TiO2 is a naturally occurring white opaque mineral used a bright white pigment. Its industrial applications are in paint, coating, plastic, polymers, ink, dyes, paper and cosmetics, etc.

The project is expected to be commissioned by Q1 FY24 adding Rs 700 crore to Meghmani Organics' topline on a full financial year basis. The company eyes an EBITDA margin of 25% with robust return ratios i.e ROCE and ROE of 20%+ each. The new project will be funded by an appropriate mix of internal accruals and debt.

India's annual demand for TiO2 is pegged at 2,50,000 MTPA growing at 4.2% CAGR. India imports 80% of the TiO2 demand. India's TiO2 production capacity stands at 81,000 MTPA.

Ankit Patel, chief executive officer, Meghmani Organics said, "The Company has strengthened its value added proposition of its Pigments Division with its entry into White Pigment Titanium Dioxide (TiO2). Meghmani Organics foray into Titanium Dioxide (TiO2) is in line with the Company's endeavour of creating sustainable growth in Pigment Division beyond Phthalocyanine Pigment Blue and Green. The project is poised to be the largest plant in India. Titanium Dioxide (TiO2) is an import substitution product aligning to the Government's 'Make in India' and 'Atmanirbhar Bharat' vision."

On a consolidated basis, net profit of Meghmani Organics declined 0.44% to Rs 65.26 crore on 28.48% rise in net sales to Rs 548.22 crore in Q2 September 2021 over Q2 September 2020.

Meghmani Organics is amongst the leading diversified chemicals company with a presence in pigments and agrochemicals business. Meghmani Organics is amongst the top 3 global Phthalocyanine based pigment players enjoying 14% market share. The company garners about 79% of its topline from the export markets as on FY21.