Deepak Nitrite to invest about $7 mln in Oman arm

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Deepak Nitrite on Wednesday (4 March 2020) said its board approved an investment of upto $7.71 million in Deepak Oman Industries FZC LLC (DOIL).

The proposed investment is in the Greenfield project and the investment would be done in two to three years' time, the company said in an exchange filing made after market hours yesterday. The investment will be made at "arms length" and will not exceeding 20% of total equity capital of DOIL.

DOIL is a limited liability company (LLC) incorporated in Sultanate of Oman. Presently, DOIL is not carrying out any activities and is intending to set up a Greenfield project in Salalah Free Zone, Sultanate of Oman. It will manufacture Chlor-Alkali and downstream products including inorganic salts such as Hypochlorites, Calcium Chloride, Sodium Nitrite, Sodium Nitrate etc. in Salalah Free Zone and plans to serve the global markets.

Shares of Deepak Nitrite were currently down 0.58% at Rs 519.05. The stock has fallen 2.47% in two trading sessions.

The company's consolidated net profit jumped 294.7% to Rs 156.71 crore in Q3 December 2019 as against Rs 39.74 crore reported in Q3 December 2018. Net sales advanced 46.1% to Rs 1119.86 crore in Q3 December 2019 over Q3 December 2018.

Deepak Nitrite manufactures chemicals and fertilizers. The company's products include sodium nitrite/nitrate, nitric acid, ammonium nitrate, and hydroxylamine sulphate. The chemical maker's other two divisions manufacture dyes & dyestuffs and nitro aromatics.

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