The Hindu Business Line : Visaka Ind betting on textile boom

Textile, the current flavour on the bourses, has had a beneficial impact on the stock of Visaka Industries. Primarily into asbestos cement, the company also has a yarn division, which is expected to benefit from firm cotton prices and general thrust on the textile industry.

Analysts maintain that with the removal of subsidies on cotton fibre by the US, the synthetic yarn industry should be more competitive vis-à-vis cotton.

Visaka also recently entered into garment manufacturing.

The company is also said to be focusing on expansion and acquisition in asbestos sheet, which is being pegged as the main growth driver.

Demand for asbestos sheet is expected to grow above 15 per cent over the next two-three years.

The company is also expanding capacity by 60 per cent from 3.8 lakh tonnes to 6.2 lakh tonnes by FY08.

Visaka Industries ended 3.28 per cent higher at Rs 116.55 on Tuesday on the BSE.

The stock appreciated 24 per cent month on month and 7 per cent week on week.

Deeptha Rajkumar

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