Elevating our Growth Trajectory with Bigger and Bolder Strides

ADVANCING INDIA’S SELF-RELIANCE IN CHEMICALS INDUSTRY

Deepak Chem Tech Limited (DCTL), a wholly-owned subsidiary of DNL, has taken a significant step towards bolstering India’s self-reliance in chemicals by signing a Memorandum of Understanding (MoU) with the Government of Gujarat with an intention to invest ₹ 9,000 Crores in setting up manufacturing facilities in Dahej, Gujarat, with production commencements slated up to 2027. This initiative, underscores Deepak Group’s commitment to the Make in India initiative and capitalising on the massive opportunities posed by the Industry.

DCTL plans to manufacture Polycarbonate Resins & Compounds, Methyl Methacrylate (MMA), Poly Methyl Methacrylate (PMMA) Resins & Compounds and Aniline at its new facilities in Dahej, Gujarat. These projects are expected to create significant employment opportunities and reduce India’s imports of these products. These products cater to some of the fastest growing industries like – Electrical components, 5G and other electronic devices, aviation, defence, electronic displays, paints, coatings, rubber chemicals, pharmaceutical, agrochemicals, electronic chemicals and polymers to name a few.

This mammoth investment is in addition to the previous MoU signed with Government of Gujarat to invest ₹ 5,000 Crores for manufacturing speciality chemicals, Phenol, Acetone and Bisphenol, reinforcing Deepak Group’s commitment for manufacturing these products and supporting India’s self-reliance. Out of the above, ₹ 2,200 Crores has already been committed.

To meet the growing speciality chemicals demand and enhance our market share, we have initiated several projects. We have planned brownfield projects for key products to address this demand effectively. Additionally, a significant greenfield expansion in polycarbonate compounding will allow us to venture into the polycarbonate business. This expansion will offer valuable market insights, covering both niche and major players and will cater to specialised demands in new-age applications such as 5G boxes, EV batteries, medical devices and more. By establishing polycarbonate compounding, we can locally and captively consume polycarbonate, which is a significant milestone for the Company.

We are also focussing on backward integration, incorporating new chemistry platforms like photochlorination and fluorination. This initiative aims to reduce supply chain risks in the agrochemicals sector and expand our product range using these advanced chemistries, thereby strengthening our backward integration capabilities.

We have completed debottlenecking of the Phenol facility which has further improved our Phenol production. Our MIBK and MIBC plants are on track and anticipated to be commissioned as per the planned schedule. These plants will help us forward integrate Acetone to produce MIBK and MIBC, allowing us to create downstream value-added products through the captive use of Acetone.

We have increased our stake in Deepak Oman Industries LLC (SFZ) (DOIL) to 51%, making DOIL a subsidiary of DNL. This strategic investment will fortify our market position and expand our operational capabilities. It enables us to benefit from low-cost inputs of raw materials and energy, thereby serving global markets more effectively.

DCTL is strengthening its workforce with skilled personnel across various domains including project management, procurement and support functions. We have so far contributed around ₹ 700 Crores in DCTL to finance the ongoing capital projects undertaken by Deepak Group.

In FY 2023-24, several pivotal initiatives have fructified across Deepak Group. These investments will drive substantial growth across our business in coming years.