Deepak Nitrite commissions ₹300 crore chemicals plant

Deepak Nitrite Limited (

) has commissioned manufacturing operations at its Chlorination & Specialty Chemicals facility in Gujarat through its subsidiary Deepak Chem Tech. The company has incurred approximately ₹300 crore of capex on the project. Your view The key development is commercial commissioning rather than just a capex announcement. The new facility expands Deepak Nitrite's specialty-chemicals manufacturing footprint. The next numbers I would watch are utilisation, product volumes, margins and the pace at which the new capacity contributes to consolidated earnings. The project also needs to be evaluated against the company's overall capital expenditure and return on capital. Disclosure: I do not hold any position or have any interest in Deepak Nitrite Limited as of the time of posting.