CEO’s Communique

Dear Stakeholders, I am glad to share with all of you the accomplishments of your Company during Fiscal Year 2019 as well as the progress towards its strategic plan. The year gone by has been memorable on several fronts. Not only did we demonstrate a robust all-around performance which surpassed our internal operational targets, but we also commissioned our mega-greenfield facility of Phenol and Acetone at Dahej, Gujarat, on November 1, 2018. This marks the successful culmination of a three-year project that had been meticulously planned and seamlessly executed. We have achieved capacity utilisation of over 80% in Phenol and Acetone since the commencement of operations, which is not a simple feat. In addition to high usage, the Company seamlessly managed a sophisticated logistics and distribution network which exhibits the depth of our operational preparedness.

Evolution and strategic direction

Those of you who know Deepak Nitrite’s (DNL) history would be aware that the origin of the company was based on the fact of desire to substitute imports and to adopt the ‘Make in India’ concept. The vision, which had first given shape with Sodium Nitrite and Sodium Nitrate nearly half a century ago and the commissioning of this Phenol and Acetone plant housed within Deepak Phenolics, marks the coming of a full circle for your Company.

Over the years, DNL has demonstrated its ability to add value by forward integration. It first understands and creates strong capabilities around basic chemical compounds. Later, it aims to elevate its operational excellence to their forward uses to deliver growth and capture more value by moving up the chain. We have done this earlier too to emerge as the only fully integrated producer of Fluorescent Whitening Agents. The addition of sizeable capacities for Phenol and Acetone within our fold opens up new avenues of growth for your Company, based on its strategy of value-added products by forward integration, which our country is currently importing.

Performance and operational excellence

During the year under review, we witnessed good progress in each of our Strategic Business Units, driven by a combination of management initiatives to grow these units and the ability to capitalise on opportunities arising from shifts in the global industry landscape. Today, I take pride in saying that your Company has worked hard to elevate its operational capabilities. This has been possible through the tireless efforts of all our associates to execute the business strategy devised by the management team and guided by our accomplished Board. Your Company has created a robust platform and invested in the right ingredients to ensure continued earnings momentum in the years ahead.

The focus, within DNL, has been to persevere in carefully selected products, elevate competencies and aspire for cost leadership. It creates an obsession towards enhancing operating efficiencies which are attained by optimising production processes through debottlenecking initiatives and re-evaluating the value chain on an ongoing basis to explore opportunities for backward integration. Our cost leadership position in key building blocks unlocks new avenues for growth such as new products, new customers and new markets. This enables us to scale our offerings by enhancing capacities through expansion, which further elevates our competitive positioning.

Environment and sustainability

As a signatory of Responsible Care, DNL assigns the highest importance to safety, environment, and health. Adherence to the most stringent pollution control norms at all of its manufacturing facilities supporting various initiatives in the areas of reduction in carbon footprints and energy efficiency enhancement to preserve and protect the environment. With this, we are not only delivering growth, but also building a stronger, more resilient company which can continue to grow sustainably.

I genuinely believe that Deepak Nitrite’s future is even brighter. We have multiple businesses driving our growth. We have unique capabilities that are becoming increasingly vital. We are serving customers that are benefiting from strong demand for their products. Our relationships, product innovations, consistent delivery of high-quality products and services are unlocking new opportunities. With a proven track record, hunger for growth, extensive product range, and capacities based on the latest technological innovations, amplified by committed employees, we are confident of surpassing more milestones, as we move ahead.

Last, but not the least, our pool of talent is our wealth which helps us propel our growth into the higher orbits. We highly appreciate and respect the value of our human resources. We continue to expand, nurture and retain our pool of human ability.

Thank you for being on this journey with us.

Best Regards,
Executive Director & Chief Executive Officer