The Hindu Business Line : Deepak Nitrite buys Vasant Chem acid biz

The Pune-based Deepak Nitrite on Friday announced the acquisition of DASDA (diamino stilbene disulphonic acid) business of Vasant Chemicals Ltd which caters to over 24 per cent of the global market for the product.

The Rs 55-crore acquisition will enable Deepak Nitrite, a manufacturer of speciality chemicals, intermediates and colorants, to move up the value chain in its nitro toluene business through vertical integration as well as by expanding its international market presence, the Managing Director, Mr Deepak C. Mehta, said here.

The Hyderabad-based company, with DASDA capacities of 6,000 tonnes, is the preferred supplier to multinational companies worldwide and the acquisition would add 20-25 per cent to Deepak Nitrite's turnover and impact its bottom line, Mr Mehta said.

Vasant Chemicals' DASDA division is worth an estimated Rs 100 crore, he said replying to a specific query.

DASDA is used in the manufacture of optical brightening agents used by the paper, textile and detergents industry. With the paper brightness markets growing in India and China, Deepak Nitrite wants to tap the potential to expand the base of DASDA business, Dr Suresh Gore, President, said.

The acquired business will be renamed Hyderabad Specialities Division after the necessary formalities, according to Mr Mehta, who said the company will introduce newer technologies to the facility which will add value and optimise the assets on hands.

Expansion

The company is, meanwhile, also expanding its horizons by de-bottlenecking its operations as part of which it is putting up one more multipurpose nitration stream at Baroda, with capacities of 8,000-10,000 tonnes, taking its total capacity to 45,000 tonnes.

A multipurpose pilot plant at Roha, Maharashtra, is being set up at an investment of Rs 5 crore to develop a larger number of fine chemicals, Mr Mehta said.

Deepak Nitrite has put in place a research unit at the NCL Research Park where it has 50-scientist team in place as part of its strategy to work on R&D to push growth. It is simultaneously working on the feasibility of a joint research project with NCL for intermediate and high-end fine chemicals, Mr Mehta said.

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