Deepak Fertilisers To Invest Rs 200 Cr For IPA Project

(Article first published in The Financial Express on 7^th January 2004)

OUR BUREAU

PUNE, JAN 6: Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) is investing Rs 200 crore in a new project for manufacturing Isoprpyl Alcohol (IPA), an import substitute, that is expected to add about Rs 220 crore to the company's turnover. The product is expected to be in the market early 2006.

Shailesh Mehta, MD, DFPCL, said this was part of the strategy to reduce dependence on fertilisers and get into user sectors that were competitive and profitable such as pharma and agrochemicals.

This will also bring about more stability and resilience in the product portfolio and a presence in a sector where there are lesser government controls and is more market driven, Mehta said.

Closely-guarded technology and availability of raw materials have been deterrents to the growth of this business in India and the entire requirement of about 62,000 MTPA is met through imports, Mr Mehta said. The company has overcome these issues through an exclusive 7-year technology license from Equistar-Lyondell through Aker Kvaerner, USA. Equistar-Lyondell is a $12.7 billion company that has licensed 149 plants across 35 countries.

DFPCL has entered into an exclusive long-term agreement with Bharat Petroleum Corporation Limited for long-term exclusive agreement with Bharat for the supply of propylene from its refinery in Chembur, Mumbai.

Deepak's plant is coming up at Taloja near its existing facility which has lead to a savings of about Rs 40 crore on the project, Mr Mehta said.

IPA is a value-added solvent with applications in pharmaceutical, agrochemicals, organic chemical, imaging chemicals, healthcare and paints sector.

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