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DCM announces strategic acquisition of four salt works to strengthen raw material security
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Friday, 31 October, 2025, 12 : 00 PM [IST]
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Our Bureau, New Delhi
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DCM Shriram Ltd., announced that its board has approved the signing of a definitive agreement to acquire 100% stake in four companies engaged in the production of industrial salt for a total purchase consideration of Rs 175 crore.
Two of these entities — M/s Manek Salt Works and M/s Shree Raj Salt & Chemical Works — are located in Dahej, (about 70 km from the Company’s Jhagadia (Bharuch) Chlor-Alkali complex), while M/s Devjagan Salt Farm Pvt. Ltd., and M/s Maruti Salt Farm Pvt. Ltd., are situated in Jambusar, approximately 110 km from the Jhagadia Complex. Together, these salt works span over 1,077 acres and have a combined capacity of 2.1 lakh MT of washed industrial salt per annum, equivalent to around 13% of the Company’s annual salt requirement.
This acquisition will mark an important step toward backward integration, strengthening the raw material supply chain for its chemicals business — a key driver of the company’s growth and profitability.
Ajay Shriram, chairman & senior managing director, and Vikram Shriram, vice chairman & managing director, said, “Salt is a critical raw material for our Chemicals Business, and this acquisition will address a long-standing strategic vulnerability in our supply chain. With rising demand for industrial salt across multiple end-use industries and increasing competition for coastal land from other sectors such as renewables, securing access to these salt works at Dahej and Jambusar will be a timely and forward-looking step. The acquisition will ensure raw material security, optimise logistics costs, and further strengthen our integrated chemical value chain.”
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