Meghmani Organics forays into nano urea, plans to set up Rs150 crore plant in Gujarat

23 Dec 2022 , 02:35 AM

Meghmani Organics Limited (MOL) has announced that MCNL a wholly owned subsidiary has entered into a licensing agreement with one of leading domestic fertiliser manufacturer for producing Nano Urea (Liquid) Fertilizer by using their domestically developed patented Technology. 

Accordingly, Nano urea is revolutionary 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.

MCNL will incur a capex of Rs150 crore for setting up the plant in Gujarat, the company said. Further, the plants annual capacity is pegged at 5 crore bottles (~500 ml) per year. MNCL is expected to commence the commercial production by Q4 FY24. MNCL projects to achieve a top line of Rs1,000 crore on an annual basis. 

Foray into Liquid Fertilizers amplifies the growth strategy of the company and in agrochemical division. MOL’s foray into Nano Urea is aligned with the Prime Minister’s vision of Atmanirbhar Bharat and increasing farmers’ income.

At around 2:29 PM, Meghmani Organics was trading at Rs106.25 per share lower by 1.44% on the BSE.

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