Deepak Fertilizers in expansion mode

Company is planning to set up a new facility at Paradip in Odisha

Pune-based Deepak Fertilizers and Petrochemicals(DFPCL),  a manufacturer of technical ammonium nitrate (TAN) is planning to expand its production capacities due to increasing demand in the domestic market.

Expansion includes a possible increase of capacity of its TAN business in line with market demand. Deepak Fertilizers is also planning to set up a new facility at Paradip in Odisha. After all due approvals, the plant may be commissioned in the next 24-36 months. With this, its TAN production capacity will go up to 8.50 lakh tonnes by 2016-17. Now, it has a limited space at Taloja plant.

Currently, the company has an installed capacity 500,000 tonnes at its manufacturing facility at Taloja near Mumbai. Its current annual production of TAN is of 350,000 tonnes.

TAN is used as explosives in the mining and infrastructure industries along with agriculture and chemicals. Recently, India had restricted import of TAN for security reasons.

Carl-Anders Lindgren, president and technical advisor-TAN business said,  “Deepak Fertilizers is now fully compliant with ammonium nitrate rules under the new explosives act. Ammonium nitrate is mostly used for explosives in coal mining and infrastructure usage. Earlier, India used to import ammonium nitrate, but later, it was identified as a security threat. Contamination of ammonium nitrate makes it dangerous and can be used by anti-social elements. According to new rules, the bar coding is ensured on the bags. Also, we are verifying truck drivers who transport this material and have a GPS system to track its supplies.”

The market for TAN is growing at 6 to 7 per cent annually. At present, the current requirement of TAN is of 7 lakh tonnes and all Indian manufacturers are supplying a maximum of 7.88 lakh tonnes.

The other producers of ammonium nitrate are Rashtriya Chemicals and Fertilizers (RCF), Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) and National Fertilizers. Till last year, up to 300,000 tonnes of ammonium nitrate in loose form was imported from Russia and Ukraine.