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Vikas Ecotech completes 100% acquisition of Vikas Organics

23 February 20243 mins read by Angel One
This acquisition positions Vikas Ecotech for continued growth and innovation in the vinyl processing industry. Here's more.
Vikas Ecotech completes 100% acquisition of Vikas Organics
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About Acquisition

Vikas Ecotech Limited has successfully acquired a 100% stake in Vikas Organics Pvt Ltd, a manufacturer of polymeric plasticizers, for Rs 270 million completing the payment of the total sale consideration of Rs 320 million marking a significant expansion in their product portfolio and market reach. This strategic move strengthens its position as a leading player in the vinyl processing industry and opens doors to new application areas.

The acquisition instantly adds a diverse range of plasticizers to Vikas Ecotech’s offerings, catering to established vinyl processing customers for over 2 decades. This expanded portfolio extends its reach to various sectors, including electrical cable insulation, footwear, faux leather, and furnishing materials.

The Company will invest an additional Rs 150 million towards the expansion and modifications of the plant and after that induce an additional Rs 300 million Approx. towards Working Capital Requirements for the new additions to the product portfolio, taking the total investment up to Rs 750 million.

Vikas Ecotech plans to invest in the newly acquired Daman facility. This includes expansion and modification to produce cutting-edge materials like halogen-free and phthalate-free plasticizers, aligning with the growing demand for sustainable solutions.

The acquired plant currently produces a range of plasticizers, including DOP, DEP, DOA, DBP, DMP, DBM, and DOM. The deal also includes the know-how to produce DINP, BA, and DOTP, further diversifying the product portfolio within 6-12 months. This acquisition positions Vikas Ecotech for continued growth and innovation in the vinyl processing industry.

Share Price Movement

Today, the shares of Vikas EcoTech closed at Rs 4.64 down by 0.13 points or 2.73% as compared to the previous day’s closing of Rs 4.77. The share opened at Rs 4.88 and touched an intraday high and low of Rs 4.89 and 4.60 respectively. The company has a market capitalisation of Rs 597.80 crore. The share has a 52-week high and 52-week low of Rs 5.63 and Rs 2.38 respectively.

About Company

Vikas Ecotech Ltd. is a New Delhi-based company that specializes in Specialty Polymers, Additives, and Chemicals for the Plastics & rubber industries. They are the only manufacturer of Organotin in India and one of the single digit number of worldwide manufacturers. They recently acquired 100% equity in a plasticizer manufacturing business and a 100% equity stake in M/s Shamli Steel Private Limited, a company manufacturing infrastructural steel.

Vikas Organics Pvt Ltd (VOPL), a pioneer in plasticizer manufacturing, has been a well-known brand in Indian industrial houses for over three decades. With a state-of-the-art plant in Daman, the company has a nationwide skilled marketing team, including agents and distributors. VOPL products have earned approvals and global acceptance, with about 17% of their production exported to countries like the U.S.A. and K.S.A.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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