DCM Shriram to Acquire Four Salt Works to Secure Raw Material for Chemicals Business
DCM Shriram Ltd. has approved the acquisition of four industrial salt-producing companies in Gujarat for ₹175 crore to secure raw material supply for its Chemicals Business. The acquired salt works span 1,077 acres, producing 2.1 lakh metric tonnes yearly, covering about 13% of the company's salt needs. This move aims to enhance supply chain resilience and operational efficiency through backward integration.
DCM Shriram Ltd., a diversified conglomerate with key sectors in Chemicals, Vinyl, Agriculture, and Building Materials, has received board approval to acquire 100% stakes in four industrial salt companies located in Gujarat’s coastal belt. The deal valued at ₹175 crore includes Manek Salt Works and Shree Raj Salt & Chemical Works in Dahej, along with Devjagan Salt Farm and Maruti Salt Farm in Jambusar. Together, these salt works cover over 1,077 acres and produce 2.1 lakh metric tonnes of washed industrial salt annually, meeting roughly 13% of DCM Shriram’s annual salt requirement. This strategic acquisition is a significant step toward backward integration, ensuring a stable and cost-efficient supply chain for the Chemicals Business, a critical growth driver within the company’s portfolio. According to company leadership, securing these salt assets addresses a long-standing vulnerability in raw material sourcing, while also optimizing logistics and reducing supply risks amid rising industrial salt demand and competition for coastal land from sectors like renewables. The acquisition aligns with DCM Shriram’s strategic focus on operational efficiency, self-reliance, and supply chain resilience, positioning the company to better meet market demand and sustain long-term competitiveness in India's evolving chemical manufacturing landscape. The transaction is expected to complete by mid-2026, subject to regulatory approvals.
