Deepak Fertilisers to set up brownfield IPA plant at Taloja

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Mumbai, Sept 24 (PTI): Fertilizer major Deepak Fertilisers and Petrochemicals Corp Ltd (DFPCL) on Sunday said it plans to set up a brownfield isopropyl alcohol plant with high purity diisopropyl ether as co-product at its existing Taloja facility.

The expansion at Taloja in neighbouring Raigad district will share synergies in various storages and utilities with the existing isopropyl alcohol (IPA) plant, the company said in a release.

The plant is being planned with Inside Battery Limit (ISBL) investment of Rs 450 crore.

The production of high purity diisopropyl ether, which commands a significant premium at some additional investment, is an added advantage of the project.

The expansion aligns with Prime Minister’s vision of ‘Make in India’ initiative and will substitute the imported product by domestically manufactured product, it said.

The OSBL (Outside battery limits) cost of the project will be worked out by engineering consultant with inputs of technology licensors, it said.

IPA’s demand in India has been witnessing an annual growth rate of around 8-9 per cent for the last 5-7 years and is expected to grow in future at the similar rate.

The total demand for IPA in India was around 135 kilo tons per annum (KTA) in 2016-17, which is expected to grow to 171 KTA by 2019-20 and further continue to grow at similar rate in the future, the company said.

DFPCL, the sole manufacturer of IPA in the country, enjoys significant market leadership.

“Being a front runner in IPA for over a decade, we have realised the market potential both for IPA as well as the sectors consuming it. With the new state-of-the-art technology and a robust distribution system we will be able to provide better service and enhance customer experience,” DFPCL chairman and managing director, Sailesh Mehta said.

DFPCL currently has a total manufacturing capacity of 70 KTA per annum and since 2013-14, the capacity utilisation of the IPA plant has been more than 100 per cent based on the actual production capacity, the release said.

As the market demand continues to grow, significant portion of IPA demand is being met through imports, which is about 48 per cent of the total IPA demand of the country.

To fulfil the market requirement and maintain its market leadership, the company, in addition to manufacturing, has been importing and supplying IPA, it said.

According to DFPCL, the consumption in India is mainly driven by use of IPA as a solvent in the pharma industry which accounts for almost 80 per cent of the total demand.

The Indian pharma industry has been growing at a compounded double-digit growth rate over the last five years and has significant growth potential. Other segments like Inks & Coatings and Derivatives are also showing robust growth in demand for IPA.

In this scenario, DFPCL is expanding its IPA capacity by 100 KTA and 7 KTA of diisopropyl ether, the company said, adding the execution of the project would take around 30 months.

Requirement of the key feedstock is going to be met with supplies from HPCL, for which an MoU has been signed recently, the release added.

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