Deepak Nitrite arm Deepak Chem Tech has signed a Memorandum of Understanding with the Gujarat government with an intent to invest around Rs 5,000 crore in the next four years for setting up projects to manufacture Speciality Chemicals, Phenol/Acetone and Bisphenol at Dahej / Nandesari in the state.

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The pharmaceutical and agrochemicals industries rely on speciality chemicals to meet their needs. Acetone and phenol are utilised in a variety of end-user industries, including laminates, plywood, pharmaceuticals, paint, and adhesives. The most significant feedstock for polycarbonate, which has numerous uses in the fields of automotive, electrical and consumer goods, defence, and medical equipment is bisphenol, which is used in epoxy and adhesives.

One of the main things that were anticipated during the company's March quarter update was the utilisation rates of the Nandesari facility and updates on other capex that were being implemented. In a brokerage study, MOSL stated that "if the company ventures into speciality or complex products, it would command a better valuation." The results for the March quarter at Deepak Nitrite were largely in-line with street estimates.

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Shares of the company surged following this announcement and have recovered more than 2 percent from intra-day lows.

First Published:May 24, 2023 11:11 AM IST