Deepak Chem Tech Ltd enters into agreement to build a HyCO plant to secure long-term supply of key raw material for its Polycarbonate project

Deepak Chem Tech Limited ('DCTL'), a wholly owned subsidiary of Deepak Nitrite Limited, enters into long-term agreement with Praxair India (a Linde company) to build a HyCO plant to manufacture key raw materials for DCTL's upcoming polycarbonate manufacturing facility at Padariya, Dahej, in the state of Gujarat.

Under the agreement, Praxair India will build, own and operate dedicated on-site facility to supply key feedstocks for polycarbonate production. The arrangement establishes a reliable, long-term supply of an essential input for the project.

The agreement brings together DCTL's downstream materials platform with Praxair India's expertise in industrial gas infrastructure and operations. The onsite model is expected to support consistent availability and operational efficiency, while enabling DCTL to maintain focus on its core expertise.

DCTL's integrated Polycarbonate facility is intended to play a significant role in the domestic production of a high-performance material that serves several high growth end-use segments in India, including automotive, electrical and electronics, construction, and consumer applications. The integrated supply arrangement with Praxair India has been structured to support product quality, scalability, and supply chain resilience as the project advances.

"This agreement marks an important step in advancing our polycarbonate project," said Mr Meghav Mehta, ED & CEO, Deepak chem Tech Limited. "A long term arrangement of critical raw material supply through a dedicated onsite solution enhances execution visibility, supports efficient project delivery and creates value for our customers. We are pleased to partner with Praxair India, whose global expertise and wide capabilities align well with the requirements of this project."

The on-site facility is expected to be commissioned in 2028, in line with Deepak Chem Tech Limited's polycarbonate plant.

Shares of Deepak Nitrite Limited was last trading in BSE at Rs. 1723.70 as compared to the previous close of Rs. 1684.10. The total number of shares traded during the day was 29633 in over 2909 trades.

The stock hit an intraday high of Rs. 1757.00 and intraday low of 1680.75. The net turnover during the day was Rs. 51050433.00.

Source : Equity Bulls

Keywords

DeepakNitrite INE288B01029 DeepakChemTech LongtermAgreement PraxairIndia