Various projects entailing an outlay of around Rs. 2,000 crores are in the final stages of implementation, and these are being commissioned during the current financial year, said Maulik Mehta, Executive Director & Chief Executive Officer, Deepak Nitrite Limited during Q1 FY25 Earnings Conference Call on August 8, 2024. 

We assume that Rs. 2,000 crores minus land and infra, the remainder is about 60:40, 60% upstream and 40% downstream, says Mehta.

Land and infrastructure is around Rs. 300 - Rs. 350 crores, Sanjay Upadhyay, Director (Finance) and Group CFO, adds. 

"They include, methyl isobutyl ketone (MIBK) and methyl isobutyl carbinol (MIBC), nitric acid, enhanced nitration, hydrogenation and specialty chemicals. Further, we are implementing world-scale capabilities of acetophenone, which will be used as a specialty chemical in the flavors and fragrances segment. And this will be manufactured from recovered byproduct when we make phenol. This is under implementation and is likely to be commissioned in about 12 months," says Mehta.

"Our new R&D center in Vadodara is expected to be completed by the end of the current financial year and will enhance our innovation capabilities and support our strategic growth projects. These advancements, coupled with our commitment to operational efficiency position us well for continued success and growth," Mehta informs.

Deepak Nitrite is moving forward with its 4-year plan to enhance capabilities and seize opportunities in both domestic and international markets, particularly in building blocks, intermediates and specialty chemicals, Mehta informs.

The company has signed 2 MoUs with the Government of Gujarat, which encompass an investment to the tune of about Rs. 14,000 crores towards the fulfillment of these objectives.

According to Mehta, FY24-25 promises to be the start of another transformative journey for Deepak. With key projects advancing, improved customer sentiment and the conclusion of the destocking cycle in China, the company anticipates a higher demand and stronger product realizations by the year-end. “Our strategic investments including the new R&D center, along with our robust domestic market presence, position us well to take advantage of this positivity,” Mehta adds.

Deepak Nitrite has been operating in the chemical industry for nearly five decades. Over the years, the company has become a market leader in the domestic market for inorganic intermediates (sodium nitrite and sodium nitrate), nitro toluenes and fuel additives.

Deepak Nitrite  is among the top five global players in xylidines, cumidines, colour intermediates and oximes. It is present in over 30 countries, including the US, the European Union, the East European nations, Japan, ASEAN countries, South Korea and South America.