Meghmani Organics Limited (MOL) announces that it will enter new variant of white pigment titanium dioxide (TiO2). The company will set up 33,000 metric tons production facility at a total capex of INR 400 crore at Dahej, Gujarat.
Titanium Dioxide (TiO2) has application as a bright white pigment in various industries including plastic, paint, coating, ink, dyes, paper and cosmetics etc. The project is expected to be commissioned by Q1 FY24 adding INR 700 crores to MOL’s topline on a full financial year basis.
Creating Growth in Pigment Division
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".
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Meghmani Organics foray into titanium dioxide 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 is an import substitution product aligning to the Government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ vision,” Ankit added.
The company eyes EBITDA margin of 25 percent with robust return ratios i.e., ROCE and ROE of 20 percent plus each. The new project will be funded by an appropriate mix of internal accruals and debt. India’s annual demand for titanium dioxide is pegged at 2,50,000 MTPA growing at 4.2 percent CAGR. India imports 80 percent of the titanium dioxide demand. India’s titanium dioxide production capacity stands at 81,000 MTPA.
Meghmani Organics' Complete Pigments Range
Source: Meghmani Organics Limited