DACL Fine Chem to acquire 50 acres in Andhra Pradesh for ₹40 crore chemical plant

DACL Fine Chem Limited, the wholly owned subsidiary of Diamines & Chemicals Limited, has taken a significant step towards expanding its manufacturing footprint by signing a binding term sheet to acquire nearly 50 acres of industrial land in Andhra Pradesh for ₹40 crore.

The proposed land acquisition is located at Auro Industrial Park in Kakinada and will pave the way for the establishment of a new chemical manufacturing plant. The investment reflects the company’s long-term strategy to enhance production capacity and strengthen its presence in India’s growing specialty chemicals sector.

According to the company, the land will be purchased from Kakinada SEZ Limited through a two-stage transaction valued at ₹40 crore. The first tranche involves ₹28 crore, while the remaining ₹12 crore will be paid under the second tranche, subject to final land measurement. Stamp duty and registration charges will be additional.

The agreement signed on June 29, 2026, remains valid until June 30, 2027, during which both parties are expected to negotiate and execute a definitive agreement detailing the final terms of the transaction.

The upcoming manufacturing facility is expected to support DACL Fine Chem’s future product expansion while improving operational flexibility. Although the company has not disclosed the production capacity or project timeline, the investment signals confidence in the long-term demand for chemical products across domestic and international markets.

Kakinada has steadily emerged as an important industrial destination due to its strategic location, port connectivity and well-developed industrial infrastructure. The availability of large industrial land parcels and access to logistics networks continue to attract investments from manufacturing companies across multiple sectors.

For Andhra Pradesh, the project further strengthens the state’s position as a preferred destination for industrial investments. The government has been actively promoting manufacturing through industrial parks, improved infrastructure and investor-friendly policies aimed at attracting large-scale projects.

The proposed chemical plant is also expected to contribute to regional industrial development by generating employment opportunities during both construction and operations while supporting the growth of ancillary industries in the region. Once completed, the facility is expected to become an important addition to DACL Fine Chem’s manufacturing network and support its long-term expansion plans.