Need help in understanding the below:
As per my understanding, the pigments & agrochemicals segment is under Meghmani Organics Ltd. (Standalone) & Bulk Chemical segment is under Meghmani Finechem Ltd (Subsidiary)
As per Management, the current 640 crs capex plan is for caustic soda & hydrogen peroxide (500 crs) + CMS (140crs) businesses all housed under MFL.
When I look at the FY 18 AR — under MOL standalone financials there is addition of 110 crs in the gross block & under consolidated financials the addition is of 115 crs.
For FY 17 the capex is 54 crs in standalone books and 143 in conso books
What I am not understand is that if the capex plans are for the bulk chemicals division (MFL) then why is there so much capex being done in the standalone company and practically no capex in the subsidiary in FY18.
Can there ever be a case where the capex for a subsidiary can be done in the holdco?
Please correct me if I am wrong somewhere.