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Deepak Fertilisers And Petrochemicals Corporation Limited, a leading producer of industrial chemicals, mining chemicals and fertilisers in India has announced brownfield expansion of nitric acid at Dahej in Gujarat which is part of its strategic growth journey.
The Board of Directors have approved setting up of Weak Nitric Acid (WNA) plant with capacity of 300 KT PA and two Concentrated Nitric Acid (CNA) plants with total capacity of 150 KT PA.
DFPCL demand-supply gap for WNA is expected to rise from approx. 140 KT in FY24 to 330 KT by FY30. The demand growth is driven by captive and merchant demand, particularly from Nitroaromatics and other downstream industries. Accordingly, the Company plans to expand its WNA capacities by 300 KTPA.
“Similarly, India’s CNA market demand-supply gap will substantially increase from 85 KT in FY24 to approx. 300 KT PA by FY30. The Company would like to leverage its leadership position in CNA segment and would be expanding its CNA production capacity by 150 KT PA based on increased demand” the company stated in a press release.
Both WNA and CNA expansion projects are strategically planned to feed into this growth, bridge the demand supply gap and strengthen the Company’s position as a reliable partner for meeting nitric acid requirements.
“The Company is targeting fast-growing pharma, steel, solar and agro industry value chains, where India is emerging as an alternate manufacturing hub for intermediates. The proposed expansion will allow the Company to capitalise on the broader nitric acid opportunity based on a long-term supply agreement which was signed with Aarti Industries last year” the Company added.
The new technology adaptation and global scale plant would also give a competitive advantage, and the Company intends to increase its focus on export markets.
Sailesh C. Mehta, Chairman and Managing Director of DFPCL, said, “The proposed expansion of our Nitric Acid capacities are directly aligned with the evolving market landscape. Given the increasing demand for Nitric Acid from downstream sectors, including significant committed long-term offtakes, which is driven by the ‘China plus One’ trend for India’s Specialty Chemical Sector, our proposed expansion plans has low market risk”.
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