Home Brand Updates Covid-19 delays Visakha Industries’ capacity expansion plan

Covid-19 delays Visakha Industries’ capacity expansion plan

Commencement of work of Visakha Industries’ proposed fiber-cement boards manufacturing unit was delayed due to pandemic spread and uncertainties caused by subsequent lockdown. As a result, work on the project could commence only towards the end of 2020.

Visakha Industries is setting up a 50,000-tonunit at Coimbatore, Tamil Nadu, at an estimated Rs.100 crore. It had already invested Rs15 crore by 31stMarch 2020. The project is expected to commence production by the end of this calendar year. The company also plans to expand the Panels division by setting up a 10,000-tonne unit in Udumalper, Tamilnadu, at an estimated capex of Rs.13.75 crore which is expected to be complete in 13 months.

The company’s cement-asbestos market share held at 18% in FY20, whereas the boards and panels market share was 32%, which the company expects to hit 40-45% in the next 2-3 years.

With a wide variety of applications, and a perfect substitute for plywood and gypsum boards, the government’s focus on affordable housing, a lower tax rate under the GST and the consistent rise in capacity utilisation, the company is hopeful of significant growth in its V-Next division.

The company expects AC-sheet demand to be aided by the good monsoon and low number of Covid-19 cases in rural areas.

The company also expects demand for building products to be backed by housing schemes, Swachh Bharat and rising exports.

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