DCM Shriram Management Discussions

Performance Review

Global Economic environment continues to be challenging given the geopolitical risks led by Russia-Ukraine and Middle-east conflicts and climate changes. This has resulted in imbalance in Supply chain, inflationary pressures, high interest rate environment impacting growth and demand. Though India continued to be in sweet spot, Chemical Industry has been adversely affected. In the current financial year, the company witnessed a decline in financial performance, primarily led by drop in product prices of Chloro Vinyl segment. Segments such as Sugar including Ethanol, Fenesta building systems and Shriram farm solutions, performed well and witnessed growth. Our balance sheet strength and stable operating cash flows enable us to invest in continuous growth as well as manage business uncertainties. Our diversified business portfolio has helped us to maintain reasonable returns in-spite of Chemical industry in down cycle. Our investment projects in Chemical and Sugar businesses are under implementation and will be completed in next financial year. These will add to our operating and financial strengths going forward. Total Revenue from operations (excluding excise duty) stood at Rs. 10922 crore vs Rs. 11547 crore last year.

Chloro-Vinyl: Overall revenue for Chloro-Vinyl was 31% lower at Rs. 2711 crore. Chemicals revenue was lower by 33% at Rs. 2119 crore vs Rs. 3184 crore & Vinyl revenue was lower by 23% at Rs. 593 crore Vs Rs 769 Crore due to decline in product prices.

Sugar and Ethanol business revenue (excluding excise duty) increased by 24% to Rs. 3698 crore vs. Rs. 2994 crore in FY 23. The increase was attributable mainly to higher volumes and better prices across all products.

Fenesta building systems business is our B2C business wherein, revenues were higher by 18% to Rs. 824 crore led by higher volumes and prices.

Agri Input businesses – Shriram Farm Solutions is a B2B2C business. Its revenue was higher by ~15% led by better realisations and higher volumes in seeds and crop care verticals. Fertilizer business revenue was lower by ~24% due to lower gas prices which is a pass through. Revenue for Bioseed business was higher by ~14% driven lower by volumes and realisation. Overall, Agri inputs business revenues were lower by 7% at Rs. 3256 crore.

Profit before depreciation, interest and tax (PBDIT) decreased by ~37% to Rs. 1089 crore vs Rs. 1726 crore last year:

Chemicals business PBDIT stood at Rs. 187 crore, a decrease of ~81% from last year, attributing to sharp decline in product prices compared to decrease in input costs led by energy prices.

Vinyl business PBDIT stood at Rs. 13 crore, a decrease of ~84% from last year, primarily due to product prices, partially compensated by lower input costs led by energy and carbon material prices

Sugar and Ethanol business PBDIT stood at Rs. 528 crore, an increase of ~64% from last year led by better margins in sugar and higher volumes for all products, despite regulatory challenges.

Fenesta building systems business PBDIT was higher at Rs. 171 crore vs. Rs. 143 crore last year led by higher volumes and better margins

Agri Input businesses performance has been better than last year though this gain was compensated by the fertiliser arrears received in FY23. Shriram Farm Solutions PBDIT improved to Rs. 225 crore vs Rs. 186 crore last year led by higher volumes and better product prices. Bioseed Business witnessed a significant improvement in earnings and turned positive in current year, led by the India business. PBDIT at Rs 28 crore led by higher volumes. Fertiliser Business PBDIT was lower at Rs. 66 crore vs. Rs. 141 crore last year mainly due to decrease in energy norms and lower gas prices, last year also had one time gain.

Cement business PBDIT increased by Rs. 43 crore led by lower energy prices.

Overall Consolidated PBDIT margins declined to 10.0% from 14.9% last year PAT stood at Rs. 447 crore, down 51% from Rs. 911 crore in FY 23.

Finance Costs – Increased by 66% to Rs 88 crore led by Capital expenditure.

Tax out go was Rs. 189 crore.

EPS for the year at Rs 28.7 versus Rs 58.4 in FY 23.

Net Debt as on March 31, 2024 stood at Rs. 1434 crore vs. Rs. 681 crore last year due to debt raised for ongoing capital expenditure in Chemicals business. Capital Expenditure: In line with our strategic direction of strengthening our businesses through scale, integration and cost efficiency, we are implementing various growth projects. The progress of Chemicals and Sugar projects is as below:

Projects under implementation

• 850 TPD caustic soda plant expected to be commissioned by Q1 FY25. 600 TPD Caustic soda Flaker in Q2 FY25.

