Last updated : July 29, 2026 7:58 am
Innovating through digital manufacturing and upstream integration to supply India with globally competitive advanced materials
What is DCM Shriram’s Advanced Materials business and how did the company decide to make an entry into this space?
DCM Shriram's advanced materials business represents a strategic transition into high-value, specialized chemicals—specifically focusing on epoxy resins and value-added products. The core portfolio includes glycerine, epichlorohydrin (ECH), liquid epoxy resins, formulated resins, etc. The business enables DCM Shriram to participate in high-growth sectors such as renewable energy, electric mobility, infrastructure, electronics, aerospace, and industrial composites.
The company’s objective is not merely to manufacture products, but to build an integrated advanced materials platform that combines upstream strengths, technology and digitally aided manufacturing, and customer-centric innovation in support of India’s growing demand for globally competitive advanced material solutions.
Our entry into the advanced materials business is a natural extension of its long-standing strengths in the chlor-alkali value chain. Over the years, the company has built strong capabilities in chlorine and caustic soda production, which provided a strategic foundation for moving into higher-value downstream products.
A key milestone in this journey was the development of bio-based Epichlorohydrin, a chlorine derivative that serves as a critical raw material for epoxy resins. With a strong foothold in ECH, the decision to move into epoxy resins and formulated systems was both strategically and economically compelling.
How does commissioning of 52,000 TPA ECH facility at Bharuch strengthen DCM Shriram’s epoxy business?
This is a significant milestone in strengthening our advanced materials value chain. By bringing a key epoxy resin feedstock in-house, the company gains greater control over a critical component of its cost structure. The move fundamentally shifts the cost structure, sustainability profile, and market competitiveness of DCM Shriram's epoxy business.
India has traditionally been heavily reliant on imported ECH and high-purity epoxy intermediates, exposing manufacturers to freight volatility, currency fluctuations, and supply disruptions. By localizing 52,000 TPA of high-purity ECH, DCM Shriram takes a step towards Aatmanirbharta and establishes absolute control over domestic value chain because ECH accounts for over 80 per cent of global epoxy resin feedstock, full self-reliance on these intermediate chemical changes the playing field for the advanced materials division.
Beyond cost advantages, the larger strategic benefit is agility. Local sourcing enables faster response to customer requirements and market changes while reducing dependence on international supply chains. The facility is also integrated with DCM Shriram’s chlor-alkali operations and utilizes glycerine-based technology, strengthening both, competitiveness and sustainability.
How does acquisition of Hindusthan Speciality Chemicals Limited (HSCL) strengthen Advanced Materials business?
The acquisition marks an important step in DCM Shriram’s transition from a producer of intermediates to a provider of application-oriented advanced material solutions, thus covering this entire value chain. HSCL brings some strategic advantages: an instantly operational, state-of-the-art facility with a Liquid Epoxy Resin (LER) and formulated products capacity; and wider customer base across various applications like aerospace, mobility, renewable energy, electricals, and industrial composites.
In addition, the proximity of the HSCL facility to DCM Shriram’s manufacturing ecosystem creates shared synergies, operational efficiencies, and strengthens supply chain integration. The acquisition enables the company to move further downstream, engage more closely with customers, participate in product development cycles, and address increasingly sophisticated performance requirements in fast-growing sectors.
How is DCM Shriram leveraging forward integration with its chlor-alkali platform?
The advanced materials business represents a natural forward integration of DCM Shriram’s chlor-alkali value chain. Chlorine produced within the existing ecosystem is utilized in the manufacture of Epichlorohydrin, which in turn is used for epoxy resin production. By controlling multiple stages of the value chain—from chlor-alkali to ECH, epoxy resins, and specialty formulations— the business enhances supply security, reduces external dependencies, increases margin resilience, and improves coordination across procurement, manufacturing, logistics, and inventory management. This integrated model improves resource efficiency, strengthens supply chain resilience, and enables DCM Shriram to create higher-value, differentiated products while maintaining tighter control over quality and reliability.
What are the immediate milestones following Rs. 1,000 crore investment in Epoxy and Advanced Materials business?
The investment reflects DCM Shriram’s long-term commitment to building a globally competitive advanced materials platform. DCM Shriram has already doubled epoxy resin formulations capacity and the next phase of growth is underway with a planned expansion.
Alongside capacity expansion, the company is focusing on product qualification, customer approvals, and application development across infrastructure, renewable energy, electricals, transportation, and industrial composites. The next major milestone is commissioning of expanded capacity, expected in Q2 FY2027, which will significantly strengthen DCM Shriram’s ability to serve both domestic and international markets.
How is DCM Shriram supporting “Make in India” initiative in specialized epoxy resins?
India’s epoxy resin market has always been relying on imports, despite growing demand from infrastructure, renewable energy, electronics, automotive, and aerospace sectors. This reliance exposed critical domestic industries to global logistics bottlenecks and price volatility.
DCM Shriram’s investments in ECH, epoxy resins, and specialty formulations are aligned with the Government of India’s “Make in India” vision. By building an integrated domestic value chain, the company is reducing import dependence while improving supply reliability, lead times, and technical support for Indian manufacturers.
