DCM Shriram to acquire specialty chemicals firm for Rs 375 cr to enter advanced materials segment

New Delhi, Jun 12 (PTI) DCM Shriram Ltd on Thursday said its board has approved a definitive agreement to acquire Hindusthan Specialty Chemicals Ltd (HSCL) for Rs 375 crore, marking its strategic entry into the advanced materials segment.

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 Rs 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 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 Rs 1,000 crore in establishing its Epoxy and Advanced Materials business under its Chemicals Strategic Business Unit. PTI LUX BAL BAL