• 56100 TPA Hydrogen Peroxide facility expected to be completed by Q1/Q2 FY25

• 52000 TPA Epichlorohydrine (ECH) facility with Glycerin purification facility is expected to be completed by Q1/Q2 FY25

• 120 MW coal based new power plant is underway and is expected to be commissioned in June / July24.

• Anhydrous Sodium Sulphate System (AnSS) is expected to be completed by Q2 FY25

• 12 TPD Integrated Compressed Biogas Project at Ajbapur Sugar complex is expected to be completed by Q4 FY25

• 2100 TCD expansion at Loni complex is expected to be completed by Q3 FY25 The Company commissioned following projects in FY 24 at an investment of ~ Rs. 182 crores:

• 44 MW (Peak) Renewable (Solar+wind) power via SPV route (group captive) is commissioned

• 4600 TPA Manufacture of Sulphate of Potash (in a 100% subsidiary) plant at Hariawan Sugar complex

• Extrusion plant expansion at Kota and Fa?ade fabrication plant at Hyderabad

• Water Soluble Fertiliser and Bio products plant (in a 100% subsidiary) at Kota.

We believe these steps will significantly strengthen our businesses.

Key Financial Ratios Standalone

Ratios Mar24 Mar23 Remarks
Operating Profit Margin (%) 9.0% 14.2% Lower profits led by lower product prices of Chloro Vinyl products
Net profit Margin (%) 4.0% 8.6% Lower net profits led by lower operating profits
Interest Coverage Ratio 13.1 61.0 Due to higher finance cost on account of higher debts and lower PBDIT in FY24
Current Ratio 1.6 1.8
Net Debt Equity Ratio 0.23 0.12 Due to higher net debt
Inventory Turnover 5.5 6.2 Led by higher sugar inventory
Debtors Turnover 18.2 12.1 Lower average receivables due to lower FICC dues
Return on Net Worth (%) 6.6% 16.3% Decline due to lower profits

*Operating profit and Net profit margins are calculated on Net revenue from operations (excluding excise duty).



The Chloro –Vinyl business is highly integrated and energy intensive –supported by 225 MW of thermal power plants and 44 MW (peak) renewable energy. The business comprises Chlor-Alkali products- Caustic soda lye and Flakes, Chlorine and associated chemicals including Hydrochloric acid, Aluminium chloride, Stable Bleaching powder, Hydrogen and Sodium Hypochlorite. In the Vinyl segment – it includes PVC resins and Calcium Carbide. Additional revenue streams of Epichlorohydrin (ECH) and Hydrogen Peroxide are being added.

The Revenue, PBDIT and Capital employed for the business for FY24 is as follows:

Chloro-vinyl segments revenue stood at Rs 2711 vs Rs. 3,954 crores in FY23 and PBDIT at Rs. 201, a drop of 82%. The decrease is primarily led by sharp reduction in product prices, though lower input costs have mitigated some impact on the margins.

Chlor Alkali business produces core chemicals viz. Caustic Soda, Chlorine, Hydrogen, Hydrochloric acid, Aluminium Chloride and Stable Bleaching Powder - widely used in manufacturing processes of other industries. Chlorine and hydrogen are the co-products.

Major consuming sectors of caustic soda industry are Alumina, Textiles, Pulp & Paper, Soap & detergents, Pharmaceuticals etc. and chlorine is used in Chemicals and Petrochemicals (PVC, CMS, CPW), Agro-chemicals and Water treatment segments.

The Chlor Alkali industry in India has 23 manufacturers with a combined installed capacity of ~5.6 million metric tons per annum (~5.5% share of global installed capacity). The top 4 players account for ~55% of the total installed capacity. The domestic demand of caustic soda in the last 10 years has increased at a ~5% CAGR and expected to grow in the same range. Domestic Industry has witnessed significant capacity additions over last couple of years and more is being added, this has put pressure on product prices. Global prices are also lower given the pressure on demand.

The company has two manufacturing sites located at Bharuch (Gujarat) and Kota (Rajasthan) utilizing coal, biomass and renewable energy for captive power generation. DCM Shriram is the second largest Chlor-alkali manufacturer in the domestic market and our Bharuch facility is the largest single location Chlor-alkali manufacturing unit in India.

