Vikas Lifecare Share Price Soars Over 100% in 6 Months After Rs. 108 Cr Investment in Smart Meter Venture

Manoj Prasad

After launching a big joint venture to produce smart meters in India, recycling business Vikas Lifecare witnessed a more than doubling of its share price in just six months.

The smart metering industry is predicted to reach over $1 billion by 2025 and is seeing rapid growth, which the business intends to capitalize on.

With an investment of Rs. 108 crores, Vikas Lifecare and state-owned Indraprastha Gas Limited (IGL) established a smart meter manufacturing facility in Noida, Uttar Pradesh, through a 51:49 joint venture named IGL Genesis Technology Limited.

With this facility, we can manufacture 1 million smart meters each year.

Shares of Vikas Lifecare were selling at Rs. 6.45 on January 12, 2024, a whopping 111% more than their announcement price of Rs. 3.05 on July 12, 2023.

Only the last month has seen a 28% increase in the stock price. The share price has increased by 43% in the last 12 months. Superb performance in a short amount of time has resulted in massive profits for investors.

Outlook Positive for Smart Meters

The joint venture is capitalizing on the smart metering market’s predicted high expansion in India. Smart meters are gradually being made mandatory for big power users as the government encourages water and power conservation.

According to industry forecasts, the number of smart electric meters installed is expected to reach 10 million units by 2025, representing a 30% compound annual growth rate. By the end of the forecasted two years, the market value will have reached $1.3 billion.

Smart meters are being adopted at a rapid pace due to water metering laws. This rapidly expanding market presents an excellent opportunity for the joint venture.

On 65,000 square feet of property in Noida, Uttar Pradesh, lies the new smart meter manufacturing plant. The location is presently experiencing civil work.

According to a statement made by Vikas Lifecare, commercial production will begin at the manufacturing facility in July 2024. The facility has the potential to annually generate 1 million smart meters once it is fully operational.

The cutting-edge smart meters that the IGL Genesis joint venture will produce use state-of-the-art technology that allows for precise invoicing and remote meter readings.

Through the use of communication technology, the meters will allow for automated meter readings, eliminating the need for human interaction and transmitting the data to utilities. Manual meter readings are no longer necessary because of this.

Utilities are able to create precise consumer profiles and segments for individualized tariff plans thanks to advanced analytics applied to comprehensive consumption data.

The meters improve the whole metering process by making it more efficient, transparent, and convenient.

More Strategic Partnerships on the Cards

This joint venture is in line with Vikas Lifecare’s strategy to form partnerships for the production of smart devices for the water and gas industries in India, according to their exchange filing.

As smart meters are implemented in India in the coming years, the company is actively seeking out new partnerships in order to secure significant utility contracts.

Thanks to its forward-thinking approach, the plastic recycling company is capitalizing on smart metering and other environmental conservation initiatives in India.

The rapid increase in Vikas Lifecare’s stock price is a sign of the smart meter industry’s promising future for investors. The joint venture has the potential to release substantial value for the firm when production ramps up. It appears like things are looking up.

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