DCM Shriram to invest Rs1,000 crore in epoxy resin plant

The diversified agricultural company DCM Shriram plans to invest Rs 1,000 crore in the next few years to build a greenfield plant that will produce epoxy resin.

The Board of the company has given its chemical division permission to invest in epoxy and other value-added products as a means of expanding into advanced materials. Furthermore, their epichlorohydrin (ECH) factory in Jhagadia, Gujarat, is almost finished and should be active in the first quarter of the 2024–2025 fiscal year.

With essential raw materials like caustic and ECH already in its inventory, the company is well-positioned to penetrate the market for value-added and epoxy products. The company is already well-known in a number of industries, such as value-added (fenesta building systems-UPVC windows & doors), agri-rural, and chloro-vinyl.

Additionally, the extensive line of advanced materials products, which includes solvent cuts, hardeners, formulated resins, liquid epoxy resins, and reactive diluents, is ready to serve a variety of industries, including electronics, wind-blades, electric vehicles (EVs), electronics, fire-proofing, and lightweighting.

We remind, Shriram Fertilizers & Chemicals (SFC), a unit of DCM Shriram Ltd. and the third largest chlor-alkali producer in India, will use Topsoe’s ClearView solution for digitalizing its ammonia plant. The digital platform was operational in early 2022.

DCM Shriram Ltd is a diversified Indian conglomerate whose business portfolio spans across multiple sectors including Agri-business – Urea, Sugar, Ethanol, Farm Solution Business covering the entire range of inputs, R&D based Hybrid Seeds. Chlor-Vinyl Business – Caustic Soda, Chlorine, Aluminum Chloride, Calcium Carbide, PVC Resins, PVC Compounds, Power and Cement. And Value Added Business Fenesta Building Systems makes UPVC and Aluminium Windows & Doors. Chemicals is one of the company’s largest businesses and is expected to continue as one of the key growth drivers for the company, it said.

Furthermore, the company board of directors have inter-alia declared an interim dividend for the financial year 2023-24 on the paid-up equity share capital of the company, at 200 per cent (Rs 4 per equity share of face value of Rs 2 each). The record date fixed for the purpose of the said interim dividend shall be March 6, 2024.