Meghmani Organics Limited (MOL) announced that it has completed an acquisition of Kilburn Chemicals Limited (KCL).
MOL paid INR 132 Crores (including INR 12.15 Crores towards equity subscription) as per the National Company Law Tribunal (NCLT) approved resolution plan dated 16th December 2021. Thus, the Company has diversified its Pigment Division’s product offering with Kilburn Chemicals acquisition, fast-tracking its foray into Titanium Dioxide (TiO2), the statement said.
The aforesaid acquisition has been funded from MOL’s internal accruals. As a result, MOL’s Titanium Dioxide (TiO2) project will be EPS accretive. The plant is located at Dahej, Gujarat and its existing Titanium Dioxide (TiO2) manufacturing capacity is pegged at 16,500 metric tons per annum (MTPA). MOL expects to commence the commercial production of Titanium Dioxide (TiO2) from Q2 FY23, thereby adding ~INR 300-350 Crores to the revenues on a full financial year basis.
Titanium Dioxide (TiO2), a bright white pigment, has multiple industrial applications, including Paints, Plastics, Inks, Dyes, Paper and Cosmetics, etc.
The annual demand for Titanium Dioxide (TiO2) in India stands at 2,50,000 MTPA and is growing at 4.2% CAGR. Imports meet nearly 80% of India’s Titanium Dioxide (TiO2) demand. The Titanium Dioxide (TiO2) production capacity in India is pegged at 81,000 MTPA.
Titanium Dioxide (TiO2), an import substitution product, accelerates MOL’s growth plans mirroring the Government’s ‘Make in India’ & ‘Atmanirbhar Bharat’ vision, the company said in its statement.
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