54th Annual Integrated Report 2024-25

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MANUFACTURED CAPITAL

Accelerating Expansion for Enhanced Growth and Efficiency

Expanding our manufacturing infrastructure remains central to our growth strategy. We continue to add capacities and capabilities to capture emerging opportunities while improving process efficiency and operational excellence, aimed at building a robust foundation for long-term growth.
Material issues addressed

Growth & Profitability

Sustainable Supply Chain

Customer Relationships

Product Innovation

Key risks considered

Supply Chain Disruption/Business Interruption Risks

Emerging competition to our existing business

Key Strategies

Expand Capacities

Enhance Margins

Widen Product Portfolio

UN SDGs impacted
KEY KPIS AND HIGHLIGHTS

7

Manufacturing facilities across 5 strategic locations

₹8,500 Crores

Planned capex by FY 2027-28
QUALITY CERTIFICATIONS
  • ISO 9001:2015 – Quality Management System
  • ISO 14001:2015 – Environment Management System
  • ISO 45001:2018 – Occupational Health, Safety and Management System
  • Responsible Care
  • GOTS Certification
  • TfS (Together for Sustainability) Certification
  • Nicer Globe Kosher Certification
EXPANDING MANUFACTURING CAPABILITIES

With our robust manufacturing strength and deep expertise in chemistry, we’ve established ourselves as a trusted partner for leading Indian and global customers. Rising demand across sectors is opening up a plethora of opportunities, driving capacity expansion and process optimisation.

During the year, our Wholly Owned Subsidiary, Deepak Chem Tech Limited (DCTL), approved a mammoth investment of ₹ 5,000 Crores to build an integrated polycarbonate resins facility at Dahej, Gujarat, in partnership with Trinseo PLC, acquiring globally recognised technology, trademarks, and assets. The plant will produce 1,65,000 MTPA of polycarbonate resin, catering to sectors such as mobility, electronics, medical devices, aerospace, packaging, and EV batteries.

DCTL’s additional investment of ₹ 3,500 Crores in upstream capacities of Phenol, Acetone, and IPA brings our total commitment for the polycarbonate chain to ₹ 8,500 Crores. This will make Deepak Nitrite one of the world’s largest single-location producers of Phenol and Acetone, with significant downstream integration into high-margin derivatives.

UPDATE ON OTHER PROJECTS
Nitric Acid Plant – Nandesari

DCTL is setting up a large-capacity Weak and Concentrated Nitric Acid plant at Nandesari to support nitration processes at both DNL (Nandesari) and DCTL (Dahej). These plants are expected to be commissioned in Q2 of FY 2025-26 and incorporates best-in-class technologies with critical equipment sourced from global vendors.

MIBK & MIBC Plant – Dahej

A backward-integrated MIBK and MIBC facility is being established at Dahej, which shall be utilising Acetone produced by our subsidiary, Deepak Phenolics Limited, in the vicinity. These solvents are currently fully import-dependent, and the project will enhance self-sufficiency and value addition.

To support this and other projects, DCTL is investing in essential offsite and utility infrastructure, including boilers, turbines, tank farms, substations, fire protection systems, ETPs, and air management facilities. The project is at an advanced stage, commissioning is expected in H2 of FY 2025-26.

Fluorination, Hydrogenation & Nitration Facilities – Dahej

DCTL is also developing multiple chemistry blocks to broaden its product portfolio:

  • The first fluorination product has already been achieved
  • The hydrogenation and nitration units are under commissioning and to start production in H1 of FY 2025-26

Most of the operations staff for these facilities have been successfully onboarded.

Other Specialty Chemical Capex – Dahej

Two speciality chemical plants are under development at Dahej. Both are at advanced stages of engineering, with long-lead equipment ordered or in the ordering phase. Construction has already commenced for both units.

ACHIEVING OPERATIONAL EXCELLENCE

In line with our commitment to continuous improvement and sustainable growth, we have undertaken several targeted initiatives to enhance operational efficiency across our facilities. These improvements span technology upgrades, energy optimisation, cost-saving innovations, and process improvements.

