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					                                                                           Investor update
                                                                     Visaka Industries Limited

 October 27, 2010
                                      VISAKA INDUSTRIES LIMITED
                 Stock Info                   SNAPSHOT:
Market Price                        144.65
Market Cap (Rs. in Cr)              225.51     An interim dividend of 30% - Rs. 3        per every share of Rs. 10
Cash EPS (in Rs.)                      6.86
                                               each, was announced at the Board meeting held on October 27,
Book Value (in Rs.)                 148.41
PE                                     4.33    2010
Beta                                   1.02
Face Value (in Rs.)                     10     Revenue of the company for the second Quarter is increased to
Last Dividend (%) **                    50
                                               Rs. 1,335.98 by 11.42% comparatively with second quarter of
Dividend Yield (%) **                  3.52
52 Week High / Low –                           last year’s Rs. 1,199.06.
                              192.95/114.50
BSE (in Rs.)
52 Week High / Low –
NSE (in Rs.)
                              192.90/113.25    Similarly Half yearly Revenue also increased to Rs. 3,214.29 by
Industry average P/E **                6.79    3.69% when compared with first half of last year’s Rs. 3,100.04.
** as per Money Control

       Shareholding Pattern as on
                                               For Visaka Industries almost 70% of demand comes from rural
       September 30, 2010 (in %)
                                               areas, particularly from the farmers community whose fortunes
                                               fluctuate with that of monsoons and its impact on the Food Grain
                                               Industry. From the rest 30% of its demand, Poultry industry
                                               accounts for a major chunk.


                                               India could achieve a record rice production of 100 million tonnes
                                               in 2010-11 crop year on the back of better monsoon this year.
                                               The country's rice production declined to 89.13 million tonnes in
                                               2009-10 crop year (July-June) from record 99.18 million tonnes
                                               in the previous year due to severe drought on the Poultry front,
                                               by the year 2011, India is expected to produce 260 million layers
                                               (77700 million eggs) and 3500 million broilers (5.9 million
           Price Performance
                                               tonnes),   its   expected   to   contribute   Rs   60,000      crore.         No
                                               agriculture sector is growing as fast as the Indian poultry,
                                               making it the most dynamic rapidly emerging sector of livestock
                                               economy.




 From July 01, 2010 to October 28, 2010




                                                                                                     For Private Circulation only


                                                           1
                                                                                                                    Visaka Industries Limited

                                                                                                Highlights of Quarterly Results:


                                                                                                                     Q2FY11       Q2FY10
                                                                                                                                                  Increase in
                                                                                                      Particulars
                                                                                                                                                      %
                                                                                                                       (Rs. in Million)


                                                                                                Net Sales             1,335.98       1,199.06           11.42


                                                                                                EBIDTa                 161.76         227.72           -28.96


                                                                                                Profit Before tax      102.18         136.58           -25.19


                                                                                                Net Profit              67.69             90.22        -24.97


                                                                                                EPS                       4.26             5.68        -25.00




                                                                                                Highlights of Half yearly Results:

3,500
                                                                                                                     H1FY11        H1FY10
3,000                                                                                                                                             Increase in
                                                                                                      Particulars
                                                                                                                                                      %
                                                                                                                       (Rs. in Million)
                    3,100.04




2,500
         3,214.29




2,000
                                                                      Rs. in Million            Net Sales             3,214.29       3,100.04            3.69
                                                                            H1FY11
1,500
                                                                           H1FY10
                                        695.81




                                                                                                EBIDTa                  538.20        695.81           -22.65
                                                             539.48
                               538.20




1,000
                                                    415.04




                                                                                       348.80
                                                                              274.69




 500
                                                                                                Profit Before tax       415.04        539.48           -23.07

   0
        Net Sales              EBIDTa            Profit Before              Net Profit          Net Profit              274.69        348.80           -21.24
                                                      tax


                                                                                                EPS                      17.30            21.96        -21.22




                                                                                                               2
                                                                Visaka Industries Limited

                                    Financial Performance as on date…

                                                                Quarter Ended             Half Year Ended

                          Description                        30-Sep-10    30-Sep-09     30-Sep-10    30-Sep-09

                                                                          Amount (Rs. in millions)

Operating Income                                               1,339.89      1,204.08     3,214.29     3,100.04

Other Income                                                      16.44          4.86        28.77       26.00

Total Income                                                   1,356.33      1,208.95     3,243.06     3,126.04

Expenditures                                                   1,194.56        981.23     2,704.85     2,430.23

Earning Before Interest, Depreciation & Tax                      161.76        227.72       538.20      695.81

Interest                                                          18.41         21.41        41.41       50.72

Earning Before Depreciation & Tax                                143.36        206.31       496.79      645.09

