DCM Shriram bets on advanced material segment; to acquire Hindusthan Specialty Chemicals for ₹375 crore

The acquisition of the unlisted subsidiary of Hindusthan Urban Infrastructure Ltd is subject to regulatory and customary approvals, DCM Shriram said in a statement.

HSCL operates a production facility in Jhagadia, Bharuch district, Gujarat, spanning 43 acres and located 3.5 km from DCM Shriram's existing chemicals complex. The proximity is expected to create operational synergies, it added.

The target company reported revenue of over ₹274 crore in 2024-25, with liquid epoxy resin capacity exceeding 17,000 tonnes per annum. Its product portfolio includes liquid epoxy resins, hardeners, reactive diluents, solvent cuts, and formulated resins for the aerospace, electronics, renewable energy, electric vehicles, defence, and composites sectors.

"This acquisition is a pivotal step in our chemicals growth strategy and a catalyst for DCM Shriram's entry into advanced materials," its Chairman and Senior Managing Director Ajay Shriram and Vice Chairman & Managing Director Vikram Shriram said in a joint statement.

The deal builds on DCM Shriram's February 2024 commitment to invest ₹1,000 crore in establishing its Epoxy and Advanced Materials business under its Chemicals Strategic Business Unit.

On Thursday, shares of DCM Shriram tumbled 3.32% on the National Stock Exchange to close at ₹171.45 apiece.

The company reported a 52% increase in its consolidated net profit to ₹178.91 crore for the quarter ended March on higher income. Its net profit stood at ₹117.80 crore in the year-ago period.

Total income rose to ₹3,040.60 crore in the quarter under review of the last fiscal year from ₹2,555.23 crore in the corresponding period of the preceding year.

During the 2024-25 fiscal year, the company's net profit increased to ₹604.27 crore from ₹447.10 crore in the preceding year. Total income rose to ₹12,883.46 crore in the last fiscal year from ₹11,529.83 crore in 2023-24.

The business portfolio of DCM Shriram spans across multiple sectors, including the Agri-Rural Business – Urea, Sugar, Ethanol, Farm Solution Business covering the entire range of inputs, and R&D-based Hybrid Seeds. Chloro-Vinyl Business – Caustic Soda, Chlorine, Aluminium Chloride, Calcium Carbide, PVC Resins, PVC Compounds, Power and Cement. And Value-Added Business Fenesta Building Systems makes UPVC and aluminium windows and doors.