you are here:

Deepak Nitrite Ltd.

BSE: 506401 | NSE: DEEPAKNTR |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE288B01029 | SECTOR: Chemicals

BSE Live

Jul 27, 15:56
1907.90 -14.15 (-0.74%)
  • Prev. Close


  • Open Price


  • Bid Price (Qty.)

    1907.90 (5)

  • Offer Price (Qty.)

    1907.90 (1)

NSE Live

Jul 27, 15:59
1909.25 -12.55 (-0.65%)
  • Prev. Close


  • Open Price


  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    1909.25 (88)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Chairman's Speech

Dear Stakeholders,

The Financial Year (FY) 2015-16 continued to throw up several
challenges across the economic landscape. The pattern of heightened
volatility and increased uncertainty from the last couple of years
spilled over into the current fiscal as well. Amidst the uncertain
global scenario, India remains relatively well placed to deliver
improving growth, as economic fundamentals remain stronger than in
other emerging market economies. Over the last three years, GDP growth
is steadily gaining momentum and as per IMF, India is currently the
brightest spot amongst the global economies. Where global GDP growth is
stagnating around 3.0%, India in FY 2015-16 has achieved a GDP growth
of 7.6%, surpassing China''s GDP growth. The Central Government has
unleashed a slew of initiatives that are directed at changing the
landscape and ushering a steady economic revival. The implementation of
initiatives, such as Inclusive Banking, Make- in-India, Smart Cities
and urban rejuvenation, revamp of Power Distribution Companies and
thrust towards renewable energy, ease of doing business and Swachh
Bharat Abhiyaan are driving meaningful changes within the fabric of the
country while impacting business sentiment positively.

The ''Make in India'' campaign has been instrumental in bringing global
recognition to the potential of India as a cost effective manufacturing
hub. The response thus far has been highly encouraging and several
giants of global industry have come forward, committing to set-up
manufacturing units in India with some even creating India into a
regional hub. The competitive advantage enjoyed by India due to its
location, demographics and availability of requisite resources is being
appropriately leveraged.

With over 40 years'' presence in manufacturing, your Company has been
one of the earliest adopters of the ''Make in India'' philosophy.
Increased globalization has served to provide greater thrust to develop
India as one of the leading manufacturing centers of the world and
within that, the chemical industry has been a standout performer. We
expect this movement to gain further traction in the backdrop of
increased consolidation within the chemical industry. This would throw
up plenty of opportunities for the Indian chemical players. As a
result, the Indian chemical industry is expected to grow at 11% per
annum to reach US$ 224 billion by 2017.

Your Company recorded a steady volume growth by tapping pockets of
demand in key export markets of USA and Europe supported by some
exciting initiatives in the domestic market. By religiously pursuing
its vision backed by well crafted strategy and flawless execution, your
Company today stands as a very strong global brand. Your Company
supplies quality and value- added products to renowned multi-national
companies across the globe. The supplier excellence award bestowed on
your Company by Bayer Crop Science this year is testament to the
quality and excellence of your Company''s products and reflects its
exceptional performance and track record in environmental health,
safety and sustainability as a leading supplier of intermediates to the
chemical industry.

Your Company reported consistently good performance during the year
with balanced growth across domestic and export markets, led by strong
demand in the end user industries. While top line growth was muted due
to re-pricing of products that are linked to crude oil and related
petrochemical intermediates, the positive momentum in business is
better represented by the growth in volumes while margins improved.
Overall, profitability improved during the year as a result of a
favorable product-mix, combined with efficiency gains. On the back of
stable performance, the Board of Directors has recommended a dividend
of 1.20 per share of a face value of 2 on enhanced capital against
1 per share recommended in the previous year.

Your Company''s export revenues stood at 525.75 crore, which
contributed 40% to the total revenues for the year. Europe, USA and
China continue to dominate the export revenues with contribution of
48%, 23% and 8% respectively. Your Company anticipates a firm momentum
in the export markets led by better demand and customer acceptance for
its products.

As you are aware, in order to intensify focus on individual businesses
and to drive accelerated growth in both top and bottom line, your
Company transformed its operations into Strategic Business Units (SBU)
during the previous year. This enabled your Company to assemble
products having synergies within a particular business unit for
achieving superior end-to-end supply chain management having regard to
nature of product and end user applications.


Your Company sensed huge untapped opportunity to cater to domestic
Phenol and Acetone deficit. Hence, it took investment decision for
manufacturing Phenol and Acetone to match the shortfall in domestic
market through its wholly owned subsidiary, Deepak Phenolics Limited.
The capacity of the proposed Phenol Plant will be 200,000 MTPA and that
of co-product Acetone will be 120,000 MTPA. The project aims to tap the
entire domestic demand facilitating import substitution.

While the current business of your Company was built on the platform of
Nitration and Hydrogenation, as a strategy, the Phenol and Acetone
business will bring in new platform for growth. Phenol serves as a
major building block for the infrastructure industry including housing,
roads, construction as well as for wind mills, automobiles, etc. As the
country increases its infrastructure investment and a larger number of
smarter cities gets developed, the demand growth for Phenol and Acetone
based derivatives would have significant benefits. While initially
these products
would be filling imports gap as bulk commodities, in the long run they
will support specialties for markets such as perfumeries, plastic
additions and decorative laminates. A major contribution from phenol
segment would be in offering a range of solvents for the pharma
industry, thus strengthening its relationship with pharma industries in

Your Company is confident that this project shall take off well and
lift your Company into different orbit along with its existing business
and hence create higher shareholder value in the near future.

I am happy to highlight that we have tied up for long term debt to
finance this project and also raised 83.31 crore through a Qualified
Institutions Placement (QIP) from prominent domestic and foreign
institutional investors. Additionally, we have also started seed
marketing of phenol with an objective of developing working
relationships with all major clients in India.

Your Company will continue to create a large base to outpace the
industry and deliver sustained growth year-on-year on the back of its
strengths, combined with cost leadership and value-added product
offerings. As a strategy, your Company is in the process of creating
separate building blocks which can be a strong platform for future
growth. In view of creating a strong base due to Phenol and other
products, your Company will be in its own league in coming years by
creating value for its esteemed shareholders. Stability in the global
crude oil prices and related petrochemical intermediates will further
support this momentum. The steady economic growth momentum in the
domestic economy would lead to growing business opportunities for your

On behalf of the Board of Directors, I would like to take this
opportunity to commend the entire team of Deepak Nitrite for their
contribution and commitment. I would also like to thank all our
business partners and associates. Finally, I would like to extend my
sincere gratitude to each and every stakeholder for the unwavering
confidence in your Company through the years and count on their support
going forward.

With best wishes,

D.C. MEHTA Vice-Chairman & Managing Director