Specialty chemicals major Deepak Nitrite, through its subsidiary Deepak Chem Tech (DCTL), has announced a significant capital investment of ₹3,500 crore, funded through a mix of debt and equity. The investment will be used to establish a new manufacturing complex to produce phenol, acetone, and other key solvents essential in the production of a wide range of chemicals, the company said in a statement on April 9. This move is aimed at reducing India’s dependency on imports for these critical intermediates.
In addition to the main project, the board of DCTL has approved a separate ₹220 crore investment for setting up a multi-purpose manufacturing facility for specialty fluorochemicals, expanding the company’s portfolio into high-value segments.
The upcoming facility will have an annual capacity of 300 KTA (kilo tonnes per annum) of phenol, 185 KTA of acetone, and 100 KTA of isopropyl alcohol (IPA). The company noted that the proposed expansion will nearly double the existing capacity of phenol and acetone, which currently operate at 100% capacity utilisation. This enhanced output will also pave the way for backward integration into polycarbonate resin (PC) production, a segment where India is currently entirely import-dependent.
The new capacities are expected to be implemented over the next three years. India’s current demand for acetone is largely met through imports, and the new facility will play a pivotal role in addressing this gap. The expansion reflects Deepak Nitrite’s strategic alignment with growing domestic demand, particularly in the pharmaceutical, paints, adhesives, and plastics industries.
Deepak Mehta, Chairman and Managing Director of Deepak Nitrite, stated:
“Deepak Group is committed to creating one of the most integrated capacities, which will give us the resilience and strength required in today’s global environment. As these products are import substitutes, they will significantly contribute to our nation’s Atmanirbhar Bharat mission and the vision of Viksit Bharat.”
The company also revealed that it has signed agreements to acquire and relocate a polycarbonate plant from Germany to India, further solidifying its presence in the polymer value chain.
Highlighting the importance of localisation, CEO Maulik Mehta said in February 2025:
“This strategy ensures capacity localisation without contributing to global overproduction. We’re also working with our partners to cater to European demand through this asset. All major polymer projects are slated for commissioning by December 2027.”
With this investment, Deepak Nitrite reaffirms its position as a key enabler of India’s specialty chemicals sector and demonstrates the growing capability of domestic firms to substitute critical imports while fostering industrial self-sufficiency.