The caustic soda production capacity at Bharuch is 1375 TPD that is further being expanded by 850 TPD, while at Kota, it stands at 524 TPD. Furthermore, we are diversifying our revenue streams by adding Epichlorohydrin (ECH) and Hydrogen Peroxide (H2O2) in our product portfolio. Further the Board has given in-principle approval for getting into Epoxy Business.

The Revenue, PBDIT and Capital Employed for this business for FY24 are as follows:

Chlor- alkali revenue stood at Rs. 2,119 crores, a decline of 33% Y-o-Y. ECU prices were lower by 38% year-on-year in line with decline in global prices and surplus domestic capacity as the key reason for decline in PBDIT that stood at Rs 187 crore vs. Rs. 1,010 crore in FY23. Manufacturing costs have declined but has not kept pace with decline in product prices.

Year Sales (MT) Realizations (Rs./MT)
FY 24 5,80,270 26,928
FY 23 5,96,769 43,629
% Change -2.8 -38.3

Our strategy: Companys strategy is to keep investing to increase scale, drive cost efficiencies and diversification of revenue streams to enable the growth and add value to the business in a sustainable manner. We have been consistently matching the capacity augmentation with downstream integration, greener and efficient source of energy and operation excellence. Use of green energy is helping us in our endeavour towards sustainability. The business is reinforcing its digital framework to improve efficiency of its operations.

Further, we are in the process of commissioning of 120 MW power plant at Bharuch site that is more efficient and will drive cost savings. Along with this ECH and H2O2 will drive forward integration of chlorine and hydrogen. The company has also decided to enter into advanced material business including Epoxy which will give us the flexibility to capture profit pools in the value chain.

Vinyl business is involved in the manufacturing of PVC Resins and Calcium carbide. The business is an integral part of the Chloro-Vinyl manufacturing facility at Kota (Rajasthan). DCM Shriram Ltd. is the only organised player in the with country which manufactures PVC Resin through the Calcium Carbide route as against the Ethylene route which is being followed by most of the countries worldwide with an exception of China. The Calcium Carbide manufactured by the company is partly sold as merchant Carbide, while a large part is captively consumed for the manufacture of PVC Resins.

PVC Resin is the third largest plastic in production and consumption in the world. It is a widely used raw material for fabrication of a wide variety of products like pipes and fittings, construction of modern houses and other applications such as profiles and tubes, windows and doors, sidings, wires and cables, flooring, roofing, films, toys and medical applications/devices. Calcium Carbide, on the other hand, is used in the production of dissolved acetylene gas and de-sulphurizing compound besides production of PVC resins.

PVC demand in India is ~ 4 MMT as against an installed capacity of 1.5 MMT/ annum. Hence India remains the top import destination for PVC globally. PVC demand in India continues to be healthy at 6% supported by growth in downstream industries and expected to continue so in next decade.

Business Performance

The Revenue, PBDIT and Capital employed for PVC business in FY24 is as follows:

PVC Resins Carbide
Year Sales (MT) Realizations (Rs./MT) Sales (MT) Realizations (Rs./MT)
FY 24 55,579 76,476 21,636 65,777
FY 23 55,980 97,688 22,366 85,291
% Change -0.7 -21.7 -3.3 -22.9

Revenue was lower by ~ 23% y-o-y, while PBDIT decreased by ~ 84% y-o-y. Revenue and PBDIT was lower primarily on account of lower realizations for both PVC resin as well as Calcium Carbide, however PBDIT is partially mitigated by lower input costs led by energy and carbon material.

Our Strategy: The business has partial swing capability between PVC Resin or Calcium Carbide depending upon the margins of these products. The company is focused on maximizing margins by implementing cost reduction initiatives, drive process efficiency and sustainability.

Sugar and Ethanol

India is the second largest producer and largest consumer of sugar in the world. Indian Sugar Industry is highly fragmented with private sector, Government undertakings, Co-operatives, and unorganized players. Unorganized players are mainly involved in production of Gur and Khandsari, the less refined form of sugar. The crushing period varies from region to region beginning in October/ November and goes on till April/ May in all states except in southern states like Tamil Nadu, Andhra Pradesh where it continues till July/ August. In domestic context, sugar is the second largest Agro based industry supporting over 50 million farmers along with indirect employment to rural population. It is estimated that about 7.5% of the rural population in India is involved with the sugar industry.

