The Dharamsi Morarji Chemical Company Limited (DMCC), established in 1919, was the first producer of Sulphuric Acid and Phosphate fertilizers in India. Over the years, the brand of the Company (“Ship”) came to be recognized as the quality standard for Single Superphosphate (SSP). Until recently, DMCC was known primarily as a fertilizer producer, with over 75% of revenue from SSP. As a strategy, DMCC structured itself to Speciality Chemicals. With focused Research and Development efforts, processes for downstream sulphur-based chemicals were commercialized. Simultaneously, the Marketing team engaged with customers in India and overseas to meet their requirements. Through a painful restructuring process, DMCC exited the manufacturing of fertilizers almost entirely. What is visible now is a culmination of efforts by the entire team: sustainable performance with zero dependence on Government policy, net foreign exchange earnings, and sales to over 25 countries in 5 continents.
Major Products manufactured by the company (Tons per Annum)
Borax Morarji Limited
Manufacturer of Boron based Chemicals
Borax Morarji Europe
GmbH - Duelmen, Germany
Marketing in Europe
Falcon Chemicals LLC
Manufacture of Speciality Chemicals & formulations for divers applications.
Kosan Industries Pvt. Ltd.
Manufacture of LPG and Industrial valves, regulators and accessories.
LPGas Equipment Pvt. Ltd.
Manufacture of packing material and LPG valves / regulators.
DMCC has nearly 100 years of experience in handling hazardous chemicals. Company’s proven ability to safely and responsibly handle hazardous chemicals has resulted in customers approaching the company as a preferred supplier of custom and toll manufacturing services. DMCC’s array of chemical processing equipment and process expertise can help to reduce cost and shorten product development cycle. Apart from manufacturing as per specifications given by customers, DMCC also undertakes toll manufacturing (where the customer supplies raw materials and process details) and process development. DMCC recognizes the need for confidentiality and non-disclosure agreement are adhered to.
With the installation of multipurpose manufacturing facilities in 2005, DMCC could cater to changing customer requirements, as well as low volume high value products. Dedicated manufactturing plants for regular products are based on continuous processes, while multipurpose plants are based on batch processes. Kilo-to-ton lots are available at short notice for seed marketing and application development. A wide temperature range, vacuum, and a different materials of construction are available. Several different unit operations are possible.
Some of the chemical reactions undertaken are:
DMCC undertakes those processes where in-house knowledge and expertise can give an edge to their customer, either in terms of cost or finished product characteristics. In most cases, norms established at customers laboratories are improved at the plant scale. While most of the Service business carried out by DMCC is still for sulphur and ethanol based chemicals, other processes are growing as well.
Major Equipment available at DMCC
- 100 ltrs. to 5000 ltrs. GLR with high vacuum distillation facility
- 500 ltrs to 10000 ltrs. SS-316 Reactor with distillation facility
- Steam and Oil heating GLR
- 24” to 48” SS and MSRL centrifuge
- HCl / SO3 scrubber connected with Glass-lined and SS-316 reactor
- Chilling Plant
- Steam ejectors and Vacuum pumps
- Fluidised Bed Dryers
- All Glass fractional distillation units
- PP/MSRL Neutsche Filters
- SS Sparkler Filters
- High Purity Liquid Chromatograph
- UV/VIS Spectrophotometer
- Gas Chromatograph
- Automatic Karl Fischer Titrator
- Brookfield Viscometer
- Auto Titrator
- Lovibond Nesseleriser with lighting cabinet
- Turbidity Meter
The main focus of DMCC is on Sulfur and Ethanol Chemistry. All products are based on processes developed by in-house R & D Division. DMCC is an ISO 9001:2008 company since 1997. It offers process design, engineering package, procurement assistance and commissioning of plants for the following products:
- Sulfuric Acid
- Single Superphosphate
- Alumina Sulfate
- Sulfamic Acid
- Dimethyl Sulfate
- Chlorosulfonic Acid
- High Energy Recovery from waste heat
- Low Operating Cost
- Low emissions
- Complete Automation
- DMCC has designed and commissioned over 50 Sulphuric Acid Plants from 50 TPD to 1350 TPD in India, Middle, Far-East and South Africa
- DMCC has designed and commissioned Single Super Phosphate Plants from 50 TPD to 1000 TPD
- Experience in designing building and operating plants
The company is in the process of setting up a sulphuric acid plant in Dahej and a multi-purpose plant for the manufacturing of boron chemicals and other chemicals in Dahej and Roha at a total capital expenditure of Rs. 50.00 crore. The project is supposed to be funded by a bank loan of Rs. 30.00 crore and company’s own contribution of Rs. 20.00 crore. The expansion will be a backward integration process for the company as sulphuric acid is the major raw material component. The multi-purpose unit is expected to commence operations in Q4 FY2019 while the sulphuric acid plant will start operations from Q1 FY2020.
