Deepak Nitrite to set up new chemical plants, to invest ₹3720 crore

Deepak Nitrite , a major chemical intermediates manufacturer, is investing ₹3500 crore to enhance the production capacity of its flagship products, Phenol and Isopropyl Alcohol. Further, the company will invest ₹220 crore to foray into specialty fluorochemicals.

The Board of Directors of Deepak Chem Tech (DCTL), a subsidiary of Deepak Nitrite, today approved to make new facilities for manufacturing 300 KTA (1 KTA -1000 tonnes in one year) of Phenol, 185 KTA of Acetone and 100 KTA of Isopropyl Alcohol (IPA), including greenfield infrastructure. The new capacity of Phenol and Acetone would be ultimately integrated to produce Polycarbonate Resins (PC), said Deepak Nitrate.

DCTL had earlier in November 2024 signed agreements to acquire and shift a PC plant from Germany to India. Now with the project to set up additional capacities of Phenol and Acetone, the PC plant, once completed, will make Deepak one of the most integrated producers of PC. Deepak already can make 330 KTA of Phenol, 200 KTA of Acetone and 80 KTA of IPA under Deepak Phenolics, a wholly owned subsidiary.

Deepak Advanced Materials, a group company, has also started producing PC compounding in the recently commissioned facility at Savli, Vadodara, Gujarat. ''This facility is introducing new PC compounds for electronics and mobility sectors, and once the entire complex is completed, it will help Deepak meet India’s growing market demand,'' said Deepak C. Mehta, Chairman and Managing Director of Deepak Nitrite.

The 53-year-old Deepak Nitrite makes a diversified portfolio of chemicals that caters to the dyes and pigments, agrochemical, pharmaceutical, plastics, textiles, paper and home, and personal care segments and petro-derivatives intermediates like phenolics, acetone and IPA in India and overseas.

By 2018, Deepak diversified to set up Deepak Phenolics - to make phenol, acetone and isopropyl alcohol (IPA) used in making of various products and industrial processes. Then Public sector Hindustan Organic Chemicals (HOC) and SI Group India (SIGIL) were the only two major manufacturers with 30,000-tonne capacity each. The Indian demand was over two lakh tonnes, mainly met through imports. Deepak Phenolics invested over ₹1,400 crore to commission a manufacturing capacity of two lakh tonnes of phenol per annum, 1.2 lakh tonnes of its co-product acetone, and 26 lakh tonnes of cumene. In recent years. the company further increased capacities by investing another ₹1250-Rs1300 crore on overall capacity expansions and product expansions.