Corporate Feature     

Published: January 31, 2024
Updated: January 31, 2024

Vikas Lifecare Ltd

Vikas Lifecare Limited has made its largest investment till date

Vikas Lifecare Limited has made its largest investment till date in the acquisition of a major stake in the renowned SKY 2.0 Club, Dubai.

The acquisition is a share swap deal signed between Vikas Lifecare Limited and the holding company, Blue Sky Event Hall FZ-LLC, Dubai, for acquisition of a 60% stake in the SKY 2.0 Club business and all future business ventures in the relevant business segment, at an enterprise valuation of about $ 130 million. The acquisition process will be completed within this fiscal year.

SKY 2.0 is considered the largest night club in the Middle East and Asia, a striking standalone, open-air venue anchored in the heart of the upscale Dubai Design District. SKY 2.0 is unlike any other venue; it is an experiential trail-blazer that promises memorable evenings literally under the skies, offering world-class entertainment, ground-breaking technology and exemplary service. Innovative and experiential, SKY 2.0 offers an interactive experience by employing modern technology at the venue. Bendable screens, a grand lighting design, and a vivacious and jaunty sound system wrap the walls of the sphere-shaped venue. Enigmatic and designed to perfection, the architectural marvel that is SKY 2.0 emerges from a seamless fusion of visionary nightlife experts and international architects, resulting in a masterpiece that captivates the senses. Sky 2.0 Club has hosted hundreds of starstudded events featuring the ‘king’ of the Indian film industry, Shah Rukh Khan, the indigenous rap star Badshah, the international rap sensation Little Baby, the American rap king 50 Cent, the Moroccan star French Montana, and many more.

CLUB REVENUES

SKY 2.0 recorded about $ 22.10 million of gross revenues during 2023, with a 38.80 % net profit margin and 36 % growth in revenues registered compared to the preceding year.

The nightclub business on the global level aggregates about $ 31.46 billion while accelerating at a CAGR of 8.07%, whereas India, the home turf for VLL, with 25% of the population aged below 25 years and surfing on the surge in disposable incomes, is growing at an exorbitant 17.4%, and offers a huge, virgin and niche market.

Vikas Lifecare Limited (VLL) is an ISO 9001:2015 certified company, conventionally engaged in manufacturing and trading of polymer and rubber compounds and speciality additives for plastics, synthetic & natural rubber, polymer & rubber commodity (bulk consumption) compounds and master batches (manufacturing up-cycled compounds from industrial and post-consumer waste material like EVA, PVC, PP, and PE).

It thus contributes to the environment protection initiatives of the Government of India and fulfills the mandated EPR obligations for conglomerates consuming hundreds of thousands of tons of plastic products and packaging materials.

VLL is also a Del-Credere agent of ONGC (Oil and Natural Gas Corporation Ltd) Petro Additions Limited, a public sector undertaking producing a wide variety of base polymers and commodity plastic raw materials.

SMART METERS

VLL’s subsidiary, Genesis Gas Solutions Pvt Ltd, is engaged in the business of smart gas meters being supplied to all major gas distribution companies for domestic and commercial consumers. Genesis is a pioneer in smart gas and water metering and commands about 20% of the domestic gas metering business share in India.

As a long-term business strategy, the company has most recently diversified its business interests beyond raw materials (B2B businesses) and forayed into the B2C segment with a host of consumer products, including FMCG, agro, and infrastructure products. This has paved the way for aggressive business growth with intricately planned, continuous additions to the products and services portfolios via acquisitions, joint ventures and tie-ups.

The company, in order to fuel its business growth, has been very open-minded and is aggressively exploring various industrial and services business markets, including tourism, hospitality and entertainment. VLL intends establishing/acquiring businesses in these business segments, thereby expanding its footprint in the country and beyond.

The securities of the company are listed on both the stock exchanges — BSE (Scrip Code: 542655) and NSE (Symbol: VIKASLIFE).

Vikas Lifecare Ltd, a leader in trading and manufacturing of polymer, rubber compounds and additives for plastics, synthetic & natural rubber, has announced that its fund-raising committee approved the allotment of 10,41,65,000 equity shares to Qualified Institutional Buyers (QIBs). The shares were allotted to FPIs – Coeus Global Opportunities Fund, AG Dynamic Funds Ltd and Nakshatra Stressed Assets Fund.

Earlier, the company announced that for the purpose of capacity expansion and augmentation of manufacturing operations for its conventional business of polymer and rubber compounds, it has acquired a new land piece measuring about 1800 sq metres adjoining the existing factories located at the RIICO Industrial Area, Shahjahanpur, Rajasthan.

The total cost of acquisition and development of the land and the building thereon will be about Rs 30 million, whereas the equipment for the expansion of production capacity will cost another Rs 230 million.

The new expansion will be ready to be utilized within the next 3-4 months and is expected to add an additional Rs 600 million to the gross revenues from the compounding business segment.

NEW SEGMENTS

VLL is working in all directions to tap into vertical as well as horizontal growth options via expanding conventional businesses and venturing into new business segments to fuel its fast-growth plans through various routes, including merger and acquisition of going businesses from diverse fields.

