The Hindu Business Line : Deepak Fertilisers chalks out capacity, agri expansion plan

Pune, July 16 Capacity expansion at Paradip, and more inroads into its agri project is what Pune-based Deepak Fertilisers and Petrochemicals Corporation Ltd has chalked out for itself.

Addressing presspersons after the annual general meeting of the company, Mr S.C. Mehta, Vice- Chairman and Managing Director, said its net sales had improved 32 per cent to touch Rs 219.79 crore in the first quarter of the current fiscal as against Rs 166.67 crore for the corresponding period last year.

Profit before tax for the first quarter stood at Rs 34.51 crore (Rs 33.38 crore). He said the chemical business grew to Rs 152.02 crore in the first quarter (Rs 109.91 crore) while the fertilisers business grew to Rs 68.62 crore (Rs 61.13 crore).

Ammonia plant

He said the ammonia plant was shut down for revamping and retrofitting for 41 days, which would increase the plant capacity to 390 tonnes per day from 272 tonnes per day.

He pointed out that due to the planned shutdown, ammonia was outsourced, leading to higher input costs. Asked about its expansion plans, Mr Mehta said the ammonium nitrate plant at Paradip in Orissa would be tripling its capacity by the second half of 2009.

The plant would have a capacity of three-lakh tonnes ammonium nitrate per annum and an investment of Rs 400 crore. He said the 15,000-tonnes shore ammonia storage tank project to be commissioned by mid 2008 at JNPT would open up avenue for supplies of raw material.

He said that besides improving the underutilised capacity for downstream products from ammonia at Taloja, it would also enhance capacity in the nitric acid segment.

Saarrthie project

On its Mahadhan Saarrthie project, Mr Mehta said that four centres had been set up during FY 2007 and brought 2,500 farmers and 7,500 acres of land under it. The plan is to increase this to 40 centres across Maharashtra.

He said that the centre had identified five fruits and five vegetables on which it would place its thrust initially. Mr Mehta noted that last year, the centre had brought grapes under the project and had tied up with ITC for its retail.

Mahadhan Saarrthie provides agri solutions through soil, water, and plant testing facilities, utilising its range of plant nutrient products which include secondary and micronutrients in addition to the primary nutrient (NPK).