Responsive To Challenges
Our key strategic business units stand firmly on the astute business model that is wellequipped to take on any immediate and tangible challenges. In over five decades of our operations, Your Company has faced every challenge or adversity head-on. With most businesses grappling to come to terms with the COVID-19 pandemic, Deepak Nitrite has successfully responded to it and is sailing through the crisis.
Deepak Nitrite manufactures Nitrites, Nitro Toluidines & Fuel Additives. Cost leadership is one of the foremost competitive advantages required to drive growth and profitability as most of these chemicals are sold in high-volumes with greater price sensitivity. These chemicals are typically manufactured in standard specifications.
Basic Chemicals find application in dyes and pigments, pharmaceuticals, agrochemicals, concrete mixture, water treatment, rubber, heat treatment, glass industries, industrial explosives and fuel additives.
Closure of production facilities due to the national lockdown caused by COVID-19 pandemic impacted the revenue momentum towards the end of Q4 FY 2019-20. This has, however, recovered post re-starting of the facilities. Overall, your Company will continue to swiftly capitalise on opportunities by diverting capacity towards products that enjoy better demand scenario, and will leverage its cost leadership position to drive market share gains.
FINE & SPECIALITY CHEMICALS
Under Fine & Speciality Chemicals segment (FSC), your Company manufactures specialised and exclusive products which are developed using the Company’s expertise with respect to processes and technical skillsets. These products are specially customized as per the clients’ recommendation and are typically manufactured in lower volumes, but they command higher value and profitability.
The Fine and Speciality business segment produces specialised and niche compounds from various processes and requires technical skills and technological competencies in handling potentially complex reactions. These chemical intermediates find application in agrochemicals, pigments, pharmaceuticals and personal care segments.
Your Company witnessed increased demand for key products in the export markets which also led to solid realization gains. Performance was also bolstered by benefits accruing from backward integration initiatives and capacity expansion for established products.
Deepak Nitrite is a leading fully integrated manufacturer of OBA which is backward integrated from basic building block up to the feedstock of toluene to PNT and further into DASDA and OBA. These products have strict requirements in terms of performance and technical specifications. Over the years, your Company has targeted and built a robust global customer network and has taken conscious efforts to place its products in the right geography.
The Performance Products segment finds application in paper,detergents and textiles with its key value in the characteristic of the main product.
Your Company’s efforts of reorienting its industry and geographical mix to ensure better product acceptance played a major role in driving the performance. Further, Deepak Nitrite’s position as a fully integrated supplier of OBA has strengthened its competitive edge. During the year under review, we witnessed healthy realization gains in DASDA, which bolstered our overall performance in the PP segment.
Deepak Phenolics Limited (DPL), a wholly-owned subsidiary of Deepak Nitrite Limited, began commercial production at its mega Phenol and Acetone facility in Dahej, Gujarat in November 2018. The facility has an installed capacity of 200,000 MTPA to manufacture Phenol and 120,000 MTPA to manufacture Acetone. It also has facility to produce 260,000 MTPA of Cumene for captive consumption. The objective of foraying into these products was to substitute imports and parallelly grow the domestic demand.
Your Company has already established itself as the most reliable player for Phenol and Acetone in the domestic market, with its market share touching almost 65%.
During the financial year under review, your Company was successfully able to substitute majority of imports. It was also able to operate its manufacturing capacity close to above 90% utilization levels on a sustained basis.