The Hindu Business Line : Visaka Ind plans Rs 65-cr garments unit in Chennai

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.

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