Visaka Industries Limited

 

CMP = 125

Visaka Industries was established in 1981. The company has started producing corrugated cement fibre sheets in 1984 and diversified into the manufacture of synthetic yarns in 1992. The company broad-based its product range by manufacturing V-Next fibre cement boards in 2009. This was followed by the launch of a one-of-its kind Solar-Roofing patented product called ATUM in 2018. 

Visaka Industries - Corporate Video 

https://youtu.be/4_TZD5F2vzI

Visaka Industries has emerged as a sustainable business enterprise over the years and has become the second-largest roofing manufacturer in the country with close to 5000 direct and indirect employees. Visaka has 14 manufacturing facilities across India with a distribution network of 7000+ dealers network and an aggregate production capacity of 9.0 lakh TPA in cement asbestos sheets, 3.5 lakh TPA in V-boards and panels and 12000 TPA of synthetic yarn production per annum.

Cement roofing sheets

The company started the production of cement roofing sheets in 1985 with an annual capacity of 36,000 metric tonnes. Today, the company manufactures cement roofing sheets across seven plants with a capacity to manufacture 900,000 metric tonnes. The company completed the capacity enhancement of a new additional line at Rae Bareli - Uttar Pradesh.

Visaka is the among the top two manufacturers of cement roofing sheets with a market share of 18% across India.The company possesses a large retail network of 7000 pan-India dealers and 90% dealers were associated with the company for five or more  years.

V Next products

The company  has developed the V-next product line as an eco-friendly substitute to materials like plywood, gypsum boards, and sand /water-based construction, which have helped to save over five lakh trees from deforestation. The V-Next products are holistic solutions for eco-friendly interior and exterior construction. These products are used as false ceiling, mezzanine flooring, fixed furniture, and wet area construction,  products aid prefab and fast construction wall solutions.The carbon emissions of these products are the lowest with only 36 kg per tonnes of production. V-Next products are used by various real estate players in a variety of commercial, residential and industrial applications.

Visaka Industries have played a part in the historic new Parliament building in New Delhi that was inaugurated on 28th May, 2023. The Company supplied 3,00,000 square feet of V-next eco-friendly boards to this institution.

V-Next panels act as a user-friendly alternative for the conventional and dry walls solutions and are accepted by builders in India and across the globe. The panels are energy-efficient with greater thermal and acoustic properties. V-Next products are also exported to the Middle East, Africa, South-East Asian countries and US.

The Wonder Yarn (Synthetic Yarns)

Since 1992, Visaka has been investing in niche technology to ensure subsistence and continual development of synthetic yarn with revolutionary state-of-the-art Japanese Twin Air Jet Spinning technology from Murata. While the fashion industry is reeling under the tag of being the second largest polluter in the world, Visaka's Wonder Yarn, manufactured from sustainable yarn from PET bottles.

Over the years, the company produced specialised items (melange, high twist and speciality yarns) in various blends utilised by quality conscious fabric manufacturers. The company has 41 MTS machines equivalent to 82560 spindles produce over 12500 metric tonnes of yarn per year and export about 3,000 tonnes across the globe. Visaka is Star Export House certified company by the Government of India since 2004.

The Wonder Yarn is also certified to be in accordance with multiple global standards such as Oeko-Tex 100 Standard, Global Recycled Standards (GRS), Recycled Claim Standard (Both RCS 100 & RCS Blended),  QMS IS/ISO 9001:2015, EMS IS/ISO 50001:2018, EMS IS/ISO 14001:2015

ATUM - Integrated Solar Roofing System

The world's first Integrated Solar roof, ATUM was spectacularly introduced by the company, in the year 2018. A breakthrough in the field of sustainable energy, ATUM is an Integrated Solar Roofing System that checks out all the functions of a traditional roof, while generating energy for house. As a part of India’s emerging solar industry, company manufacture integrated solar panels with a cement base. It provides better insulation from heat than a traditional roof, without compromising on the building’s aesthetic appeal.

ATUM- A solar roof by Visaka Industries - Product Video 

https://youtu.be/ufY7_Li-gEY

https://youtu.be/amUeYuTQYGM

ATUM Charge

ATUM Charge is India’s first 100% Green EV Charging Station. It is powered by  ATUM Solar Roof, making it a completely sustainable alternative to existing EV charging units which use thermal power generation, one of the primary sources of pollution. ATUM Charge therefore would be generating green energy and promoting green commute in the real sense of the word.

https://atumcharge.com/

https://youtu.be/hSoxKKGbbU4

Investment Rationale

Visaka Industries has pan-India presence with 14 manufacturing units and 13 marketing offices across India. The annual production capacity of the cement roofing sheets 9,00,000 tonnes, fibre cement flat board products 3,50,000 tonnes and  wonder yarn spinning plant has 13000 tonnes capacity. The company has well established product brand in each segment like cement roofing sheets are marketed under the Visaka / Shakti brands,  boards / panels / planks are marketed under the Vnext brand,  integrated solar panel roofing is offered under the ATUM brand and synthetic blended yarn is marketed under the Wonder Yarn brand.

