 "Vikas Ecotech records 72% jump in sales in in Q1 FY17")
The New Delhi based Vikas Ecotech, a manufacturer of high-end specialty chemicals, has recorded a net revenue of Rs 101 crores as compared to Rs 59 crores in the corresponding period of the previous year, an increase of 72 percent. Profit before interest, depreciation and tax was at Rs 18 crores, higher by 262 percent from Rs 5 crores in the same period of the previous year. The company achieved higher turnover and at the same time improved profits. New client wins along with better realisations helped it with revenues while cost and operational efficiency contributed to the bottom line.
Vikas Ecotech’s exports also witnessed a jump from Rs 19 crores to Rs 55 crores, a substantial 188 percent growth.
Vikas Garg, managing director, Vikas Ecotech, said, “We have posted a good performance this quarter with some major initial customer successes in Latin America, Europe and Middle East. Our products are receiving good response from global leaders due to high standards of quality and efficiency. Our growth strategy continues to be driven on the 3 pillars - innovation & R&D driven new product development, capacity enhancement to meet market demand and new customer wins across the globe.”
During the quarter the company won new clients both in India and through the exports division. These client wins will aid revenue maximization in the future.
Vikas Eco have been chosen and has started trial orders for one of Mexico’s leading petrochemical giant for organo tin stabilisers. This will translate into commercial orders from Q3 of this financial year. “Our products are meeting international standards of quality and we see several interests from the LatAm (Latin America) market,” the company added.
Rest of the client additions were from the domestic market from sectors such as PVC pipes and moulding, footwear sole, automobiles and packaging.
During the quarter the company commenced the construction of its manufacturing plant and innovation (R&D) center at Dahej, Gujarat. This is the third plant of Vikas Ecotech. With a capex of Rs 30 crores, the plant will produce 6,000 MT of organotin stabilisers (methyl tin mercaptide) and 5,000 MT of special polymer compounds annually.
“The regulatory certification process for our products in key international markets like USA and other developed countries are at various advanced stages. Once we receive the go ahead from the regulators of each country or region, it will help us enter advanced economies that have a burgeoning demand for ‘eco-friendly’ specialty chemicals,” said the company.
The Indian PVC industry is voluntarily moving towards the concept of ‘eco-friendly pipes & plumbing’ - replacing lead-based chemical applications with lead-free chemical applications as raw material inputs. As a result, Vikas Ecotech is witnessing a big demand for its lead free replacements from PVC manufacturers.
