|Building products and synthetic yarn maker Visaka Industries Ltd. is setting up a plant to manufacture V-Boards at Jhajjar in Haryana.|
The investment on the plant, with an initial capacity of 50,000 tonnes, will be ₹100 crore. Announcing that the Bhoomi puja was performed on Sunday, the company said the plant is being set up to meet the demands of growing market.
The facility, which will take the company’s manufacturing capacity for the product to 1.70 lakh tonnes, is expected to commence production by March, 2018. Visaka Industries, which was set up in 1981, commenced manufacture of corrugated cement fibre sheets in 1985 with a plant near Hyderabad.
It diversified into synthetic yarn in 1992 and set up a factory in Nagpur. A leading player in cement sheet production, the company has eight factories across the country.
It forayed into fibre cement boards and panels and set up a factory each in Miryalaguda, Telangana and Daund, Maharashtra.
Senior executives of the company shared information on the new plant in Haryana at a press meet here on Friday to announce the financial results for the quarter ended June.
The net profit was ₹22.95 crore, an increase of over 37% compared to the ₹16.67 crore it has posted in the corresponding quarter of previous fiscal. Total income remained flat at ₹342.30 crore (₹342.88 crore).
“The revenue remained more or less static because of sales slowing down in June on account of the implementation of GST from July 1,” the company said. The levy on cement sheets and V-Next products have been reduced to 18% under the GST. The total indirect taxation on the products previously was 28%. The reduction provides a good opportunity to the company to become more competitive and grow, a release said.