saturday, Jun 25, 2005

Port Info

Group Sites

Corporate - New Projects

Visaka Ind plans Rs 65-cr garments unit in Chennai

C.R. Sukumar

Mr G. Vivekanand, Managing Director

Hyderabad , June 24

VISAKA Industries Ltd (VIL), the Hyderabad-based Rs 165-crore textiles and asbestos cement sheets major, plans to set up a modern garments unit in Chennai involving a capital investment of Rs 65 crore.

Pending completion of the greenfield garmentsfacility, the company proposes to set up a small sized unit on a temporary basis in hired premises, the VIL Managing Director, Mr G. Vivekanand, said.

"We have already procured the required land and commenced civil works. The project, with a capacity of 1,000 machines, would go on stream by December-end. Meanwhile, pending completion of the garment project, we are planning to set up garments unit with 250 machines in hired premises," he told Business Line.

The company is also planning to set up a weaving unit in the near future. "We will take up the weaving unit works only after the completion of garments facility. We expect the weaving unit to be ready by 2007-end," Mr Vivekanand said.

The company has recently approached banks and financial institutions to part-finance the expansion projects and also for meeting the long-term working capital requirements, he said.

Aimed at facilitating the smooth completion of its expansion plans and also to leverage the debt-equity position, the company plans to raise funds to the tune of $50-million in the international markets.

According to Mr Vivekanand, the primary idea was to reduce the debt component in the funding pattern so as to reduce interest cost and also to maintain a healthy debt-equity ratio.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GM India seeks FIPB nod to pay royalty to GMDAT

IOC gets board nod to acquire stake in Singapore co
Hero Honda to invest Rs 500 cr in third manufacturing plant
Mango processing unit inaugurated at Nilakottai
To raise funds for capex projects — RPG group may dilute stake in Phillips Carbon Black
Sundaram-Clayton air brake unit opened
Visaka Ind plans Rs 65-cr garments unit in Chennai
Indian Bank takes possession of Binny property
Rise in raw material price will not hit our margins: GAIL chief
HLL has begun climb back up: Banga
Century Ply's laminate unit breaks even
Excellent team, excellent strategy: Manwani
Gopala Pillai is new FACT chief

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line