Deepak Mehta Thrives On Import Substitution

Timely bets on phenolics, chem-tech products help Deepak Nitrite stay ahead of the curve.

- P.B. Jayakumar

DEEPAK NITRITE chairman and managing director Deepak C. Mehta knows when to make moves in business. Since 1972, the company has been the leading producer of sodium nitrite, used in industrial applications, food additives, dyes, pigments and pharmaceuticals. It is among the world’s top three makers of fine speciality chemical products like xylidines, cumidines and oximes that are widely used in agrochemicals and pigments. However, until 2018, revenues were flat in the ₹2,500-3,500 crore range. Markets also had little interest in its shares.

Things changed in 2016 when Mehta floated a subsidiary, Deepak Phenolics, to diversify into phenol (used in plywood, laminates, foundry resins, paints, rubber, surfactants, pharmaceuticals and agro-chemicals), solvents acetone and isopropyl alcohol, used in pharmaceutical, paint, adhesive, rubber and chemical industries. Before Deepak started making phenol and acetone, India had only 20,000-30,000 tonnes per annum capacity and much of the two lakh tonne demand was met through imports.