Meghmani Organics announced that its material subsidiary, Meghmani Finechem has commenced commercial production of additional Caustic Soda plant of 128000 TPA along with Captive power plant of 36 MW in existing Chlor-alkali and derivative complex at Dahej, Bharnch.

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Meghmani Organics announced that Meghmani Finechem, a material subsidiary of the company, has decided to set up forward integration project of Chlorinated Poly Vinyl Chloride (CPVC Resin) having annual capacity of 30,000 MT at existing Chloralkali and Derivatives complex at Dahej, Bharuch.

The company is expected to commence the commercial production in early FY 2022-2023 and expects to add additional revenue of Rs. 300 crore 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 of50000 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 Industriesin India.

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Net profit of Meghmani Organics declined 22.78% to Rs 51.33 crore in the quarter ended March 2020 as against Rs 66.47 crore during the previous quarter ended March 2019. Sales declined 6.70% to Rs 520.35 crore in the quarter ended March 2020 as against Rs 557.73 crore during the previous quarter ended March 2019.

For the full year,net profit declined 4.43% to Rs 240.15 crore in the year ended March 2020 as against Rs 251.27 crore during the previous year ended March 2019. Sales rose 4.94% to Rs 2191.18 crore in the year ended March 2020 as against Rs 2087.96 crore during the previous year ended March 2019.

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Meghmani Organics will hold a meeting of the Board of Directors of the Company on 15 June 2020.

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