DCM 2025

pending

DCM Shriram Limited (DCM, or the company), an existing IFC client is a diversified company present in Chemicals & Vinyl, Sugar & Ethanol, Fenesta Building Systems and Agri-inputs (Urea, Shriram Farm Solutions and Bioseed). Chemicals & Vinyl business segment has manufacturing facilities that are located at Kota & Bharuch which mainly includes Caustic Soda, Chlorine, Hydrogen, Hydrogen Peroxide, Aluminium Chloride, Epichlorohydrin, Calcium Chloride, PVC resins & compounds. The business is supported by 345 MW captive power plant along with access to 50 MW (peak) renewable power through group captive structure for Bharuch. Further, 68 MW (peak) renewable power under group captive structure for Kota Location is currently under implementation. Sugar & Ethanol business has 4 (four) manufacturing facilities located in state Uttar Pradesh.IFC has previous investments in the company as listed below:(a) DCM Consolidated (#23385, disclosed in Nov 2004, closed in2015): https://disclosures.ifc.org/#/projectDetail/ERS/23385 - ESRR 2 at exit(b) DCM Shriram Consolidated II (#24732, disclosed in Feb 2006, closed in 2015):https://disclosures.ifc.org/#/projectDetail/ERS/24732 - ESRR 2 at exit(c) DSCL Bharuch Expansion (#27161, disclosed in Jun 2008, closed in 2015):https://disclosures.ifc.org/#/projectDetail/ESRS/27161 - ESRR 2 at exit(d) DCM Shriram Limited Bharuch II (#36511, disclosed in Mar 2016, closed in 2017)https://disclosures.ifc.org/#/projectDetail/ESRS/36511 - ESRR 2 at exit(e) DCM Sugar (#42346, disclosed in March 2019, active as on date): https://disclosures.ifc.org/project-detail/ESRS/42346/dcm-sugar - ESRR 2 as on March 2020(f) RSE Covid DCM (#44204, disclosed in Sept 2020, active as on date): https://disclosures.ifc.org/project-detail/SII/44204/rse-covid-dcm - ESRR 2 as on March 2021IFC’s proposed current investment is limited to the following facilities of DCM Shriram: greenfield project for Aluminum Chloride & Calcium Chloride (ALCAL) manufacturing in Jhagadia, Bharuch (Gujarat); reimbursement and future capex for sugar units ((including distilleries at Ajbapur and Hariawan) in Loni, Ajbapur and Hariawan (Uttar Pradesh); Chlor-alkali plant in Kota (Rajasthan); long term working capital and refinancing of loans taken for the sugar business. IFC funds will not be used towards capex in the following facilities of DCM: Coal based power generation in any plant; Chlor-alkali & Epichlorohydrin (ECH) plant at Bharuch (Gujarat); Urea, Calcium Carbide and Cement plants in Kota (Rajasthan), country liquor production in distillery units and Sugar plant in Rupapur (UP). Any future IFC investment/use of proceeds beyond what has been appraised and described in the ESRS will require compliance to IFC’s E&S requirements. IFC will undertake additional/separate E&S duediligence and agree with the client on any additional mitigation (as needed). The ESRS & ESAP will be updated based on the additional assessment and requirements (as relevant and applicable).The specific details of plants covered under this investment are described below:ALCAL Plant – The project will manufacture 225 TPD of Calcium Chloride and 100 TPD of Aluminum Chloride. The site is located in Bharuch (Gujarat) within the dedicated Jhagadia industrial area of Gujarat Industrial Development Corporation (GIDC) and about 2.5 kms from their existing Bharuch chemical plant. The land is 43000 sqm and leased from GIDC in 2022. The land parcel was originally allotted to another company in 2011. That company did not develop the site untill it was transferred to DCM in 2022. The project is presently 60% constructed as on date. Chlorine will be conveyed in tonners from the existing Chlor-Alkali manufacturing site in Bharuch and subsequently through pipeline and an administrative clearance for the right of way (RoW) from GIDC.Sugar plants in Loni, Ajbapur and Hariawan (UP) – These are existing manufacturing plants on land parcels acquired from the Farmers & State Government in the late 1990s & 2000s when the plants were established. The total area of these sugar plants are around 534 acres. The sugar plants procure sugar cane from local area farmers & aggregators. The 4 sugar units (including Rupapur unit) procures from about 2,50,000 farmers and some cooperatives and has an installed capacity of 42,400 TCD, crushing around 6.5 MT of cane annually from the manufacturing units with 166 MW bagasse based cogeneration power plant capacity.Distillery Plants in Ajbapur & Hariawan (Uttar Pradesh) – In Ajbapur, the Distillery plant has Ethanol production capacity of 370 KLD out of which 250 KLD is multifeed & balance is on molasses feedstock. In Hariawan, the distillery plant has capacity of 190 KLD of ethanol.Chloralkali Plant in Kota – The plant operates at 524 TPD capacity producing caustic soda, chlorine, bleaching powder & hydrogen. The company has replaced the conventional mercury based technology in 2006 with the less polluting membrane technology.