Deepak Fertilisers Commissions IsoPropyl Alcohol Plant

Deepak Fertilisers & Petrochemicals Corporation Ltd has announced that the Company has commissioned its IsoPropyl Alcohol (IPA) plant at Taloja and commenced delivery of the product to its customers from August 28, 2006.

The plant has been completed within the targeted investment of Rs 154 crore, making the Company, a very cost-effective IPA producer. The Company is currently the only manufacturer of IPA in India. The plant’s capacity is 70,000 TPA. At full capacity utilisation, IPA could potentially contribute about Rs 300 crore to the Company´s topline. Current market size of the product in India is about 65,000 TPA and growth rates are about 6-7% per annum. With good export potential for IPA, the Company plans to begin strategic exports this financial year.

The Company IsoPropyl Alcohol plant is based on world-renowned technology involving the direct hydration process, which is extremely efficient and environment-friendly. It produces a truly international standard (minimum 99.8% purity) product with no undesirable odour or by-product formation - a unique plus for the discerning pharma and cosmetic industry customers. The Company will also provide drummed products enabling a measure of customization. This will be done from a brand new drumming plant that has been procured from Germany.

The plant will also enable the Company to supply propane to the Indian market. The Company will soon start offering Propane to its valued customers in the Western India, who have so far been relying on distant sources in the North and Central India.

Speaking on the occasion, Mr S C Mehta, Vice Chairman and Managing Director, of the Company said "Our strategy is three-pronged - to maximize on our existing asset-base, expand using our core competencies and diversify into new sunrise sectors. We have already begun the process of maximization through retrofits and are now awaiting LNG from the Dahej-Uran pipeline. We are now expanding our basket through products like IsoPropyl Alcohol and a greenfield, integrated complex for Nitric Acid and AN in Eastern India to support the massive growth in the mining and infrastructure sectors. And lastly we are diversifying through our unique retailing project - Ishanya, India’s First International Design Centre and Speciality Mall, which is fast moving towards completion."

"What is unique about our IPA project is that it will enter a ready 100% import substitute market and will synergistically utilize our Company’s marketing and distribution channel for Methanol across fast-growing sectors like pharmaceuticals, agrochemicals, organic chemicals, imaging chemicals and paints. We can provide our valued customers all the product they need, reliably, conveniently and competitively, even on a 24 X 7 basis, if necessary. We will also provide drummed products enabling a measure of customization," Mr. Mehta said.

Source : Equity Bulls

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