DCM Shriram to acquire HSCL for Rs 3.75 bn to expand in advanced materials

Spread across a 43-acre GIDC plot, the plant is located just 3.5 km from DCM Shriram’s existing chemicals complex—offering seamless synergies for integration and growth.

DCM Shriram’s board has given the approval to sign a definitive agreement to acquire full ownership of Hindusthan Specialty Chemicals (HSCL) for Rs 3.75 billion. This move positions DCM Shriram for strategic expansion into the advanced materials segment, unlocking synergies with its existing chemicals portfolio, subject to regulatory and customary approvals.

HSCL, an unlisted subsidiary of Hindusthan Urban Infrastructure, operates a modern production facility at Jhagadia, Bharuch district, Gujarat. Spread across a 43-acre GIDC plot, the plant is located just 3.5 km from DCM Shriram’s existing chemicals complex—offering seamless synergies for integration and growth.

In FY 2024-25, HSCL reported a turnover of over Rs 2.74 billion, with a Liquid Epoxy Resin capacity exceeding 17,000 KTPA. Its advanced product portfolio includes liquid epoxy resins, hardeners, reactive diluents, solvent cuts, and formulated resins, catering to high-performance sectors such as aerospace, electronics, renewable energy, electric vehicles, defence, and composites.

Strategic vision: Leadership insights

In a joint statement, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said, “This acquisition is a pivotal step in our chemicals growth strategy and a catalyst for DCM Shriram’s entry into advanced materials. The advanced materials segment offers robust forward integration with our chlor-alkali platform, while positioning us at the intersection of India’s expanding presence in sunrise sectors like renewables, mobility, and aerospace.”

“We believe HSCL’s proven technology, strong customer base, and strategic location will provide a solid foundation to scale this business rapidly. This move aligns with our commitment to building a diversified and innovation-driven chemicals portfolio.”

This acquisition builds on DCM Shriram’s earlier announcement in February 2024, committing Rs 10 billion for the establishment of its Epoxy and Advanced Materials business under the Chemicals Strategic Business Unit (SBU).