Chemicals major Deepak Nitrite has set an ambitious target to achieve $1 billion turnover in the next three to four years, with its upcoming ₹1,400-crore phenol-acetone facility at Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in Dahej, Gujarat.

The company’s Promoter and Chairman & Managing Director Deepak Mehta stated that the company will explore more downstream products from phenol.

“We are setting up the country’s largest phenol-acetone plant at Dahej PCPIR with capacity of about 200,000 tonnes per annum. Once this project is commissioned, it will trigger a lot of new opportunities for Deepak.

“We are also looking to explore more downstream products from phenol. We have set an ambitious target of $1 billion turnover in the next three to four years," Mehta told BusinessLine .

The capacity for co-product acetone will be 120,000 tonnes per annum.

“This is an optimistic and challenging target but we expect the new phenol facility to play an important role in achieving it," added Mehta.

India is currently import-dependent for phenol, which is imported to the tune of 2.5 lakh tonnes.

Domestically, two phenol facilities are operational one each at Mumbai and Kochi. Deepak's 2 lakh-tonne phenol facility will reduce the import dependence for phenol.

Mechanical completion of the plant, spread across 60 acres in the domestic area of PCPIR, is expected by December, while commercial production is expected to start before the end of the fiscal 2018.

Deepak manufactures Bulk Chemicals and Commodities (BCC), Fine and Specialty Chemicals (FSC) and Fluorescent Whitening Agents (FWA) with its manufacturing facilities located at Vadodara, Dahej in Bharuch, Roha and Taloja in Maharashtra and Hyderabad in Andhra Pradesh.

On the company's capex plans, Mehta stated that Dahej investment will be the largest in the fiscal, while other locations will have expansion and upgradation projects going on.

For the June quarter, the company posted revenues of ₹361.6 crore and profit of ₹20 crore. For the fiscal 2016-17, it achieved net profit of ₹112 crore on revenues of ₹1221 crore.

Mehta further underlined the need for encouraging value-added specialty chemicals production and making available the intermediates to the downstream units.

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