There have been no significant investments in global sugar capacities over the last few years and the variations in sugar production have been largely attributable to the Sugarcane production and the flexibility in Brazil between sugar and ethanol production. World sugar balance sheet is expected to remain in marginal surplus. Also, Brazil Sugar vs Ethanol mix is skewed towards maximizing sugar production; expected mix 48.9% in SS 2023-24 vs 46% last season. Mills in Brazil are focusing on maximising sugar output because of a 3-4 c/lb sugar premium over ethanol.

India is structurally a sugar surplus nation. Sugar production in the current sugar season is expected at 32 mmt after considering diversion of 2 mmt to ethanol. The consumption is expected at 28.5 mmt and therefore sugar stocks are expected to end at a 4-year high ~ 8.9 mmt. This year the Government had contained sugar diversion to ethanol to 2 MMT and restricted sugar exports in anticipation of much lower production. Government of India continues to be aggressive in the ethanol blending mandate and intends to achieve the target of 20% blend by 2025. For the current Ethanol season the blending rate is expected to be lower than the target of ~15%. In the current season feedstock for ethanol has been a challenge given the restriction on B Heavy Ethanol and surplus rice. Given the challenges, the government is promoting Maize as feedstock. DCM Shriram is a major player in the domestic sugar industry based out of the State of Uttar Pradesh. The company has four integrated sugar complexes located in central U.P. at Ajbapur (13,500 TCD), Hariawan (13,000 TCD), Loni (8,000 TCD) and Rupapur (6,500 TCD) with a total crushing capacity of 41,000 TCD (with refined capacity of 26500 TCD) supported by power cogeneration capacity of 152 MW of which 93 MW of power can be exported. These four units are fully integrated with three distilleries – two on final molasses feedstock located at Ajbapur (120 KLD) & Hariawan (190 KLD) and one on multi-feedstock at Ajbapur (250 KLD) with power cogeneration capacity of 14 MW, of which 1.5 MW is exportable and a country liquor bottling line of 14000 cases per day. The company has commissioned one of its kind Potash fertiliser plant in its 100% subsidiary operating on distillery ash. This is a classic example of circular economy. Similarly the CBG project is under commissioning is based on by product of press mud which again is our effort towards sustainability and an improvisation of circular economy.

The Revenue (net of excise duty), PBDIT and Capital Employed for this business for FY24 along are as follows:

Sugar (Domestic) Ethanol
Particulars Sales Realisation Sales Realisation
(Lac Qtl) (Rs/Qtl) (Lac ltr) (Rs/Qtl)
FY24 59.6 3802 1624.2 57.5
FY23 49.1 3554 1187.4 56.7
% Change 21.4 7.0 36.8 1.4

Operational Data (Financial Year Basis)

FY Cane Crushed Recovery Rate % Sugar Produced
(lac. qt) (lac. qt)
FY24 647.2 10.7 69.4
FY23 581.4 9.7 54.7

The increase in PBDIT is mainly due to higher volumes and better margins in all verticals.

Our Strategy: Sugar business has over the last couple of years, built a fully integrated sugar complex having a capability of capturing full downstream value for all its four sugar factories. Now our key focus areas are:

1. Focus on improving productivity and quality of sugarcane through dedicated cane development efforts, thereby benefiting both farmers in terms of higher yields and mills in terms of better recoveries & volumes

2. Focus on sweating existing assets and drive operational efficiencies across all business lines

3. Further evaluate options of value addition on by-products

4. Improve digital utilisation across its activities in the farm as well as operations


Fenesta building systems is Indias largest and most preferred Windows & Doors brand. Fenesta building systems provides complete solutions in terms of design, manufacture, fabrication, installation and service of precision-engineered, made-to-order windows, door systems. Also, Fenesta building systems has entered into a new vertical of building materials by launching Fa?ades in FY 24. It provides solutions for uPVC, System Aluminium windows, WPC & Engineered wooden Doors and Glass Facades. We continued to dominate the market in spite of increasing competition is led by our quality of product & services. The Business is investing to enhance capacities to serve its customers better. It has expanded its extrusion capacity during the year along with commissioning of Fa?ade fabrication unit. It has a wide channel network of 342 dealers.

