DCM Shriram, Aarti Industries shares in focus; here is why

In a regulatory filing, DCM Shriram said the company and Aarti Industries Ltd (AIL) have entered into a long-term strategic agreement for the supply of chlorine.

Under this arrangement, DCM Shriram Chemicals will supply chlorine from its chlor-alkali plant to AIL's upcoming downstream chemicals facility at Jhagadia, Gujarat.

Both companies will establish a jacketed underground chlorine pipeline between their plants.

"Once fully operational, AIL is expected to purchase an additional 200 tonnes of chlorine per day in steady state over and above the existing 150 tonnes per day being purchased currently by AIL from DCM Shriram Chemicals," DCM Shriram said.

What companies said on the deal

Sabaleel Nandy, ED and CEO of DCM Shriram Chemicals, said, "This agreement is a milestone in strengthening the deep trust and collaboration between DCM Shriram Ltd and Aarti Industries. By committing to a long-term chlorine supply through world-class infrastructure, we are reinforcing our leadership in safe, sustainable, and reliable chemical integration."

This partnership not only validates DCM Shriram’s credibility as a preferred supplier but also enables us to further enhance our ‘indirect chlorine integration’—a key lever in maximising value and ensuring optimal utilisation of our caustic soda capacities, the CEO added.

Suyog Kotecha, CEO, AIL, said, "This partnership between AIL and DCM Shriram Ltd is based on mutual synergies to support the cost-effective manufacturing of critical chemicals. It reflects AIL’s commitment to forging long-term, strategic partnerships that strengthen supply security while prioritising operational safety and sustainability in a cost-efficient manner."

The CEO further said, "Chlorine is vital to our value chain,, and securing it through a dedicated pipeline ensures reliability and efficiency. Building on our earlier experience at Zone-II, Jhagadia, this partnership with DCM Shriram reflects our commitment to delivering value to customers, investors, and communities through safer and more reliable operations."

About DCM Shriram

DCM Shriram Ltd is one of the leading and most diversified Indian conglomerates whose business portfolio comprises chemicals business, agri-rural business, and sugar and value-added business, including Fenesta Building Systems.

“DCM Shriram Chemicals” is the key player in the chlor-alkali segment with a total capacity of one million tonnes per annum. The product range of DCM Shriram Chemicals includes caustic soda, chlorine, hydrogen, hydrogen peroxide, aluminium chloride, epichlorohydrin, hydrochloric acid, epoxy resins and other value-added products.

About Aarti Industries Limited (AIL)

Aarti Industries Limited (AIL) is one of the world’s leading speciality chemical companies, combining process chemistry with scale-up engineering competence. The company globally ranks at 1st – 4th position for 75% of its portfolio and is “Partner of Choice” for various major global and domestic customers.