DCM Shriram Limited has finalized strategic agreements with Serentica Renewables to anchor its energy-intensive chemical operations with reliable, round-the-clock (RTC) renewable power. By transitioning away from conventional energy dependencies, the company is significantly decarbonizing its primary manufacturing hubs in Gujarat and Rajasthan. The roadmap includes a 68 MW peak project for the Kota complex and a 48 MW peak expansion for the Bharuch facility, bringing the company’s cumulative green energy footprint to 166.4 MW peak. While initial power injection for the Kota project commenced on May 4, 2026, full expansion across both sites is slated for completion by Q1 FY 2028.
Strategic Financing and the “Group Captive” Advantage
To optimize fiscal efficiency and ensure regulatory compliance with the Electricity Act, DCM Shriram is executing these projects via a “Group Captive” model. This structure requires the company to hold a minimum of 26% equity in the Special Purpose Vehicles (SPVs), a strategic move that allows DCM Shriram to bypass specific cross-subsidy surcharges and secure long-term tariff stability.
- Investment Framework: DCM Shriram completed cumulative capital investments of ₹1,106 crore in FY 2026. This allocation funded the initial 6.6 MW peak renewable enhancement at Bharuch, alongside critical forward and backward integration acquisitions such as Hindusthan Speciality Chemicals Ltd and DNV Global Pvt Ltd.
- Bankability and Reliability: The partnership leverages Serentica Renewables’ robust financial position, recently bolstered by $1.2 billion in funding from a consortium including the Asian Development Bank (ADB) and the New Development Bank (NDB). This “bankable” architecture, modeled after Serentica’s large-scale hybrid project in Koppal, Karnataka, ensures the continuous RTC power supply essential for high-uptime chemical processing.
Technical Architecture and Commissioning Roadmap
The transition utilizes a solar-wind hybrid system to mitigate the intermittency of standalone renewable sources. By sourcing power from high-yield regions in Rajasthan and Karnataka, DCM Shriram ensures a more consistent energy profile for its core industrial complexes.
| Complex | Project Phase | Peak Capacity | Target Status/Commissioning |
| Kota (Rajasthan) | Hybrid Solar-Wind | 68 MW (Avg. ~34 MW) | 15 MW injection started May 2026; Full Q1 FY 2027 |
| Bharuch (Gujarat) | Existing Capacity | 50.4 MW | Operational (Includes 6.6 MW FY26 addition) |
| Bharuch (Gujarat) | Expansion Project | 48 MW | Commissioning expected Q1 FY 2028 |
| Total Footprint | Cumulative | 166.4 MW | Full Integration by FY 2028 |
De-risking Operations: The ESG and Financial Imperative
The shift to renewables is the centerpiece of an Integrated Decarbonization Roadmap designed to reduce carbon intensity while shielding the bottom line from global energy volatility.
- Operational Hedge: By securing captive renewable sources, the Chemicals and Vinyl business reduces its “feedstock and energy cost sensitivity.” This serves as a vital structural hedge against the sharp increases in conventional energy prices that have recently disrupted global supply chains.
- Sustainability Leadership: These initiatives propelled DCM Shriram to an ESG score of 63 in the S&P Global Corporate Sustainability Assessment (CSA). The company now ranks in the top 6% of 409 global chemical companies and is a featured member of the Sustainability Yearbook 2026.
- Circular Economy Synergy: The power transition complements a broader suite of carbon-reduction efforts:
- Ethanol & Bio-Gas: Sale of 15.15 crore liters of Ethanol and the operation of a 12 TPD Compressed Bio-Gas (CBG) plant.
- Industrial Symbiosis: The cement business actively upcycles waste generated from Calcium Carbide and PVC production.
Key Stakeholder Perspectives
DCM Shriram’s leadership views environmental stewardship as a fundamental driver of long-term shareholder value.
Ajay S. Shriram, Chairman & Senior Managing Director: “Energy transition remains a priority… These achievements reflect our enhanced focus on environmental stewardship and our commitment to navigating global volatility through robust operational discipline.”
Vikram S. Shriram, Vice Chairman & Managing Director: “Our underlying strength lies in our diversified portfolio and our ability to maintain growth momentum through sustainable business practices and strategic partnerships.”
Sabaleel Nandy, Executive Director & CEO – Chemicals Business: “We are consistently matching capacity augmentation with greener and efficient sources of energy. By scaling our advanced materials business and integrating renewable power, we ensure that our growth is delivered in a sustainable and cost-competitive manner.”
Official Source Citations
- DCM Shriram Limited – Integrated Annual Report 2025-26 www.dcmshriram.com,,
- DCM Shriram Chemicals – Official Manufacturing Facilities & Operations Overview www.dcmshriramchemicals.com
- ICRA Limited – Serentica Renewables India Private Limited: Credit Rating Rationale (November 19, 2025) www.icra.in
- Blueprint for India’s Cleantech Manufacturing Ambition (Council for International Economic Understanding & Dalberg) cieu.in/cleantech-blueprint
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