The company expects robust demand and growth potential in domestic and global markets for Epoxy and value added materials, also expects synergy with its existing business for captive consumption of raw materials such as Epichlorohydrin or ECH and Caustic soda.

The company’s Epichlorohydrin (ECH) plant in Jhagadia, Gujarat is in final stages of completion on and is expected to be commissioned in Q1 of 2024-25. Over 80% of ECH produced globally is used in the manufacture of Epoxy.

Ajay Shriram, chairman & senior managing director and Vikram Shriram, vice chairman and managing director of DCM Shriram, said in a joint statement, “We are bullish about the overall prospects of the Chemicals Business and this entry into the Advanced Materials space. 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.

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

DCM Shriram will continue to remain alert to opportunities arising in the adjacencies of its core-chemicals business and look to participate whole-heartedly in the India growth story.”

Meanwhile the company’s board has declared an interim dividend of Rs 4 per equity share for the financial year 2023-24.

The record date for the said interim dividend fixed on 6 March 2024. The said interim dividend will be paid to all eligible shareholders on or before 27 March 2024.

DCM Shriram is a diversified company with presence agri-rural business, chloro-vinyl business and value-added business (fenesta building systems-UPVC windows & doors).

The company’s consolidated net profit declined 29.7% to Rs 240.48 crore in Q3 FY24 as against Rs 342.09 crore reported in Q3 FY23. Total revenue from operations fell 5.7% YoY to Rs 3,022.92 crore in Q3 FY24.