Deepak Nitrite Seeks Robust Growth Ahead of Favorable Government Policies
- Journalist: Robert Hume
Shares of Deepak Nitrite, the leading player of Acetone and Phenol in India, witnessed a steep jump on 5th March following the news of extension of anti-dumping duty (ADD) on imports of Phenol originating from Singapore and European Union, until 7th June 2020. Furthermore, the finance ministry in a notification issued on 3rd March stated that the duty extension is likely to continue till the framed period unless it is superseded, revoked or amended earlier due to any unforeseen circumstances.
Amidst the snug supply due to increased waiting time at Panama Canal in US, Deepak Nitrite‘s Phenolics business witnessed steep growth of around 40% in the final quarter of 2020. As Phenol is majorly imported from the US, Phenol and Acetone values in India observed an upward rally under the spate of production turnarounds as the players faced huge operational difficulties in the freezing cold temperatures in mid-February. As per stats, Acetone prices have surged by near about 25% on month on month basis, reaching USD 1400 per MT by the last week of Feb.
Being optimistic over further strength, it is looking forward towards investing INR 2000- 3000 million to further expand their business. Deepak Nitrite has maintained its throne as one of the leading manufacturers of Phenol and Acetone since 2018. The company’s Phenolics segment which is currently operating at 100 percent capacity is perceived to generate nearly 60 percent of overall company’s revenue. Deepak Nitrite’s production capacity include 2600 KTPA of Cumene, 200 KTPA of Phenol and 120 KTPA of Acetone. As per ChemAnalyst, “Deepak Nitrite with its smart investment strategy and favorable government policies such as ‘Make in India’ is expected to remain in profit for long term.”