Deepak Fertilisers Plans To Set Up CNA Plant At Taloja

The Financial Express, Mumbai / Kochi, Wednesday, February 5, 2003

Pune-based Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) plans to set up an additional concentrated nitric acid (CNA) plant, thereby increasing its capacity to 52,800 metric tonne per annum (MTA) at its Taloja manufacturing facility. The company has earmarked around Rs 20 crore for the new project.

CNA is primarily used in the nitroaromatics, explosives and defence applications. The project is expected to be fully commissioned during the next financial year.

According to DFPCL managing director S.C. Mehta: "This additional plant will provide a major boost to downstream industries due to ready availability of CNA".

"This will help bring further economies of scale, and consolidate volume driven competitive strategies," he added.

DFPCL has posted a 56 per cent increase in net profit at Rs.14.93 crore for the third quarter ended December 31, 2002 as against Rs.9.55 crore in the corresponding period previous fiscal.

The net profit for the nine months period stood at Rs.34.23 crore as compared to Rs.29.40 crore in the previous corresponding period.

Sale have enhanced from Rs.114.34 crore to Rs.142.72 crore for third quarter, registering an increase of 25 per cent. This was achieved largely due to better performance of industrial chemicals. The performance of fertilisers segment continues to be affected due to changes in government policy on price concessions scheme, inadequate gas supply and delayed monsoons, according to a company release.

The company has recently enhanced its ammonium nitrate capacity by 30,000 tonne.

Thus, DFPCL has a total capacity of 1,00,000 tonne of ammonium nitrate. The new plant has been set up with the technology transfer from Grande Paroisse (GP) of France. The project outlay for this division was around Rs.55 crore.

DFPCL is a leader in manufacturing prilled ammonium nitrate, which is used by the 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.

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