Looking to enter into value added products across the board in 2 years: DCM Shriram

DCM Shriram in its Q3 earnings saw profits jump up 40 percent. The company also reported a significant expansion in margins. They have announced investment of Rs 1,000 crore in the chemicals business.

Ajay S Shriram, Chairman and Senior Managing Director of DCM Shriram, said the company is looking to get into value added products across the board. "The first stage is Epichlorohydrin (ECH) and Hydrogen Peroxide. These are both value additions which will be coming up in the next 24 months. We are setting up research and development center to get into details of what epoxy’s we can get into which I hope in about 12 months’ time we are in a more definite position to look at investments there too. As the studies go on, we will continue adding value to all these products to move the value chain," he said in an interview to CNBC-TV18.

Shriram said they were extremely comfortable with their cash flows. "Our cash flows every year is in the range of about Rs 500-600 crore. The implementation of these two projects will be approximately two years. Maybe we won’t have to take debt depending on what the investment plans are for the other businesses, but our ratios are very satisfactory. We are not going to have any problem taking debt even if we do marginally over the next couple of years. So, we are quite comfortable as far as our cash flows are concerned," he said.