Vikas Proppant & Granite updates on proppants business
Vikas Proppant & Granite Ltd has decided to enter into a new niche market of proppants manufacturing which ONGC and other oil and gas drillers are importing currently. The company has planned to manufacture Proppants and mining of granite and fractured debris near Jodhpur.
The cost of plant and equipments to be installed for manufacturing the premium grade proppants at Kaparda District Jodhpur (47 KM from Jodhpur - on way to Jaipur) is arrived at Rs. 86.72 Crore (excluding bought out items and buildings). These orders have been finalized with the German fabricators after completing negotiations and their design drawings. The expected delivery period of the plant and machinery would start end of 2020 and expected to put into production sometime in 202l.
Environment and pollution clearance is in process and will take weeks time. Once these requirements are cleared by the Government, the mining of Beryl stone - i.e. corrosion resistance granite (7.5-8.0 hardness on MOHS scale) will commence for marketing and production of ordinary proppants. The shareholders are advised to keep patience as your company has undertaken a huge and niche product-manufacturing work that requires a lot of things and expertise and time consuming process so to to do.
The mines under the company have deposits of hard rock (Beryl - hardness of 7.5 - 8.0 on MOHS scale) whereas the granite mines spreading all over India have (Garnet rocks with maximum hardness of 6.5 - 7.5 on MOHS scale). The minimum hardness for the proppants for long term stability and technicalities is required more than 7.5 on MOHS scale. Only the Beryl rocks can meet out these technical requirements and standards. Therefore, most granite rocks (Garnet) in the country are not suitable for proppants manufacturing posing problems in their manufacturing.
Shares of Vikas Proppant & Granite Ltd was last trading in BSE at Rs.9.8 as compared to the previous close of Rs. 9.61. The total number of shares traded during the day was 2169884 in over 598 trades.
The stock hit an intraday high of Rs. 9.8 and intraday low of 9.8. The net turnover during the day was Rs. 21264863.