Meghmani Organics starts commercial operation of CMS project

Meghmani Organics informed the bourses that its subsidiary, Meghmani Finechem Limited (MFL), in which it owns 57 per cent stake, has completed installation of Chlormethane (CMS) project with a capacity of 40,000 MTs per annum in the existing Caustic Chlorine complex situated at GIDC Dahej, Bharuch, in South Gujarat.

The company started commercial production of Chlormethane (CMS) from July 4, 2019, the company informed on Monday. The CMS project will produce methylene dichloride (MDC), chloroform and carbon tetrachloride. Expansion of MDC would help the company to meet the growing demand of pharma and agrochemical customers, while Chloroform will meet demand for raw material in the pharma sector and refrigerant gas segment.

The company had incurred a capex of around Rs. 160 crore to set-up these facilities. The company expect that with this facility it can generate revenue of Rs. 80 crore in FY20E and Rs. 160 crore in FY21E.

On Tuesday, the stock of Meghmani Organics opened at Rs. 61.30 per share and made an intraday high of Rs. 62.80 on the BSE. At 10:55 hours, the stock was trading at Rs. 61.85 on the BSE.