The Board of Directors at DCM Shriram Ltd has granted in-principle approval for the Chemicals business to venture into the realm of "Advanced Materials" by making strategic investments in epoxy and value-added products. This forward-looking initiative involves a substantial investment of Rs. 1000 crores over the coming years to establish a cutting-edge greenfield epoxy manufacturing plant. Simultaneously, DCM Shriram's Epichlorohydrin (ECH) plant in Jhagadia, Gujarat is nearing completion and is slated for commissioning in the first quarter of the fiscal year 2024-25. Notably, a significant portion of the globally produced ECH, exceeding 80%, is utilized in the production of epoxy.

The decision to step into the domain of Advanced Materials underscores DCM Shriram's commitment to innovation and diversification within the Chemicals business. The substantial investment earmarked for the establishment of a greenfield epoxy manufacturing plant reflects a strategic approach to capitalize on emerging opportunities in the market.

The Epichlorohydrin (ECH) plant nearing completion in Jhagadia, Gujarat holds significant importance in this context. As a crucial raw material in epoxy production, the commissioning of this plant is anticipated to strengthen DCM Shriram's supply chain and enhance its position in the epoxy value chain. The synchronized efforts to invest in both ECH production and epoxy manufacturing highlight the company's comprehensive strategy for growth and sustainability.

The leadership at DCM Shriram is not just optimistic but also forward-thinking about the trajectory of the Chemicals Business, particularly in the Advanced Materials sector. The existing presence of key raw materials like ECH and caustic in the company's portfolio serves as a strategic advantage, providing a seamless transition into the production of epoxy and associated value-added products.

The Advanced Materials portfolio, encompassing liquid epoxy resins, hardeners, solvent cuts, reactive diluents, and formulated resins, caters to a diverse range of industries. The increasing applications of these materials in sectors such as wind-blades, electric vehicles (EVs), aeronautics, electronics, fire-proofing, and lightweighting industries signal a growing demand for innovative and high-performance materials. DCM Shriram is positioning itself strategically to meet this demand, recognizing India as a potential hub for both domestic and global consumption of Advanced Materials.

The emphasis on India as a market of choice aligns with the nation's ongoing growth story, particularly in the context of its expanding industrial landscape. DCM Shriram's commitment to actively participate in this growth trajectory indicates a keen awareness of market dynamics and a proactive approach to leveraging emerging opportunities.

The company's declaration of remaining alert to opportunities in the adjacencies of its core-chemicals business further demonstrates a commitment to agility and adaptability. By staying attuned to market trends and being ready to explore new avenues, DCM Shriram aims to not only sustain its core business but also identify and capitalize on avenues for additional growth.