Vikas Ecotech Board paybacks 2 tranches of Debt under its Debt Reduction Program Phase-II, aiming to enter Zero Debt Regime
Jan 31, 2022
New Delhi [India], January 31 (ANI/PNN): BSE (560961) & NSE (VIKASECO) listed Vikas Ecotech Ltd an emerging player in the global arena of the high-end speciality chemicals players, offering eco-friendly and technologically superior products to the world, has announced that on persistence and support extended by the promoters of the Company, it has initiated 2nd Phase of the Debt Reduction Program, wherein overall bank debt shall further get reduced by another 20% from the peak exposure.
Rs 100 million has been paid back already and another tranch of Rs. 120 million has been paid to reduce its' bank debt, in the Phase-II of Debt-Reduction Program, making it Rs. 220 million bank-debt repaid of the Rs. 350 million bank debt repayment envisioned for the current fiscal.
After completion of both these phases, bank debt shall get reduced by approx. 40% from the peak exposure, paving the way towards becoming a 'ZERO debt company' in the next financial year i.e. 2022-23.
Further, promoters of the Company have intended to get their financial assistance/unsecured loans, provided for debt reduction program, converted into equity at the appropriate stage after obtaining statutory approvals.
Recently, Vikas Ecotech had informed exchanges that it has been diversifying to newer markets with innovative products.
As a measure of backward integration, the Company has commissioned a Steel Pipe Fittings plant, which after trial production, went into commercial production almost 2 months ahead of schedule.
With increasing economic activities and governments thrust on infrastructure development, there is a huge demand of fittings by all major steel tube manufacturers like APL Apollo, Jindal, Hi-tech, etc. and they prefer sourcing from the vendors who has inhouse steel tube fitting manufacturing facilities.
Considering it as a long-term opportunity, which not only enhances the company's revenues, product basket, profitability but also mitigates concentration risk, the company has successfully bagged commercial-scale orders. Since the production of fittings and their supplies are much ahead of their scheduled targets, Vikas is expecting a good revenue contribution of this newly added business segment.
The company has been most recently empanelled as an approved vendor with the U.P. State Horticultural Co-Operative Marketing Federation (HOFED) a UP Govt. Enterprise.
Its first of its kind of empanelment for Vikas Ecotech that too along-side other industry
conglomerates like Supreme Industries, Advance Biocare, Stellar Polyplast etc.
Enhancements in Intellectual Property: Successful registration of patent for use of Nano CaCO3 in Plastic & Rubber Compounds The company's ultra modern latest state of art, R&D laboratory undertook research for Nano Composites and their use in the plastic and rubber industry, the company has filed a patent for the use of Nano Calcium Carbonate (CaCO3) as a multi role additive and modifier.
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