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DCM Shriram Ltd, a major player in the chemicals and agri-business sectors, has entered into a significant long-term partnership with Aarti Industries Ltd (AIL) for the supply of chlorine. As part of this growing collaboration, AIL will increase daily chlorine consumption by purchasing an additional 200 tonnes from DCM Shriram’s chlor-alkali plants. This strategic alliance strengthens both companies’ foothold in the highly specialized and vital chlorine market, driven by rising industrial and manufacturing demand.
Key Highlights Of The Chlorine Supply Partnership
DCM Shriram Chemicals will act as the exclusive supplier of chlorine to Aarti Industries from its state-of-the-art chlor-alkali plant facilities based in Bharuch and Kota, Gujarat.
Under the agreement, AIL plans to ramp up daily chlorine procurement by 200 tonnes to meet its expanding operational needs, reflecting increased production capacities and market growth.
The existing relationship between DCM Shriram and Aarti Industries evolves into a formalized long-term partnership, ensuring supply reliability and ongoing collaboration.
Chlorine supplied is a critical industrial chemical used primarily in manufacturing polymers, resins (notably PVC plastics), pharmaceuticals, water treatment, and various other sectors.
DCM Shriram is India’s second-largest chlor-alkali manufacturer, producing chlorine along with caustic soda, calcium carbide, PVC resins, and compounds.
Strategic Importance Of The Partnership
The increased demand for chlorine from AIL aligns with broader market trends indicating industrial expansion, especially in specialty chemicals and advanced material manufacturing.
DCM Shriram’s ability to supply chlorine on piped infrastructure ensures just-in-time delivery, reducing inventory and logistical costs for AIL.
This partnership strengthens the supply chain linkage, providing Aarti Industries with a steady, high-quality chlorine source essential for its diverse chemical manufacturing processes.
The collaboration underlines investment confidence in India’s chemical sector, encouraging technological upgrades, capacity expansions, and sustainability efforts.
Operational Insights And Capacity Considerations
DCM Shriram’s chlor-alkali plants operate with robust capacities; past expansions have lifted total chlor-alkali production to over 1,200 tonnes per day.
Approximately 35% to 40% of chlorine production is supplied directly via pipelines to adjacent units and customers like AIL, with the remainder marketed domestically and internationally.
The additional 200 tonnes daily supply represents a significant uptick, indicating strong industrial demand growth and expansion of Aarti Industries’ chemical production footprint.
Both companies are exploring innovation and R&D facilities to improve product quality, process efficiency, and downstream product development.
Market Demand Drivers And Industry Context
Chlorine’s usage spans essential sectors such as agrochemicals, pharmaceuticals, polymers, textiles, water treatment, and consumer goods manufacturing.
India’s industrial growth, infrastructure development, and increased emphasis on specialty chemicals project sustained demand for chlorine and allied chemicals.
Rising urbanization and environmental regulations also drive the need for cleaner manufacturing processes, which depend on high-quality chemical inputs.
The partnership reflects resilience amid global supply disruptions, aiming to secure local, reliable supplies while expanding capacity.
Sustainability And Future Outlook
DCM Shriram is actively investing in greener production technologies aimed at reducing environmental impact and improving energy efficiency within the chlor-alkali process.
Potential synergies between DCM Shriram and Aarti Industries extend to sustainability-focused projects such as circular economy initiatives and waste reduction programs.
Both firms aim to align growth objectives with regulatory compliance and ecological stewardship, positioning the partnership as a forward-looking enterprise.
Planned capacity expansions, technological upgrades, and market diversification underpin a positive future trajectory for the chlorine supply ecosystem.
Conclusion
The long-term chlorine supply partnership between DCM Shriram Ltd and Aarti Industries Ltd marks a strategic milestone in India’s chemical manufacturing landscape. With AIL’s commitment to purchase an additional 200 tonnes of chlorine daily, both companies capitalize on operational synergies, market demand growth, and sustainability imperatives. This alliance strengthens the domestic supply chain for vital industrial chemicals, supporting India’s broader economic and industrial development goals.
Sources: Business Upturn, DCM Shriram Ltd official disclosures, LinkedIn DCM Shriram Chemicals, MarketScreener, Alkali Bulletin, Economic Times
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