Visaka Industries, the Hyderabad-based yarn-manufacturer, is diversifying into garment and textiles with an investment of Rs 200 crore.The company is setting up a garment manufacturing unit at Chennai, a cotton yarn plant at Pune and a weaving unit at Nagpur.G Vivekanandan, MD of Visaka, said: "We are planning to enter into manufacturing of garments and textiles to move up the value chain and take advantage of the phasing out of the quota system."After the diversification, the Hyderabad-based company is expecting to post a turnover of Rs 300 crore in the next fiscal and Rs 450 crore in fiscal 2007 from Rs 200 crore expected in the current financial year, he added. The company is planning to set up a garment manufacturing unit, entailing an investment of Rs 50 crore, at the Mahindra Special Economic Zone near Chennai. The unit, which is to be commissioned in November this year, would have a production capacity of over four million pieces per annum, Vivekanandan said."The advantages of setting up the unit is that it is near Chennai port, skilled labourers are available and we can get quality fabrics from the Tirupur-Coimbatore belt," he added.The finished material, apart from exports, would also be sold in the domestic market, he said, adding the company is in talks with branded garment manufacturers for sale under their respective brand names in the country.
