India’s DCM Shriram to acquire specialty chemicals maker HSCL

MUMBAI (ICIS)–India’s DCM Shriram plans to acquire specialty chemicals producer Hindusthan Specialty Chemicals Ltd (HSCL) for Indian rupees (Rs) 3.75 billion ($44 million).

“This move positions DCM Shriram for strategic expansion into the advanced materials segment, unlocking synergies with its existing chemicals portfolio,” the company said in a disclosure to the Bombay Stock Exchange (BSE) on 12 June.

The acquisition of HSCL is expected to be completed by September, it added.

HSCL has a facility at Jhagadia in the western Gujarat state which is located close to DCM Shriram’s existing chemicals complex. This will allow for quick integration and growth, DCM said.

Apart from a 17,000 tonne/year liquid epoxy resin unit, HSCL also produces reactive diluents, hardeners, formulated resins and other products used in the aerospace, electronics, renewable energy, electric vehicles and defence sectors at the site.

“This acquisition is a pivotal step in our chemicals growth strategy and a catalyst for DCM Shriram’s entry into advanced materials, which 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,” DCM Shriram chairman and managing director Ajay Shriram said.

DCM Shriram is a chlor-alkali producer in India with a combined production capacity of nearly 1 million tonnes/year at Jhagadia in Gujarat, and Kota in Rajasthan.

In February 2024, the company had announced plans to invest Rs10 billion to set up a greenfield epoxy resins manufacturing plant.

Separately, the company expects to begin operations at its 51,000 tonne/year epichlorohydrin (ECH) plant soon, a company source said.

“The commissioning of the ECH plant has been delayed due to an issue in one of the equipment and was addressed by our technology suppliers,” he said.

The ECH plant will be commissioned in phases, with the first phase of operations expected to begin this month, the company source said.

($1 = Rs86.05)