DCM Shriram and Aarti Industries Forge Strategic Chlorine Supply Partnership
DCM Shriram Ltd and Aarti Industries Ltd have announced a long-term strategic partnership for chlorine supply. DCM Shriram Chemicals will be the exclusive chlorine supplier to Aarti Industries' new facility in Gujarat, with plans to establish a state-of-the-art underground pipeline. Aarti Industries will increase its chlorine procurement to 350 tonnes per day. The partnership aims to enhance chemical integration, ensure supply security, and optimize operations for both companies. The market responded positively, with both companies' shares closing higher.
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DCM Shriram Ltd and Aarti Industries Ltd (AIL) have announced a groundbreaking long-term strategic partnership for chlorine supply, aimed at enhancing chemical integration and ensuring supply security. This collaboration marks a significant milestone in the Indian chemical industry, bringing together two industry giants to optimize their operations and strengthen their market positions.
Key Partnership Details
- DCM Shriram Chemicals will be the exclusive supplier of chlorine from its chlor-alkali plant to Aarti Industries' upcoming downstream chemicals facility at Zone IV, Jhagadia, Gujarat.
- The companies will establish a state-of-the-art, jacketed underground chlorine pipeline between their plants, prioritizing safety, reliability, and environmental protection.
- Once fully operational, Aarti Industries is set to procure an additional 200 tonnes of chlorine per day from DCM Shriram Chemicals, on top of the 150 tonnes per day it currently sources.
Infrastructure and Capacity
DCM Shriram Chemicals, India's second-largest chlor-alkali producer, boasts a total capacity of one million tonnes per annum. Its Jhagadia facility stands as the country's largest single-location chlor-alkali plant, underlining the company's significant role in the sector.
Strategic Implications
Mr. Sabaleel Nandy, ED and CEO of DCM Shriram Chemicals, emphasized the importance of this agreement, stating, "This agreement is a milestone in strengthening the deep trust and collaboration between DCM Shriram Ltd 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 Aarti Industries, highlighted the mutual benefits, saying, "This Partnership between AIL and DCM Shriram Ltd 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 Ltd
A diversified Indian conglomerate with interests in Chemicals, Agri-rural business, Sugar, and Value-added business, including Fenesta Building Systems.
Aarti Industries Limited
A leading global speciality chemical company, ranking among the top four players worldwide in 75% of its portfolio. AIL is known for combining process chemistry expertise with scale-up engineering competence.
Market Impact
The announcement has been well-received by the market:
| Company | Share Performance | Year-to-Date Change |
|---|---|---|
| DCM Shriram | Ended 1.16% higher | 11.00% |
| Aarti Industries | Closed over 1% higher | -8.00% |
This strategic partnership is expected to create long-term value for both companies, enhancing their operational efficiencies and strengthening their positions in the speciality chemicals market. The focus on safety, reliability, and environmental protection in the pipeline construction also underscores the companies' commitment to sustainable and responsible business practices.
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