DCM Shriram embarks on advanced materials venture with focus on epoxy production
In a significant move towards diversifying its chemicals business, DCM Shriram Ltd has announced its foray into the advanced materials sector, with a particular focus on epoxy and value-added products. The Board of Directors, during their recent meeting, has given in-principle approval for this strategic entry, earmarking an investment of INR 1000 crores to establish a greenfield epoxy manufacturing plant.
This venture is poised at the cutting edge of material science, tapping into the growing demand for advanced materials across various industries. The company’s decision is underpinned by its upcoming Epichlorohydrin (ECH) plant in Jhagadia, Gujarat, which is in the final stages of completion and slated for commissioning in the first quarter of 2024-25. ECH, a crucial raw material, finds over 80% of its application in epoxy production, positioning DCM Shriram strategically in the value chain.
Chairman & Senior Managing Director Ajay Shriram, and Vice Chairman & Managing Director Mr. Vikram Shriram, in a joint statement, expressed optimism about this new venture, stating, “We are bullish about the overall prospects of the Chemicals Business and this entry into the Advanced Materials space. We already have some of the key raw materials like ECH and caustic in our portfolio which paves a logical way forward into the epoxy and value-added products.”
The advanced materials portfolio, including liquid epoxy resins, hardeners, solvent cuts, reactive diluents, and formulated resins, is anticipated to find applications in burgeoning sectors such as wind-blades, electric vehicles (EVs), aeronautics, electronics, fire-proofing, and light-weighting industries. India is emerging as a preferred market for both domestic and international consumption of these products, driven by technological advancements and increased focus on sustainable and innovative materials.
DCM Shriram Ltd’s entry into the advanced materials domain is not just a strategic expansion but also a testament to the company’s commitment to participating in India’s growth story by remaining alert to opportunities in the chemical industry and its adjacencies. This move is expected to enhance DCM Shriram’s product offering, leveraging its existing capabilities and infrastructure to meet the evolving needs of the market.
As DCM Shriram Ltd navigates this new venture, the industry watches closely, anticipating the impact of this expansion on the company’s growth trajectory and its contribution to the advanced materials sector. The investment in epoxy production is a bold step towards innovation, sustainability, and leveraging India’s potential as a hub for advanced materials, marking a significant milestone in DCM Shriram’s journey.