Meghmani Organics skyrockets on inking pact with Mitsui, Kaneka

07 Dec 2011

Meghmani Organics is currently trading at Rs. 10.33, up by 0.98 points or 10.48% from its previous closing of Rs. 9.35 on the BSE.

The scrip opened at Rs. 9.75 and has touched a high and low of Rs. 10.73 and Rs. 9.55 respectively. So far 144126 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 18.20 on 07-Jan-2011 and a 52 week low of Rs. 8.00 on 25-Nov-2011.

Last one week high and low of the scrip stood at Rs. 10.73 and Rs. 8.80 respectively. The current market cap of the company is Rs. 237.78 crore.

The promoters holding in the company stood at 49.80% while Institutions and Non-Institutions held 1.09% and 28.23% respectively. 

Meghmani Organics (MOL) has inked pact with Japan’s Mitsui & Company and Kaneka Corporation for manufacture of chlorinated polyvinyl chloride (CPVC) at Dahej in Bharuch district. The company has set up a joint venture company - Trience Specialty Chemicals with a total investment of $120 million.

MOL will have a 39% investment ratio in the venture while Kaneka and Mitsui will have 41% and 20%, respectively. The tripartite agreement was signed on October 6 to conduct feasibility study of the project, aimed at development of CPVC business in India. 

The joint venture company will manufacture 20,000 tonnes of CPVC annually, scalable later. It is expected to start production in 2014. While Kaneka will provide technology and Meghmani land and local management as the operational partner in the joint venture, Mitsui will handle raw material PVC procurement and play a key role in CPVC sales and marketing in Indian market, now growing at 40% rate annually.

MOL is a manufacturer of agrichemicals, pigment and other specialty chemical products. It operates an electrolysis plant, Meghmani Finechem, at Dahej. The caustic chlorine produced by it will be procured by Trience for its CPVC production.

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