DCM Shriram Limited signed a definitive agreement with Serentica Renewables India Pvt. Ltd. to develop a 58 MW peak hybrid renewable energy project for its energy-intensive chemical operations in Bharuch, Gujarat. The project represents a major step in the company’s strategy to increase the use of renewable energy and strengthen the sustainability of its manufacturing operations.
Renewable Energy Capacity to Reach 176 MW
Once the new project is commissioned, DCM Shriram’s total renewable energy capacity will increase to 176 MW (peak) across its facilities in Bharuch and Kota. As a result, the company will significantly expand its clean energy base and reduce dependence on conventional power sources. The hybrid renewable energy project is expected to become operational by June 2027.
Investment and Equity Participation
DCM Shriram Limited will invest up to Rs. 105 crores in one or more tranches. In return, the company will acquire a minimum 26% equity stake in Serentica Renewables India Pvt. Ltd. This investment will not only secure access to renewable power but also provide DCM Shriram with a strategic partnership in the development of the project.
Focus on Sustainability and Cost Efficiency
Sabaleel Nandy, Executive Director & CEO, DCM Shriram Chemicals, said the agreement marks an important milestone in increasing the share of renewable energy used in the company’s chemical operations at Bharuch. “The project is expected to help avoid nearly 0.4 million tonnes of CO₂ emissions annually while increasing the share of renewable power. In addition, since power is one of the most significant input costs, the project will improve cost efficiency, provide better visibility into long-term power costs and reduce exposure to fluctuations in conventional energy prices.” Through this initiative, DCM Shriram aims to enhance both environmental performance and operational efficiency.
Serentica to Supply Renewable Power from Solar and Wind Sources
Akshay Hiranandani, CEO, Serentica Renewables, highlighted that the partnership supports India’s industrial decarbonization efforts. “Our partnership with DCM Shriram Chemicals marks another significant step in advancing India’s industrial decarbonization journey. Through a 190 MW renewable energy project comprising solar power from Rajasthan and wind power from Karnataka, we will supply 58 MW renewable power to the DCM Shriram Chemicals Bharuch plant, enabling reliable and sustainable energy for its operations,” mentioned Hiranandani. The renewable power supplied to the Bharuch facility will be generated through a combination of solar energy from Rajasthan and wind energy from Karnataka, ensuring a stable and diversified green power source.
Strengthening the Renewable Energy Portfolio
The agreement further strengthens DCM Shriram Chemicals’ renewable energy portfolio and supports the long-term energy requirements of its Bharuch operations. Moreover, the project is expected to contribute significantly to the company’s goals of improving energy efficiency, lowering greenhouse gas emissions and building a more resilient manufacturing base. As per the press release, by expanding its renewable energy footprint, DCM Shriram continues to align its operations with India’s broader clean energy transition while enhancing the sustainability of its chemical manufacturing business.
