Chimanlal K Mehta, founder and chairman of the chemical manufacturing company Deepak Nitrite, passed away on Monday. Mehta was a first-generation entrepreneur who founded Deepak Nitrite in 1970 using his trading and manufacturing expertise. He led the company’s board of directors and provided broad strategic direction.
Hailing from Amreli, Gujarat, the humble origins of Mehta kept him deeply connected to the common man. Deepak Nitrite’s initial public offering (IPO) in 1971 was oversubscribed by 20 times. According to the company’s website, “he is a well-known and trusted name in the chemical industry due to his extensive trading operations.” Deepak Nitrite’s first IPO was a huge success because of this trust. It was oversubscribed by 20 times even before the company began manufacturing.”
Deepak Nitrite’s impressive share price returns of 56 per cent compound annual growth rate (CAGR) over the last 10 years, resulting in an 85x increase in value, is indeed remarkable. This performance has made Deepak Nitrite a phenomenal wealth creator for many investors.
Deepak Nitrite made a profit within two years of manufacture in 1972-73. Mehta also played an important role in launching numerous corporate social responsibility (CSR) programmes and creating the Deepak Foundation.
Deepak Nitrite acquires Mafatlal Industries’ Sahyadri Dyestuffs and Chemicals unit in 1984. In 1995, the business developed a hydrogenation factory in Taloja, Maharashtra. Deepak Nitrite also took over the management and control of Aryan Pesticides Limited, Roha, and Vasant Chemicals’ DASDA Division in Telangana in 2003 and 2007, respectively.
Deepak Phenolics Limited was established in Gujarat in 2015 to manufacture phenol and acetone. Deepak Phenolics is a Deepak Nitrate subsidiary that produces pharmaceutical-grade isopropyl alcohol (IPA) and acetone.
The company currently has operations in Gujarat’s Nandesari and Dahej, Maharashtra’s Taloja and Roha, and Telangana’s Hyderabad. Deepak Nitrite manufactures chemicals such as agrochemicals, colourants, rubber, pharmaceuticals, speciality and fine chemicals and has a product portfolio of over 100 products.
The company has recently profited from the government’s attempts to encourage local chemical producers. Deepak Mehta is the company’s chairman, while his son, Maulik Mehta, is the CEO.