Deepak Nitrite's subsidiary to expand production capacity of IPA at Dahej; stock slumps 4%

Deepak Phenotics Limited is expanding its capacity of production of Isopropyl Alcohol in Gujarat from 30,000 TPA to 60,000 TPA.

Aug 07, 2020 10:08 IST India Infoline News Service

Deepak Nitrite Limited informed the exchanges Thursday that its wholly-owned subsidiary Deepak Phenotics Limited, is expanding its capacity of production of Isopropyl Alcohol (IPA) at its manufacturing facility situated at Dahej, Gujarat from 30,000 Tonnes Per Annum (TPA) to 60,000 TPA.

IPA is a Solvent and majorly used by Pharma companies and is also used in manufacture of sanitizer. The existing capacity utitization for manufacturing IPA is above 100%. The additional proposed capacity of 30,000 TPA is expected to be commissioned in the first quarter of Financial Year 2021-22. The investment required is ~Rs50cr.

The company is currently trading at Rs615.95, down by Rs27.1 or 4.21% from its previous closing of Rs643.05 on the BSE..

“The demand of IPA in India is around 1,80,000 TPA. White domestic manufacturing capacity is around 100,000 TPA, which includes existing capacity of 30,000 TPA of Deepak Phenotics Limited, the balance 80,000 TPA is being imported. IPA is a major raw material for manufacture of sanitizer, which is playing a crucial role in containment of Covid-19.

The capacity addition will also help in further reducing dependence on imports of IPA and it will be another contribution towards ‘Atmanirbhar Bharat’,” company said.

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