Four coastal assets to supply 13 per cent of annual salt demand, improving operational efficiency at Jhagadia complex

DCM Shriram Limited, a leading diversified business group with operations across Chemicals, Vinyl, Agri, and Building Materials, today announced that its Board of Directors has approved the signing of a definitive agreement for the acquisition of four industrial salt-producing companies in Gujarat for a total consideration of Rs 175 crore, subject to customary approvals and conditions.

The assets being acquired include Manek Salt Works and Shree Raj Salt & Chemical Works in Dahej, which are located approximately 70 kilometres from the Company’s Jhagadia (Bharuch) Chlor-Alkali Complex, as well as Devjagan Salt Farm Pvt. Ltd. and Maruti Salt Farm Pvt Ltd. situated in Jambusar, around 110 kilometres from the same complex. Collectively, these salt works cover about 1,077 acres of coastal land and have an annual capacity of 2.1 lakh metric tonnes of washed industrial salt, equivalent to nearly 13 per cent of DCM Shriram’s total annual salt requirement.

Industrial salt is a critical raw material for the Company’s Chemicals Business, especially in the manufacturing of chlor-alkali and downstream derivatives. The acquisition is expected to significantly enhance backward integration, strengthen supply chain reliability, and reduce dependence on external sources. The proximity of the salt works to the Jhagadia plant is likely to generate meaningful logistics efficiencies, cost optimisation and improved operational control.

Commenting on the development, Ajay Shriram, Chairman & Senior Managing Director, and Vikram Shriram, Vice Chairman & Managing Director, said that securing long-term access to high-quality industrial salt has been a strategic priority for the Company. They emphasised that the Chemicals Business continues to be one of the strongest growth drivers for the organisation and that this acquisition will support the Company in maintaining a competitive edge in a market where demand for industrial salt is rising across sectors including chemicals, water treatment and energy. The leaders further stated that this investment will enable greater flexibility in operations, improve cost competitiveness and reinforce the Company’s integrated chemical value chain while supporting its future growth roadmap.

The transaction reflects DCM Shriram’s ongoing commitment to building a resilient industrial ecosystem anchored in sustainable and reliable raw material sourcing. Once completed, the acquisition will provide a strong platform to mitigate supply-side risks, deepen operational integration and enhance long-term value creation for all stakeholders.

The transaction will conclude following the necessary regulatory clearances and fulfilment of closing conditions.

DCM Shriram Limited is headquartered in New Delhi and is one of India’s prominent business groups with strong market presence in Chlor-Alkali & Vinyl, Fertilisers, Seeds, Sugar and Cement Boards. The Company maintains a strong focus on operational excellence, responsible growth, innovation and value creation for shareholders, partners, employees and the farming community.