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Meghmani Finechem to commence chlorinated PVC production next year

On Thursday, August 19, 2021 at 02:25 IST

Bharuch (Gujarat) based specialty chemicals manufacturer Meghmani Finechem is planning to commence commercial production at its chlorinated PVC (polyvinyl chloride) plant in the first half of the next financial year, a top company executive told Polymerupdate.

The company is setting up a 30,000 tonnes of chlorinated PVC production facility at its existing factory location in Bharuch, Gujarat where Meghmani Finechem owns 65 hectares of land in this strategically located specialty chemical producing region. Meghmani Finechem has chalked out a total investment of Rs 195 crore on this new production facility for which the required plant and machinery has already been ordered.

On successful commencement of the commercial production, Meghmani Finechem will be India’s largest and the country's second producer after DCW’s 10,000 tonnes of chlorinated PVC production facility in Sahupuram, Tamil Nadu. India’s annual demand of chlorinated PVC is estimated at 135,000 tonnes which is largely met through import.

“Mainly catering to high growth areas like hot water transportation, Chlorinated PVC demand in India has been growing rapidly. While its demand remained muted during the last few quarters due to overall weak business sentiment across the world on account of Covid pandemic, its future looks bullish as it has no substitute. Hence, entering into the production of an import substitute would certainly benefit us going forward,” Maulik Patel, Chairman and Managing Director, Meghmani Finechem Ltd, told Polymerupdate.

Apart from that Meghmani Finechem might expand its capacity of chlorinated PVC further by another 35,000 tonnes at later date for which the company awaits implementation of its first plant.

“There is an immense opportunity available in chlorinated PVC segment as its demand has been growing consistently on account of rapid urbanization in small towns. Entry of new players is restricted due to high capital expenditure on setting up a greenfield factory. With the government is promoting ‘Atmanirbhar Bharat’ to make India self-reliant in every segment, sky is the limit for us. By the time, our new project comes on stream, the demand of chlorinated PVC would go up further,” said Patel.

“Frequent lockdowns on account of intermittent resurgence in new Covid cases made the last two years i.e. 2020 and 2021, exceptional not only for the Meghmani Finechem and India but also for the entire world. So, we cannot consider the last year as the benchmark for any business including chlorinated PVC.

Barring that, the demand of chlorinated PVC continued to witnessed a high growth trajectory in the last one decade. And its future also looks bright. Hence, we are confident to achieve our topline target of Rs 2000 crore by the financial year 2024 from the current level of Rs 830 crore,” said Patel.

To achieve this turnover target, the company is also expanding caustic soda production capacity to 4,00,000 from the existing 2,94,000 tonnes. Additionally, Meghmani Finechem is also working on to expand into other specialty chemicals. A greenfield plant is being set up of epichlorohydrin which is set to commence its commercial production next year.


DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com

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