Polymer and rubber compounds, along with specialty additives, play a crucial role in modern industrial applications. These materials enhance the properties of plastics and rubber, making them stronger, more durable, and resistant to wear and environmental factors. They are extensively used across sectors such as automotive, construction, aerospace, electronics, healthcare, and consumer goods, where high-performance materials are essential.
The growing demand for lightweight and energy-efficient materials in the automotive and aerospace industries, along with advancements in green technologies, is driving the growth of this sector. Innovations in specialty additives are also expanding their use in biodegradable and recyclable materials, aligning with sustainability goals. With increasing industrialization and rising global demand, this segment has immense growth potential in the coming years.
Share Price
The shares of Vikas Lifecare Ltd (NS:VIKR) are currently trading at Rs. 4.34 up by 0.7% from its previous close of Rs. 4.31 as of December 5, 2024. The stock also touched an intraday high of Rs. 4.4 during the intraday trade.
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Recent Update
Vikas Lifecare Expands with New Manufacturing Facility
Vikas Lifecare Limited is excited to announce the establishment of a state-of-the-art manufacturing facility in the Shahjahanpur RIICO Industrial Area, spanning 20,000 square feet. The facility, which is set to begin operations in December 2024, will specialize in producing advanced commodity compounds, including EVA, ATH, Thermoplastic Rubber, and Thermoplastic Elastomer. This expansion is a strategic move to leverage the Rajasthan Investment Promotion Scheme (RIPS) to boost profitability and contribute to regional development.
Rajasthan Investment Promotion Scheme (RIPS) Benefits
Through RIPS, the Rajasthan Government offers several fiscal incentives, such as a 9% SGST refund on products manufactured and sold within the state. Additionally, Vikas Lifecare will benefit from subsidies tied to employment generation, exemptions or deferments on electricity duty and land tax, and potential subsidies for capital investment and interest. These advantages are expected to play a crucial role in supporting the company’s growth and profitability.
Revenue and Growth Prospects
The new facility is designed with a production capacity of 5,000 MTPA and is anticipated to generate an additional annual revenue of INR 40-50 crores. This expansion will significantly enhance Vikas Lifecare’s competitive position in the market and strengthen its growth trajectory, paving the way for long-term success.
About the Company
Vikas Lifecare Limited (VLL), specializes in the manufacturing and trading of polymer and rubber compounds, along with specialty additives for plastics and both synthetic and natural rubber. The company focuses on producing bulk consumption compounds and masterbatches, which include upcycled materials from industrial and post-consumer waste, such as EVA, PVC, PP, and PE.
This initiative aligns with India’s environmental protection goals and supports Extended Producer Responsibility (EPR) obligations for large conglomerates involved in plastic manufacturing and packaging. VLL’s commitment to sustainability is reflected in its efforts to reduce waste and promote eco-friendly alternatives, making a significant contribution to the country’s environmental initiatives.
Conclusion
Vikas Lifecare Limited’s decision to establish a new manufacturing facility in Rajasthan’s Shahjahanpur RIICO Industrial Area demonstrates the company’s strategic focus on expansion and leveraging government incentives. The state-of-the-art plant will enable Vikas Lifecare to diversify its product portfolio, increase production capacity, and capitalize on the growing demand for advanced polymer and rubber compounds across industries. By aligning with sustainability initiatives and promoting eco-friendly materials, the company is positioning itself as a responsible contributor to India’s industrial and environmental goals.
Written By: Dipangshu Kundu
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