Deepak Nitrite’s subsidiary, Deepak Chem Tech, is planning a major project to produce Phenol, Acetone, and Isopropyl Alcohol (IPA) at a new facility. The plant will have a production capacity of 300 KTA of Phenol, 185 KTA of Acetone, and 100 KTA of IPA. The project, which will cost around Rs 3,500 crore (final costs will be confirmed during detailed planning), will be funded using a mix of debt and equity.
The new production of Phenol and Acetone will eventually be used to make Polycarbonate Resins (PC), with the company’s plans to import a PC plant from Germany and relocate it to India. This move will make Deepak one of the most integrated producers of PC in the country.
Currently, Deepak Phenolics, a fully owned subsidiary, already produces 330 KTA of Phenol, 200 KTA of Acetone, and 80 KTA of IPA. Once the new plant is operational, Deepak’s total production capacity for these chemicals will increase significantly.
Deepak has also recently opened a new facility at Savli, Vadodara, Gujarat, to produce PC compounding. This facility will introduce new PC compounds for sectors like electronics and mobility, helping Deepak meet the growing demand in India.
Deepak C. Mehta, Chairman and Managing Director of Deepak Nitrite, commented, “We are committed to building a highly integrated capacity, which will help us become more resilient and strengthen our position in today’s challenging market. The products we’re making are import substitutes, which will contribute to India’s ‘Atmanirbhar’ (self-reliant) and ‘Vikshit Bharat’ (Developed India) goals.”
In addition, Deepak Nitrite’s board has approved an investment of around Rs 220 crore to expand into specialty flour chemicals.
Deepak Nitrite is a well-known producer of chemical intermediates, with a wide range of products serving industries like colorants, life sciences, plastics, textiles, automobiles, paints, construction chemicals, and energy.
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However, the company reported a decline in profit. Its consolidated net profit dropped by 51.5%, reaching Rs 98.09 crore in Q3 FY25 compared to Rs 202.05 crore in the same quarter last year. Net sales also fell by 5.3%, totaling Rs 1,903.40 crore in Q3 FY25.
