IOT-enabled and environment-friendly plant
With around 56 applications across numerous industries and a portfolio of over 100 international quality products, Deepak Nitrite is one of the leading chemical intermediary companies in India.
of organic, inorganic and fine chemicals with customisation
for organic intermediates Nitro Toluidines, Xylidines, Cumidines, Oximes inIndia
We are specialised in various chemical processes like Nitration, Alkylation, Diazotization, Oxidation, Hydrogenation, Condensation and Sulphonation
Among the 40 groups in India certified with Responsible Care
Market share in India of chemical intermediates, we manufacture
Countries of presence in 5 continents
Years of R&D comprising expert scientists
Customers
Total Revenue
Our business model, driven by product and application diversity and strengthened by strategically located multi-purpose multiple manufacturing facilities, is the key propeller of our responsible and sustainable growth engine.
A large product portfolio of value-added intermediates enables us to keep ourselves insulated from over-dependency on a single or few products. We have further reduced our risk proposition through exports to around 30 countries across six continents, which also enables us to balance our import-export revenues.
Our Phenol-Acetone project will work as an additional de-risking proposition, as these two products cater to more than 20 end-use segments which are directly linked to the growth of India’s GDP.
Aligning ourselves with the Government’s ‘Make in India’ mission, we have a strong core of manufacturing capabilities, spread across five state-of-the-art, accredited manufacturing facilities in three states in India. In Gujarat, our plants are strategically located at Nandesari and Dahej, while our facilities in Maharashtra are located at Roha and Taloja. We have one plant at Hyderabad, Telangana.
PHENOL 350 KTPA
ACETONE 180 KTPA
YoY increase in Phenol and Acetone demand in India
The growing market demand for Phenol and Acetone in India provided us the ideal opportunity to capitalise on our manufacturing strength, which is intrinsically woven into our value charter. On year on year basis, the demand for these products has been going up 10%-12% and is currently estimated at 350 KTPA for Phenol and 180 KTPA for Acetone.
The significant growth in volume of import of Phenol and Acetone by India in the last few years has further enhanced the demand potential for these products. While the import volume for Phenol has gone up from 2,20,000 MT/Annum in FY 2013-14 to 2,90,000 MT/Annum in FY 2017-18, that for Acetone increased from 1,16,000 MT/Annum to 150,000 MT/Annum in the same period.
The demand for downstream products has also commensurately gone up over the past few years, with Bisphenol A accounting for ~80,000 MTA of the demand for such products imported in the last few years, followed by Methyl Isobutyl Ketone (MIBK) (~ 26,000 MTA).
As an experienced player with a prowess in technological and manufacturing, we found ourselves ideally positioned to harness this steadily growing opportunity and decided to go in for a major greenfield expansion to cater to the new demand potential.
Deepak Nitrite Limited (DNL) is implementing a state-of-the-art mega project, aligned with ‘Make in India’, to manufacture 2,00,000 MTPA of Phenol and 1,20,000 MTPA of the co-product Acetone. This will be supported by capacity to manufacture 2,60,000 MT of Cumene, which is a feedstock for manufacturing Phenol and Acetone. This project is being implemented through our 100% subsidiary, Deepak Phenolics Limited (DPL). The proposed Phenol Plant will be located at Dahej in the State of Gujarat, with a capital expenditure of ` 1,400 Crores being funded by debt and equity in the ratio 60:40.
DPL will address the opportunity in the domestic market which is currently met by imports. In addition, the plant is based on cutting-edge technology and will be resource and energy efficient. Local availability of Phenol and Acetone is expected to boost the production of derivatives and downstream intermediates, which will expand the overall market in the country.
Technology for Phenol and Acetone has been sourced from Kellogg Brown & Root International Inc and technology for Cumene has been sourced from UOP LLC. M/s ThyssenKrupp Industrial Solutions (India) Pvt. Ltd. has been assigned the EPCm (Erection, Procurement and Construction management) contract.
The project is expected to meet the most stringent safety and environmental standards set by the regulatory authorities. The project is expected to cater to all the domestic customers.
The Greenfield project is at end of its commissioning stage . In view of its product readiness, DPL’s leadership team is already in place and the marketing team has commenced customer outreach programme. There is complete focus on operational readiness and flawless start-up for which technology partner’s team is deployed at the project site.
We are delighted to see that Phenol demand is growing significantly in India even better than envisaged when conceiving the project. Against 7%-8% annual growth envisaged, Phenol demand is now growing at around 10% annually and the Company has received highly encouraging response to its seed marketing programme.
Phenol demand is also growing globally due to which, the global demand-supply capacity is moving towards equilibrium as some downstream projects have commenced in China leading to greater captive consumption of Chinese Phenol capacity. Further, a large global facility for production of Phenol has been shut down in the US. The combination of these factors has resulted in firming up of overall prices of Phenol globally.