The Revenue, PBDIT and Capital employed for this business for FY24 is as follows:

Year Sales / Windows Realizations (Rs./Windows)
FY 24 396197 20,553
FY 23 333221 20,637
% Change 18.9 -0.4

Revenue for the business was higher led by volumes both in Retail & Project segments. PBDIT for the business improved to Rs. 171 crore vs Rs. 143 crore in FY24 mainly due to higher volumes and better margins.

Our Strategy: Fenesta building systems continues to focus on enhancing product portfolio, customer experience, improved service, capacity expansion and channel expansion. Business is targeting to further improve channel productivity and sales effectiveness, which is expected to result in better conversion rates and increase in overall sales. It is reinforcing its digital infrastructure and has launched a new digital road map. This will help it to serve its customers better.


The agricultural sector faces challenges due to climate change and extreme weather events, necessitating innovative solutions for farmers and sustain global food production. Shriram Farm Solutions (SFS) has strategically positioned itself to address these challenges through its focus on advanced agri-inputs, leveraging technology, research, and collaborations.

SFS demonstrated resilience in FY24 despite erratic weather conditions, achieving a revenue growth of 15%. This growth was achieved despite subdued demand in Specialty Nutrition & Crop Protection verticals. Our Research Wheat Business is maintaining its leadership position with ~37% growth. The business launched 16 new products, including one developed in-house, received positive feedback from farmers. Despite disruptions in the agri-input business environment, SFS improved its margins through its new generation product portfolio. The establishment of Shriram AgSmart Ltd, a subsidiary focused on manufacturing specialty nutrition products, underscores the companys commitment to innovation and growth. This Company started its commercial production during the financial year & taking all necessary actions to provide high quality products on sustainable basis. This new Company has also adopted green energy source in the form of Solar Power Plant for meeting its in-house power requirements. SFS also remained at the forefront of technology adoption, leveraging digital platforms to reach farmers, enhance logistics automation, and improve cost efficiency. Initiatives such as digital mega crop shows and WhatsApp chat facilities have enhanced engagement with farmers, while expanding into high-potential South Indian markets to reinforce the companys growth strategy.

With a robust distribution network across India and reaching over 2 million farmers through 35,000 retailers, SFS leverages its strong brand equity built over five decades. The Shriram brand symbolizes trust and quality, further strengthening its relationship with the farming community. During the year SFS business also led a massive brand campaign on selected TV channels to outreach Farmers community across India.

The Revenue & PBDIT for this business for FY24 are as follows:

Revenue for FY24 was ~ 15% higher at Rs. 1186 crore vs Rs. 1034 crore last year. Revenue growth was driven mainly by higher prices & volume of seed vertical. CCC vertical showed a stable performance and SPN showed a decline in revenue. PBDIT for FY 24 was higher by ~21% at Rs. 225 crore vs. Rs. 186 crore last year, led by higher margins due to better volumes and product prices.

Our Strategy: SFSs strategic focus on agility, technological innovation, market penetration and collaboration with research organizations positions it for sustainable growth in the medium to long term. By consistently delivering superior value and prioritizing sustainability, SFS aims to maintain its leadership in the farm solutions business while driving positive impact for larger agri community. The company remains committed to delivering superior value to stakeholders while ensuring sustainability and adherence to its values.


Bioseed is a Research oriented organization and believes in serving the farmers by providing high quality hybrid and varietal seeds with desired traits. It is a business with end to end integration which involves research, production, processing and sales. The key crops that we deal in India comprise of Corn, Paddy, Bt Cotton, Mustard, Vegetables among others. In Philippines we deal primarily in Corn and Paddy. Our distribution network is wide spread across regions and continues to grow.

We have our research tie-ups in Thailand along with our own in India & Philippines. We spend about 8-10% of our revenue on research activities. This has led to a healthy product pipeline. The product development is not only focused on providing high yielding hybrids, but also meeting other challenges, such as pest resistance, disease tolerance, salinity and drought tolerance.

The Revenue, PBDIT and Capital employed for this business for FY24 are as follows:

Bioseed Revenues in FY 24 stood at Rs. 552 crore vs. Rs. 483 crore last year. Bioseed Indias operations witnessed an increase in revenue to Rs. 429 crore from Rs. 351 crore last year, as a result of higher Corn, Cotton, Paddy and vegetable seed sales and better realisation. The Philippines revenue in FY24 increased to Rs. 113 crore vs. Rs. 92 crore in the last year by higher volumes.

