DCM Shriram Ltd., a diversified conglomerate with businesses in Chemicals, Vinyl, Agri, and Building Materials, has announced Board approval to sign a definitive agreement for acquiring a 100% stake in four industrial salt-producing companies. The total deal value is ₹175 crore.
The strategic move aims to secure a stable and cost-efficient raw material supply for the company’s Chemicals Business. This division is a key pillar of growth and profitability within DCM Shriram’s diversified portfolio.
Expanding Production Footprint in Gujarat
The acquisition covers four salt works located in Gujarat’s coastal belt:
*M/s Manek Salt Works and M/s Shree Raj Salt & Chemical Works in Dahej, approximately 70 km from DCM Shriram’s Jhagadia (Bharuch) Chlor-Alkali Complex.
*M/s Devjagan Salt Farm Pvt. Ltd. and M/s Maruti Salt Farm Pvt. Ltd. in Jambusar, around 110 km from the same facility.
Together, these salt works span over 1,077 acres. They collectively produce 2.1 lakh metric tonnes (MT) of washed industrial salt per year, meeting nearly 13% of the company’s annual salt requirement.
Strengthening Backward Integration for Long-Term Growth
The acquisition marks a major step toward backward integration. It aligns with DCM Shriram’s focus on operational efficiency, self-reliance, and supply chain resilience. By securing direct access to a critical raw material, the company aims to optimize logistics costs and reduce supply risks. This move will also enhance value creation across its integrated chemical value chain.
Management’s Perspective
Ajay Shriram, Chairman and Senior Managing Director, and Vikram Shriram, Vice Chairman and Managing Director, stated, “Salt is a critical raw material for our Chemicals Business, and this acquisition will address a long-standing strategic vulnerability in our supply chain. With rising demand for industrial salt across multiple industries and increasing competition for coastal land from sectors such as renewables, securing access to these salt works at Dahej and Jambusar is both timely and forward-looking. The acquisition will ensure raw material security, optimize logistics costs, and strengthen our integrated chemical value chain.”
Positioning for a Sustainable Future
As per the press release, DCM Shriram is reinforcing its supply chain and expanding its resource base. The company continues to position itself for sustainable growth in India’s evolving chemical manufacturing landscape. The acquisition underscores the company’s proactive approach to building long-term competitiveness and resilience. It prepares DCM Shriram to meet rising market demand and raw material challenges.
