DCM Shriram approves USD 120 million investment in new epoxy resin plant

DCM Shriram's board of directors has given in-principle approval for its chemicals business to enter the Advanced Materials segment by investing in epoxy resins and value-added products. 

The company plans to invest $120 million in a new state-of-the-art epoxy resin manufacturing plant over the next few years. Meanwhile, DCM Shriram's epichlorohydrin (ECH) plant in Jagadia, Gujarat is in the final stages of completion and is expected to be commissioned in the first quarter of 2024-2025. More than 80% of the ECH produced globally is used to make epoxy resins.

Ajay Shriram, Chairman and Senior Managing Director, and Vikram Shriram, Vice Chairman and Managing Director of DCM Shriram Ltd said in a joint statement: "We are optimistic about the overall outlook for the chemicals business and this entry into the Advanced Materials sector. We already have some key raw materials such as ECH and caustic in our product portfolio, which paves a logical path for the development of epoxy resins and value-added products."

"The entire portfolio of Advanced Materials products, including liquid epoxy resins, hardeners, solvent cutting agents, reactive diluents and formulated resins, has increasingly used in wind blades, electric vehicles, aerospace, electronics, fire protection and lightweight industries and in India, and is about to become the preferred market for domestic and global consumption of such products."

"DCM Shriram will continue to remain alert to opportunities arising around its core chemicals business and seek to participate wholeheartedly in India's growth story. " the two added.