The newly-commissioned facility with a production capacity of 30,000 tonnes per annum (TPA) is the largest of its kind in India.

"Despite a challenging external environment, the plant has been commissioned on time and without any cost overrun, which is a testimony of the company's strong project execution skills,” Meghmani Finechem said in a statement.

In India, CPVC resin demand is around 140 kilo tonnes per annum (KTPA) and it is expected to grow by around 13% CAGR over the next five years. CPVC is widely used for domestic (households) and industrial purposes. Approximately 95% of the CPVC resin demand of India is met through imports.

MFL's entry into this product is in line with the Central Government's initiative of Aatmanirbhar Bharat and Make in India. This will reduce the dependence of CPVC resin consumer on imports thereby helping the country save its foreign exchange reserves.

CPVC resin is a high value product. Considering the current prices of CPVC resin, MFL expects asset turnover ratio to be above 2.0x, which will improve the company's absolute EBITDA and will end up providing higher ROCE (return on capital employed), ultimately creating value for the shareholders.

Commenting on the commissioning of CPVC Resin plant, Maulik Patel, chairman and managing director, MFL said, “I am very happy to announce that we have commissioned India's largest CPVC resin plant of 30,000 TPA.

Production of CPVC resin has started and it is under approval process with various customers. We estimate that it will take around 3 months' time for approval and stabilisation process. We expect that volume of CPVC resin should pick from Q3 FY22 onwards and should reach optimum capacity utilisation by Q1 FY24.”

Meghmani Finechem (MFL) is an integrated manufacturer of chemicals in India. The company is India's 4th largest manufacturer of caustic soda, chlorine and hydrogen and a leading manufacturer of caustic potash, chloromethanes and hydrogen peroxide. MFL is further expanding into chlorotoluene & its value chain to strengthen its position in specialty chemical segment.

The company reported a 202% jump in consolidated net profit to Rs 99 crore on a 93% rise in revenue from operations to Rs 499 crore in Q4 FY22 over Q4 FY21.

On a year-to-date (YTD) basis, the stock has zoomed 95.04% while the benchmark Sensex has declined by 6.97% during the same period.