DCM Shriram Aims 20–25% Hydrogen-Peroxide Market Share In Two Years
DCM Shriram is in the process of expanding the chemical product portfolio and diversify into multiple products within the adjacencies of caustic soda.
DCM Shriram Ltd. is aiming to have a market share of around 20–25% in the hydrogen peroxide segment in the next two years after the commissioning of its new plant in Gujarat, according to Chief Financial Officer Amit Agarwal.
The diversified fertilisers and chemicals manufacturer informed the stock exchanges on Monday about commissioning its new hydrogen peroxide plant with a capacity of 52,500 metric tonnes per year at its chemical complex in Bharuch district.
"The current market size of hydrogen peroxide is close to about 200 kilotonnes per annum and we are coming up with a capacity of close to 52 kilotonnes per annum," Agarwal told NDTV Profit in an interview. "We expect to take up about 20–25% market share over a period of 1.5–2 years."
"The current capacity utilisation is close to about 25–30% and over the next one to one-and-a-half years, we should be close to 90–100%," the executive director said.
Amit Agarwal (Source: DCM Shriram website)
Agarwal pointed out that DCM Shriram was in the process of expanding the chemical product portfolio, which currently comprises caustic soda and chlorine, and diversifying into multiple products within the adjacencies of caustic soda. "That is why we have got into hydrogen peroxide."
DCM Shriram plans to start producing epichlorohydrin as well and has already commissioned a plant for aluminium chloride production, he said. "Largely, the margin for these products ranges between 15% and 20%, depending on market conditions."
Agarwal said the recommended imposition of anti-dumping duties on epichlorohydrin is likely to help prices. "We are looking at epichlorohydrin as a much larger game plan. We would like to move into epoxy. We have already given our intent to invest nearly Rs 1,000 crore over the next two to three years," the CFO added.
The company's revenue is not very likely to change significantly in the current financial year as most of its expansions are coming now and it will take time to ramp up, according to Agarwal. "I think you will see a better number in terms of the top line in FY26. FY25 should be in line with last year or slightly better."
