Chemical
DFPCL to invest Rs. 1,350-1,800 crore on capex
Company is planning to invest Rs. 150-200 crore in ammonia plant in FY2021 and another Rs. 600-800 crore in FY2022. In TAN plant, the company is planning to invest Rs. 600-800 crore in FY2022
- By ICN Bureau
| November 16, 2020
Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) will invest Rs. 1,350-1,800 crore on capex by FY2022.
The company is planning to invest Rs. 150-200 crore in ammonia plant in FY2021 and another Rs. 600-800 crore in FY2022. In TAN plant, the company is planning to invest Rs. 600-800 crore in FY2022.
In Ammonia Plant, the company has acquired land, received approval from Maharashtra Pollution Control Board and is at the fag end of negotiating its contract with the EPC contractors. The company is planning to start construction soon and it would take roughly 26 to 28 months for its completion.
In case of TAN Project, the company is at a stage where it is applying for environmental approval and only after obtaining environmental approval, the capex investment would begin.
Roughly about Rs. 150-200 crore of capex on ammonia projects would go from now until March 2021 and the company does not expect any major capex in TAN for the same timeframe.
The capex in FY2022 for ammonia plant would be roughly about Rs. 600 to 800 crore depending on the progress level in the project. TAN project is difficult to predict as the company is yet to get environmental approval. In the first year of TAN plant construction, the company is expecting around Rs. 600 to 800 crore additional investment.
The company recently reported a strong growth in its second quarter sales and profits despite the COVID-19 pandemic. It's revenue grew by 20% YoY and stood at Rs 1,418.47 crore from Rs 1,181.47 crore in Q1 FY20.
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