Recycling player Vikas Lifecare buys majority stake in MSR Apparels in all-cash deal

Recycling player Vikas Lifecare has acquired a majority stake in textiles company MSR Apparels Private Limited, the company in a statement on BSE.

New Delhi-based Vikas Lifecare in a statement said that the acquisition of MSR is part of its broad-based strategy to expand its product portfolio and diversify its futuristic product lines by venturing into the new edge businesses.

MSR is mainly engaged in the manufacturing of all types of textile garments and clothing accessories.

According to a company statement, Vikas Lifecare has acquired a 98 per cent stake in MSR Apparels from its existing promoters and shareholders. The acquisition was finalised in an all-cash deal for a total consideration of Rs 125 million or Rs 12.5 crore.

Through this acquisition, Vikas Lifecare, which has recently diversified its business interests beyond raw materials, a B2B business, and forayed into the B2C segment with a host of consumer products including FMCG, agro and infrastructure products; is entering into another essential aspect of the life, textile, garments and clothing, the company said in a statement.

Earlier on Monday, Vikas Lifecare posted a manifold jump in its standalone net profit at Rs 13.31 crore during the June quarter, on account of higher income.

The firm had clocked a net profit of Rs 2.33 crore in the April-June period of the preceding 2022-23 fiscal, the company said in a statement. Its total income increased to Rs 106.30 crore in the quarter under review, from Rs 88.87 crore in the year-ago quarter. Expenses were at Rs 91.77 crore, as against Rs 86.71 crore a year ago.

Last month, Vikas Lifecare announced its plans of foraying into manufacturing smart meters in a 49:51 joint venture (JV) with Indraprastha Gas Limited (IGL). As part of the agreement, a manufacturing unit will be set at an initial investment of Rs 110 crore to manufacture smart meters.

Vikas Lifecare recycles plastic waste to manufacture pallets and interlocking tiles for industrial applications.