DFPCL's 100% Import Substitute IPA Project to come up in 22 months

Project outlay of Rs 200 crore based on exclusive rights over guarded technology

Pune- January 6, 2004

Deepak Fertilisers and Petrochemicals Corp. Ltd. (DFPCL) is a leading manufacturer and market leader in Ammonia, Methanol, Nitric Acid, Low Density Prilled Ammonium Nitrate, and Nitro Phosphate Fertilisers from state-of-art plants based on world-class technology. The company has tied up setting up of a project to manufacture ISOPROPYL ALCOHOL (IPA) plant of 70,000 metric tonnes per annum (MTPA) capacity, at its existing complex at Taloja. The total capital outlay for this project is estimated to be Rs 200 crore. 

The present consumption of IPA is 62,000 MTPA and growing at a healthy 6% to 7% annually. The industry meets its demand today fully through imports. IPA is a versatile, value added solvent largely used by Pharmaceutical, Agrochemicals, Organic Chemical, Imaging Chemicals (Printing & Inks), Healthcare and Paints sector. User sectors are amongst the fast growing, competitive and profitable sectors. 

Propylene, a major raw material for IPA has been in short supply, however, DFPCL have tied this up by way of a long term and exclusive agreement with Bharat Petroleum for supplying of Propylene from its Chembur-Mumbai refinery. 

DFPCL has well established national marketing and sales network for its chemical products such as Methanol and various grades of Nitric Acid. The company's existing Methanol customers are also likely to be large consumers of IPA. Hence the company is in an enviable position to synergistically exploit its existing marketing and sales network optimally. 

Environment friendly and efficient modern day technology for IPA has been a closely guarded arena. DFPCL have made a break-through with exclusive rights for seven years for the IPA technology licensed from Equistar-Lyondell through Aker Kvaerner USA. Equistar-Lyondell is a US $ 12.7 billion Corporation credited with licensing and selling technology and process across the chemical sector. Till date, Equistar-Lyondell has licensed 149 plants across 35 countries.

Detailed engineering for the project has been awarded to Kvaerner Powergas - India who have to their credit successfully commissioned several chemical and petrochemicals projects. 

The project is on a fast track implementation schedule of 22 months and the mechanical completion is scheduled for completion by last quarter of 2005. Besides internal generated funds, the company has planned the debt funding by way of NCD/ ECBs and project funding for a cost-effective financial structure.

For further information contact:
Vivek Y. Kelkar
Vice President - Communication
Tel: 91-20-2668 4155
Fax: 91-20-2668 5994
E-mail: vykelkar@deepakfertilisers.com

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