The Pune-based Deepak Nitrite Ltd (DNL), the flagship company under the Deepak Group, plans to leverage on its newly acquired Aryan Pesticides Ltd for introduction of new speciality chemicals. The company has decided to focus on speciality chemicals, which is a major contributor to its export business.

DNL managing director DC Mehta said, "Being a leader in the domestic market, we have set our sight beyond Indian shores. Our constant endeavour is to focus on exports, which will help the company not only in increasing topline growth, but also to become a multinational player."

"Our export business gives us multiple advantages. It helps us to hedge against depreciation. Since we are benchmarking with the multinationals, we have to constantly upgrade our products in accordance with the global standard."

"With our R&D initiatives, we are gradually moving from Product expertise to process expertise. We are constantly moving up the value-chain by focussing on fine chemicals from intermediates. This gives us resilience in term of competition in the international market.

"Also, our export business has helped to reduce our borrowings, by bringing down the net cost of borrowlng to the normal banking levels," he said. The company has completed all the post-acquisition procedures of Aryan Pesticides Ltd, which has now become a wholly-owned subsidiary of DNL. It is India's largest manufacturer of paracumidine and the only manufacturer of xylidines. It complements DNL’s core strengths by offering in-batch nitration, cholorination, alkoxylation and hydrogenation. It is also poised to become a major launching pad for custom manufacturing of specialised new products.

Despite lacklustre market conditions and general down turn in the economy, DNL has posted a higher turnover of Rs 214.55 crore for the year 2001-02 as compared to Rs 201.77 crore in the previous fiscal. Export growth of 14.61 percent has significantly contributed towards the increase in turnover. The net profit stood at Rs 7.90 crore, as compared to Rs 10.23 crore, which included Rs 7.46 crore for sale of the commercial premises.

Mr Mehta said, "The company managed to register significant growth in operating profits due to efficient energy management, improved operational efficiencies and favourable raw material prices. Concerted efforts have been taken to bring down the operating cost by around 10 percent.