Published On:April 16 2019
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Deepak Fertilisers and Petrochemicals expands its Chemical Footprints in Gujarat.

Deepak Fertilisers and Petrochemicals Corporation Limited , one of India's leading producers of industrial chemicals and fertilisers (referred to as "DFPCL" or the "Company"), proudly announces the commercial production of Nitric Acid complex at Dahej, Gujarat. The new facility, with project cost of approx. Rs. 550 Crores, has production capacities of ~92 KTPA for Concentrated Nitric Acid (CNA) and ~149 KTPA for Diluted Nitric Acid (DNA).

Nitric Acid in different grades are used in nitro aromatics, pharmaceuticals, dyes, steel rolling industry, defence and explosive industries. Major players in the Aromatics segment have expanded their capacities for existing and new products which is expected to drive demand for CNA in the medium to long term in the region.

DFPCL is now the second largest manufacturer of Nitric Acid in Asia, having the largest integrated nitric acid plants with a combined capacity of about 1.07 Million TPA at Taloja and Dahej. The Company is one of the leaders in the space with current market share of about 45% and the existing capacities are running at full utilization levels supported by high demand from end use players and captive requirements. Post addition of these new capacities, the Company's market share will increase to about 54%.

The Company now marks the foray into Gujarat state. The new greenfield plants will cater to the growing demand for the Concentrated Nitric Acid and Diluted Nitric Acid market in the Gujarat region along with customers in North and East India. One of the grades namely Strong Nitric Acid finds growing applications in the region and the Dahej facility will be in a position to meet the upcoming demand with the advantage of its strategic location. Most of the offtakes have already been tied up with long term customers from the new plant and the project is expected to operate at full capacity within a short span of time. With growing demand and faster capacity ramp-ups, the project is expected to achieve faster paybacks than earlier envisaged.

The Company uses state of the art technology for Nitric Acid with a fully integrated captive power plant and an in-house effluent treatment plant for better reliability and sustainability. As the facility is closer to the major end-use industries, DFPCL would be able to provide improved service levels and deliveries in the region. The ownership of contiguousland at the project site will allow brownfield capacity enhancements in future to cater the growing downstream requirements.

Commenting on this significant development, Mr. Sailesh C. Mehta, Chairman & Managing Director, DFPCL, said: "We are pleased to announce the commercial production of our new greenfield facility at Dahej, which has come up within the expected timeframe. This is also an important milestone for us, as we have successfully expanded our footprints in an economically important state of Gujarat.

Our plant is strategically located in the vicinity of large consumers of CNA which produces Nitroaromatics for speciality chemicals. The Company has tied up for about 70% of the CNA volumes to ensure stable margins and regular offtakes from this facility. We are very confident on the overall performance of the plant and expect it to make a meaningful contribution from its first year of operation".

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