DCM Shriram to Invest Rs 1,000 cr in Epoxy Resin Plant

New Delhi, Feb 27 (PTI) Diversified agri firm DCM Shriram on Tuesday announced an investment of Rs 1,000 crore over the next few years to set up a greenfield plant to manufacture epoxy resin.

DCM Shriram is into chemicals, fertilisers, sugar and seeds businesses.

In a regulatory filing, the company informed that its board has given in-principle approval for the entry of its chemical business into the domain of "Advanced Materials" by investing in epoxy and value added products.

"The company is planning to invest Rs 1,000 crore over the next few years to set up a greenfield state-of-the-art epoxy manufacturing plant," DCM Shriram said in a statement.

The company said its Epichlorohydrin (ECH) plant in Jhagadia, Gujarat, is in final stages of completion and is expected to be commissioned in the first quarter of the 2024-25 fiscal.

Over 80 per cent of ECH produced globally is used in the manufacture of epoxy.

"We are bullish about the overall prospects of the chemicals business and this entry into the Advanced Materials space," DCM Shriram Chairman and Senior Managing Director Ajay Shriram as well as Vice Chairman and Managing Director Vikram Shriram said.

"We already have some of the key raw materials like ECH and caustic in our portfolio which paves a logical way forward into the epoxy and value added products," they said in a joint statement.

They said the entire portfolio of Advanced Materials products, including liquid epoxy resins, hardeners, solvent cuts, reactive diluents and formulated resins, are finding increasing applications in sectors such as wind-blades, EVs, aeronautics, electronics, fire-proofing and light-weighting industries.

"India is poised to emerge as a market of choice, both for domestic and global consumption, of such products," they added.

The board also approved an interim dividend of 200 per cent, which is Rs 4 per equity share of a face value of Rs 2 per share each.