PBDIT for Indian operations turned positive primarily due to higher volumes, better realisation and lower provisions and write off with respect to seed inventory. PBDIT for Philippines operations also improved from last year due to increase in volumes.

Our Strategy: Research and development are the foundation of this business and we continue to invest in it. The business is strengthening as well as rationalising its product portfolio and intensifying marketing efforts to enhance trust and create a demand pull by organizing the field activities especially on newly launched hybrids in all the major crops. The trade channel is also being strengthened.


The companys Urea plant located at its integrated manufacturing complex at Kota, Rajasthan, is one of the oldest plants in the country with a reassessed capacity of 3,79,500 TPA. The company markets its product under "Shriram Urea" brand, a trusted name and enjoys high brand equity amongst the farmers. The Company has an extensive distribution network over the entire Northern and Central India.

India is the second largest producer and consumer of Urea in the world. Urea is most preferred fertilizer and constitutes about 81% of entire N fertilizer consumption in the country. Low farm gate price (fixed by government) and high nitrogen content has made it a preferred choice of the farmers. The gap between demand and supply of Urea has been met through imports. During 2023-24, the Indian urea production capacity has increased to 31.3 million MT, which is ~ 10 % over previous year after commencement of new plants. The imports have therefore reduced to 6.4 million MT (till Feb24) against 7.6 million MT during 2022-23.

The subsidy allocation for 24-25 by Government of India is Rs 1.00 lac crore which is sufficient for full pay-outs of subsidy bills at current gas prices. Government is encouraging Nano Urea, which is expected to increase crop yield and reduce the subsidy burden of the government. This transition will take some time.

The Revenue, PBDIT and Capital employed for this business for FY24 along with the quantitative data is as follows:

Year Sales (MT) Realizations (Rs./MT)
FY 23 4,13,277 35,444
FY 23 3,97,933 47,368
%Change 3.9 -25.2

Revenue for the business was lower due to reduction in gas prices which averaged US$ 15.4/MBT vs US$ 21.1/mmbtu last year, which is a pass through. The gas prices for the Q4 were at US$ 15.5/mmbtu. PBDIT was lower mainly due to downward revision in energy norms and lower gas prices. In our drive towards sustainability, we have undertaken reduction of CO2 emission, low grade heat recovery initiatives through Vapour absorption machine (VAM) and Organic Renkine Cycle (ORC) machine which is first of its kind initiative in the Fertilizer industry. Capital employed has decreased due to lower urea subsidy outstanding.

Our Strategy: The Company has been making continuous efforts towards improvement in energy consumption, maximising urea production as well as control on fixed expenses.



The company operates a Cement plant with a capacity of 400,000 TPA located at its integrated manufacturing facility at Kota. Calcium Hydroxide sludge is generated in the process of manufacturing PVC resins through Calcium Carbide route, which is then converted to cement in an environmentally friendly manner.

The Company produces high quality, premium grade Pozzolana Portland Cement (PPC) and Ordinary Portland Cement (OPC). The characteristics of light colour, superior strength and early setting properties make "Shriram Cement" to be considered as a premium brand especially in markets like Delhi/NCR and Rajasthan.

Business Performance: Revenue stood at, dont mention of cement business stood at Rs. 200 crore vs. Rs. 173 crore last year. The increase in revenue of ~16 % was mainly on the account of higher sales. Fuel price has significantly decreased in FY24 leading to improvement in margins. In our efforts towards sustainability, we commissioned the State of Art Carbonation System to capture CO2 from stack flue gas and react with Calcium Hydroxide Sludge for conversion to Calcium Carbonate in FY 2022-23 and further enhanced its capacity in 2023-24. This reduces Carbon footprint of the company and improves resource utilisation. After this process, the by-product sludge is fully utilised in with cement manufacturing. To optimize the energy, various energy saving initiatives have been implemented in FY24.

Our Strategy : The business is focused on further improving its efficiencies and optimizing its cost structure along product mix for generating higher returns. The company is making continuous efforts towards improvement in energy consumption, maximising cement production as well as control on fixed expenses.


The Retail operations were rationalised in 2013. The Company has limited its current operations to fuel retailing, which is also being rationalized.


