Meghmani Organics commences commercial production of two plants
Company has started production of herbicide 2, 4D acid and agrochemical formulation plant s
Meghmani Organics Limited (MOL) has commenced the commercial production at its Dahej and Panoli plants.
The Dahej plant will produce Herbicide 2, 4D acid. The cost of setting up the Herbicide 2, 4 D acid with an annual capacity of 10,800 MTs is Rs. 127 crore. Meghmani expects to achieve additional turnover of Rs. 200 crores on full year of operation. With this expansion, the total production capacity of Herbicide 2, 4D Acid plant is now 21600 TPA.
The cost of setting up the agrochemical formulation plant at Panoli is Rs. 25 crores. MOL expects to achieve additional turnover of Rs. 150 crores on full year of operation. The company is also planning to set up the multipurpose plant at Dahej at the cost of Rs. 310 crores which is expected to be commissioned by Q4 FY22.
MOL, earlier this year, announced its plan to invest Rs.1,537 crore of capex in the next two years. It has already commissioned the Chloro Alkali expansion project and Captive Power Plant (CPP) in June and Hydrogen Peroxide plant in July. The company is expanding into new geographies and exploring new pigments.
In chloro alkali & its derivatives (MFL), the company is setting up backward integrated Epichlorohydrin (ECH) and Chlorinated Polyvinyl Chloride Resin (CPVC) resin projects to ensure continual growth. ECH project of 50,000 MTPA would be operational by Q4 FY22 and capex outlay for the project is Rs. 475 crore. CPVC Project of 30,000 MTPA will be operational by Q3 FY23 with a capex outlay of Rs. 300 crore . The expansion will be margin accretive at company level due to higher EBITDA margins in the Chloro Alkali business.
For pigments, the company is eyeing a revenue target of Rs. 1,000 crore by FY23. For agrochemicals, the company is eyeing a revenue target of Rs. 2,000 crore by FY23. For Chloro-Alkali and its Derivatives, the company is eyeing a revenue target of Rs. 2,000 crore by FY24. Overall, the company is looking at additional revenue of Rs. 5,000 crore by FY24.
The company is in the business of manufacturing of agrochemical and pigments. The agrochemical manufacturing facilities are situated at GIDC Panoli, GIDC Ankleshwar and GIDC Dahej at District Bharuch.