DCM Shriram Limited has announced a strategic move to enhance raw material security for its chemicals business by acquiring four companies engaged in industrial salt production in Gujarat.
The Board of Directors, in its meeting held on October 28, 2025, approved entering into a definitive agreement to acquire 100% equity in Shree Raj Salt and Chemical Works Pvt. Ltd., Devjagan Salt Farm Pvt. Ltd., Maruti Salt Farm Pvt. Ltd., and Manek Salt Works Pvt. Ltd. The transaction, valued at ₹175 crore, will be executed in cash in one or more tranches and is subject to customary regulatory approvals, including transfer of salt leases, manufacturing licenses, and local authority clearances. The acquisition is expected to be completed by June 2026.
The target companies collectively hold 1,077 acres of salt lease land in Gujarat, strengthening DCM Shriram’s long-term access to industrial salt — a critical raw material for its chemical operations.
Financial Snapshot of Target Companies (FY 2024–25)
| Company | Turnover (₹ Cr) | PAT (₹ Cr) | Net Worth (₹ Cr) |
| Shree Raj Salt & Chemical Works Pvt. Ltd. | 10.57 | (0.07) | 0.39 |
| Devjagan Salt Farm Pvt. Ltd. | 8.45 | (0.15) | 0.81 |
| Maruti Salt Farm Pvt. Ltd. | 5.59 | (0.06) | 1.80 |
| Manek Salt Works Pvt. Ltd. | 10.88 | (0.26) | 1.52 |
The companies, incorporated between 1991 and 2006, have long-standing operations in salt works and supply industrial salt across India.
Strategic Rationale
DCM Shriram stated that the acquisition will support backward integration for its chemicals business, ensuring secure and cost-efficient access to essential raw materials. By internalizing salt sourcing, the company aims to strengthen operational efficiencies, improve supply reliability, and enhance long-term competitiveness.