DCM Shriram Completes ECH Plant Expansion

DCM Shriram announced on April 1, 2026, that its Epichlorohydrin (ECH) plant in Jhagadia, Gujarat, has reached full operational capacity. The final 17,000 TPA phase of the plant is now online, bringing the facility's total capacity to 52,000 TPA. This follows the initial 35,000 TPA phase that began production in October 2025.

Why This Expansion Matters

Epichlorohydrin (ECH) is crucial for making liquid epoxy resins (LER), which are used in coatings, adhesives, composites, and electronics. The increased capacity means DCM Shriram can better supply growing demand from these sectors. The plant uses European technology and glycerine as a feedstock, a more sustainable approach than traditional propylene-based methods. This focus on green manufacturing aligns with industry trends.

Background: Strategic Expansion

DCM Shriram has been growing its chemical operations. Its first ECH plant, with 35,000 TPA capacity, began at the Jhagadia complex on October 14, 2025. This new project uses European technology and glycerine (a biodiesel by-product) as feedstock, significantly lowering its carbon footprint. The ECH facility also advances the company's vertical integration strategy, connecting its chlor-alkali business with advanced materials and boosting value across its supply chain.

Impact of Full Capacity

• Increased Output: DCM Shriram now produces ECH at its full 52,000 TPA capacity.
• Stronger Market Standing: The increased capacity is set to bolster the company's position in the Indian ECH market.
• Operational Synergy: Better connection between chlor-alkali operations and ECH production.
• Meeting Demand: The company is better positioned to meet rising demand for ECH and related products.

Key Risks to Monitor

• Competition: Rivals like Epigral, focused on sustainable production, present competition.
• Regulatory Issues: In March 2025, DCM Shriram received a INR 7.325 million penalty order from the Income Tax Department concerning a past assessment. The company plans legal action and views the impact as immaterial.
• Market Fluctuations: ECH and raw material prices can vary due to market conditions.

Competitive Landscape

DCM Shriram's ECH plant competes with companies like Epigral Limited. Epigral, which claims to be India's first ECH maker using 100% renewable resources, is also expanding capacity. This highlights the sector's focus on sustainability and scale. Other market players include Meghmani Finechem Limited and Dhalop Chemicals.

Recent Performance Context

DCM Shriram's Chemicals business experienced volume-driven growth in Q3 FY26. The ECH facility, commissioned in the preceding quarter, has shown positive market acceptance.

Looking Ahead: What to Watch

• Market Share: Track DCM Shriram's share in the ECH market.
• Profitability: Monitor the ECH plant's financial contribution as epoxy resin demand rises.
• Capacity Use: Observe how well the company utilizes its full 52,000 TPA capacity.
• Competitor Activity: Watch moves by rivals like Epigral on capacity, technology, and sustainability.
• End-User Demand: Gauge growth in sectors using ECH and epoxy resins, including automotive, construction, and electronics.