DACL Fine Chem Commits ₹500 Crore for Strategic Specialty Chemical Hub in Kakinada

Strategic Industrial Expansion in Andhra Pradesh

In a move to strengthen India's chemical manufacturing capacity, DACL Fine Chem Limited— a subsidiary of the Gujarat-based Diamines and Chemicals Limited—is set to invest ₹500 crore into a new production facility. The company secured its position within the Kakinada Special Economic Zone (KSEZ) through a formal Memorandum of Understanding signed in Hyderabad on June 29. The site will occupy 50 acres of the sprawling coastal industrial park.

Economic Impact and Global Trade

The facility focuses on the production of high-value specialty chemicals, performance chemicals, and chemical intermediates. By targeting both domestic markets and international exports, the project seeks to establish Kakinada as a primary hub for advanced manufacturing. Beyond industrial output, the initiative is expected to provide significant labor benefits to the region through:

• Direct hiring for technical and administrative roles.
• Indirect employment generated via local supply chains and service providers.
• Infrastructure development within the 6,000-acre KSEZ coastal corridor.

Operational Leadership and Regional Vision

The agreement was formalized by Amit Mehta, Chairman of DACL Fine Chem Limited, and Ram Reddy Ojili, Managing Director and CEO of KSEZ Limited. During the event, Ojili noted that the entry of DACL Fine Chem aligns with the broader development goals of KSEZ, which currently hosts diverse industries including pharmaceuticals, food processing, engineering, and clean energy. The project represents a major step in the ongoing transformation of the Kakinada coast into a concentrated center for high-value industrial production.

Source: The Hindu — National