V Guard expanding in Coimbatore
Leading South Indian multiproducts manufacturing company, V-Guard Industries is planning to foray into the North Indian market in its manufacturing and leisure businesses.The company will float an IPO for about Rs 70 crore by October to set up manufacturing facilities in North India and for expanding its existing facilities. Apart from this, Veega Land, a leisure division group company, is going for a third amusement park near Mumbai at a cost of Rs 120 crore.V-Guard chairman and managing director Kochouseph Chittilappilly told that the company was planning to set up production centres for electrical wires in Himachal Pradesh and Uttaranchal in notified areas where central excise exemption would be available.Simultaneously, the facilities at its Coimbatore factory would be expanded to manufacture power cables. The Rs300-crore group is a major producer of stabilizers, water pumps, electric cables, UPS, solar water heater, fans, etc. Of the total turnover, Rs 240 crore is from the manufacturing company V-Guard. The rest is from the two leisure division group companies Veega Land in Kochi, Wonder La in Bangalore and women’s apparel company V-Star. Almost 4% of the shares of the company are held by the employees, who were issued ESOPs at par in last year. Further, 4% shares will be offered as ESOPs to the employees after the public issue. Post IPO, Mr Chittilappilly’s stake in the company will come down to around 60%. The company already has a distributor network of 100, which is fast growing.Veega Land amusement park, which was started about seven years ago has started making profit.
It had a turnover of Rs 22 crore last year. Wonder La which was started about one and a half years ago has raked in Rs 28 crore in the first year of operation. The third amusement park is planned near Mumbai-Pune highway in 120 acres. Mr Chittilappilly said the group would give equal focus to both divisions. While the group is aiming to become the number one amusement park company, it has targeted a turnover of Rs 500 crore in the manufacturing division by 2010.
