Financial Daily from THE HINDU group of publications
Wednesday, Jan 07, 2004
Financial Daily from THE HINDU group of publications Wednesday, Jan 07, 2004 |
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Corporate
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New Projects Deepak Fertilisers setting up Rs 200-cr isopropyl alcohol project Our Bureau
Pune , Jan. 6 THE Pune-based Deepak Fertilisers and Petrochemical Corporation Ltd on Tuesday said it was undertaking a Rs 200-crore project to manufacture isopropyl alcohol (IPA), a value-added solvent used by the pharmaceutical, agrochemical and imaging chemicals sectors among others. The move to foray into IPA is meant to de-risk business by reducing its dependence on the government-controlled fertilisers business, its Managing Director, Mr Shailesh Mehta, said at a press conference. Approximately 40 per cent of the company's turnover (2002-03 Rs 546 crore) currently comes from the fertiliser business and the IPA project will bring this to 25 per cent, at the same time giving the company stability by broad-basing its operations, Mr Mehta said. "The new business will give us an entry into the high-growth sectors like agro-chemicals and pharmaceuticals," he said. The company is setting up a 70,000-tonne per annum IPA plant at its existing facility at Taloja, which is expected to be commissioned by the first quarter of 2006, Mr Mehta said adding that it has entered into an exclusive agreement with Bharat Petroleum Corporation for the supply of raw material, propylene from its Chembur facility in Mumbai. IPA is hundred per cent imported by users currently and technology for IPA has been closely held. Mr Mehta said the company has acquired seven-year exclusive rights for IPA technology from the $12.7-billion Equistar -Lyondell Corporation through AkerKvaerner, US. The company plans to price its product at the landed cost of the imported product and hopes to get a large share of the 62,000 mtpa market by offering the product on tap according to Mr Mehta who said a large part of the production would be used by its existing consumers in the methanol business. "At 95 per cent capacity utilisation the business will add Rs 220 crore to our turnover," he said.
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