Message from Executive Director & CEO-DCTL

DEAR SHAREHOLDERS,

FY 2024-25 was a year of strategic acceleration for Deepak Chem Tech Limited (DCTL). We moved from blueprint to execution, laying the foundation for a platform that will redefine India’s chemical manufacturing landscape.

As a Wholly Owned Subsidiary of Deepak Nitrite Limited, DCTL is at the forefront of building advanced material capabilities by focussing on well integrated product portfolio and import substitution, aligning with India’s self-reliance vision. We are driven by purpose, precision, and scale.

FY 2024-25 PERFORMANCE: BUILDING FOR FUTURE GROWTH

Our performance in FY 2024-25 reflects the early-stage nature of our projects and signalling our transition into commercial operations. This reflects our current investment phase prioritizing long-term projects.

Our key achievements at this stage are in asset creation and operational readiness, setting the stage for exponential value generation.

FROM VISION TO REALITY: OUR COMMISSIONING SUCCESS

FY 2024-25 marked a defining chapter in our journey, from engineering design to execution excellence. At DCTL, we build capabilities that serve as a foundation for India’s advanced materials sector. Key milestones achieved this year include:

• Nitric Acid Plant: Being commissioned in Q2 of FY 2025-26 with product rollout on track. This asset will play a pivotal role in supporting multiple downstream value chains

• MIBK/MIBC: Pilot-scale trials are progressing well as we scale up our acetone derivatives portfolio to tap into high-margin, high-demand sectors like electronics and speciality coatings among others

These developments are more than technical achievements, they represent our strategic intent to build a robust, diversified portfolio that supports critical industries such as electronics, pharmaceuticals, polymers, and agrochemicals. We are also actively exploring licensing partnerships and collaborative innovation, particularly in fluorinated intermediates, aimed at fast-growing sectors like semiconductors, sustainable mobility, and precision agriculture.

Looking ahead, our roadmap is anchored by two transformational initiatives:

• Fully integrated Polycarbonate project

• Backward-integrated Phenol-2 complex

Together, they underscore our commitment to strengthening India’s self-reliance and becoming a globally respected force in performance chemicals and materials.

TRANSFORMATIONAL PROJECTS UNDERWAY

1. Polycarbonate: India’s First Integrated PC Resin Facility: India remains heavily dependent on imports for its polycarbonate needs. To address this gap, we are investing over ₹ 5,000 Crores to establish the nation’s first fully integrated PC resin manufacturing facility. This transformative initiative includes:

• Acquisition and relocation of Trinseo’s polycarbonate assets from Stade, Germany to Dahej, Gujarat. Trinseo is a major manufacturer of engineering polymers and compounds with reported net sales of approximately $3.7 billion in 2023. Its engineering compound portfolio finds application with global, marque brands across industries
• Deployment of licensed technology and global best practices
• Planned capacity of 1,65,000 metric tonnes per annum, with commissioning targeted for Q4 FY 2027-28

This facility will anchor a comprehensive value chain, from raw materials to finished compounds. We have already commenced producing PC compounds for the electronics and mobility sectors, further reinforces our vertical integration and readiness for high-growth applications at our Savli unit.

2. Phenol-2 Project: Advancing Backward Integration: With an investment of ₹ 3,500 Crores, our greenfield Phenol-Acetone-IPA complex represents a significant stride in boosting India’s chemical self-sufficiency. The plant will add:

• 300 KTA of Phenol

• 185 KTA of Acetone

• 100 KTA of Isopropyl Alcohol (IPA)

This will reduce India’s import dependence for essential base chemicals, enhance cost competitiveness, and create substantial employment opportunities, bringing with it strong economic and industrial multiplier effects for Gujarat and beyond.

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 fellow 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 current financial year.

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 Speciality 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.

INVESTING IN INDIA’S CHEMICAL LEADERSHIP

At DCTL, our mission transcends commercial ambition. We are committed to catalyzing India’s journey toward self-reliance in advanced materials and speciality chemicals. Further, we are also working on building a future-ready portfolio focused on high-impact segments, including:

• Polycarbonate and its Compounds – vital for electronics, automotive, and construction industries

• Fluorinated and niche agrochemical intermediates – supporting next-gen crop protection and speciality applications

These investments not only align with the Government of India’s ‘Make in India’ and import substitution goals but also position DCTL to integrate into global value chains, ensuring secure and high-quality supply for the industries of tomorrow.

THE ROAD AHEAD: POWERED BY PURPOSE

As we enter FY 2025-26, our focus remains clear, on-time project execution, building globally competitive capacities, and delivering sustainable value for all stakeholders. We are not just expanding infrastructure, but also enabling India’s leadership in next-gen materials and responsible chemistry.

On behalf of the leadership team, I thank our investors, employees, partners, and board for your continued trust. The journey ahead is exciting, and we are ready to lead it with purpose and precision.

Warm regards,