Meghmani Organics Limited announced commissioning of Phase 1 of Titanium Dioxide (TiO2) plant at Dahej, Gujarat with an installed capacity of 16,500 metric tonnes per annum (MTPA).
Meghmani had acquired Kilburn Chemicals Limited for Rs 1.32 billion in December 2021 by making 100% upfront payment. Post which the company incurred total capex to the tune of Rs 2.75 billion including the acquisition cost and commissioned the first phase in January 2023.
TiO2 is one of the most widely used white pigment because of its brightness and its strong UV light absorbing capabilities. It is used to provide whiteness and opacity to products such as paints, coatings, plastics, papers, inks, foods, medicines, toothpastes. Paints and Coatings is the major end-use industry for TiO2 and is growing at a double-digit growth rate.
With Meghmani’s entry into TiO2, the company now has larger product portfolio in pigments, along with entry into higher margin accretive product category.
One of the major benefits of foraying into TiO2 is the advantage of this product being an import substitute. Currently, around 70% of TiO2 is being imported in India. Meghmani will be one of the prominent manufacturers of TiO2 in India.
India’s Titanium Dioxide (TiO2) is expected to grow at a 4.2% CAGR reaching 329,000 MTPA by 2025. Capex announcement in paint sector will further accelerate the growth.
Under Phase II of expansion, the company plans to double its capacity to 33,000 MTPA alongwith Captive Power Plant at a capex of Rs 3.75 billion which is expected to commission by Q3FY24.