Deepak Fert plans local buys, global projects

The Economic Times Mumbai - 28 August 2002

Our Pune Bureau, 27 August

DEEPAK Fertilisers & Petrochemicals (DFPCL) is charting growth plans through acquisition in the domestic market and by setting up a greenfield ammonia project overseas.
DFPCL's proposed domestic buys are linked to the Center's disinvestment process, as they include HOC's plant and SAIL's ammonium nitrate plant at Rourkela. While SAIL is looking for an asset sale, the HOC plant will be a company sale.
CK Mehta, chairman, DFPCL told reporters after the company's annual general meeting (AGM) here on Friday that the HOC disinvestment was held up over the unit's Rs 400 crore debt.
We want government ton take the load off regarding the debt; we are not going to bail out the government. The other major issue is excess labour. Though they have reduced manpower, we believe it can do with a further 20-25% reduction,"Mr Mehta said.
D.C.Mehta managing director, DFPCL added that SAIL was looking to spin off assets of its Rourkela fertiliser plant to a Separate company in which it would hold 26% equity, while a partner will hold the rest.
We are open to both kinds of acquisitions, an asset-based or company-based sale, as long as they have synergy and we have control," he said.
DFPCL expects to receive environmental clearances for its Rs 65-crore ammonia and methanol storage tanks at the Jawaharlal Nehru Port Trust (JNPT) from the state and central governments soon. The two tanks, one each for ammonia and methanol, will have storage capacities of 10,000-20,000 tons of ammonia and 10,000 tons of methanol.