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Deepak Fertilisers is planning to more than double its fertiliser production capacity to 6 lakh tonnes (LT) per annum from the present 2.29 lakh tonnes at Taloja in Maharashtra.
"We are looking forward for brownfield expansion at Taloja in Maharashtra and have appointed consultants for the purpose," a senior official of the company told PTI.
The Pune based fertiliser and petrochemicals company is expecting an investment of Rs 400 crore- 500 crore for the brownfield expansion.
"Investment for this expansion could range from Rs 400 crore to Rs 500 crore. But better cost estimates will be available after the consultants complete their studies," the official added.
Company's Chairman and Managing Director Sailesh C Mehta had also hinted at the expansion in his statement after declaration of the second quarter result.
"The company has already embarked on expanding its fertiliser manufacturing facility, it is also evaluating various options in the chemicals space," Mehta had said in the statement.
The company posted a 11.8% increase in net profit at Rs 45.44 crore for the second quarter ended September 30, on higher income.
In July this year, the company had acquired 24.46% stake in the Vijay Mallya's UB group firm, Mangalore Chemicals Fertilisers Limited, for about Rs 180 crore
The company mainly produces nitro phosphate fertilisers and has presence in agri business, mining chemicals, industrial chemicals and value added real estate.
