DCM Shriram Expands Renewable Power Investment for Bharuch Plant

DCM Shriram Limited announced on Friday, June 19, 2026, that its Board of Directors has approved an additional equity investment of up to ₹18 crore to bolster renewable power supply for its manufacturing facility in Bharuch, Gujarat. This latest commitment builds upon a previously announced project, bringing the total approved equity investment for the site’s renewable expansion to ₹105 crore.

Strategic Shift Toward Sustainable Power

The additional funding is earmarked for acquiring a stake in one or more Special Purpose Vehicles (SPVs) established to generate renewable electricity. This expansion will secure an additional ~10 MW of renewable power, augmenting the previously planned ~48 MW. Once fully operational, the project will elevate the Bharuch plant's total renewable energy capacity to approximately 108 MW.

This move is part of the company's long-term strategy to integrate sustainable power resources directly into its ongoing industrial operations. By securing stable, renewable energy sources, DCM Shriram aims to reduce its reliance on traditional power grids and lower its overall carbon footprint at its large-scale chemical and manufacturing complex.

Official Corporate Disclosure

According to a regulatory filing submitted to the National Stock Exchange (NSE) on June 19, 2026, the company’s Board of Directors met and concluded its session at 11:25 a.m. to finalize the proposal.

"The Board of Directors of the Company at its meeting held today i.e., 19th June 2026 has approved Equity Investment of up to Rs. 18 crores, in one or more tranches, (total Equity Investment approved Rs. 105 crores) for obtaining additional ~ 10 MW Renewable Power supply," the company stated in its official disclosure signed by Company Secretary Deepak Gupta.

Why It Matters

For investors and stakeholders, this capital allocation signals the company’s commitment to energy security and cost-efficiency amidst volatile traditional energy markets. By utilizing SPVs for power generation, DCM Shriram is adopting a specialized infrastructure financing model that effectively ring-fences the project while securing a captive supply of green energy.

The transition to a higher renewable energy mix is expected to provide operational stability for the Bharuch plant, which remains a key revenue generator for the firm. As Indian manufacturing companies face increasing pressure to adhere to Environmental, Social, and Governance (ESG) standards, such investments are viewed as critical steps in maintaining industrial competitiveness.

Key Facts at a Glance

• Total Equity Commitment: The total approved equity investment now stands at ₹105 crore (following the additional ₹18 crore approval).

• Total Renewable Capacity: Upon completion, the Bharuch facility’s renewable power supply is set to reach approximately 108 MW.

• Infrastructure Model: Investment is routed through Special Purpose Vehicles (SPVs) to secure dedicated power.

• Strategic Goal: The project aims to enhance energy self-sufficiency and promote sustainable power integration at the company’s flagship manufacturing site.

FAQ

What is the purpose of the new investment?

The investment is intended to secure additional renewable power capacity for the company's Bharuch plant, helping the facility transition toward cleaner energy sources.

How is the investment being executed?

DCM Shriram is investing in Special Purpose Vehicles (SPVs) to develop and manage these renewable energy projects, allowing for a structured and dedicated power supply.

What is the total renewable capacity planned for the Bharuch plant?

With the latest board approval, the Bharuch plant’s total renewable energy supply is expected to reach approximately 108 MW.

When was this decision finalized?

The Board of Directors approved the additional equity investment during a meeting held on June 19, 2026.

Source: National Stock Exchange of India (NSE) - Corporate Disclosure, DCM Shriram Limited