Meghmani Finechem Ltd commissions additional caustic soda plant
Meghmani Finechem Limited (MFL) a subsidiary of Meghmani Organics Limited (MOL) has completed the installation of an additional caustic soda plant of 1,28,000 tonnes per annum (TPA) in the company with a captive power plant of 36 MW at Dahej (Gujarat). MOL owns 57 per cent of equity shares in MFL.
Meghmani Finechem started commercial production from June 20, 2020. The caustic soda expansion and the captive power plant costs Rs 300 crore and Rs 150 crore, respectively. The expansion is expected to increase the revenue by Rs 200 crore in FY 20-21 and Rs 360 crore in FY21-22, in the complete year of operation.
The expansion will increase the capacity of the caustic soda plant to 2,94,000 MT per annum and captive power plant to 96 MW. Additionally, it will contribute to reduce the country’s dependency on imports.
The co-product Chlorine and Hydrogen’s capacity is expected to increase by 1,10,000 TPA and 37 million normal cubic metre (NM3) per annum, respectively, after the expansion. It will also guarantee a continuous supply to the current customers, agrochemical and pharmaceutical industries.
Caustic Soda plant is set to cater to various segments like soap and detergent, paper and pulp, textiles, dyes and pigments, etc. The expansion is a building block for future expansion of downstream products ensuring a continuous supply for the existing customers.
Meghmani Organics Limited (MOL) is trading at Rs 51.10 with an increase of 0.39 per cent on BSE.