Vikas EcoTech Limited (VEL) is pleased to announce a 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. The 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. The parent company Yunnan Tin Co. Ltd. has over 130 years of experience & all its products are made and processed under strict quality control systems and using world-class technologies.

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. The 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.