Deepak Nitrite subsidiary inks MoU with Gujarat Govt for Rs 9,000 crore project

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Deepak Nitrite said that its wholly owned subsidiary Deepak Chem Tech has signed a memorandum of understanding with Government of Gujarat to invest around Rs 9,000 crore to establish projects at Dahej, Gujarat.

The plants would manufacture polycarbonate resins and compounds; methyl methacrylate (MMA) and poly methyl methacrylate (PMMA) resins and compounds; and aniline.

Polycarbonate is used in electrical and electronic components, 5G and other high end telecommunications devices, automotive and transportation, aviation and defence applications, medical devices, consumer durables, sports and recreational, construction materials, composites, 3D printing, components for renewable energies etc.

Methyl methacrylate (MMA) is used to manufacture PMMA which is used in architecture and construction, lighting, automotive and transportation, electronics - TV and smartphone displays, medical and healthcare devices, storage cabinets, furniture. The other application areas of MMA are in acrylates based paint and coatings, impact modifiers, processing aids Et other speciality chemicals.

Aniline is a primary building block for manufacturing of isocyanates/urethanes, rubber chemicals, dyes and intermediates, important pharmaceuticals, agrochemical intermediates, speciality chemicals, electronic chemicals and in coatings and certain polymer applications.

The proposed plant is expected to commence operations from the year 2027.

Deepak Nitrite produces a spectrum of chemicals, including agrochemicals, colourants, rubber, pharmaceuticals, speciality and fine chemicals. The company manufactures chemical intermediates to serve the domestic and international market with high quality products made in a responsible and sustainable manner.

The companys consolidated net profit increased by 17.54% to Rs 205.08 crore in Q2 FY24 as compared with Rs 174.47 crore recorded in the same period last. Revenue from operation stood at Rs 1,778.05 crore in Q2 FY24, down 9.36% as compared with Rs 1,961.65 crore posted in Q2 FY23.

The scrip shed 0.72% to currently trade at Rs 2288.10 on the BSE.

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