DCM Shriram to Buy 100% Stake in Hindusthan Speciality Chemicals for ₹375 Crore

On June 12, 2025, DCM Shriram Ltd announced board approval to acquire 100% of Hindusthan Speciality Chemicals Ltd (HSCL) for ₹375 crore. The agreement will be executed in cash, in one or more phases, and is subject to regulatory and shareholder approvals. The acquisition is expected to be completed by September 2025.

About the Target Company

HSCL is an unlisted company engaged in the manufacturing of epoxy and related materials. It operates a production facility at Jhagadia in Bharuch district, Gujarat, spread across 43 acres. The facility is 3.5 km away from DCM Shriram’s existing chemicals complex in the same region.

The company produces liquid epoxy resins, reactive diluents, hardeners, solvent cuts, and formulated resins. These materials are used in sectors like aerospace, electronics, renewable energy, electric vehicles, defence, and composites.

HSCL Financial Performance 

In FY25 (unaudited), HSCL reported a turnover of ₹274.7 crore. The company had a paid-up capital of ₹144.6 crore and a net worth of negative ₹76.1 crore as of March 31, 2025. Over the last 3 years, the company’s revenue declined from ₹363.1 crore in FY23 to ₹295.1 crore in FY24 and further to ₹274.7 crore in FY25. Losses widened over the same period, with a PAT of ₹28.3 crore in FY25.

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The acquisition supports DCM Shriram’s earlier plans, announced in February 2024, to invest ₹1,000 crore in its epoxy and advanced materials business under its Chemicals Strategic Business Unit. This also adds downstream capacity aligned with its epichlorohydrin operations.

DCM Shriram Share Price Performance 

As of 11:00 AM on June 13, 2025, DCM Shriram Ltd share price stood at ₹1,128.70, up 0.32% for the day; the stock has gained 4.20% over the past six months and 6.74% over the past year.

Conclusion

The ₹375 crore acquisition gives DCM Shriram full control of HSCL and its epoxy facility in Gujarat. The transaction expands the company’s presence in the chemicals sector, with integration expected after approvals are secured.

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