VEL signs Distribution Agreement with Chinese Conglomerate for Organotin distribution in USA & North American Market
Deepthi | Myequity news | Date : 05-02-2019 13:15:00 IST
Vikas EcoTech Ltd.(VEL) signed distribution agreement with Yuntinic Resources, Inc., USA subsidiary of Yunnan Tin Co. Ltd. of China for distribution of its Organotin range of PVC heat stabilisers in the USA and North American markets. USA is the world’s largest consumer of Organotins, accounting for over 50% of the global demand. This agreement with Yuntinic will provide Vikas EcoTech access to the largest consuming US market.
Yuntinic Resources was founded in 1994, as a wholly-owned subsidiary of Yunnan Tin Co. Ltd., the largest Tin metal producer in the world. They offer high quality Tin Metals and Tin Chemical products in Asia, Europe, and North America.
As per the distribution agreement, Yuntinic Resources will begin sourcing Organotin stabilisers from Vikas EcoTech for supply and distribution to the US and North American markets. Vikas EcoTech’s Organotin sample shipments have already been approved by consumers in the US. VEL expects to reach an export run-rate of over 1,000 tonnes per annum of Organotins by FY20. Accordingly, the company expects Organotin capacity utilization to rise significantly in FY20.
Currently, Organotin contributes ~20-25% of VEL’s topline & the company expects this contribution to increase in future, aided by this distribution tie-up. Company expects to sustain its margins and ease the working capital cycle going forward as the export sales stabilize.
The signing of this distribution agreement with one of the world’s largest Organotin manufacturers endorses VEL’s high quality products being accepted & approved in the international market. About Vikas Ecotech Limited:
Vikas Ecotech is an emerging player in the global arena of high-end specialty chemicals. An integrated, multi-specialty product solutions company, it produces a wide variety of superior quality, eco-friendly additives and rubber-plastic compounds. Its additives and rubber-plastic compounds are process-critical and value-enabling ingredients used to manufacture a varied cross-section of high-performance, environment-friendly and safety-critical products. From agriculture to automotive, cables to electricals, hygiene to healthcare, polymers to packaging, textiles to footwear, the company’s products serve a diverse range of global industry needs.