DCM Shriram has announced plans to acquire a 100 per cent stake in Hindusthan Specialty Chemicals (HSCL) for Rs 3.75 billion, marking its foray into the advanced materials segment. The board approved the transaction on June 12.
The acquisition aligns with the company鈥檚 strategy to expand its footprint in the chemicals sector by leveraging synergies between HSCL鈥檚 portfolio and DCM Shriram鈥檚 existing operations. A definitive agreement will be signed, subject to customary and regulatory clearances.
In February 2024, DCM Shriram had earmarked Rs 10 billion for developing its epoxy and advanced materials business under the chemicals strategic business unit.
HSCL, an unlisted subsidiary of Hindusthan Urban Infrastructure, operates a 43-acre manufacturing facility at Jhagadia in Gujarat鈥檚 Bharuch district. Located 3.5 km from DCM Shriram鈥檚 existing chemicals complex, the site offers potential for operational integration.
In FY25, HSCL posted a turnover of over Rs 2.74 billion and has a liquid epoxy resin capacity of more than 17,000 KTPA. Its portfolio includes liquid epoxy resins, hardeners, reactive diluents, solvent cuts, and formulated resins used in aerospace, electronics, renewable energy, electric vehicles, defence, and composite sectors.
DCM Shriram鈥檚 leadership termed the acquisition a strategic milestone in its chemicals growth plan, enabling forward integration with its chlor-alkali platform and tapping into opportunities in emerging sectors such as renewables, mobility, and aerospace.
News source: CNBC TV18
