Meghmani Finechem Ltd proposes new project of Chlorinated Poly Vinyl Chloride

Date:06-19-2020

Meghmani Finechem Ltd. - a Flagship Company of Meghmani Group has taken another step to invest for new project of forward integration, a CHLORINATED POLY VINYL CHLORIDE (CPVC Resin) of 30,000 MT.

Meghmani Finechem Limited (MFL), is a material subsidiary of Meghmani Organics Limited (MOL) in which MOL holds 57% of Equity Shares.

The Project will set up in existing Chlor Alkali and Derivatives Complex at Dahej for proximity to key raw material like Chlorine and to leverage existing infrastructure facilities.

MFL is expected to commence the commercial production in early FY 2022-2023 and expects to add additional revenue of Rs. 300 Cr with optimized level of capacity utilization.

To enrich its enterprise value, MFL is continuously moving with its planned Expansion Projects and adding value through forward integration. The Company has commenced Caustic Potash with capacity of 21000 in 2016-2017, Chloromethane with capacity of 50000 MT in 2019-2020.

Further, the Company is about to commence the expansion project of Caustic Chlorine from 167000 to MT 294000 MT along with Captive Power Plant by end of June 2020 and Hydrogen Peroxide with capacity of 60000 MT by Q2 FY20-21. The Company has also announced to set up new bio based expansion project of Epichlorohydrin with capacity of 50000 MT and like to commence its commercial production by end of FY 2021-2022. The plant of Epichlorohydrin will be the first and largest in India.

CPVC is a key raw material to produce Pipe and fittings having excellent heat and Chemical resistance properties, the demand of which is increasing rapidly in Chemical Processing and hot & cold water distribution. This plant will serve the growing CPVC compound Industries in India.

Currently, CPVC is imported entirely for the domestic consumption. Once MFL plant goes on stream, the import will reduce and it will save valuable FOREX. This will also contribute in "MAKE IN INDIA" initiative launched by our visionary Honourable Prime Minister. Even the recent import restrictions of CPVC from China and Korea have created an opportunity for MEFL.

Meghmani Finechem Ltd. is continuously striving to increase its presence with integration in- house so to enlarge products basket along with conservation of Environment, Safety and Health - in one of the most trusted ways, the company can consolidate in Economy of Scale and value addition to ensure continual growth.

Shares of MEGHMANI ORGANICS LTD. was last trading in BSE at Rs.53.7 as compared to the previous close of Rs. 48.4. The total number of shares traded during the day was 711808 in over 4501 trades.

The stock hit an intraday high of Rs. 55.4 and intraday low of 48.85. The net turnover during the day was Rs. 37400499.