Deepak Chem Tech Ltd (DCTL), a subsidiary of speciality chemicals major Deepak Nitrite, is set to invest ₹3,500 crore – funded through a mix of debt and equity – to establish a state-of-the-art manufacturing complex for producing phenol, acetone, and isopropyl alcohol (IPA). The planned facility aims to produce 300 KTA of phenol, 185 KTA of acetone, and 100 KTA of IPA, significantly expanding India’s domestic manufacturing capabilities.
Boosting Domestic Production to Replace Imports
Currently, India relies heavily on acetone imports to meet its growing demand, especially from the pharmaceuticals, paints, adhesives, and plastics sectors. The expansion by DCTL aims to plug this gap by nearly doubling its current capacity for phenol and acetone, which is already operating at 100% utilization. The additional production will support the manufacture of polycarbonate resins (PC)—a crucial material for which India is entirely import-dependent.
Integrated Manufacturing and Import Substitution Strategy
DCTL has also announced a ₹220 crore investment to build a multi-purpose facility for specialty fluorochemicals, reinforcing its strategy of developing import-substitute products that support India’s goal of Atmanirbhar Bharat (self-reliant India). They will roll out the new capacities over the next three years and aim to complete the polymer value chain projects, including PC resin production, by December 2027.
Global Integration and Strategic Relocation
As part of its global integration efforts, Deepak Chem Tech has signed agreements to acquire and relocate a polycarbonate plant from Germany to India. This will help localize production while avoiding an increase in global capacity. The company also plans to cater to European resin demand through this asset, underlining its ambition to become a globally competitive player in the polymer segment.
Leadership Perspective: Building Resilience Through Integration
Chairman and Managing Director Deepak Mehta emphasized the company’s commitment to creating “one of the most integrated capacities,” designed to build resilience and strength amid global volatility. “The products we are focusing on are import substitutes, and will enhance our group’s contribution toward Atmanirbhar Bharat and the vision of Vikshit Bharat,” he stated.
Looking Ahead
CEO Maulik Mehta reiterated in February 2025 that the strategy also ensures localization of capacities without adding global oversupply. “We are working with our collaborators to serve both domestic and European demand. All key polymer projects are expected to go live by the end of 2027,” he said.
As reported by moneycontrol.com, Deepak Chem Tech’s expansion is a strategic step forward in transforming India’s chemical manufacturing landscape and marks a significant push toward self-reliance, value chain integration, and global competitiveness.
