In a move that underscores the growing trend of chemical majors aligning around long-term feedstock security, DCM Shriram Ltd and Aarti Industries Ltd (AIL) have announced a multi-year strategic agreement for chlorine supply.

Under the arrangement, DCM Shriram Chemicals will become the exclusive supplier of chlorine from its Chlor-Alkali plant to AIL’s upcoming downstream chemicals facility at Zone IV, Jhagadia, Gujarat. A state-of-the-art, jacketed underground chlorine pipeline—engineered for world-class safety, reliability, and environmental protection—will connect the two plants.

The partnership marks a significant scale-up: once fully operational, AIL will offtake an additional 200 tonnes of chlorine per day, on top of the 150 tonnes per day it already sources from DCM Shriram Chemicals.

“This agreement is a milestone in strengthening the deep trust and collaboration between DCM Shriram Ltd and Aarti Industries,” said Sabaleel Nandy, ED and CEO, DCM Shriram Chemicals. “By committing long-term chlorine supply through world-class infrastructure, we are reinforcing our leadership in safe, sustainable, and reliable chemical integration. This not only validates our credibility as a preferred supplier but also enhances our ‘indirect chlorine integration’—a key lever in maximizing value and ensuring optimal utilization of our caustic soda capacities.”

For AIL, the agreement secures a critical input that underpins its downstream portfolio.

“This partnership between AIL and DCM Shriram is based on mutual synergies to support cost-effective manufacturing of critical chemicals,” said Suyog Kotecha, CEO, AIL. “Chlorine is vital to our value chain, and securing it through a dedicated pipeline ensures reliability and efficiency. Building on our earlier experience at Zone-II, Jhagadia, this deal reflects our commitment to delivering value to customers, investors, and communities through safer and more reliable operations.”

This partnership is significant not just for the two companies but also for India’s broader chemical industry. The deal provides scale and certainty by enabling AIL’s expanded chlorine offtake, which strengthens backward integration for its specialty and performance chemicals business. It also emphasizes infrastructure-led trust, with the dedicated underground pipeline signaling an industry-first approach to risk minimization and sustainability. Most importantly, the pact highlights how India’s chemical sector leaders are moving towards long-term strategic alignments to mitigate volatility, secure feedstocks, and improve cost efficiency.

For DCM Shriram, the collaboration consolidates its indirect chlorine integration model, ensuring higher utilization of caustic soda assets. For AIL, it locks in a reliable, cost-competitive, and sustainable chlorine stream, reinforcing its position as a downstream player with a robust and secure value chain. Together, the companies are setting a template for how scale, safety, and sustainability can anchor India’s chemical competitiveness in global markets.