Deepak Nitrite buys AP co for Rs 55 cr

PUNE.: Deepak Nitrite (DNL) has acquired the Di Amino Stilbene Disulphuric Acid (DASDA) manufacturing capacities of Hyderabadbased Vasant Chemicals for Rs 55 crore,.ermed a slump sale, i.e., of a profitable and going business, the acquisition will make the VSL facility a division of DNL.

It is expected to be named the Hyderabad Specialities division of DNL, Deepak C Mehta, managing director, DNL, told reporters.

DASDA is used in the manufacture of optical brightening agents used primarily by the paper, textile and detergent industries. For the Rs 350 crore DNL, the acquisition is a forward integration of its nitro-toluene business, which is an ingredient in the manufacture of DASDA. DNL was a supplier of nitro toluene to VSL.

“The acquisition will add to DNL’s basket of products since we supply to niche sectors like agro chemicals, pharma, colour and dye stuff industries. This will add another few segments to our basket besides de-risking our business,” Mr Mehta explained.