Business Daily from THE HINDU group of publications
Tuesday, Aug 14, 2007
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Business Daily from THE HINDU group of publications Tuesday, Aug 14, 2007 ePaper |
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Corporate
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Restructuring Visakha to exit from garments business
K V Kurmanath
Hyderabad, Aug. 13 Visakha Industries has decided to hive off its garments division and later sell the assets. “The appreciation of rupee by 10 per cent in the recent months has affected the business adversely. This, in turn, is eroding the bottomline of the company,” Dr G Vivekanand, Managing Director, told Business Line. The loss was put at Rs 13-14 lakhs a month because of the appreciation. “The board has given sought to sell the assets to improve the bottomline of the company.” . Severe competition from international players, particularly China also influenced the decision. The division contributed a net income of Rs 1.2 crore a month to the company. The board of directors of the company had decided to sell the assets of the garments division. It gave the in-principle approval to sell the assets including land of the division. The company, which invested Rs 9 crore on its diversification into garments, expected that the process would complete in two-three months.
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