I have pleasure in presenting Annual Report for the Financial Year (FY) 2019-20. Thisyear is the milestone year in 11 years journey of Meghmani Finechem Limited (Company) inChloro-Alkali and Derivatives business.
The COVID 19 Pandemics is affecting millions of people to health crisis worldwide aswell as disrupting the economy across the Globe. While the containment and isolationmeasures taken by Governments have painful consequences for the economy and for theeveryday life of each of us they are sensible and necessary. The virus is not onlyclaiming human lives but also putting the entire psychological immune system ofglobalisation to the most severe stress test.
However the situation has not impacted much to the Company due to high growth inPharmaceutical and Agro Chemical being essential industries. As a Company we arecommitted to the health and safety of our team. We want to ensure that business steerforward for our Customers. We are now poised to take several growth opportunities and I amsure that we will continue to receive your support as ever.
In present business conditions and industry environment the Company believes inMonitoring the Operation TO DAY to maximise the opportunity and PREPARING forTOMORROW.
The Company has successfully commenced the operations of Chloromethane Plant in July2019 and achieved the capacity utilisation of 70% in first nine months. This Choro-AlkaliDerivative (Chloromethane) Segment has contributed to 20% share of total revenue. TheCompany has also achieved capacity utilisation of 82% for Chloro-Alkali Plant. During theFY 2020 the Company earned Revenue of Rs. 609 Cr and Profit before Tax at Rs. 143 Cr. Theyear witnessed many external and internal challenges affecting the performance of theCompany.
On-going & Expansion Projects : The Company commenced the commercial operationsof Caustic Soda Lye Expansion of 140000 TPA with Captive Power Plant of 36 MW in June2020 eventually the Caustic Soda Lye capacity reached to 294000 TPA and Captive Powerplant to 96 MW. The Company also commenced the commercial operations of Hydrogen PeroxidePlant of 60000 MT in July 2020.
New Projects : Using Chloro-Alkali products as basic building block the Companyhas now planned to move downstream products and decided to set up the Plant ofEpichlorohydrin (ECH) of 50000 TPA and Chlorinated Polyvinyl Chloride (CPVC) of 30000 TPA.Both the plants will be commissioned and the Commercial operation will start by FY 2023.Epichlorohydrin will be the first largest plant in India based on 100% renewable source.
The Company is planning and evaluating for Expansion of Caustic Soda (105000 TPA)
Phase III along with additional Captive Power Plant of 36 MW. After this expansion theCompany will reach to total capacity of 400000 MT of Caustic Soda and 132 MW of CaptivePower Plant.
The primary focus of the Company is to complete of Expansion Projects StrengthenInternal Controls and Realign Business Objectives. The entire team of MFL is confident toachieve the target of the Revenue of Rs. 2000 Cr with CAGR of 35% in coming years.
With increasing portfolio in Chloro-Alkali Derivative Segment the Revenue share fromDerivative Segments is expected to increase to more than 55% by FY 2024. Majorcontributory in Derivative Segments will be Chloromethanes Hydrogen PeroxideEpichlorohydrin and Chlorinated Poly Vinyl Chloride (CPVC Resin).
I take this opportunity to thank all our stakeholders who are an integral part ofbusiness and have contributed significantly in our progress.
I convey my sincere gratitude to my Management Team Staff Bankers and BusinessAssociates for their commitment and contribution towards the present growth of theCompany.
Further I express my appreciation to my fellow Directors for providing guidance amidstthe tough operating environment. Last but not least I extend my gratitude to our loyalShareholders for their support.
We will continue to drive ahead in building a more sustainable chemical business forour Customers while enhancing our shareholders' value.
We strongly believe in delivering our promises made to Stakeholders.
Thanking You Maulik Patel
Chairman & Managing Director