Deepak Fertilisers' Pune unit to go onstream soon

Deepak Fertilisers and Petrochemicals Corporation said the company's Iso Propyl Alcohol (IPA) plant in Pune has been completed and is expected to go onstream from July end.

Chairman Chimanbhai Mehta told shareholders at the company's annual general meeting in Pune that the plant has been set up with a capital outlay of Rs 150 crore to install a capacity to make 70,000 tonne IPA.

"This is the largest IPA plant in the country and will prove an important addition to the company's capabilities in chemicals portfolio," Mehta said.

The product will meet international standards for use in pharmaceuticals, agro chemicals, speciality chemicals and other applications, Mehta said, adding, that the plant will boost the company's topline by Rs 200 crore at and contribute to the bottomline as well.

Mehta further announced that the company has planned a 15,000 tonne ammonia storage tank at Jawaharlal Nehru Port near Mumbai, to import ammonia from the producers in the West Asia, principally, Qatar and Iran. "This decision is largely aimed at creating a stand-by ammonia stock for the company's fertiliser products. We expect the Dahej-Uran gas pipeline being made operational soon, thereby meeting our requirements, but setting up this tankage will help us hedge the price of ammonia to reach the decision whether to buy it from the world market or make it ourselves using gas supplied by Dahej-Uran pipeline," he said.

Mehta said the company has planned a greenfield 300,000 tonne per year ammonium nitrate plant at Paradip in Orissa. The plant, which will need investments of Rs 400 crore, will be completed within two years with a fast-track frame, he said, adding that the expansion will mainly cater to the needs of the mining sector and will also enhance the company's export capabilities.

"About 100,000 tonne of the production in Paradip will be exported to South East Asian countries where the company has existing clients," said Shailesh Mehta, deputy chairman and managing director, after the AGM.

Mehta said the ammonia storage tank at JNPT would cost the company Rs 90 crore and will be ready over the next 16 months. The total throughput capacity for the tank will be 100,000 tonne per annum and we will be open to selling the ammonia to Indian buyers in addition to meeting our captive requirements," Shailesh said.

He added that assured ammonia supply will help the company go ahead with making downstream products like acids.