The Hindu : Business : Visaka acquires Shakthi Roofings

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Thursday, Aug 16, 2007
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Visaka acquires Shakthi Roofings

Special Correspondent

To sell Chennai garment unit; produce aerocon sandwiched panels

HYDERABAD: Visaka Industries acquired Shakthi Roofings, another asbestos manufacturer, by issuing 20 lakh shares to the promoters. The value of the acquisition at the current share price worked out to Rs. 19 crore.

For establishing a new asbestos company it would cost about Rs. 35 crore. But this acquisition would straightway add a turnover of Rs. 45-50 crore to the company, K. V. Sooriyanarayan, Company Secretary, said here on Monday.

Visaka Industries, manufacturer of asbestos cement products and textiles, has decided to sell its garment unit located in Chennai, including land, to mobilise funds for the expansion of its flagship business. The company informed the Bombay Stock Exchange recently about its decision to sell the assets and land of the garment unit.

The company also decided to manufacture aerocon sandwiched panels/ aerated autoclaved concrete blocks using cement, flyash, expanded plysterene beads, chemicals and mix of silicaceous and micaceous and other suitable material.

He said the company had raised Rs. 40 crore through qualified institutional placements (QIP) for expanding the reinforced building blocks (RBB) unit at Miryalaguda in Nalgonda district in Andhra Pradesh.

Permission from the company’s shareholders had also been obtained for making aerocon sandwiched panel.

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