DCM Shriram Acquires 4 Salt Firms for Backward Integration

DCM Shriram Limited (DCMS) has agreed to acquire 100% stake in four Gujarat-based salt producers—Shree Raj Salt, Devjagan Salt Farm, Maruti Salt Farm, and Manek Salt Works—for ₹175 crore in cash, subject to regulatory approvals. The deal, expected by June 2026, targets backward integration for its caustic soda and chlorochemicals business, reducing reliance on external salt supply. The entities had a combined FY25 turnover of ₹35.49 crore and net worth of ₹4.52 crore. Though all reported small losses, they offer strategic access to key salt-producing regions. This move will enhance cost efficiency, supply chain stability, and operational resilience, supporting DCMS’s Make in India goals. Not a related-party transaction, it was executed at arm’s length. The acquisition strengthens DCMS’s raw material security and long-term competitiveness in specialty chemicals.