Depreciation                                                      41.18         52.13        81.75      105.61

Profit from Operations before Other Income, Interest &
                                                                 102.18        154.18       415.04      539.48
Exceptional Items

Exceptional Items                                                  0.00         17.60         0.00          0.00

Earning Before Tax                                               102.18        136.58       415.04      539.48

Tax Expense                                                       34.49         46.36       140.35      173.08

Profit After Tax                                                  67.69         90.22       274.69      366.39
Net Profit                                                        67.69         90.22       274.69      348.80
Paid-up Equity Share Capital                                     158.81        158.81       158.81      158.81

Basic EPS before Extraordinary items (in Rs.)                      4.26          5.68        17.30       21.96

Diluted EPS before Extraordinary items (in Rs.)                    4.26          5.68        17.30       21.96

Basic EPS after Extraordinary items (in Rs.)                       4.26          5.68        17.30       21.96

Diluted EPS after Extraordinary items (in Rs.)                     4.26          5.68        17.30       21.96

Public Shareholding (Number of Shares)                        9,893,422     9,893,422    9,893,422    9,893,422

Public Shareholding (%)                                           62.30         62.30        62.30       62.30
Promoter & Promoter group Number of Shares Pledged /
                                                              1,400,000     1,786,000    1,400,000    1,786,000
Encumbered
Promoter & Promoter group Shares Pledged / Encumbered (as
                                                                  23.38         29.83        23.38       29.83
a % of total shareholding of Promoter and Promoter Group)
Promoter & Promoter group Shares Pledged / Encumbered (as
                                                                   8.82         11.25         8.82       11.25
a % total share capital of the company)
Promoter & Promoter group Number of Shares Non-
                                                              4,587,530     4,201,530    4,201,530    4,201,530
encumbered
Promoter & Promoter group Shares Non-encumbered (as a %
                                                                  76.62         70.17        70.17       70.17
of total shareholding of Promoter and Promoter Group)
Promoter & Promoter group Shares Non-encumbered (as a %
                                                                  28.89         26.45        26.45       26.45
total share capital of the company)




                                                         3
                                                        Visaka Industries Limited
Segment-wise Revenue for the
 Quarter Ended Sept 30, 2010    Business Divisions

                                Reinforced Building Board (RBB) Division is where
                                the action is:

                                The age-old cement board is a passe, Reinforced Building Board
                                (RBB) is where the action is. RBB, a new age multipurpose cement
                                board, is widely preferred over wood/gypsum based products and
                                is being extensively used for false ceiling, doors, partitions pre-
                                fabricated structures, wall paneling, backliners and a variety of
                                other applications in residential, commercial as well as industrial
                                segments.


                                Being a new entrant in the segment, the Company expects to clock
                                profits only during FY11. However, Visaka has already made rapid
                                inroads into metropolitan cities and is gaining wide acceptance
                                among the consumers. Exports have already started to Dubai and
                                more enquiries from this region are coming up. The Company
                                manufactures two products from this division — ‘V-Board’ and ‘V-
                                Panel’. Both these products are resistant to Fire, Water & Termite.

                                V-Board:
Segment-wise Revenue for the
Half Year Ended Sept 30, 2010
                                Company started manufacturing ‘V-Board’ with HPSC technology
                                conforming to IS 14862-2000, since May 2008. V-board is a non-
                                asbestos product in par with the standards of the International
                                fibre cement sheets. V-boards are manufactured from special
                                grade cellulose fibre and inorganic binders of silica base. The
                                cement component adds to the overall strength and durability
                                while the pulp that is present within gives the board workability
                                and also flexibility.


                                A process called ‘autoclave’ helps attain crystalline structure that in
                                turn results in declared dimensional stability of V-Board. Thermal
                                conductivity of V-board is lower than any other substitute of its
                                nature, which makes V-board a good insulator also. Hence V-
                                boards are used as an energy saving aid to maintain the
                                temperature in closed air-conditioned rooms.


                                V-Board’s Applications include: False Ceilings, Wall Partitions, Wall
                                Paneling, Door Panels, Mezzanine Flooring, Back Liners, Structural
                                Glazing Back Lining and various others like Computer Table, Office
                                Table, Shoe Rack, Cupboards, Black Board, School Bench, Shelves,
                                Benches for Cafeteria, Doors etc.




                                               4
                                                Visaka Industries Limited


V-Panel:

Company has commenced the commercial production of V-Panel unit from January 01,
2010. V-Panel is another revolutionary building product, which is being manufactured with
technical collaboration from M/s Dantotech of Australia. The unit will utilize at least 8 to
10% of RBB production with a capacity of about 12,500 tonnes. The project cost is Rs.
12.50 crores and full capacity will have annual revenues of over Rs. 20 crores.


