Meghmani Organics is in the limelight today. The stock opened with a loss of almost 7% at Rs.52.50 but soon did a complete turnaround, rising over 5% at Rs.54. Its 52-week high is at Rs.91.
The stock price rose on news that the company has decided to foray into manufacture of Epiehlorohydrin for which it is setting up a new unit through its subsidiary, Meghmani Finechem (MFL).
The unit will have a capacity of 50,000 tonnes per annum which will be based on TechnipFMC’s EPICEROL technology.
The project will have a capex of around Rs.275 crore and is expected to generate revenue of approximately Rs 460 crore per annum at optimum operating rate.
Epicerol technology is based on glycerine as feed stock which is obtained from 100% renewable resources. This proven technology is of great interest to downstream users who are concerned about a cost-effective production route whilst taking advantage of an abundant renewable feedstock to reduce their carbon footprint. Project will be set at Chlor Alkali and Derivatives Complex, Dahej.
Meghmani Finechem will be the first to manufacture Epichlorohydrin in India. Currently, this product is imported entirely for the domestic consumption. Once MFL plant goes on stream, the import will reduce and it will save valuable forex.