Deepak Fertilisers and Petrochemicals Corporation Ltd reaping the benefits of integrated growth

Chemical World - August 26, 2002

A decade after setting up Deepak Nitrite Ltd, the Pune-based Deepak Group realised the need to laterally integrate into the world of basic building block chemicals, premium fertilisers and petro-chemicals as part of its growth strategy. Thus was sown the seed for setting up Deepak Fertiliser and Petrochemicals Corporation Ltd (DFPCL), in 1979. After having weathered a difficult phase in the early 1990's the company is today on the threshold of a phase of accelerated growth. Steering DFPCL's operations for the past two years is Deepak Mehta, role in boosting the growth prospects of the company.

First merchant ammonia plant

DFPCL commenced its operations by setting up an ammonia plant with a capacity of 100,000 tonnes per annum at Taloja, near Mumbai. Set up with technical collaboration from Fish International Engr (USA), it was India's only merchant ammonia plant and catered to the raw material needs of Deepak Nitrite as well as other chemical & fertiliser manufacturers. In 1989, DFPCL took up a massive expansion program with focus on natural gas and ammonia. This led to the manufacturing of a wide range of chemicals, petrochemicals, fertilisers and explosives. In order to ensure uninterrupted supply of natural gas to its plant, the company laid its own 43-km long gas pipeline directly from Bombay High gas fields to its manufacturing plant at Taloja.

Multi-poduct manufacturing complex

Headquartered at-Pune, DFPCL today manufactures several key products like ammonia, methanol, nitric acid (in various concentrations), low-density prilled ammonium nitrate (explosive grade) and nitrophosphate fertiliser. Its state-of-the-art manufacturing complex, strategically located in the well developed industrial area at Taloja, comprises Digital Control Systems (DCS) for process control and well-equipped chemical laboratories with up-to-date test equipment. Taking advantage of the proximity of its plant's location to Jawaharlal Nehru Port Trust (JNPT) for both solids and bulk liquid exports, DFPCL became the first company in India to attempt coastal exports of ammonia.

The company is one of the largest producers of methanol in India with a capacity of 100,000 metric tonnes per year. Methanol - a very important chemical intermediate, is largely used in the manufacture of formaldehyde, chloromethanes, methylamines, DMT, methylmethacrylate pesticides, drugs & pharmaceuticals, dye intermediates, etc. DFPCL is also a leader in manufacturing prilled ammonium nitrate (with technology supplied by Stamicarbon, Netherlands). Prilled ammonium nitrate is widely used by explosive manufacturers, limestone quarries, coal mining and specialised metal mining industry. The company plans to expand its present capacity of 70,000 tonnes per year of ammonium nitrate by setting up a new plant wit the technology from Grande Paroisse (GP) of France. The project is estimated to cost about Rs 55 crores. This expansion is in line with the company's thrust on debottlenecking and maximising capacity. As Mehta says, Today the pace at which the Indian market is growing, it may not be viable to put a grassroots plant. Therefore. One should look at the maximum returns through minor investment link de-bottlenecking, wherin one can get more value from the existing itself.

Thus, currently the focus at DFPCL would be to enhance the capacity by 30-50 per cent with marginal investments.

Strengths and capabilities

The company's broad product range and operational flexibility to optimise the product mix depending on the market conditions and supply constraints, give it sufficient resilience and stability in cyclical market. DFPCL has absorbed appropriate technologies and thus proven its capability in quality production of bulk hydrocarbons and heavy chemicals. It has developed a strong marketing and distribution network for bulk fertilisers and bulk chemicals. Also due to its robust dealer network in the market, its presence is felt in the agri-input market in some of the specific areas like Maharashtra, part of Gujarat, Karnataka and Andhra Pradesh.

Research and Development

The company has a central research and development facility called Deepak Research and Development Foundation at Pune. Approved by the Department at of Science and Technology, Government of India the Center is primarily involved in process development & improving existing technologies and has seven patent applications to its credit. The Center has established close working relationships with the country's premier research institutes like University Institute of Chemical Technology - Mumbai, National Chemical Laboratory - Pune and India Institute of Chemical Technology - Hyderabad. Thrust on research has enabled DFPCL to develop several process technologies for import substitution in the past and is helping it to take on the challenges for developing internationally competitive processes.

Care for the environment

Amidst constantly striving to develop new products and processes, DFPCL ensures optimal care for environment. It has a state-of-the-art Effluent Treatment Plant (ETP) for physiochemical and biological treatment of effluents. Besides, a sewage treatment plant is also under operation to treat sanitary wastes generated in the factory complex. The company has an Environment Cell, which constantly monitors the pollution control equipment. Various safety systems such as carrying out HAZOPs, risk assessments, on-site emergency plans, safety audits and formulation of safety operating procedures, etc are part of regular practices in DFPCL.

Production capacities with technologies employed at DFPCL
Ammonia	100,000 tpa	Fish International Engr, USA
Methanol	100,000 tpa	Davy McKee, UK
Dilute nitric acid	198,000 tpa	Weatherly Inc USA
Concentrated nitric acid	33,000 tpa	Plinke, Germany
Low density prilled ammonium nitrate	36,000 tpa	Stamicarbon Netherlands
Nitrophosphate	230,000 tap	Stamicarbon, Netherlands

Projects in the offing

The focus at DFPCL is to efficiently produce commercial chemicals and provide better services to customers. It aims to make further headway into value-added chemicals, agro inputs and related services. Furthermore, on the anvil is a carbon dioxide project to convert a by-product into food grad carbon dioxide, which is extensively used in the burgeoning soft drink and frozen food market. It addition to all this DFPCL is also in the process of setting up a chemical storage terminal and drumming facilities at JNPT, to provide further value-added service.

With these ambitious plans, DFPCL is all set to make deeper inroads into the Indian market.