DCW announced a strategic investment programme of approximately ₹250 crore, marking the first phase of its next growth cycle. The company will use the investment to expand its Synthetic Iron Oxide Pigment (SIOP) capacity, develop value-added pigment products and strengthen captive power infrastructure at its Sahupuram manufacturing complex. The programme reflects DCW’s continued shift towards higher-value chemical businesses while supporting its long-term growth strategy.
SIOP Capacity to Rise to 45,000 TPA
As part of the expansion, DCW plans to increase its SIOP production capacity by 50%, from approximately 30,000 tonnes per annum (TPA) to 45,000 TPA through a phased investment programme. The expansion follows record SIOP sales volumes in FY26, when the business operated effectively at full capacity. By adding capacity, DCW aims to meet growing demand in both domestic and international markets. The company expects the expansion to benefit from a sizeable global iron oxide pigments market and diversified demand across multiple end-use industries.
Global Iron Oxide Pigments Market Offers Growth Potential
Recent industry estimates value the global iron oxide pigments market at approximately US$2.5–2.7 billion in 2025. The market is projected to reach around US$3.9 billion by 2033, representing a compound annual growth rate (CAGR) of approximately 4.6%. Meanwhile, Asia-Pacific remains the largest regional market, accounting for approximately 41.5% of global revenue in 2025. This market outlook provides a favourable backdrop for DCW’s planned SIOP capacity expansion.
Focus Shifts Towards Value-Added Chemicals
The investment programme builds on DCW’s multi-year transition towards higher-value specialty chemicals. Between FY21 and FY25, the company’s Specialty Chemicals segment recorded a 26% CAGR, while Specialty Chemicals EBITDA in FY25 reached 1.9 times FY21 levels. Over the past five years, Specialty Chemicals have also become a major contributor to DCW’s profitability. Consequently, the business has developed a more resilient earnings base and reduced its exposure to fluctuations in Basic Chemicals.
Pigment Grades to Expand Product Portfolio
In addition to increasing production capacity, DCW plans to introduce new value-added SIOP grades. These products will broaden the company’s portfolio and help it address higher-value applications and evolving customer requirements. The company had previously indicated that its SIOP product development strategy would increasingly focus on value-added grades alongside volume expansion.
Captive Power Investment to Improve Efficiency
DCW will also invest in captive power infrastructure at Sahupuram. The initiative aims to improve energy efficiency and strengthen the cost competitiveness of both its Basic Chemicals and Specialty Chemicals businesses. The company enters this investment cycle with a stronger balance sheet and is expected to become net cash positive by the end of FY27, before taking on additional leverage for the proposed capital expenditure. As reported by business-standard.com, the investment programme combines capacity expansion, product development and energy infrastructure improvements to strengthen DCW’s specialty chemicals platform and support its next phase of growth.
