DCM Shriram Consolidated and Aarti Industries Ltd (AIL) have announced a significant long-term strategic partnership for chlorine supply, marking a major development in the Indian chemical industry. This collaboration aims to strengthen the supply chain and enhance operational efficiency for both companies.

Key Partnership Details

• DCM Shriram Chemicals will be the exclusive chlorine supplier to AIL's upcoming downstream chemicals facility at Zone IV, Jhagadia, Gujarat.
• The partnership includes the establishment of a state-of-the-art, jacketed underground chlorine pipeline between the two plants, emphasizing safety, reliability, and environmental protection.
• Once fully operational, AIL is expected to purchase an additional 200 tonnes of chlorine per day, on top of the existing 150 tonnes per day currently being supplied by DCM Shriram Chemicals.

Strategic Implications

This agreement represents a significant milestone for both companies:

• For DCM Shriram, it reinforces its position as a leader in safe, sustainable, and reliable chemical integration.
• The partnership validates DCM Shriram's credibility as a preferred supplier and enhances its 'indirect chlorine integration' strategy.
• For Aarti Industries, the agreement ensures a secure and efficient supply of chlorine, which is vital to its value chain.

Executive Insights

Mr. Sabaleel Nandy, ED and CEO of DCM Shriram Chemicals, commented on the partnership: "This agreement is a milestone in strengthening the deep trust and collaboration between DCM Shriram and Aarti Industries. By committing long-term chlorine supply through world-class infrastructure, we are reinforcing our leadership in safe, sustainable, and reliable chemical integration."

Mr. Suyog Kotecha, CEO of AIL, stated: "This Partnership between AIL and DCM Shriram is based on mutual synergies to support the cost-effective manufacturing of critical chemicals. It reflects AIL's commitment to forging long-term, strategic partnerships that strengthen supply security while prioritising operational safety and sustainability in a cost-efficient manner."

Company Profiles

DCM Shriram

• A leading diversified Indian conglomerate
• Second-largest chlor-alkali player in India with a total capacity of one million tonnes per annum
• The Jhagadia plant is India's largest single-location chlor-alkali plant
• Product range includes Caustic Soda, Chlorine, Hydrogen, Hydrogen Peroxide, and various other chemicals

Aarti Industries Limited (AIL)

• A leading global specialty chemical company
• Ranks 1st to 4th globally for 75% of its portfolio
• Known for combining process chemistry with scale-up engineering competence
• Committed to sustainable development and innovative practices

This strategic partnership between DCM Shriram and Aarti Industries underscores the growing trend of collaboration in the Indian chemical industry, aimed at enhancing efficiency, ensuring supply security, and promoting sustainable practices.

DCM Shriram Consolidated (ISIN: INE499A01024) is set to undergo a significant corporate restructuring as the National Company Law Tribunal (NCLT) New Delhi has scheduled a physical hearing for September 23, 2025. The hearing will address a Composite Scheme of Arrangement involving four entities: LCPL, DCMSR, DSFCL, and DSIL.

Hearing Details

The NCLT hearing, scheduled for September 23, 2025, will focus on the proposed corporate restructuring arrangement between the four companies. This development marks a crucial step in DCM Shriram's strategic plans, potentially reshaping the company's structure and operations.

Recent Financial Update

In a separate development, DCM Shriram has received a reaffirmation of its credit rating from CRISIL Ratings Limited. According to a disclosure made by the company on August 22, 2025, under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

• CRISIL has reaffirmed the credit rating for DCM Shriram's Commercial Paper programme.
• The Commercial Paper programme amount has been enhanced from Rs. 600.00 Crore to Rs. 700.00 Crore.
• The rating assigned is 'CRISIL A1+', which has been reaffirmed.

This rating reaffirmation and increase in the Commercial Paper programme amount could indicate the company's strong financial position and creditworthiness in the market.

Implications

The upcoming NCLT hearing and the recent credit rating reaffirmation are significant events for DCM Shriram. The outcome of the corporate restructuring could have far-reaching implications for the company's future operations and structure. Meanwhile, the strong credit rating suggests that the company maintains a robust financial position, which could be beneficial as it navigates through this period of potential change.

Investors and stakeholders will likely be keeping a close watch on the developments from the NCLT hearing in September, as well as any further financial updates from the company.