Meghmani Finechem in expansion mode

Meghmani Finechem Limited (MFL), a leading manufacturer of Chlor-alkali products and value-added derivatives, is expanding its Caustic Soda facility and is also setting up facilities for value-added products like Epicholorohydrin and CPVC (Chlorinated Polyvinyl Chloride) capacity. 

The expansion projects are progressing well, and the majority of the work has been completed. As of Q4 FY21, 60% of Epichlorohydrin project, 40% of CPVC project and 40% of Caustic Soda project was completed. Total Capex for all three projects is Rs. 695 crore.

The company is in the process of expanding capacities of existing caustic soda plants to 400 KTPA from 294 KTPA currently. The company is also setting up an epichlorohydrin (50 KTPA) and CPVC (30 KTPA) plants at Dahej, both the products are 100% import substitute thus supporting Make in India initiative. Both the plants are on track for commissioning in FY23. 

On the other hand, Meghmani Finechem Limited (MFL) Q4 FY21 revenue increased by 115% Y-o-Y driven by higher sales of Chlor-Alkali (up 98%) and derivatives (up 183%). 

These are the first set of results for the company as an independent entity consequent to the scheme of arrangement under NCLT. MFL received the NCLT order on 3rd May 2021 and is in the process of filing its listing application. 

FY21 revenue was 36% higher at Rs. 829 crore whereas cash profit was 12% higher at Rs. 174 crore. Stable EBITDA margin was 32% driven by higher production and cost-efficient operations. Cash profit 12% higher at Rs. 174 crore. 

Commenting on the results Maulik Patel, Chairman and Managing Director, MFL said, “Our FY21 revenue grew 36% and we maintained a strong EBITDA margin of 32%. We are extremely excited about the growth prospects of MFL and its transition as an independent company. We will maintain our focus on cost efficient operations and on the value-added derivatives of chlor-alkali. Our state-of-the-art manufacturing facilities provide us with a unique strategic edge. The capacity expansion of our existing products along with our foray into ECH and CPVC will catapult us to a higher growth trajectory and at the same time create superior value for our shareholders. Sustainability and strong governance will continue to be our core focus areas and we will be driven by global best standards and practices.”