DEEPAK Nitrite Ltd (DNL), the flagship company of Rs 800 crore Deepak Group of companies, is planning to introduce new speciality chemicals for the electronic imaging industries in India. This is the first time an Indian company has taken such an initiative, as there are only two companies in Europe, two in the US and three in Japan which manufacture these products.

"The company has already started marketing a similar product called 'demap' and will be launching two different amines. The company is in constant endeavour to concentrate on its R&D Centre in Pune. We are also looking forward to fine chemicals and intermediates for the futuristic agrochemicals that are coming up," DNL managing director DC Mehta told The Financial Express.

"We hope we will be the market leader in the market of speciality chemicals and we would come up with chemicals comparable to the Japanese manufacturers. We are adapting to the changes made world-wide in the chemical industry. We foresee our government changing the policy. Therefore, we are in constant endeavour to move away from the intermediates to the fine chemicals," said Mr Mehta.

As of now, due to the rise in commodity price, fine chemicals are not getting the benefit it deserves to get. "Though this is a recessionary phase in fine chemicals, we hope the scenario will change soon. We are laying stress on exports since about 30 percent of our production is exported,” he added.

The company plans to double exports by 2003. In the year 1999-2000, the company had exported Rs. 42.5 crore on a turnover of Rs 177.5 crore — which is 13.4 percent higher than the previous year's - Rs 37.5 crore on a total income of Rs 162.92 crore. The company is constantly investing in research and development. Last year, the company had invested around Rs 4 crore.

Due to the stringent market conditions this year, the company will invest around Rs 2 crore in R&D, and another Rs 4 crore in the subsequent year.

Mr Mehta said that the company's investments in R&D will enable it to develop new technologies and molecules having multipurpose uses and acceptability.

"We are investing in knowledge rather than plant and machinery," he added. The company has also initiated an academia-industry interaction with bodies like Mumbai’s University Department of Chemical Technology, the National Chemical Laboratory in Pune, and Indian Institute of Chemical Technology in Hyderabad.