Vikas Lifecare Ltd. (VLL) is an ISO 9001:2015 certified company, engaged in trading and manufacturing of polymer, rubber compounds and additives for plastics, synthetic & natural rubber. The company is conventionally engaged in the various business segments; i.e., polymer & rubber commodity (bulk consumption) compounds and master batches (manufacturing up-cycled compounds from industrial and post-consumer waste materials like EVA, PVC, PP, PE, etc.), contributing to the environment protection initiatives of the government and fulfilling the mandated EPR obligations for conglomerates consuming hundreds of thousands of tonnes of plastic products and packaging materials. VLL is also a Del-Credere agent of ONGC (Oil and Natural Gas Corporation Ltd) Petro Additions Limited, a public sector undertaking producing a wide variety of base polymers and commodity plastic raw materials.

As a long-term business strategy, the company has most recently diversified its business interests beyond raw materials (B2B businesses) and forayed into the B2C segment with a host of consumer products including FMCG, Agro and Infrastructure products, paving the way for aggressive business growth with intricately planned and selected product portfolios via acquisitions, joint ventures and tie-ups. VLL intends establishing/acquiring businesses in these segments, thereby expanding its footprint in the country and beyond.

GAS METERS

VLL’s subsidiary M/s Genesis Gas Solutions Pvt Ltd is engaged in the business of smart gas meters being supplied to all the major gas distribution companies for domestic and commercial consumers. Genesis is a pioneer in smart gas and water metering, and commands about 20% of the domestic gas metering business share in India.

The securities of the company are listed on both BSE (Scrip Code: 542655) and NSE (Symbol: VIKASLIFE). Vikas Lifecare Limited has announced that its subsidiary company Genesis Gas Solutions Pvt. Ltd. (Genesis) has accomplished the incorporation of “IGL Genesis Technologies Limited”, a joint venture company with Indraprastha Gas Limited (IGL). “IGL Genesis Technologies Limited” has been incorporated with equity participation from Indraprastha Gas Limited (IGL) and Genesis Gas Solutions Pvt. Ltd. (Genesis) in the ratio of 51:49 respectively.

With the incorporation of “IGL Genesis Technologies Limited”, Genesis Gas Solutions Pvt Ltd has completed the inducement of its share of the Paid-Up capital amounting INR 181 Million in the newly incorporated entity.

Genesis had earlier announced the JV agreement with Indraprastha Gas to establish India’s first integrated state-ofthe-art smart meter manufacturing plant with a total capital expenditure of Rs 1080 million. The new company will manufacture diaphragm gas meters equipped with IoT technologies like LoRa, LoRaWAN, Bluetooth, NFC and NB-IoT. It will also indigenously develop the software and interface programmes with in-built smart analytics, dashboards, predictive maintenance protocols, and allied systems for the smart meters.

The manufacturing facility is being developed on land located at Sector-145, NOIDA, Uttar Pradesh, with a building initially measuring about 65,000 sq ft, which will be ready by the end of February 2024 and the fittings and fixtures will be completed by the end of May 2024. Orders for the manufacturing equipment have been finalised and will be placed in January 2024.

LATEST TECH

This IGL-Genesis JV is being established in keeping with the Government of India’s ‘Make in India-Make for World’ initiative, and will be instrumental in a paradigm shift in favour of Indian players in the field. Initially, the smart meter manufacturing plant will have an installed capacity for one million meters annually, and is planned to be operational by July 2024.

The joint venture is aiming to tap the potentially high demand for smart meters, not only from domestic consumers but in the international market as well, by providing the latest technology-based metering solutions meant for long-range communications and capable of working in low power networks, including provisions for automated metering and pre-paid metering.

Genesis, co-founded in 2017 by a team of technopreneurs and finance professionals, has been specifically focused on the evolving city gas distribution sector.

It is a pioneer in smart gas and water metering in India and commands about 17% of the domestic gas metering share.

Genesis Gas has also ventured into commercial pipeline laying contracts for Indian Oil Adani Gas Pvt Ltd (IOAGPL), a joint venture between IOCL, a Mumbai-headquartered PSU, and Adani Total Gas Limited, a city gas distribution company that is part of the country’s leading integrated business conglomerate, the Adani group.

VLL, THE PARENT

Vikas Lifecare Limited (VLL) is an ISO 9001:2015 certified company, conventionally engaged in manufacturing and trading of polymer and rubber compounds and speciality additives for plastics, synthetic & natural rubber, polymer & rubber commodity (bulk consumption) compounds and master batches (manufacturing up-cycled compounds from industrial and postconsumer waste materials like EVA, PVC, PP and PE). Thus, Vikas Lifecare contributes to the environment protection initiatives of the government and fulfills the mandated EPR obligations for conglomerates consuming hundreds of thousands of tonnes of plastic products and packaging materials.

VLL is also a Del-Credere agent of ONGC (Oil and Natural Gas Corporation Ltd) Petro Additions Limited, a public sector undertaking producing a wide variety of base polymers and commodity plastic raw materials.

As a long-term business strategy, VLL has most recently diversified its business interests beyond raw materials (B2B) and forayed into the B2C segment with a host of consumer products, including FMCG, agro and infrastructure, paving the way for aggressive growth with intricately planned and selected product portfolios via acquisitions, joint ventures and tie-ups. VLL intends establishing/acquiring businesses in these segments, thereby expanding its footprint in the country and beyond.

The securities of the company are listed on both the stock exchanges, BSE (Scrip Code: 542655) and NSE (Symbol: VIKASLIFE).