Diamines & Chemicals Plans New Chemical Plant in Andhra Pradesh; Shares Slip

Mumbai, June 29: Diamines & Chemicals Ltd is taking the next step in expanding its manufacturing footprint after signing a binding term sheet to acquire nearly 50 acres of industrial land in Andhra Pradesh for a proposed chemical plant.

The company has entered into the agreement with Kakinada SEZ Ltd, its wholly owned subsidiary, to purchase freehold land at Auro Industrial Park, Kakinada. The acquisition will be carried out in two phases, with the first tranche valued at ₹28 crore and the second at ₹12 crore, subject to final land measurement. Stamp duty and registration charges will be over and above the purchase consideration.

The binding term sheet will remain valid until June 30, 2027, giving both parties time to negotiate and execute the final agreement.

Rather than adding capacity immediately, the acquisition secures the land required for the company’s next manufacturing project. Diamines said the site will be used to establish a new chemical plant as it prepares for future growth in its chemicals business.

The company added that the transaction is not a related-party deal under SEBI regulations.

Stock Market Snapshot

Investors largely shrugged off the announcement during Monday’s session.

As of 3:52 PM IST on June 29, 2026, the Diamines & Chemicals share price stood at ₹239.89, down ₹1.07 or 0.44% from the previous close.

Although the proposed acquisition signals an expansion of the company’s manufacturing base, the market appeared to remain on the sidelines, with investors awaiting further details on the project’s investment outlay, execution schedule and eventual commissioning.

Company Background

Diamines & Chemicals manufactures specialty chemicals used across a range of industrial applications. Over the years, the company has focused on expanding its manufacturing capabilities to meet growing demand and strengthen its presence in the specialty chemicals market.

The proposed Kakinada facility is expected to become part of that expansion strategy once the land acquisition is completed and construction begins.

Conclusion

The proposed land purchase lays the foundation for Diamines & Chemicals’ next phase of manufacturing expansion. While the immediate market reaction remained subdued, the acquisition provides the company with the space required to develop a new production facility, making future project milestones and execution updates key triggers for investors.

Source:

• https://www.nseindia.com/get-quote/equity/DIAMINESQ/Diamines-&-Chemicals-Limited
• https://nsearchives.nseindia.com/corporate/DIAMINES_29062026144849_SE_Termsheet_Land_purchase_DFCL_signed.pdf