Meghmani Organics 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), as per the company’s regulatory filing.
Meghmani paid an upfront payment of Rs. 132 crore to buy Kilburn Chemicals in December 2021. Following that, the business invested total expenditure of Rs.275 crore, including acquisition costs, and completed the first phase in January 2023.
Because of its brightness and excellent UV light absorption qualities, TiO2 is one of the most extensively used white pigments. It is used to provide whiteness and opacity to a variety of items, including paints, coatings, plastics, papers, inks, foods, medications, and toothpastes. The largest end-use industry for TiO2 is paints and coatings, which is increasing at a double-digit rate.
Meghmani now has a wider product range in pigments, as well as entrance into a better margin accretive product category, thanks to its foray into TiO2.
One of the primary advantages of venturing into TiO2 is that it is an import substitution. Approximately 70 per cent of TiO2 is now imported into India. According to the company, Meghmani will be a significant TiO2 manufacturing plant in India.
According to the statement, Titanium Dioxide (TiO2) production in India is predicted to expand at a 4.2 per cent CAGR, reaching 3,29,000 MTPA by 2025. The declaration of capital expenditures in the paint business will help to boost growth even further.
Under Phase II of growth, the business wants to double its capacity to 33,000 MTPA, as well as build a captive power plant for Rs.375 crore, which is projected to be operational by Q3FY24.