Next-gen Fertilisers Drive Meghmani's Boom

The agrochemicals major added new-age products to its chemicals portfolio and raised capacity, boosting its bottomline and emerging as a top global player.

- P.B. Jayakumar

IN DECEMBER 2021, Ahmedabad-based agrochemicals and pigments specialist Meghmani Organics Ltd. (MOL) acquired a small company, Kilburn Chemicals, located in the coastal industrial belt of Dahej. The acquisition was to help Meghmani foray into the manufacturing of titanium dioxide (TiO2), a key chemical used in paints, coatings, plastics, papers, inks, foods, medicines and toothpastes.

Growth prospects looked bright, with demand for the chemical projected to grow at a 4.2% compound annual growth rate (CAGR) to 3,29,000 metric tonnes per annum (MTPA) by 2025, mainly due to high demand for paints. The product would also reduce India’s heavy dependence on the import (around 73%) of TiO2.

MOL commissioned the first phase of the TiO2 plant with 16,500 MTPA in January 2023. The second phase of the expansion plan, which includes captive power plants, is set to double the capacity to 33,000 MTPA by Q3FY24. Post commissioning of Phase II with ₹375 crore investment, MOL will be one of the major manufacturers of TiO2 in the country with nearly 29% capacity-wise market share.

“The rationales of this acquisition were the availability of inorganic opportunity at Dahej, the chemical hub of Gujarat where MOL has been present for decades, along with the locational advantage to source the raw material from the nearby port, and the availability of land for future expansion,” says Jayanti M. Patel, executive chairman, Meghmani.