Deepak Nitrite Creates a New Growth Platform by Investing in a Mega Scale Petrochemical Plant to Make Phenol & Acetone

Deepak Nitrite, through its wholly-owned subsidiary, Deepak Phenolics (DPL) achieves a major milestone towards the manufacture of Phenol and Acetone with average capacity utilisation of around 80% and having achieved peak capacity utilization of 100% during the last quarter of FY 2019 contributes INR 927 Cr. to a consolidated turnover of INR 2,715 Cr.

This mega, world-class plant is eight times bigger than all existing facilities and aligned with the Make in India initiative of Government of India, has the capacity to manufacture 200,000 MTPA of Phenol and 120,000 MTPA of its co-product Acetone and supported by capacity to manufacture 260,000 MT of Cumene as captive consumption.

The project with a capital investment of 1400Cr. has been successfully commissioned and operating since last quarter. This business alone brought in turnover of 1000Cr. and most importantly, annual import substitution of phenol will now bring foreign exchange savings of USD 400Mn to the Nation.

Speaking on Phenol milestone achievements, Mr Deepak Mehta, C&MD, Deepak Nitrite & Phenolics said, "Our Phenol and Acetone and upcoming derivative projects are all -a step towards building India's Chemical Security with import substitution. At full capacity and in the long run we anticipate that Deepak Phenolics will save around US$ 400 Mn. in value of imports for the country. Besides, a large number of small and medium enterprises will also benefit due to the local availability of Phenol and Acetone. Further, this will lead to a quantum leap in Deepak Group revenue in the ensuing years, while additional DPL turnover propelling consolidated quarterly revenue past the 1,000 Cr. mark is just the beginning."

Phenol & Acetone find applications in various user industries, which form a part of GDP and infrastructure development in the country. With increased GDP and Government spending, the demand of end-user Industries product also increases. Earlier, availability of phenol in India was only around 22% of total demand, with the plant commissioning, supply has gone up by 80%. Moreover, the local availability of Phenol and Acetone is expected to boost the production of downstream intermediates, which will expand the overall market in the country. Phenol and Acetone market is expected to grow at 8-10%, and has wide applications across industries, such as laminates, plywood, auto, foundry, pharmacy, agrochemicals, rubber chemicals, paints, resins.

The state-of-the-art, largest, IoT enabled, with latest technology of KBR and Honeywell-uop (technology partner) Phenol/Acetone Plant located at Dahej (PCPIR zone) in the State of Gujarat, meeting 2/3rd of India's demand has the lowest thermal footprint and 12.6 million + safe man hour record. The plant, based on cutting-edge technology, is energy efficient and has transport safety and emergency response program (TERP) as part of an advanced logistics management system.