Deepak Nitrite Limited’s subsidiary, Deepak Chem Tech Limited, has received board approval for a major project to manufacture Bisphenol A (BPA). The project, with a capacity of up to 240 KTA, will involve an investment of approximately ₹2,500 crore, including greenfield infrastructure. This strategic move aims to enhance integration across Deepak Nitrite’s value chain and tap into the growing Indian market for BPA, primarily used in epoxy resins.
Strategic Expansion into Bisphenol A
Deepak Chem Tech Limited (“DCTL”), a wholly owned subsidiary of Deepak Nitrite Limited (“Deepak”), has received board approval for a significant new manufacturing project. The company will establish a facility to produce Bisphenol A (“BPA”), targeting a capacity of up to 240 KTA. This ambitious project represents a substantial capital investment, estimated at around ₹2,500 Crores, encompassing greenfield infrastructure and related capital expenditure for the manufacturing complex.
Investment and Funding Details
The DCTL Board has formally approved an investment of approximately ₹2,500 Crores for this venture. The final investment figures will be firmed up upon the completion of detailed engineering. The funding for this project is planned to be sourced through an appropriate mix of debt and equity, reflecting a balanced financial strategy.
Value Chain Integration and Market Opportunity
This new BPA manufacturing unit complements DCTL’s existing and planned facilities, including India’s first Polycarbonate resin plant and Phenol & Acetone manufacturing units. The addition of BPA production will create a highly integrated manufacturing platform, extending Deepak Nitrite’s value chain from Cumene to Phenol & Acetone, BPA, and downstream compounding for Polycarbonate resins. Beyond meeting captive requirements, the BPA facility is poised to capitalize on the rapidly expanding Indian market for Bisphenol A, a key component in the manufacture of Epoxy resins.
The project is scheduled to commence operations in the near future, marking a pivotal step in Deepak Nitrite’s growth trajectory and its commitment to expanding its specialty chemical portfolio.
Source: BSE