Shriram PolyTech limited is a wholly owned subsidiary of DCM Shriram Limited. Shriram PolyTech is one of the largest organized players for PVC compounds in India and has world class manufacturing facility that started in 1964. It is certified for ISO 9001, ISO 14001 and OHSAS 18001.

During 2023-24, the Indian Demand stood at ~ 3.5 Lac MT per year out of which ~ 4% is catered through imported compounds and rest is met through domestic production.

Business Performance: The business total revenues for the FY24 stood at Rs. 203 crore vs Rs. 195 crore last year. The PBDIT stood at Rs. 15 crore vs Rs. 8 crore last year. The company is exploring new avenues of market segments, which would be mainly Medical, Automotive and Engineered vinyl products through its R&D facility known as iPAC (Innovative Plastic Application Centre).

Our strategy: The Company is expanding its current product basket and capacity by introduction of new compounds across the segments. The company is also adding the new manufacturing line to increase its capacity. The manufacturing facility is equipped with modern compounding technologies and state of the art testing equipments in order to provide a vast range of high quality PVC Compounds to customers in different industries.


The Company being a conglomerate has a natural business hedge, however individual businesses are exposed to various opportunities and risks.


• Company keeps organic and inorganic opportunities in adjacencies, forward and backward integration and value addition opportunities in its all existing businesses.

• Climate & extreme weather conditions will keep pushing need for quality seeds and other farm inputs with desired traits. Demand is going up for food in the country as well as globally leading to a need for higher productivity and extreme climate resistant seeds, disease and pests control for crops. Our agri input businesses are rightly placed to service in this space.

• Fenesta Building Systems business has opportunities in other related building products, which the business continuously evaluates.

• Strong brand in all businesses, which enjoy high level of trust and credibility with customers including farmers.

• Strong financials with healthy cash flows and good project implementation track record provides ability to continuously invest in growth.

Risk, threats and mitigants:

• Businesses like Chloro-vinyl are energy intensive. We continuously work and invest in improving sustainability in business, technology, efficiencies, fuel mix and sourcing, to ensure that overall cost of production is competitive.

• Sugarcane output, yield and recovery are exposed to climate risks. We work extensively with farmers to improve their farming techniques and farm inputs. We also work to provide them high quality seeds.

• Carbon risk – Sustainability is a key focus area across our businesses. Being in energy intensive businesses, we work proactively to increase the percentage of green power in our portfolio including Renewable power, Bagasse based co-gen power in Sugar business as well as use of Biomass in our coal based power plants for Chloro-Vinyl Business. 43% of our energy is green. We are over 12x water positive in our businesses. Further we continuously work to improve our efficiencies hence reduce our energy consumption and the carbon foot print. We have also been investing in circular economy.

• Capital intensive nature of our Sugar and Ethanol, Chloro-Vinyl and Fertiliser Business. The Company optimises its working capital and tries to keep overall debt at low levels and return on Capital employed at reasonable levels, to enable handling any risks arising therefrom. It follows principles of financial prudence.

• Businesses such as Sugar and Ethanol, Fertiliser and parts of Agri-inputs business segments are exposed to risk of regulatory intervention. Exposure to these businesses is kept at reasonable level. Further, we alongside with other industry participants and associates work with regulatory agencies on continuous basis to ensure a policy framework which benefits all key stake holders viz. farmers, consumers and industry. We have diversified the product portfolio in Sugar and Bioseed to limit the risks.

• Compliance - Increasing regulatory enactments has brought in the need for additional compliances. With various statutes and regulations, non-compliance may not only lead to monetary penalties but also have an impact on the reputation of the organisation and the goodwill it enjoys. The risk is mitigated through regular monitoring using IT tools and review of changes in the regulatory framework to ensure compliance with all the applicable statutes and regulations.

Internal Control Systems and their Adequacy

The procedures and controls are documented for all the key business processes and adhered to. Risk and Control Matrices (RCM) are documented for all key business cycles & processes and are reviewed by the Business Accounts and Internal Audit teams at periodical intervals. The Internal Audit team along with co-sourced internal audit teams carries out independent testing of effective functioning of key controls for all major business cycles either as part of the internal audits or through yearly testing plan which is duly approved by the Audit Committee at the start of the year. Further, these processes and controls are supported by SAP S4 HANA ERP and making them further robust. The key observations noted in internal audit reviews are presented to the Management and Audit Committee along with the remediation plans and action taken report.

