Meghmani Organics Agrees to Demerge its Agrochemical and Pigment Undertaking
Meghmani Organics Limited has accepted the Composite Scheme of Arrangement amongst Meghmani Organics Limited (MOL 1) and Meghmani Organochem Limited (MOL 2) and Meghmani Finechem Limited (MFL) and their respective creditors and shareholders. The transferor company Meghmani Organics Limited (MOL 1) is engaged in the business of manufacturing and selling of Pigment and Agrochemicals products. It is also engaged in the business of trading in chemical products. The company 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. As per the scheme, the company's board had approved the demerger of the businesses of standalone (MOL 1), i.e., Agrochemical and Pigments sector into a separate subsidiary, Meghmani Organochem Limited (MOCL). This demerger is eventually followed by an amalgamation of other businesses of Meghmani Organics Limited (MOL 1) to Meghmani Finechem Limited (MFL). Eventually, Meghmani Organochem Limited (MOCL) will be renamed as Meghmani Organics Limited. On the other hand, CRISIL (Credit Rating and Information Services of India Limited), a global analytical company providing ratings, research, and risk and policy advisory services, has upgraded its ratings on the bank facilities of Meghmani Organics Limited (MOL 1) from 'CRISIL A+/Positive/CRISIL A1', to 'CRISIL AA-/Stable/CRISIL A1+'. The capital expenditure of the company is expected to be around Rs 1100 crore over the financial year 2020 to 2022 towards the expansion of Chlor-Alkali, Hydrogen Peroxide, and Epichlorohydrin units along with expansions in Agrochemical business.