Deepak Nitrite Limited — Capital/Financing Update 2019

Jun 29, 2019

E

RESPONSIBLE

DNL/138/BSE/1035/2019

June 29, 2019

Departmentof Corporate Service

BSE Limited

Phiroze Jeejeebhoy Towers,

Dalal Street,

MUMBAI- 400 001

Dear Sir,

Scrip Code: 506401

Sub: Press release

Please find enclosed herewith copy[of][Press] release been issued by the Company.

Kindly take the same on your record.

Thanking you,

Yours faithfully, For Deepak Nitrite Limited

Encl.: as above

DEEPAK NITRITE LIMITED

CIN: L24110GJ1970PLC001735 Registered[&] Corporate Office:

Aaditya-I,[Chhani] Road, Vadodara-390[024.] Gujarat,[India.] Tel: +91 265 276 5200/3960200 | Fax: +91 2652765344 Investor Relations Contact: investor@ godeepak.com

www.godeepak.com

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Press Release

Deepak Nitrite creates a new growth platform by investing in a mega scale Petrochemical plant to make Phenol & Acetone Country to expect around[USS] 400[Mn.] import savings

Ahmedabad,29 June 2019: Deepak Nitrite, through its wholly owned subsidiary, Deepak Phenolics (DPL) achieves major milestone towards manufacture of Phenol and Acetone with average capacity utilisation of around 80% and having achieved peak capacity utilization of 100% during the last quarter of FY 2019 contributes INR 927 Cr. to consolidated turnover of INR 2,715 Cr. This mega, world-class plant is eight times bigger than all existing facilities and aligned with the Makein India initiative of Government of India, has capacity to manufacture 200,000 MTPA of Phenol and 120,000 MTPA ofits co-product Acetone and supported by capacity to manufacture 260,000[MT] of[Cumene] as captive consumption.

The project with capital investment of 1400Cr. has been successfully commissioned and operating since last quarter. This business alone brought in turnover of 1000Cr. and most importantly, annual import[substitution][of] phenol will now bring foreign exchange savings of USD[400Mn] to the Nation.

Speaking on Phenol milestone achievements, Mr. Deepak Mehta, C&MD, Deepak Nitrite & Phenolics said, “Our Phenol and Acetone and upcoming derivative projects are all -a step towards building India’s Chemical Security with import substitution. At full capacity and in long run we anticipate that Deepak Phenolics[will] save around[USS] 400[Mn.] in value of imports for the country. Besides, a large number of small and medium enterprises will also benefit due to local availability of Phenol and Acetone. Further, this will lead to quantum leap in Deepak Group revenue in the ensuing years,[while][additional] DPL turnover propelling consolidated quarterly revenue past the 1,000 Cr. markis just the beginning”

Phenol & Acetone find applications in various user industries, which form a part of GDP and infrastructure development in the country. With increased GDP and Government spending, demand of end user Industries product also increases. Earlier, availability of phenol in India was only around 22% of total demand, with our plant commissioning, supply has gone up by 80% Moreover, local availability of Phenol and Acetone is expected to boost the production of downstream intermediates, which will expand the overall market in the country. Phenol and Acetone marketis expected to grow at 8-10%, and has wide applications across industries, such as laminates, plywood, auto, foundry, pharmacy, agrochemicals, rubber chemicals, paints, resins.

The state-of-the-art, largest, loT enabled, with latest technology of KBR and Honeywell-uop (technology partner) Phenol/Acetone Plant located at Dahej (PCPIR zone) in the State of Gujarat, meeting 2/3of[India’s] demand has the lowest thermal footprint and 12.6 million + safe man hour

ff Respansitis[Care’]

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record. The plant, based on cutting-edge technology, is energy efficient and has transport safety and emergency response program[(TERP)] as part[of][advanced] logistic management system.

About Deepak Nitrite Limited

Ranked among Fortune Next 500 and recognized among the top 25 wealth creators by Fortune

Magazine, India, Deepak Nitrite [NSE[-] DEEPAKNTR,[BSE] - 506401] is acknowledged as one of the country's fastest growing chemical companies. It has a diversified portfolio of intermediates that caters to the laminates, coating, adhesives, laminates, auto, adhesives & paints, construction chemicals, dyes, pigments, agrochemical, pharmaceutical, plastics, textiles, paper, home and personal care segments in India and abroad. Its products are manufactured across six locations,

which areall accredited by Responsible Care.

Media contact:

Jaydip Chowdhury

Head - Corporate Affairs & Communications Deepak Nitrite Ltd.

jmchowdhury@godeepak.com

+91-7573949521

Safe Harbour

Someof the statementsin this document that are not historical facts are forward-looking statements. These forwardlooking statements includeour financial and growth projections as well as statements concerning our plans, strategies, intentions and beliefs concerning our business and the markets in which we operate. These statements are based on information currently available to us, and we assumeno obligation to update these statementsas circumstances change.

There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. These risks include, but are not limited to, the level of market demand for our services, the highlycompetitive market for the types of services that we offer, market conditions that could cause our customers to reduce their spending for our services, our ability to create, acquire and build new businesses and to grow our established businesses, our ability to attract and retain qualified personnel, currencyfluctuations and market conditions in India and elsewhere around the world, and other risks not specifically mentioned herein but those that are common toindustry.