With domestic epoxy demand estimated at over 320,000 tonnes annually, the ongoing capacity expansion creates additional local manufacturing capability while also positioning India as a competitive export base for specialty epoxy products.
How will India’s infrastructure and manufacturing expansion drive demand for Advanced Materials?
India is witnessing a broad-based expansion in infrastructure, renewable energy, transportation, semiconductors, and advanced manufacturing, supported by public spending and initiatives such as the PLI Scheme, Viksit Bharat, Make in India, and national energy transition agenda. Epoxy-based materials are critical for applications such as wind turbine blades, electrical insulation systems, composites, industrial coatings, construction, and electric mobility. As investments in these sectors accelerate, demand for high-performance advanced materials is expected to grow strongly over the next three to five years. To address this opportunity, DCM Shriram is expanding epoxy resin manufacturing capacity, with the next phase expected to be commissioned in Q2 FY2027. The company expects capacity utilization to ramp up progressively, with optimal utilization targeted by 2030 as these sunrise sectors scale further.
How does bio-based ECH route support global carbon reduction requirements?
DCM Shriram’s ECH facility is based on a bio-based route using refined glycerine instead of conventional petroleum-derived feedstocks (propylene). This supports a lower-carbon manufacturing pathway and aligns with the growing global preference for renewable and sustainable raw materials. The integrated nature of the manufacturing ecosystem further improves sustainability by enabling efficient utilization of resources and recycling and reuse of process streams and by-products wherever feasible.
As global customers increasingly evaluate suppliers on sustainability metrics in addition to performance and cost, this integrated bio-based platform positions DCM Shriram strongly to serve both domestic and international markets with lower-carbon advanced material solutions.
How is DCM Shriram building R&D and technical service capabilities for tailored solutions?
The DCM Shriram Innovation Centre is a DSIR-recognized R&D facility that supports innovation, testing, and customer-focused product development. In advanced materials, customer collaboration and product qualification are critical. DCM Shriram is therefore strengthening its R&D and technical service capabilities through investments in talent and infrastructure.
We have built a highly capable team dedicated exclusively to advanced materials at our Innovation Centre, focusing sharply on formulated resin applications and cutting-edge, value-added products. Innovation doesn't happen in a vacuum, which is why we have partnered with top-tier academic institutions. For instance, through our close collaboration with ICT Mumbai, our scientists work shoulder-to-shoulder with their professors and students on clearly defined, joint research initiatives. The focus is on co-creating application-specific solutions rather than supplying commodity chemicals.
How will 2027 expansion change Advanced Materials division’s contribution to chemicals business?
Advanced materials is expected to become an important growth driver within DCM Shriram’s Chemicals portfolio. While the chlor-alkali business remains a strong foundation, advanced materials offer higher value addition, stronger customer engagement, and better long-term growth visibility. As bulk chlor-alkali markets normalize, the contribution of specialty and performance-oriented products is expected to increase. The planned FY2027 capacity expansion will strengthen the company’s ability to serve both domestic and export markets and improve participation in global supply chains. Over time, we expect the share of advanced materials in both revenue and profitability, to increase meaningfully, supported by backward integration, specialty formulations, customer-centric solutions, and growing global demand.
How is Artificial Intelligence (AI) and data analytics being integrated into manufacturing?
DCM Shriram is leveraging digitalization, data analytics, and AI-enabled tools to improve operational excellence, quality, safety, and reliability across its manufacturing facilities. Advanced Distributed Control Systems (DCS) provide real-time monitoring and control of critical process parameters, enabling better process stability, product consistency, and data-driven decision-making.
AI and predictive analytics are also strengthening maintenance programs by identifying potential equipment issues before they result in unplanned downtime. Beyond maintenance, digital tools support process safety, energy optimization, and quality management through real-time operational visibility and faster corrective action.
How is DCM Shriram ensuring raw material stability while protecting margins in a volatile market?
The company’s strategy is built on diversified sourcing, long-term supplier partnerships, and proactive inventory management. DCM Shriram has established relationships with multiple suppliers across different geographies, reducing dependence on any single source or region.
Long-term contracts with key suppliers improve visibility and availability, while investments in storage infrastructure and inventory management help maintain strategic stock levels during periods of market uncertainty. In addition, backward integration within the value chain reduces external dependencies and improves supply reliability. This balanced approach helps protect operational continuity and profitability even in a volatile global environment.
What internal changes have been implemented to manage increased complexity of Advanced Materials business?
The transition from commodity chemicals to advanced materials has required significant upgrades in supply chain management, talent, and process safety. On the supply chain side, the company has strengthened planning processes, diversified sourcing networks, expanded storage capacity, and improved coordination across procurement, manufacturing, logistics, and customer-facing teams.
From a talent perspective, we have onboarded experienced professionals in advanced materials, specialty chemicals, process engineering, product development, and application support, while continuing to build partnerships with leading academic and research institutions. Safety remains a foundational priority. We have strengthened process safety frameworks, risk assessment mechanisms, operating procedures, training programs, and digital monitoring systems to ensure the highest standards of operational discipline and risk management as the business scales.