Human Resources and Industrial/ Employee Relations

Our HR strategy is closely linked with the overall strategy of the organization, it enables us to attract, retain, and develop the right talent. It also ensures that we are investing our resources in the right areas, making decisions that are in line with the organizations strategic objectives.

To achieve above there has been a lot of focus on driving effectiveness through decisions based on data insights. We further strengthened the outcomes under the three pillars of our HR strategy (Drive Growth, Capability Build Up and Culture) by setting clear objectives and targets.

Drive Growth

• To build a sustainable and future ready Organization in line with the Growth strategy, there have been interventions designed around revisiting Organization structures to make them forward looking, building a strong Leadership bench strength through Succession planning and inducting talents through Lateral hiring, creating a focus on diversity and building the right capabilities

• We believe that diversity is a source of strength and we are committed to fostering a workplace that celebrates and values differences. Creating a gender balanced workforce has been one of our core focus areas in all the Businesses.

• To enhance efficiency and bring agility in our decision-making process, we have implemented the RACI matrix.

• There is gamut of channels under the Early in Career program to infuse fresh young talent in the Organization. Leveraging such programs has enabled us to build strong talent pipelines and develop a more diverse and knowledgeable workforce.

Capability Build Up: We view capability building as a strategic priority that is essential for organizations long-term success.

• Key focus area of our Learning and Development Strategy has been to enable the business growth agenda by Capability Development for Future, Accelerated Talent Development, and Creating an Agile Learning Culture by leveraging High Impact Learning Content from marketplace and amalgamating it with an internal learning input to provide a holistic development experience to our employees.

• There has been significant Investment in digitization by on boarding new e-learning platforms to develop and introduce a systematic and sustainable approach to learning and development that allows people to access a range of quality learning opportunities on the go.

• Focused interventions have been designed as part of senior leader development program, young professional development program and Role Transition programs from individual contributors to first time managers

• To ensure enhanced integration of Senior Leaders within the Organization, a structured orientation program has been curated around Cultural assimilation, Relationship Building and Business understanding as the key focus areas

• Mentoring and coaching programs have continued along with rotations of employees into new and different roles to give them a developmental exposure and learning for better career.

Culture: The commitment of the Organisation towards people is strongly enshrined in the core values and beliefs of the Organisation. Values and Culture impact employees right through the entire Employee Life cycle hence it needs to be integrated at all stages through DCM Shriram way which is:

• Regular reinforcement through Communication by Leaders to enable Employees to understand the significance of values in their daily lives and how will they demonstrate

• Linking it with the outcomes of Performance Management and Potential Assessment through Values framework

• Senior Leadership hiring based on Value Framework

• Recognition- through "living the values" at work

• Learning- To curate programs based on the Values and Behaviour framework

Employee Touch Points

• Employee surveys are a powerful tool for building a great place to work. We regularly conduct surveys such as the On- boarding Survey, Employee Engagement Survey to understand the pulse of the organization. Action plans are focused on enhancing employee engagement and retention through various programs such as recognition and rewards, and initiatives to promote work-life balance. The company also conducted regular town halls and open forums to facilitate communication and feedback.

• As part of our digitization initiatives, an HR Chat Bot has been introduced to provide employees with easy access to HR policies and information, automating the HR helpdesk system. Success Factors, HRMS has been optimally leveraged to enhance data accuracy and reduce manual interventions enabling a better employee experience

• We have increased our focus on employee safety and well-being, including partnering with external organizations for Employee Wellbeing and Assistance Programs, providing access to counselling sessions and mental well-being programs, as well as safety support in case of emergencies.

Employee / Industrial Relations

• The organization continues to foster cordial and harmonious relationships with employees, based on mutual trust, understanding, and respect, in line with our progressive philosophy. As on 31st Mar 2024, number of people employed were 6067.

• HR has played a key role in implementing the wage agreement and enforcing the organizations policies, procedures, and guidelines related to industrial relations, and are committed to upholding legal compliance, effective communication, and fair resolution of grievances and disputes.

• Our core values of fairness, transparency, and engagement are well institutionalized, creating a positive and enabling work environment

• The organization places a strong emphasis on employee health, safety, responsible care, process safety, and a cleaner work environment.

• Unique initiatives and an authentic people philosophy have led to an engaging and facilitating ecosystem, aligning employees with the business and organizational goals to create a brighter future for all stakeholders.