V-panels are light in weight, but sturdy in nature and have a uniform thickness & density.
Being light weight, handling, installation, dismantling and relocation are quite easy.
Specially designed tongue and groove (patent pending) arrangement ensures a prefect
joint and makes construction easier. Besides possessing good sound & thermal insulation,
fire rating of 60 mins, suitability for seismic & cyclone prone zones, these panels can
support concrete slab and can built 2 storey's without steel columns.


V-Panel’s Applications include: Partitions, Prefab Buildings, Mezzanine Floorings, Roofing,
False Floorings, Wall Claddings, External Fins, Compound Walls, External Walls, Load
Bearing Walls, Retaining Walls, Fences and various others.


Spinning Yarn does add to earnings…

Visaka Industries diversified into textiles in 1992 and made rapid strides since then,
manufacturing yarn using state-of-the-art Twin Air Jet Spinning technology from Murata,
Japan, with 28 MTS machines equivalent to 60,000 spindles. Being a dominant player in
this industry segment, Visaka produces over 10,000 metric tonnes of yarn per year and
export about 4,000 tonnes to countries around the globe. Its range of products include:
Melange Yarns, High Twist Yarn and specialty yarns with different blend styles. The
Company has earned recognition as the largest Unit in the world with MTS installation and
has achieved acclaim for the highest productivity and highest efficiencies, bench-marking
quality and productivity standards of excellence for the world to follow.


It has earned acclaim for its consistency in quality, on-time delivery and friendly service in
domestic as well as international markets. These traits helped company earn the
prestigious ISO certification in 1995 and Star Export House Status in 2004. Besides these,
Visaka’s yarns are environmental friendly and are ÖEKO-TEX Certified from July 2008.
Banswara Syntex is among the notable competitors for Visaka in this segment.


Major Revenue contribution - Fibre Cement Sheets…

Fibre Cement Products continue to be in demand because of the industry’s effort in
making in-roads into rural markets, its affordability, and other qualities such as corrosion
resistance, weather and fire proof nature.


Visaka's high-tech Fibre Cement plant is a fully automated factory incorporating the latest
and most sophisticated technology. This has resulted in consistency in physical properties
and strength, which far exceeds the standards prescribed by I.S.I. The company expects
the expansion of its Pune plant to be completed by June 2010. This expansion shall mark
an increase in the production capacity from 72,000 tonnes to 1,00,000 tonnes.




                                      5
                                                         Visaka Industries Limited

  Road ahead:

      Company is setting up a plant at Sambalpur, Orissa for manufacturing Fibre Cement
      Sheets, with a proposed capacity of about 2,18,000 tonnes. Land has already been
      acquired and Terms of Reference (TOR) clearance from Ministry of Environment and
      Forests (MOEF) was also obtained for the same. This plant is expected to commence
      production by April 1, 2011.

      For upgrading from thatched and tiled roofing’s there is no other affordable and
      durable roofing material for the rural poor other than Fibre cement sheets. Being an
      experienced and leading player in the segment with multiple-plant locations, Visaka
      Industries looks forward to tap this increasing potential in rural areas.

      The cement fibre sheets’ market potential in India is estimated at 4 Million mts per
      annum. The market characteristics for cement boards over the coming year looks
      positive because of intense construction activity and shift of consumers from particle
      boards and plywood to cement reinforced sheets.

      The company has set up its plants in multiple locations, spread across the country to
      cater to the increasing demands. Company’s multiple-plant location strategy is worked
      out in such a way that each plant would be able cater to the production requirement of
      surrounding area of 500 kms. This is helping the company to reduce its cost
      component incurred on transportation of raw materials and finished goods.



 About Visaka Industries

 Visaka Industries Ltd., established in 1985, is a well diversified company with sizeable
 presence in Fibre cement sheets, yarn, and building products. By adhering to stringent
 quality control measures and being sincere to quality systems, the yarn business division of
 Visaka obtained ISO certificate in 1995 which has been later upgraded by ISO 9001-2000.


 The company today enjoys an installed capacity of 6,30,000 tones of Fibre sheets with a
 strong network of 5000 Stockists/Dealers throughout India. This apart the company has
 depots in 36 major cities and towns, country-wide to ensure smooth supply of its products.
 Favorable industry developments, diversified portfolio and rich expertise in tapping the
 potential opportunities are going to mark a remarkable business for Visaka Industries in the
 coming years.




         (A 50:50 JV between Australia-based Computershare and Karvy group’s share registry business)
Disclaimer: The views and information expressed by investor relations professionals in Investor Update are their
own, and not that of the company officials. KCPL (Karvy Computershare Pvt Ltd) advises the users to check with
certified experts before taking any investment decisions.




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