Vikas EcoTech Ltd, the New Delhi-based manufacturer of specialty polymers, compounds and additives, has commenced the construction of phase I of its manufacturing plant and innovation center at Dahej, Gujarat. To be built with an investment of Rs 30 crores, the plant will produce 6,000 MT of organotin stabilisers (methyl tin mercaptide or MTM) and 5,000 MT of specialty polymer compounds annually. This is Vikas Ecotech's third manufacturing plant after Rajasthan and Jammu & Kashmir plants, the latter being currently integrated with the first to drive economies of scale.
Organotin compounds, which are chemicals based on tin with hydrocarbon substituents, are used as stabilisers in polyvinyl chloride (PVC) industry. The demand for organotin stabilisers – lead-free alternative additives – is witnessing a rise both in India as well as globally.
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“The Dahej facility is in sync with our growth strategy of being near to customers and also producing premium specialty chemicals. With this facility, we will serve domestic customers in the twin markets of west and south India in lesser time and also reach our international customers faster. In FY 2015-16, exports contributed 48 percent to our total sales and grew from Rs 76 crores in FY 2014-15 to Rs 149 crores. The Dahej plant is of strategic importance to cater to premium international markets and also to the imminent domestic demand for eco-friendly lead-replacement alternatives,” said Vikas Garg, managing director, Vikas EcoTech Ltd.
The trial production at the new plant is expected to start by January 2017, while the company is targeting to commence commercial production from April 2017. The company expects to generate an additional revenue of Rs 300 crore from the expansion at Dahej.