Deepak Chem Tech To Invest ₹35 Billion In New Factory

Deepak Nitrite on Wednesday said its wholly-owned subsidiary, Deepak Chem Tech, will set up a new manufacturing complex for phenol, acetone, and isopropyl alcohol with an investment of ₹35 billion. The project will be funded through a mix of debt and equity, the company said in a regulatory filing.

The planned facility will add 300,000 tonnes per annum to phenol capacity, 185,000 tonnes to acetone capacity, and 100,000 tonnes to isopropyl alcohol output. Deepak Nitrite currently produces 330,000 tonnes of phenol, 200,000 tonnes of acetone, and 80,000 tonnes of isopropyl alcohol annually.

The phenol and acetone capacity addition is aimed at backward integration for the ongoing polycarbonate resin project, while expanded isopropyl alcohol production will support forward integration of acetone, the company said.

Meanwhile, Deepak Advanced Materials which is the company’s another wholly-owned subsidiary, has recently started polycarbonate resin compounding at its new facility in Vadodara, Gujarat. The unit is introducing new resin compounds for the electronics and mobility sectors.

The board of Deepak Chem Tech has also approved a ₹2.20 billion investment to set up a multipurpose manufacturing facility for speciality fluorochemicals.

Today, shares of Deepak Nitrite ended at ₹1,936, up 7% from Wednesday’s close.