The Titanium Dioxide Plant Of Meghmani Organics, With An Installed Capacity Of 16.5 KTPA At Dahej, Is Now Operational
Phase 1 Of Dahej's Titanium Dioxide (Tio2) Plant Gets Commissioned By Meghmani Organics
It was declared by Meghmani Organics that it would be commissioning Phase 1 of an installed capacity of 16,500 metric tonnes per annum (MTPA) for Titanium Dioxide (TiO2) at Dahej, Gujarat.
Kilburn Chemicals was acquired by Meghmani for INR 132 crore in December 2021 with complete upfront payment. After this, the company sustained total CAPEX (Capital expenditure) to the tune of INR 275 crore, accounting for the cost of acquisition as well and commissioned the first phase in January 2023.
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During Phase II of expansion, the company intends to double its capacity to 33,000 MTPA paired with Captive Power Plant accounting for a CAPEX of INR 3,750 million, which is anticipated to commission by the Q3 of the fiscal year 2024.
The Market Outlook For Titanium Dioxide In India
In India, the demand for Titanium dioxide was at 83 KT in 2022 and is expected to advance at a CAGR of 6.50 percent between the years 2023-2030. The growing application of titanium dioxide for several downstream industries, including in paints, textiles, and pigments as a flocculant, dispersing and whitening agent, are the major driving factors propelling the demand for titanium dioxide all-over the nation.
Furthermore, the increasing demand in automotive and construction industries paired with the extensive usage of titanium dioxide nanoparticles in photovoltaic cells that are installed in solar panels as well as its use in products such as soaps, cosmetics, and toothpaste etc., and also as a brightening agent in the printing industry will further expand the industry's demand during 2023-2030.
Price Trend of Titanium Dioxide for an Insight in the Titanium Dioxide Market
North America
The price for Titanium Dioxide displayed a mixed market sentiment in the US market. Recently, the commodity's price trend saw a steep drop due to weakened demand dynamics. The prices improved by a little margbut dropped again soon after. The industry participants reported that the construction sector witnessed a bearish demand, not enough to induce any major improvement in the demand fundamentals of Titanium Dioxide. Additionally, the growing interest rates and inflationary pressures slowed down manufacturing all over the country. The market was functioning at low levels, and a drop was witnessed in ocean shipments.
Asia Pacific
The drop in the offtakes from the end-user paints and coatings sector was behind the decline in prices of Titanium Dioxide in the market in China. The Titanium Dioxide price dropped significantly during the beginning but later stabilised. In addition, the Titanium Dioxide market joined its off-season as procurement stayed bearish amidst a global financial slowdown all over the markets in the US and EU. Additionally, the manufacturing firm's operating rates also stayed under pressure during the restrictions of COVID in China. The freight costs were also lowered in the middle of restricted trade activities.
Europe
The stiff inflationary pressure, along with fluctuating prices of Natural gas, pushed the Titanium Dioxide market sentiments in the regional market in Germany. The TTF prices of natural gas stayed higher and influenced the Titanium Dioxide production costs. But the goods priced higher limited the downstream industry players' profit margins. Regarding demand, the offtakes dropped as soaring inflation all over Eurozone countries has crippled the buying power of downstream sectors. In addition, the natural gas prices settled lower by year-end, resulting in a drop in the price of the commodity.
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According to the article by Procurement Resource, it can be concluded that Meghmani Organics would be commissioning Phase 1 of an installed capacity of 16,500 metric tonnes per annum (MTPA) for Titanium Dioxide (TiO2) at Dahej, Gujarat.
Furthermore, the commodity's outlook in India is expected to witness an increased demand owing to factors such as growing demand from downstream industries, including paints, textiles, pigments, automotive and construction. Also, the commodity's price trends for various regions can be examined by displaying bearish market sentiments across the world.
