Deepak Chem Tech Limited (DCTL), a wholly owned subsidiary of Deepak Nitrite Limited, has announced a significant expansion plan to boost its production capabilities and strengthen its downstream integration.
New Capacity for Phenol, Acetone, and IPA
The Board of Directors of DCTL has approved a greenfield project for manufacturing:
- 300 KTA of Phenol
- 185 KTA of Acetone
- 100 KTA of Isopropyl Alcohol (IPA)
The aggregate investment for the project is expected to be around ₹3,500 Crores, which will be finalized post detailed engineering. The project will be financed through an optimal mix of debt and equity.
Strategic Integration with Polycarbonate (PC) Production
The expansion will directly support Deepak’s long-term strategy to emerge as a fully integrated producer of polycarbonate resins (PC). In November 2024, DCTL signed agreements to acquire and relocate a PC plant from Germany to India. The upcoming capacities in Phenol and Acetone will feed this PC plant, enabling a seamless backward integration.
Once operational, the combined infrastructure will position Deepak as one of India’s most integrated PC producers. It will significantly reduce import dependence and enhance supply chain resilience.
Building on Existing Strengths
The newly approved capacities are in addition to the existing facilities of:
- 330 KTA of Phenol
- 200 KTA of Acetone
- 80 KTA of IPA
These are currently operated by Deepak Phenolics Limited, another wholly owned subsidiary of the Group.
Additionally, Deepak has recently commissioned a new facility at Savli, Vadodara, Gujarat, under Deepak Advanced Materials Limited, which has begun producing PC compounds. This plant is introducing advanced PC materials for the electronics and mobility sectors, and will further support India’s growing domestic demand.
Expansion into Speciality Fluorochemicals
As per the press release, in a parallel move, DCTL’s Board has also approved an investment of approximately ₹220 Crores to support its entry into the speciality fluorochemicals segment — further diversifying its product portfolio and enhancing its technological capabilities.
Leadership Commentary
Deepak C. Mehta, Chairman and Managing Director of Deepak Nitrite Limited, stated, “The Deepak Group is committed to building one of the most integrated manufacturing ecosystems, offering both resilience and strength – essential in today’s dynamic environment. These import-substituting projects will significantly contribute to Atmanirbhar Bharat and align with India’s vision of a Vikshit Bharat.”
