 "Vikas Ecotech to supply eco-friendly specialty chemicals to Prince Pipes")
Specialty chemicals manufacturer Vikas EcoTech Ltd (VEL) has inked a strategic tie up with Prince Pipes & Fittings Ltd, India’s third largest PVC pipes manufacturer, for supply of its entire range of specialty chemicals with focus on organotin heat stabilisers, its lead replacement plastic synthesiser.
“As a pioneer and leader in the Indian PVC pipe industry, we are focused to ensure that harmful chemicals and other such ingredients are sooner replaced by eco-friendly and sustainable specialty chemicals solutions as offered by Vikas EcoTech,” commented Jayant Chheda, chairman, Prince Pipes.
VEL (formerly Vikas GlobalOne) is already one of the suppliers of specialty chemicals to Prince Pipes. The new agreement will further strengthen this collaboration.
Vikas Garg, managing director, VEL, said, “As are focused on developing indigenous and import replacement chemical solutions for our customers in an eco-friendly manner. Such tie-ups with large B2B customers are part of our strategy to work closely with industry leaders like Prince Pipes from product development to end manufacturing. As a company, we are committed to launch premium lead-replacement products and solutions in specialty chemicals for our Indian and global customers.”
As per the agreement, Prince Pipes will ensure off take of products and solutions from Vikas at mutually agreed price and quantity, the value of which is expected between Rs 15 crore to Rs 20 crore in the financial year 2016-17. The pact will ensure revenue predictability for VEL.
Interestingly, last month Prince Pipes’ CMD, Jayant Chheda, and his associates acquired about 2.5 percent stake in Vikas Ecotech in their individual capacity.
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For long term growth prospects, VEL is holding talks with other large customers for similar strategic tie ups. “These tie ups will ensure that customers get the benefit of long term price and economies of scale while the company has an assured source of revenue. Additionally, the company’s R&D is focused on developing solutions for its customers at an early stage of product development,” said Vikas EcoTech in a press release.
The demand for organotin stabilisers - lead-free alternative additives - is witnessing a rise both in India as well as globally. In order to tap this demand, VEL is currently in process of setting up a manufacturing plant in Dahej that will produce 6,000 MT of organotin stabilisers (methyl tin mercaptide or MTM) and 5,000 MT of specialty polymer compounds annually.