Meghmani Organics Limited (MOL) is setting up a White Pigment Titanium Dioxide (TiO2) plant with 33,000 metric ton production facility at a total capex of Rs 4 billion at Dahej.
Titanium Dioxide (TiO2) is used as a bright white pigment in various industries including paint, coating, plastic, ink, dyes, paper, and cosmetics etc.
The company expects to commission the project by the first quarter of the fiscal 2023-24.
The new project will add ₹700 crore to Meghmani Organics’ topline on a full-financial year basis, the company stated.
The company eyes an EBITDA margin of 25% with robust return ratios i.e., ROCE and ROE of 20%+ each. The new project will be funded by an appropriate mix of internal accruals and debt.
India’s annual demand for Titanium Dioxide (TiO2) is pegged at 250,000 MTPA growing at 4.2% CAGR. India imports 80% of the Titanium Dioxide (TiO2) demand. India’s Titanium Dioxide (TiO2) production capacity stands at 81,000 MTPA.
Commenting on Meghmani Organics entry into Titanium Dioxide, Ankit Patel, Chief Executive Officer, Meghmani Organics said, “The company has strengthened its value-added proposition of its Pigments Division with its entry into White Pigment Titanium Dioxide (TiO2). Meghmani Organics foray into Titanium Dioxide (TiO2) is in line with the company’s endeavour of creating sustainable growth in Pigment Division beyond Phthalocyanine Pigment Blue and Green. The project is poised to be the largest plant in India. Titanium Dioxide (TiO2) is an import substitution product aligning to the Government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ vision.”
Meghmani Organics Ltd. (MOL) is amongst the leading diversified chemicals companies with a presence in Pigments and Agrochemicals business. MOL is amongst the top 3 global Phthalocyanine based pigment players enjoying 14% market share.