Vikas Ecotech Limited has informed the updates on the Steel Pipe fitting and gas piping systems manufacturing projects to the exchange.
The Steel Pipe Fittings Manufacturing Project
The Company has finalised the location for the Steel Pipe Fittings Manufacturing unit at Prakash Industrial Estate, District Ghaziabad, Uttar Pradesh.
The technical team has completed the process of studying and designing the manufacturing process with completing the blueprint of the manufacturing plant and finalised the equipment and started the process for ordering the equipment as required.
These Steel Pipe Fittings will be supplied majorly to the Public Health Engineering Department Projects, across 5 states to begin with including Haryana, Punjab, Uttar Pradesh, Rajasthan & Madhya Pradesh.
A Capex of around 70 Million and a provision for about 90 Million has been assigned towards working capital requirements for this project. These funds will be sourced completely from internal accruals.
The Gas Pipes Manufacturing Project
Further, the civil work has begun to erect the structure for housing the manufacturing facility at Shahjahanpur, Rajasthan. The civil work will be completed by 31 December, 2021 and the machines will be commissioned in Q4 FY 22.
The Company targets to start pitching for various tenders and contracts with IGL & GAIL projects by January, 2022. This project will be provided a Capex of around 60 Million and a provision for about 120 Million has been assigned towards working capital requirements. These funds will again be sourced completely from internal accruals.
On Monday early morning trade, Vikas Ecotech was trading at Rs2.43 up by 3.40% on the BSE.