Expansion at Roha Plant – Speciality chemicals planned to be produced at Roha (Tons per Annum)
Research & Development
The in-house Research & Development (R&D) team at DMCC focuses on three thrust areas –
- Improvement of current manufacturing process
- New product development
- New application for existing products
The R&D division is recognised by the council of Scientific and Industrial Research, Government of India. This recognition status is granted to only those companies having deep technical knowhow and process development ability, as well as adequate R&D infrastructure.
At the request of Customers, the R&D team takes up commercial process development and process troubleshooting covered by confidentiality agreements.
Diversified presence in domestic and overseas markets; established relationships with reputed customer base - DMCCL caters to pharma manufacturers, fertiliser manufacturers, agro-chemical manufacturers, dyestuff manufacturers, fabric manufacturers and paper mills in domestic as well as overseas markets. Over 76% of the company’s revenues are derived from sales in the domestic markets in FY2017, and the rest through exports. The company caters to players across different parts of the country with Gujarat being a major market. It primarily exports its products to the USA, Germany, Belgium, Indonesia, Turkey and Japan, among other countries. The USA continues to remain its key export market, contributing more than ~40% to export sales. The customer base of the company is diversified with its top three customers accounting for ~24% of total sales in 6M FY2018.
Expansion of the facility in Dahej to provide backward integration - The company is in the process of setting up a sulphuric acid plant in Dahej and a multi-purpose plant for the manufacturing of boron chemicals and other chemicals in Dahej and Roha at a total capital expenditure of Rs. 50.00 crore. The project is supposed to be funded by a bank loan of Rs. 30.00 crore and company’s own contribution of Rs. 20.00 crore. The expansion will be a backward integration process for the company as sulphuric acid is the major raw material component. The multi-purpose unit is expected to commence operations in Q4 FY2019 while the sulphuric acid plant will start operations from Q1 FY2020.
Proximity to raw material sources - DMCCL’s manufacturing facilities are located at Dahej, Gujarat and Roha, Maharashtra. Dahej is a chemical zone with a large number of small and medium-sized chemical companies. DMCCL procures its key raw materials of sulphur, benzene, caustic lye, ethanol, borax, naphthalene products, etc., from domestic and international markets. The raw materials are imported after considering the requirements, the prevailing cost in the market and the exchange rate. Most of the domestic raw material suppliers are located in the vicinity of DMCCL’s factories, thereby ensuring availability of raw materials within seven to ten days of order placement, which ensures uninterrupted production. Going forward, with expansion of the unit in Dahej, the company expects to have a significant control in the prices of raw materials.
Intense competition due to several players in the organised sector and unorganised sector - DMCCL is exposed to competition from relatively larger players, both in India and in other countries. There are relatively larger players in the industry which provide a wider range of products and pose as competitors to DMCCL. There are also numerous small players who operate in the unorganised sector. However, the high entry barriers in the industry in terms of quality, chemicals usage, pollution controls and approval, and preferred supplier status by end-user industries provide a competitive advantage to the incumbents.
Vulnerability of profitability to raw material price fluctuations and limited pricing flexibility - The major raw materials used in the manufacturing of the chemicals are sulphur, benzene, caustic lye, ethanol, borax, boron minerals and naphthalene products. The company’s operations and profitability are vulnerable to any adverse fluctuations in the raw material prices. The company generally receives orders on a monthly basis and it revises the prices of its products on a quarterly basis, thereby mitigating this risk to some extent. Going forward, the company’s ability to pass on any fluctuations in the raw material prices to the customers will be critical in maintaining the profitability at steady levels.
In FY2017, the company reported a net profit of Rs. 17.33 crore on an operating income of Rs.189.75 crore, as compared to a net profit of Rs. 11.97 crore on an operating income of Rs.107.60 crore in the previous year.