Companies

Meghmani Organics sees no major impact of Covid-19 on its business

Our Bureau Mumbai | Updated on March 06, 2020 Published on March 06, 2020

Gujarat-based Meghmani Organics Ltd does not envisage any major impact of Covid-19 on its business except general business risks.

“In an event where the normalcy in China gets delayed, the (export) business could marginally get impacted,” the company said in a stock exchange filing, adding it does not have any major exports to China.

“Out of total imports, around 65-75 per cent of imports are sourced from China. Our dependency on China is for only one major raw material ingredient with respect to one of our finished product, which constitutes around 17-20 per cent of revenue from agro-chemical business,” it said.

“In case of another one finished product in agro-chemicals, we, at times, partially depend on China for one of the raw materials. This input material, though available in India, we have some price advantage when we source from China. The revenue contribution of this end product is around 4.5-5 per cent of the total sale,” it said.

Other than these two raw materials, the company is not dependent on China, it added.

Inventory

On the inventory side, the company has started experiencing little ease in supplies from China. Few consignments have already been on its way for shipping and few more shipments are lined up.

“We hope to revert to normalcy in coming months,” it said.

Published on March 06, 2020

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