DCM Shriram to acquire Hindusthan Speciality Chemicals for ₹375 crore

HSCL, based in Bharuch, Gujarat, will mark DCM Shriram's entry into epoxy and advanced materials through a ₹375 crore acquisition expected to close by September 2025

DCM Shriram on Wednesday said its Board of Directors has approved the acquisition of a 100 per cent equity stake in Hindusthan Speciality Chemicals Limited (HSCL) for ₹375 crore.  DCM Shriram plans to pay ₹375 crore in one or more tranches, subject to adjustments in the terms of definitive agreements.

 

The agreements for the acquisition were approved at the board meeting held on 12 June 2025, and the transaction is expected to be completed by September 2025, subject to regulatory and shareholder approvals. 

  The acquirer operates across chemicals, agri-rural, and value-added businesses.

 

HSCL, headquartered in Bharuch, Gujarat, operates in the epoxy and advanced materials segment. The company is engaged in the manufacturing and distribution of solid and liquid epoxy resins, reactive diluents, formulated epoxy resins and curing agents. HSCL was incorporated on 11 July 2003.

 

 

"The acquisition marks the entry of the chemicals business of DCM Shriram Ltd into the epoxy and advanced materials space, as a downstream integration of epichlorohydrin (ECH)." the company stated in a regulatory disclosure. It added that the move aligns with its strategic objective to expand into specialty chemicals. 

"The advanced materials segment offers robust forward integration with our chlor-alkali platform, while positioning us at the intersection of India’s expanding presence in sunrise sectors like renewables, mobility, and aerospace." said Ajay Shriram, Chairman & Senior Managing Director, DCM Shriram.

 

 

‘No major governmental or regulatory approvals are required for the said acquisition, except certain approvals from local industrial and other authorities. As the target entity is a material subsidiary of Hindusthan Urban Infrastructure Limited (HUIL), a company listed on BSE Ltd, the sale of shares by HUIL would require approval of its shareholders by way of special resolution in terms of Listing Regulations,’ DCM Shriram stated. 

“We believe HSCL’s proven technology, strong customer base, and strategic location will provide a solid foundation to scale this business rapidly'' Shriram added.

Financial performance

For the financial year 2024–25, HSCL has reported an unaudited turnover of ₹273.8 crore and had a paid-up share capital of ₹144.6 crore. The company has faced continued losses over the past three years. It posted a net loss (PAT) of ₹28.3 crore in FY25, ₹32.8 crore in FY24 and ₹47.5 crore in FY23.

 

Profit before depreciation, interest and taxes (PBDIT) also remained negative during this period, indicating ongoing operational challenges. The net worth of the company as on 31 March 2025 stood at negative ₹76.1 crore, based on unaudited financials.