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Meghmani Organics Ltd. on Friday said that it is foraying into the manufacturing of nano urea fertilisers through its subsidiary Meghmani Crop Nutrition Ltd. (MCNL). The company will set up a plant in Gujarat to manufacture nano urea (liquid) fertiliser at a capital expenditure of Rs 150 crore.

The plant's annual capacity is pegged at 5 crore bottles (500 ml) per year. It is expected to commence commercial production by the fourth quarter of the financial year 2024.

The project is expected to achieve a top line of Rs 1,000 crore on an annual basis.

Nano urea is a revolutionary liquid fertiliser and is effective in enhancing the nutritional quality and crop productivity. Moreover, it is environmentally safe too.

Meghmani Crop Nutrition has entered into a licensing agreement with one of the leading domestic fertiliser manufacturers for producing nano urea fertiliser by using their domestically developed patented technology.

The foray into liquid fertilisers would boost the growth strategy of the company and the agrochemical division.

At present, 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.

The Indian Government targets to eliminate the country's dependency on urea imports by 2025 as more farmers adopt the usage of nano urea.

Additionally, it will help reduce the government's subsidy burden on conventional urea.

Shares of Meghmani Organics are trading at Rs 106.30, down 1.16 percent.

(Edited by : Rukmani Krishna)