Deepak Fertilisers plans to raise capacity

Business Standard Mumbai - July 27, 2001

Our Correspondent

PUNE, 26 July, Deepak Fertilisers and Petrochemicals Corporation plans to expand its ammonium nitrate capacity by one lakh tonne a year, incurring an expenditure to the tune of 25 crore.

The company is also making a renewed bid to set up an overseas facility in Iran. It has already initiated talks with Iran's state-owned oil company for setting up a joint venture. "We are discussing with the Iranian government as it has the world's second largest gas reserves." C K Mehta, Chairman Deepak Fertilisers, said.

An Iranian representative was in the city to meet company officials. Earlier, the company's plans to set up a gas-based facility to produce ammonia and methanol in Tanzania did not materialize due to the lukewarm response from the Tanzanian government.

The African country's government is believed to have been asking for a higher price for its natural gas as compared with global rates.

Deepak Fertilisers hopes to overcome the shortage of natural gas by procuring the major inputs for fertilizers from its overseas joint venture.

Besides, it hopes to get the gas at a much cheaper and utilize it as a feeder for its domestic production, Deepak Fertilisers also plans to sell part of the output to other industrial consumers.

On the capital required for the overseas project, Mehta said the company's internal resources would suffice for the joint venture project. Besides, the foreign partner is also expected to bring in capital.

In fiscal 2000-2001, 13 per cent of Deepak Fertilisers' revenues came from the sale of ammonium nitrate, up from 9 per cent in the pervious fiscal.

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