In a significant move to expand its chemicals portfolio, DCM Shriram Ltd has received board approval to enter a definitive agreement to acquire full ownership of Hindusthan Specialty Chemicals Ltd (HSCL) for ₹375 crore. The acquisition marks a strategic entry into the Advanced Materials segment and is subject to regulatory and customary approvals.
Strengthening Presence in Advanced Materials
HSCL, currently an unlisted subsidiary of Hindusthan Urban Infrastructure Ltd, operates a state-of-the-art production facility in Jhagadia, Gujarat. Located just 3.5 km from DCM Shriram’s existing chemicals complex, the 43-acre GIDC site presents strong operational synergies and integration opportunities.
The acquisition enhances DCM Shriram’s ability to diversify into high-performance materials. These are increasingly in demand across aerospace, electronics, renewable energy, electric vehicles, defence, and composites sectors.
Robust Product Portfolio and Capacity
For FY 2024-25, HSCL reported a turnover of over ₹274 crore. Its Liquid Epoxy Resin capacity exceeds 17,000 KTPA, supported by a robust portfolio that includes:
*Liquid epoxy resins
*Hardeners
*Reactive diluents
*Solvent cuts
*Formulated resins
These products cater to emerging industries demanding high-quality and specialized chemical inputs.
Leadership Vision and Strategic Alignment
In a joint statement, Ajay Shriram, Chairman and Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, emphasized the acquisition’s alignment with DCM Shriram’s long-term strategy. “This acquisition is a pivotal step in our chemicals growth strategy and a catalyst for our entry into advanced materials,” they said.
“The segment offers strong forward integration with our chlor-alkali platform and positions us at the intersection of India’s rising presence in sunrise sectors like renewables, mobility, and aerospace.” They further noted that HSCL’s proven technology, loyal customer base, and strategic location offer a solid foundation for rapid business scale-up, reinforcing the company’s commitment to innovation and growth.
Part of a Larger Investment Roadmap
The acquisition follows DCM Shriram’s earlier ₹1,000 crore investment commitment announced in February 2024. The investment aims to establish its Epoxy and Advanced Materials business under the Chemicals Strategic Business Unit (SBU). As per the press release, DCM Shriram’s acquisition of HSCL accelerates its strategic roadmap. It also reinforces the company’s position as a forward-thinking leader in India’s evolving chemical and materials landscape.
