DCM Shriram Consolidated , a diversified conglomerate, has announced a strategic move to strengthen its chemical business through the acquisition of four industrial salt companies. The company's Board of Directors has approved the purchase of 100% equity in Shree Raj Salt and Chemical Works Pvt. Ltd., Devjagan Salt Farm Pvt. Ltd., Maruti Salt Farm Pvt. Ltd., and Manek Salt Works Pvt. Ltd. for a consolidated cost of Rs 175 crores.

Strategic Expansion

The acquisition includes salt works with 1,077 acres of salt lease land in Gujarat, facilitating backward integration of DCM Shriram's chemical business into salt production. This move is expected to enhance the company's control over its raw material supply chain for its chemical operations.

Financial Details

The deal, structured as a cash transaction, is subject to adjustments as per the terms of the Definitive Agreement. The acquisition is expected to be completed by June 2026, contingent upon fulfillment of specified conditions and regulatory approvals, including the transfer of salt lease and manufacturing licenses.

Target Companies' Performance

The four acquired companies have shown varying financial performances in the recent fiscal year:

Despite the reported losses, DCM Shriram appears to be focusing on the long-term strategic value of these acquisitions for its chemical business.

Market Impact

The acquisition may contribute to DCM Shriram's vertical integration strategy, potentially leading to improved cost efficiencies in its chemical segment. However, the immediate financial impact may be limited, given the current performance of the acquired entities.

Regulatory Compliance

DCM Shriram has stated that the acquisitions do not fall within the definition of related party transactions under SEBI Listing Regulations. The company will seek necessary approvals from local industrial and other authorities to complete the transaction.

As DCM Shriram moves forward with this acquisition, stakeholders will be watching closely to see how the company integrates these salt works into its existing operations and whether this strategic move will translate into improved performance for its chemical business in the coming years.

DCM Shriram Consolidated , a diversified conglomerate, has reported a robust financial performance for the second quarter, accompanied by a significant dividend announcement and strategic acquisition.

Financial Highlights

The company's consolidated financial results for Q2 showcase substantial growth:

The company's performance shows significant improvement across all key financial metrics. The revenue from operations grew by 9.66% year-over-year, while EBITDA saw a remarkable 73.53% increase. Most notably, the net profit more than doubled, registering a 152.25% jump compared to the same quarter in the previous fiscal year.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹3.60 per equity share. This dividend, which represents 180% of the face value of ₹2 per share, will be paid to eligible shareholders within 30 days of the declaration.

Segment Performance

The company's diverse business segments contributed to its overall growth:

1. Chemicals and Vinyl: This segment emerged as the top performer, with revenue of ₹1,108.40 crore and a segment profit of ₹200.71 crore.
2. Sugar and Ethanol: This segment reported revenue of ₹1,093.71 crore.
3. Shriram Farm Solutions: The segment showed strong growth with revenue of ₹471.02 crore and a segment profit of ₹104.53 crore.

Strategic Acquisition

DCM Shriram has completed the acquisition of 100% shareholding in Hindusthan Speciality Chemicals Limited as of August 26, 2025. This strategic move is expected to strengthen the company's position in the specialty chemicals sector.

Operational Update

The company has commissioned an Epichlorohydrin (ECH) Plant with a capacity of 35,000 TPA at its chemical complex in Jhagadia, Bharuch District, Gujarat. The remaining 17,000 TPA capacity is expected to be commissioned shortly, further enhancing the company's production capabilities.

Management Commentary

Ajay S. Shriram, Chairman & Senior Managing Director of DCM Shriram Limited, stated, "Our Q2 results reflect the strength of our diversified business model and our ability to capitalize on market opportunities. The significant improvement in our financial metrics, particularly the doubling of our net profit, underscores the effectiveness of our strategic initiatives and operational efficiency."

He added, "The declaration of an interim dividend reaffirms our commitment to delivering value to our shareholders. Furthermore, the acquisition of Hindusthan Speciality Chemicals and the commissioning of our new ECH plant are important steps in our growth strategy, positioning us well for future expansion in the specialty chemicals sector."