Indraprastha Gas Limited (IGL) has inked a pact with Genesis, an arm of Vikas Lifecare Limited (VLF), to set up a meter manufacturing plant at an estimated cost of Rs 110 crore.
The unit will be set up through a joint venture company, IGL said in a statement on Monday.
The news bode well with investors of IGL as the stock was trading at Rs 450.65 on National Stock Exchange, up 1.26 percent at 09.48 am.
Initially, the smart meter plant will have an installed capacity to manufacture one million meters annually.
In the JV, IGL and Genesis will have equity participation in the ratio of 51:49. The unit is expected to be operational by April 2024.
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The joint venture aims to capitalize on the demand for smart metering solutions, driven by an expansion in market share for gas distribution companies on the back of a rise in demand due to increasing disposable incomes, rapid urbanization, climate stability challenges, and the government's focus on clean energy.
According to Vikas Garg, Chairman of Vikas Group & Director of Genesis Gas, said the JV will be a game changer. It will also aim to tap the demand in the international market, besides catering to domestic consumers.
Pawan Kumar, Director (Commercial) of IGL, added that the new plant is a significant step towards diversification into allied manufacturing businesses, in line with the company's vision for clean and sustainable growth.
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