Operational Efficiency Initiatives:

  • Installed FRP fan blades in cooling towers to optimise power consumption
  • Utilised vent steam to generate low-pressure steam, reducing dependency on external steam sources
  • Achieved power optimisation through process innovation in the recrystallisation of Sodium Nitrite
  • Improved centrifugal pump efficiency by applying internal coatings, leading to lower energy usage
  • Recovered sodium sulphate through an innovative waste minimisation process, boosting productivity.
  • Shifted to using wet cake instead of dry powder in the process, reducing drying costs significantly.
  • Initiated use of renewable power by successfully drawing solar energy replacing 20% of conventional power. Plans are in place to extend this initiative to other plants, with higher replacement targets in FY 2025-26.
ADOPTION OF ADVANCED TECHNOLOGIES

As part of our ongoing efforts to enhance operational performance and resource efficiency, we have implemented several innovative technologies and process improvements across our facilities. These initiatives are delivering measurable savings and strengthening our sustainability goals.

Smart Power Optimiser (Smart PO)

Commissioned at various plants, Smart PO uses ML/AI algorithms to simulate predictive load curves on electrical circuits. This initiative has resulted in 9% power savings.

Scaleban Technology Implementation

Successfully implemented to reduce steam consumption. Scaleban supports cost-effective Zero Liquid Discharge (ZLD) compliance without the need for expensive conventional technologies.

Air Blower Optimisation

Replaced high-capacity blowers with innovative, energy-efficient blowers. This has led to a 35–40% reduction in power consumption and reduced downtime and lowering maintenance costs.

Mechanical Vapour Compression (MVR)

Commissioned MVR systems to support ZLD in a cost-effective and sustainable manner, reducing reliance on conventional energy-intensive systems.

Product Innovation

Developed a product from waste generated and successfully seeded in the market and approved by customers. It is used in construction, paints, and masterbatch applications, contributing to our circular economy goals.

Product Innovation

Another value-added product derived from waste, which is targeted for use in coal washeries. It has received customer approval and successfully entered the market.

ENSURING SAFE AND SECURE OPERATIONS

For us, safety is more than a priority — it is a core value embedded in our culture. During FY 2024-25, we advanced several critical safety initiatives to ensure a safe, healthy, and compliant workplace for all employees, contractors, and stakeholders. Our efforts reflect a proactive approach to risk management, guided by our commitment to operational excellence.

Highlights in FY 2024-25

Received the Health & Safety Transformation Award by British Safety Council (International Safety Awards)

KEY SAFETY INITIATIVES
1. “PARIVARTAN” – Safety Management

We launched our Safety Management System (SMS), Parivartan (meaning transformation), to build a proactive, behaviour-based safety culture. This structured system strengthens our Occupational Health & Safety (OHS) and Process Safety Management (PSM) frameworks, aligning with global best practices.

2. Building Safety Champions

Under Parivartan, we introduced a structured Train-the-Trainer (TTT) programme to empower frontline supervisors and employees as in-house safety leaders. The programme covered:

  • Permit to Work
  • Contractor Safety Management
  • Incident Investigation

Mandatory safety training modules on hazard identification, emergency preparedness, BBS, and first aid were also conducted for all employees and contractors.

3. AI-Driven Next-Gen Safety Systems

We deployed real-time, AI-enabled safety tools to improve operational oversight:

  • Smart cameras for automatic detection of PPE violations
  • AI-based fire and smoke detection using image recognition
  • Live monitoring dashboards for faster incident response

We also expanded automation in high-risk operations, reducing manual intervention, improving consistency, and enhancing overall process safety.

4. Fire Safety Infrastructure Enhancement

We upgraded firefighting systems across critical units with:

  • Advanced fire detection and suppression systems
  • Sprinkler upgrades and enhanced emergency response mechanisms

These improvements further mitigate fire-related risks and reflect our adherence to rigorous industrial safety standards.

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