About -
Deepak Nitrite is a chemical manufacturing company based out of Gujarat, India. It's a leading manufacturer of organic, inorganic, fine & speciality chemicals. It's manufacturing facilities are located in states of Gujarat, Telangana & Maharashtra.
Deepak Nitrite is a chemical manufacturing company based out of Gujarat, India. It's a leading manufacturer of organic, inorganic, fine & speciality chemicals. It's manufacturing facilities are located in states of Gujarat, Telangana & Maharashtra.
Financial Summary -
Q3 FY22 (YoY)
Revenue were at Rs.1748 Cr.⬆️41%
PAT at Rs.242 Cr.⬆️12%
EBITDA Rs.378 Cr.⬆️11%
Q3 FY22 (YoY)
Revenue were at Rs.1748 Cr.⬆️41%
PAT at Rs.242 Cr.⬆️12%
EBITDA Rs.378 Cr.⬆️11%
Revenue Breakup -
Deepak Nitrite earns 16% from Basic chemicals, 12% from Fine & Speciality chemicals, 6% from Performance Products & 66% from Phenolics.
Deepak Nitrite earns 16% from Basic chemicals, 12% from Fine & Speciality chemicals, 6% from Performance Products & 66% from Phenolics.
▪️Basic Chemicals: DNL manufactures nitrites, nitrogen, toluidines & fuel additives. Most of these chemicals are sold in high volumes with a higher price sensitivity, cost leadership plays a pivotal role in gaining competitive advantages in this segment.
▪️Fine & Speciality Chemicals: DNL manufactures niche & specialised products under this segment. These products developed in house. It's produces speciality chem. like Oximes, Cumidines & Xylidine. These products are lower volumes, but command higher value.
▪️Performance Products: The company has 2 key products at present Optical Brightening Agent (OBA) & DASDA. These products have specific attributes & serve to enable particular characteristics to the end product.
▪️Phenolics: Deepak Phenolics has already established itself as the most trusted player in the domestic market for Phenol & Acetone, with a market share of above 50%. DPL implement initiatives to improve plant performance, which resulted in consistent capacity utilisation of 115%
Forward integration into value added detectives such as Isopropyl Alcohol (IPA) from Acetone has resulted in increased contribution.
Chemical Industry in India -
Indian chemical industry is one of the fastest-growing in
the world. India is the world’s 6th largest producer of chemicals
& contributes 3% to the global chemical industry. It is the 3rd
largest producer in Asia.
Indian chemical industry is one of the fastest-growing in
the world. India is the world’s 6th largest producer of chemicals
& contributes 3% to the global chemical industry. It is the 3rd
largest producer in Asia.
The Indian
chemical industry was valued at $ 178 billion in CY2019 & is expected to grow at a 9.3% CAGR to $ 304 billion by CY2025. In
India, speciality chemicals account for 22% of the total chemicals & petrochemicals market.
chemical industry was valued at $ 178 billion in CY2019 & is expected to grow at a 9.3% CAGR to $ 304 billion by CY2025. In
India, speciality chemicals account for 22% of the total chemicals & petrochemicals market.
Global Phenol Market -
The Global Phenol market is estimated to grow by a CAGR of 4.2% between 2022 & 27 to reach a value of $24 Bn by 2027 from $19.5 Bn in 2021.
The demand for phenol has been rising globally due to end use industries growth & increase urbanization.
The Global Phenol market is estimated to grow by a CAGR of 4.2% between 2022 & 27 to reach a value of $24 Bn by 2027 from $19.5 Bn in 2021.
The demand for phenol has been rising globally due to end use industries growth & increase urbanization.
Clientele -
Deepak Nitrite caters to over 700 customers in 6 continents.
Deepak Nitrite caters to over 700 customers in 6 continents.
Key Triggers -
• Wide range of products with diverse application.
• DNL has developed a strong presence in key geographies, including US, Europe & China.
• Based on robust technical expertise, DNL has developed a niche by adding newer & innovative products to its portfolio.
• Wide range of products with diverse application.
• DNL has developed a strong presence in key geographies, including US, Europe & China.
• Based on robust technical expertise, DNL has developed a niche by adding newer & innovative products to its portfolio.
• Intention of global majors to minimise the reliance on China gives existing chemical intermediate players in 🇮🇳 new opportunities.
Risks -
• Volatility in raw material costs.
• DNL is exposed to some exchange rate risk, because of increasing exports.
• Attributable to implementation of newer technologies & procedures, existing products are often at risk of becoming redundant.
• Volatility in raw material costs.
• DNL is exposed to some exchange rate risk, because of increasing exports.
• Attributable to implementation of newer technologies & procedures, existing products are often at risk of becoming redundant.
• Scarcity of sustainable energy sources. DNL primarily
relies on conventional fuels such as coal & furnace oil for power
generation.
relies on conventional fuels such as coal & furnace oil for power
generation.
Conclusion -
DNL is in business that can only grow in long term. The domestic market of India is huge & has tremendous potential to grow. As global companies look to diversify sourcing , the China +1 focus is set to be a major growth driver for the Co.
DNL is in business that can only grow in long term. The domestic market of India is huge & has tremendous potential to grow. As global companies look to diversify sourcing , the China +1 focus is set to be a major growth driver for the Co.
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