Vikas Lifecare Shares Rally 13% On Capacity Expansion Plan of Rs 30 Million

Vikas Lifecare shares are in the spotlight on Thursday, January 4, after opening on the NSE at Rs 5.25 a share and rising to an intraday high of Rs 5.85, a gain of 13.60% from the previous close of Rs 5.15. Vikas Lifecare Ltd.'s stock price climbed during Thursday's trading session following the company's announcement that it had acquired additional land in Rajasthan to expand its manufacturing operations.

Vikas Lifecare Limited said on Wednesday that it has purchased a new plot of land measuring roughly 1800 square meters that is adjoining the current factories in the RIICO Industrial Area of Shahjahanpur, Rajasthan. The acquisition is intended to boost manufacturing capacity and support the company's traditional business of producing polymer and rubber compounds.

The equipment needed to boost manufacturing capacity will cost an additional INR 230 million, while the total cost of the land purchase, construction, and buildings on it would be around INR 30 million. The new expansion is anticipated to provide an additional INR 600 million to the gross revenues from the compounding business segment and will be available for use over the next three to four months.

Vikas Lifecare Limited (VLL) said in a stock exchange filing that it is working in all directions to tap into the vertical as well as horizontal growth options via expanding conventional businesses and venturing into new business segments to fuel the fast-growth plans through various routes including merger and acquisition of going businesses from diverse fields.

The company recently expanded its business interests beyond raw materials (B2B businesses) as a long-term business strategy. It entered the B2C market with a variety of consumer products, such as FMCG, Agro, and Infrastructure Products; this opened the door for hostile business growth with well-planned product portfolios via acquisitions, joint ventures, and tie-ups. VLL plans to grow its presence in the nation and beyond by establishing or acquiring companies in these businesses.

In addition to manufacturing and trading polymer and rubber compounds, specialty additives for plastics, synthetic and natural rubber, and supporting government initiatives for environmental protection, Vikas Lifecare Limited (VLL) also complies with mandatory EPR standards for conglomerates that use hundreds of thousands of tonnes of plastic products and packaging materials. Additionally, VLL is a Del-Credere agent for Petro Additions Limited, a public-sector enterprise that produces an extensive range of basic polymers and commodity plastic raw materials on behalf of ONGC (Oil and Natural Gas Corporation Ltd.).