DFPCL to invest Rs 1,950 cr to expand Gujarat plant's nitric acid capacity

Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) on Thursday said it will expand the Nitric Acid capacity at Dahej, in Gujarat at a cost of Rs 1,950 crore.

The Board has approved a proposal to set up a Weak Nitric Acid (WNA) plant with a capacity of 300 kilo tonnes per annum (KTPA) and two Concentrated Nitric Acid (CNA) plants with a total capacity of 150 KTPA, a statement said.

The company said the new plants will be set up within the existing Nitric Acid complex of DFPCL Dahej in Gujarat as adequate land is available for the proposed construction.

"The total project cost is estimated to be approximately Rs 1,950 crore including pre-operative expenses, contingencies, and finance cost during the construction period," it said.

The company will be implementing state of the art technology from leading global technology providers for the brownfield expansion. The production will commence tentatively in the second half of 2025-26, it added.

"The proposed expansion of our Nitric Acid capacity is directly aligned with the evolving market landscape," DFPCL Chairman and Managing Director Sailesh C Mehta said.

The company is strategically positioned not only to bridge the current demand-supply imbalance, but also capitalize on growth opportunities through a competitive edge in Nitric Acid, meet supply commitments, and be the market leader, he said.

Ammonia from its subsidiary provides sustainable supplies of raw material, resulting in a win-win situation for both the project and the Ammonia subsidiary, he added.

DFPCL is the largest player in Indian Nitric Acid business with more than 45 per cent market share.

Currently, the total Nitric Acid production capacity (including both CNA and WNA) is 1,120 KTPA and will expand to approximately 1,600 KTPA post expansion.

Additionally, to meet the changing market demands, DFPCL said it has been innovating and developing specialty grades of Nitric Acid for premium applications in Solar and Steel industry.

A part of the new capacity will also be directed towards delivering specialty grades for pharma, steel, solar and other specialty usage, it said.

DFPCL plans are located in four states, namely Maharashtra (Taloja), Gujarat (Dahej), Andhra Pradesh (Srikakulam) and Haryana (Panipat).