Meghmani Organics said that its wholly owned subsidiary MCNL has entered into a licensing agreement with one of leading domestic fertiliser manufacturer for producing nano urea fertilizer by using their domestically developed patented technology.
Nano urea is a liquid fertilizer and is effective in enhancing the nutritional quality, crop's productivity and additionally, it is environmentally safe.
India's urea demand stands at 35 Million metric tons (MMT) per annum, of which nearly 29 MMT is produced domestically while the balance is imported. Government of India targets to eliminate India's dependency on urea imports by 2025 as more farmers adopt the usage of nano urea. Additionally, it will help reduce Government's subsidy burden on the conventional urea.
Meghmani Crop Nutrition (MCNL) will incur a capex of Rs 150 crore for setting up the plant in Gujarat. The plants annual capacity is pegged at 5 crore bottles (approximately 500 ml) per year.
MNCL is expected to commence the commercial production by Q4 FY24. MNCL projects to achieve a top line of Rs 1,000 crore on an annual basis.
Foray into Liquid Fertilizers amplifies the growth strategy of the company and in agrochemical division, Meghmani Organics said in a statement.
The Meghmani Group manufactures green and blue pigment products, which are used to manufacture printing ink, plastic, paints, textiles, leather, and rubber. It also manufactures a wide variety of commonly used pesticides for crop and non-crop applications. The latter includes insect control in wood preservation and food grain storage.
The company reported 13.1% rise in net profit to Rs 73.4 crore on a 20.1% jump in revenue from operations to Rs 655.2 crore in Q2 FY23 over Q2 FY22.
The scrip fell 1.39% to currently trade at Rs 106.30 on the BSE.
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