Visaka Industries has a diversified product portfolio with the company having presence in building products through ACS, non-asbestos boards & panels (V-Next products) and ‘ATUM’, an integrated solar roofing product where solar panels are fused with the roofing V-boards, textiles business wherein it manufactures synthetic yarns which includes melange yarns, high twist yarn and specialty yarns with different blend styles which is supplied to major textile players.

Since last 2 years, cement roofing sheet business encountered raw material cost inflation and other factors that affected the margins severely. Now the impact of Russia-Ukraine war, currency depreciation and raw material cost inflation have started normalising. It is expected that rural demand growth for the building material product will pick-up in future.

Visaka has launched a path-breaking hybrid roof-top solar product called ATUM – the first of its kind in India. With its superior technological capabilities, ATUM is thermally efficient and generates 20% more revenue when compared to conventional solar panels. With its unmatched durability, ATUM is the only renewable energy solution that is both, a roof and solar panel, designed to meet consistent energy demands that can be manage from  smartphone.

https://www.visaka.co/assets/website/files/investors/Green-Transition-Visaka-Industries.pdf

Visaka has been at the forefront, developing sustainable products and meeting demands from domestic and international markets. Visaka Industries is taking futuristic approach with existing businesses and developing new business extension like ATUM Life, ATUM Charge and V-Next Solutions. It will define a viable roadmap for future products and services which are environment friendly and sustainable.

ATUM Life is chain of retail stores which will offer fully sustainable, eco-friendly, green products. The company has already started opening of ATUM Life stores in major cities across India. Atum Life will store, sell and promote all products sustainable, making sustainable living accessible for everyone.

https://atumlife.com/home

ATUM Life - Kochi Opening

https://youtu.be/XmZKEcjG4Ls

ATUM Charge is a self-sustaining solar powered Electric Vehicle charging station which will be set up across India, and elsewhere in the world, to support the movement to promote the use of electric vehicles. ATUM Charge is also looking at partnering with other electric charging station providers who are either in the market or are expected to come in the near future.

V-next Solutions is an extension of Vnext fibre cement boards which are sustainable alternate to gypsum and plywood. Vnext Solutions - a one-stop, eco-friendly turn-key solution for all construction needs - to build homes, office, industrial and other spaces from scratch to finish. Vnext Solutions can conveniently be accessed through a mobile app. 

Visaka is manufactures and global supplier of The Wonder Yarn, a human-made spool that has carved a niche for various fabric applications across garments, apparels, furnishings, automotive fabrics and other technical textiles. Visaka is famed for roofing the largest Muratec Twin Jet spun yarn technology facility with its world-class manufacturing set up. The yarn division manufactures polyester spun yarns which is used in the value-added segment of home textiles. Over 50% of its textile portfolio comprised value-added products 

The company is in line with the United Nations Conference on Sustainable Development – a document that contains clear and practical measures for implementing green economy goals in the context of Sustainable Development Goals (SDG). The company consumed sustainable fibre that can be roughly equated to over 116 million used PET (Polyethylene Terephthalate) bottles. These discarded PET bottles, which would otherwise not be disposed of, were handpicked and used to produce Wonder Yarn.

The company leveraged its national leadership to maintain 32% estimated market share in fibre cement boards and panels business. The company aim to achieve more than half of the overall revenues from non-asbestos sheets business in the next couple of years.

In the last two years,  company invested around  Rs 360 crore in new or additional manufacturing capacities. The future of Visaka Industries is expected to be derived from V Next products. The company is enhancing its manufacturing capacity of V Next products by commissioning of plants in new locations. The company has recently completed the expansion of new V-Boards unit with 84,000 TPA manufacturing capacity at Midnapur, West Bengal with an investment cost of Rs 130 crores. This expansion has raised the total capacity of environment-friendly boards and panels to 3.5 lakh TPA. 

After commissioning of this capacity in Eastern India during the current financial year, Visaka has emerged as the first fibre boards company with a pan-India presence and one of the largest in the fibre boards segment (40 % market share). 

The company has  900,000 TPA installed capacity of asbestos cement sheets. Visaka is the second-largest cement-asbestos manufacturer in India, enjoying a near 18% market share.

The company has widespread marketing distribution network where products are directly marketed to the retailers. The company has been able to  create longstanding relationships with retailers across urban, rural and suburban India. The company’s retailer network comprises more than 7000 dealers.

The promoters of  Visaka Industries are visionary and long track record of successful operation for more than four decades.

Conclusion

A few days ago, Prime Minister Narendra Modi has announced to launch 'Pradhan Mantri Suryoday Yojana' with the target of installing solar rooftops on 1 crore houses. It will not only reduce the electricity bill of the poor and middle class but it will also make India self-reliant in the energy sector.

India is poised to become a $ 5 trillion economy in next few years. Indian government is investing more than Rs 10 lakh crore on infrastructure. Visaka Industries is broad-based across businesses riding the growth of India in construction, green energy and textile sector. The company is well set to capitalise this great opportunity with wide range of products which are crafted to meet the sustainability demands.

Visaka Industries has patiently enhanced its manufacturing capacity and strengthened the portfolio mix. Now the time has come for the company to make its big move. Visaka Industries is well positioned to maximise value for all its stakeholders in a sustainable way.

Visaka Industries Limited stock at cmp Rs 125 is excellent investment opportunity for both short term and long term. It can be bought within 20% from cmp with 20 %  allocation.