Deepak Nitrite to focus on exports

The Vadodara-based Deepak Nitrite Ltd (DNL), the flagship of the Deepak Group, has outlined its plan to increase the export business.

DNL has decided to concentrate on process optimisation to supply right quality of chemical products at right price.

DNL, manufacturer of inorganic intermediates, organic intermediates and fine and specialty chemicals has registered a growth of about 44 per cent in last fiscal year. Of the total turnover over Rs 290 crore, revenue from exports stood at Rs 112 crore.

Deepak Mehta, managing director of DNL said: "As a plan we will focus on the optimisation of process by working on development of efficient process.

"We are not in hurry to go for patents, in fact we want an upper hand in the process of recent off-patent products. However, we will continue with the research work to find new formulations," he added.

DNL has established state-of-the-art research and development (R&D) facility and a pilot plant in Pune.

"International buyers normally demand the lab trials and commercial trials before moving ahead for actual commercial production. The established pilot plant, which can produce particular chemical product in few tonnes will enable us to fulfill the need of international clientele," said Suresh Gore, president of DNL.

"The installation of pilot plant along with R&D facility in Pune will enable us to provide techno-commercial solutions rather than mere technological solutions to the customers," said Gore.

DNL aims future growth to come from the products that will go off-patent in the next 3-5 years. "There will be even bigger demand of intermediates from the western countries including the US and the UK.

"Our strength lies in pharmaceuticals, agriculture and pigments. We will make our position stronger in international market with long-term manufacturing contracts," said Mehta.

DNL has a number of long-term manufacturing contracts from the US and European countries.

"Long-term manufacturing contracts develops complimentary relationship between the parties involved in trade. Absence of middleman decreases response time for the manufacturer as well as it is easier to work cost effectively as inventory management becomes cost effective," said Mehta.

At present, DNL has no plan to establish manufacturing and marketing network abroad. The company is in the process of upgrading its manufacturing facility at Nandesari, Vadodara.