By Yeshi Seli. Assistant Editor, Business India

DCM Shriram’s chemical unit in Jagadia, Bharuch, (Gujarat) is in the process of increasing its capacity from 1,350 tonnes per day at present to 2,200 tonnes per day from March 2022. This expansion is been done at an estimated cost of Rs2,070 crore.

This Chlor-Alkali plant at Bharuch also happens to be celebrating its silver jubilee year of operations. “This is the largest single location caustic soda plant in the country,” says Ajay S Shriram, Chairman and Managing Director of DCM Shriram. 

This plant was established after the group purchased a plant from Georgia Pacific in Atlanta USA in 1995 at a cost of Rs200 crore. “We literally relocated the machines and infrastructure from there to Bharuch in 1996, after we got land from the Gujarat Industrial Development Corporation,’’ said Ajay.

DCM Shriram restructuring began in the 1990s. “We got into the hotbed of running a business when the restructuring began. The key is having good people who contribute towards the shaping of the company,” said Vikram S Shriram Vice chairman and managing director of DCM Shriram.

“We manufacture products that contribute to the competitiveness of India’s industrial economy. This includes caustic soda, chlorine and hydrogen that are produced at our integrated plants in Bharuch and Kota with a combined capacity of 6.50 lakh tpa,” Ajay added.

The plant in Jadagia, is spread over 100 acres of land and its proximity to the port (Dahej which is around 86 kms away) and industrial customers who were looking for supplies of hydrogen, chlorine and caustic soda from them.

The raw material for making caustic soda is water, salt and energy. The other products manufactured in this facility include hydrogen, hydrogen peroxide, epoxy (used for coating surfaces/water proofing).

Caustic soda is manufactured in liquid form and flakes. Caustic soda is used in aluminium plants, paper manufacturing, textiles. The chlorine that is manufactured in this facility is used for water treatment plants and the hydrogen and chlorine that are manufactured within the plant is also sold to the ancillary units around the plant.

Expansion plans

The expansion plans of the facility include putting up a 52,500 TPA hydrogen peroxide facility. Hydrogen Peroxide is a non-hazardous, clean bleaching agent used in textile, paper and aseptic packaging and doesn’t leave any residue like chlorine, and so is preferred by customers.

A 51,000 TPA epichlorohydrin plant has been added, along with a glycerine purification facility. Supply of glycerine has improved due to increase in fuel blending. The aluminium chloride capacity will also be increased by 32850 TPA.

The group is also in the process of identifying a place to set up an R&D facility in Baroda. This, they feel, will further enhance their production and quality of products.