DCM Shriram Ltd.'s board has accorded an in-principle approval for foraying into the "advanced materials" business, the company said in an exchange filing.
The company will invest a sum of ₹1,000 crore in Epoxy resins and downstream products.
DCM Shriram expects synergies with its existing business for captive consumption of raw materials such as Epichlorohydrin and Caustic Soda.
The investment, which will be made over the next few years, will be used to set up a greenfield state-of-the-art epoxy manufacturing plant.
DCM Shriram also mentioned that the company's Epichlorohydrin plant in Gujarat is in the final stages of completion and will be commissioned in the first quarter of financial year 2025. 80% of the ECH produced globally is used in the manufacturing of Epoxy.
"We are bullish about the overall prospects of the Chemicals Business and this entry into the Advanced Materials space. We already have some of the key raw materials like ECH and caustic in our portfolio which paves a logical way forward into the epoxy and value added products," said Chairman and Senior MD Ajay Shriram.
Additionally, the company has also declared an interim dividend of ₹4 per share, for which, the record date has been fixed as March 6.
The interim dividend will be paid / dispatched to shareholders on or before March 27, 2024.
Shares of DCM Shriram are trading 3.5% higher at ₹1,011.4.
