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Meghmani commences production at Dahej Chlor-Alkali Project

06
Oct '09
The Re 550-Crore fully integrated Chlor-alkali project of Meghmani Finechem Ltd (MFL), promoted by the Ahmedabad based Meghmani Organics Ltd(MOL) has commenced commercial production.

The plant with a manufacturing capacity of 110000 tonnes of caustic soda a year is located at Dahej in South Gujarat. The unit also houses a 40 megawatt captive power plant.The project has been funded with equity of Rs 185 Crores and a debt of Rs 370 Crores provided by a consortium of State Bank of India. The Washington-based International Finance Corporation (IFC), part of World Bank, has supported the project with both equity and debt.

MOL has ventured into the project to improve its competitiveness by partial backward integration of its operations while using environment-friendly membrane cell technology. MFL is utilizing the latest 4th generation Membrane Cell Technology from Asahi Kasei Chemicals Corporation (AKCC) Japan, one of the most established technology providers for the manufacture of Chlor-alkali chemicals in the world. The caustic-chlorine chemicals are used in a multitude of industries including pigments, pesticides, production of metals and resource materials, pulp and paper, petroleum and natural gas extraction, manufacture of organic chemicals, plastics, industrial solvents, water treatment chemicals and Pharmaceuticals.

Due to their wide ranging applications across industries, demand for Caustic Soda and Chlorine Gas are increasing which would be catered to by MFL. For MOL, the project presents a sound opportunity for the Group to achieve inorganic growth in a diversified yet chemistry-related business with positive growth potential. MOL also views MFL as the vehicle for the future investments and growth which would build on MOL's technical expertise and existing operations.

MOL has set up this fully integrated plant to manufacture caustic soda, chlorine and hydrogen gas initially. In the subsequent phase MFL would enter into the production of chlorine derivatives or downstream products such as PVC, ECH, Mono-chloro Acetic acid, Cyanuric chloride, aluminum chloride, calcium chloride, methyl chloride, hydrogen peroxide and others. MOL is also setting up its proposed Agrochemical expansion in the vicinity of Caustic Chlorine complex of (MFL).

The basic advantage will be the availability of Chlorine from MFL through pipeline for production of MCAA as well as for the production of 2, 4-D. This will help MOL in reducing the cost of production of MCAA. It will also ensure steady supply base of chlorine for MFL.

Meghmani Organics Ltd


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