BSE listed Deepak Nitrite, which was commissioned in and has been operating since Q4FY19, through its wholly-owned subsidiary Deepak Phenolics (DPL), has achieved an average capacity utilization of 80 per cent and a peak of 100 per cent at its new phenol and acetone plant.
The plant, nearly eight times larger than all existing facilities, has the capacity to manufacture 200,000 MTPA of phenol and 120,000 MTPA of its co-product acetone. The plant can also manufacture 260,000 MT of cumene as captive consumption.
The project, with a capital investment of Rs 1,400 crore, has been successfully commissioned and operating since last quarter. This business alone brought in turnover of Rs 1,000 crore, with DPL contributing Rs 927 crore to the consolidated turnover of Rs 2,715 crore.
What's more, at a time when availability of phenol in India was only around 22 per cent of total demand, the newly commissioned plant will see import substitution of phenol, thereby bringing foreign exchange savings of $400 million to the country.
"Our phenol and acetone and upcoming derivative projects are all a step towards building India's chemical security with import substitution. At full capacity and in long run we anticipate that Deepak Phenolics will save around US$ 400 million in value of imports for the country. Besides, a large number of small and medium enterprises will also benefit due to local availability of phenol and acetone. Further, this will lead to quantum leap in Deepak Group revenue in the ensuing years, while additional DPL turnover propelling consolidated quarterly revenue past the Rs 1,000 crore mark is just the beginning," said Deepak Mehta, CMD, Deepak Nitrite and DPL.
Phenol and acetone find applications in various user industries, which form a part of GDP and infrastructure development in the country. With increased GDP and government spending, demand of end user industrial products also increases.
As a result, as against the previous 22 per cent of total demand, supply of phenol in India would go up by 80 per cent through the new facility. Moreover, local availability of phenol and acetone is expected to boost the production of downstream intermediates, which will expand the overall market in the country.
According to Mehta, phenol and acetone market is expected to grow at 8-10 per cent, and has applications across industries such as laminates, plywood, auto, foundry, pharmacy, agrochemicals, rubber chemicals, paints, resins.