VEL to Provide Specialty Chemicals to Prince Pipes
Vikas Eco tech Ltd (VEL) has signed a bond with Prince Pipes and Fittings Ltd, which the third largest PVC manufacturer in India. The specialty chemicals manufacturer ventured into this tie up for supplying its entire range of specialty chemicals especially focusing the organotin heat stabilisers and its replacement plastic synthesiser.
Jayant Chheda, The Chairman of Prince Pipes said their focus is to ensure that the harmful chemicals and some other contents are soon replaced by certain eco-friendly and sustainable specialty chemical solutions, and Vikas EcoTech is offering one such solution. He believes that this bond will strengthen their association.
The Managing Director of VEL, Vikas Garg, managing director said that their emphasis is on developing indigenous and import replacement chemical solutions for their customers in an eco-friendly manner. He further said that their tie up with a B2B is a strategy for them to work in sync with the leading industries like Prince Pipes right from product development to end manufacturing. He believes they are committed as a company to start premium lead-replacement products and solutions in specialty chemicals for not merely Indian but also global customers.
This pact ensures that Prince Pipes buy the products from VEL at mutually consented price per quantity and its approximate value ranges between Rs 15 crores and Rs 20 crores in the financial year 2016-17. This pact will also guarantee revenue predictability for VEL.
Now VEL is aiming big, that is of entering into bonds with other customers and long term prospects. According to Mr. Garg these kinds of tie ups will secure greater benefits for the customers in terms of price and the company also would have a fixed source of revenue. That will be a win-win situation. The Research and Development wing of the company focuses on developing solutions for those customers who are yet in the first stage of product development.
VEL has realised that the demand for organotin stabilisers or the lead free additives is rising drastically across the globe. Hence they are establishing a manufacturing plant in Dahej so that they can cope with this demand. They expect the plant to produce 6,000 MT of organotin stabilisers and 5,000 MT of specialty polymer compounds every year. This will help them secure better business and also supply substantially to this ever-growing demand.