Deepak Fertilisers To Hike Ammonium Nitrate Output With New Plant

The Financial Express - April 3, 2002

The Company also plans to invest in a port-based storage facility for imported ammonia

Our Corporate Bureau

Mumbai, April 2, The Pune-based Deepak Fertilisers and Petrochemicals Ltd (DFPCL) is all set to increase its ammonium nitrate manufacturing capacity by setting up its new plant at Taloja. The new plant will have a manufacturing capacity of 30,000 tonne of ammonium nitrate, thus the company will be having a total capacity of 1,00,000 tonnes of ammonium nitrate. The new plant will be set up with the technology transfer from Grande Paroisse (GP) of France The project outlay for this division is around Rs 55 crore. According to the company spokesperson, "The site work is already underway for the new plant which is likely to be fully commissioned by September- October 2002. The new ammonium nitrate plant will help bring further economies of scale and consolidate volume driven competitive strategy for the company both in the domestic and international markets."

DFPCL has already exported its product worth one million dollar this year. As per the company's long term growth strategy, it has already commissioned an additional weak nitric acid plant imported form Ireland last year to supply the key raw materials for ammonium nitrate.

DFPCL is a leader in manufacturing prilled ammonium nitrate, which is used by mining and construction industry in India. The company's manufacturing facility at Taloja near Mumbai is based on technology of Stamicarbon of the Netherlands. The company also plans to invest in a port-based storage facility for imported ammonia. This follows the problems faced by the company due to various constraints in gas supply. The company is evaluating various cost-effective options among its storage facilities in six ports.

As a part of the long term policy the company is also exploring the possibility setting up a gas-based ammonia plant abroad and also studying the opportunities for broad-basing industrial chemicals products through forward integration.

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