Meghmani Finechem starts commercial production of Hydrogen Peroxide

Meghmani Organics Limited’s subsidiary Meghmani Finechem Ltd (MFL) has started its commercial production of Hydrogen Peroxide (H2O2) from July 30, 2020, after the successful completion of the installation of integrated Hydrogen Peroxide plant in existing Chloralkali and Derivative complex at Dahej (Gujarat).

The plant’s capacity is 60,000 tonnes per annum. The total cost of the project incurred is Rs 180 crore, which is expected to generate revenue of Rs 160 crore in FY22.

With the commissioning of this plant, the integrated MFL complex is expected to generate total revenue of Rs 1,200 crore per year by FY22 with key contributions from the existing caustic chlorine, potash, and derivatives such as chloromethane, hydrogen peroxide, epichlorohydrin (ECH) and chlorinated polyvinyl chloride (CPVC resin). The new upcoming projects of ECH (50,000 MTPA) and CPVC resin (30,000 MTPA) are expected to get commissioned by Q4FY22 and Q3FY23, respectively. Thus, on full operation, the total revenue of MFL will reach Rs 2,000 crore.

The project is for value addition of hydrogen gas, which the company would utilise it from its own integrated Chloralkali complex. This plant will cater to various industries like textile bleaching, paper & pulp bleaching, water & effluent treatment, non-edible oil refining, chemical synthesis, sugar bleaching, and metallurgy. It will also focus on other industries such as organic peroxides, pharmaceuticals, and cosmetics.

Meghmani Organics mainly operates through three segments, namely pigment, agrochemical, and basic chemical i.e. Chloralkali & derivatives. The revenue mix for FY20 included pigment-27 per cent, agrochemical-44 per cent and Chloralkali & derivatives – 29 per cent.

In the last 4.5 months, the stock of Meghmani Organics has surged ~79 per cent, trading at Rs 63.65 currently, from Rs 35.50 level in the last week of March 2020.