News

DCM Shriram to acquire Hindusthan Specialty Chemicals for ₹375 croreThis marks DCM Shriram's entry into the advanced materials segment. Shares of DCM Shriram Ltd ended at ₹1,125, up by ₹20.65, or 1.87%, on the BSE.By Jomy Jos Pullokaran   June 12, 2025, 8:22:29 PM IST (Updated)2 Min ReadDiversified agri firm DCM Shriram Ltd on Thursday (June 12) announced that its board has approved the acquisition of 100% stake in Hindusthan Specialty Chemicals Ltd (HSCL) for ₹375 crore, marking its entry into the advanced materials segment.

The company will sign a definitive agreement for the transaction, which is subject to customary and regulatory approvals. The acquisition is seen as a strategic move to diversify and expand DCM Shriram’s presence in the chemicals space by leveraging potential synergies between HSCL’s product offerings and the company’s existing portfolio.

This acquisition builds on DCM Shriram’s earlier announcement in February 2024, committing ₹1,000 crore for the establishment of its epoxy and advanced materials business under the chemicals strategic business unit (SBU).

About HSCL

Hindusthan Specialty Chemicals, an unlisted subsidiary of Hindusthan Urban Infrastructure Ltd, operates a modern production facility at Jhagadia, Bharuch district, Gujarat.

Also Read: DCM Shriram Q4 Results: Profit jumps 52%, margin expands; ₹3.40 dividend declared

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 FY25, HSCL reported a turnover of over ₹274 crore, 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.

'Pivotal step'

Ajay Shriram, Chairman and 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."

Also Read: DCM Shriram CFO sees chemicals recovery boosting fourth quarter earnings

"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," he added

Shares of DCM Shriram Ltd ended at ₹1,125, up by ₹20.65, or 1.87%, on the BSE.

Also Read: Sugar business will be more profitable than chemicals this year: DCM ShriramContinue Reading(Edited by : Shoma Bhattacharjee)First Published: Jun 12, 2025 8:21 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsDCM Shriramshare market today