DCM Shriram has announced its acquisition of 100% equity in four companies engaged in the production and sale of industrial salt. The acquisition includes Shree Raj Salt and Chemical Works Pvt. Ltd., Devjagan Salt Farm Pvt. Ltd., Maruti Salt Farm Pvt. Ltd., and Manek Salt Works Pvt. Ltd. The deal involves salt works with 1077 acres of salt lease land in Gujarat and is valued at ₹175 crores.
Strategic Acquisition of Salt Manufacturers
DCM Shriram has entered into a definitive agreement to acquire 100% equity share capital of Shree Raj Salt and Chemical Works Pvt. Ltd., Devjagan Salt Farm Pvt. Ltd., Maruti Salt Farm Pvt. Ltd. and Manek Salt Works Pvt. Ltd.. These companies are involved in producing and selling industrial salt.
Deal Overview
The acquisition encompasses salt works with 1077 acres of salt lease land located in the State of Gujarat. The transaction is valued at ₹175 crores and is expected to be completed by June 2026, subject to regulatory approvals and fulfillment of conditions outlined in the definitive agreement.
Financial Details of Acquired Entities (FY2024-25)
Shree Raj Salt and Chemical Works Pvt. Ltd.
Paid-up share capital: ₹0.46 crore. Turnover: ₹10.57 crore. PAT: ₹(0.07) crore. Net worth as of March 31, 2025: ₹0.39 crore.
Devjagan Salt Farm Pvt. Ltd.
Paid-up share capital: ₹0.01 crore. Turnover: ₹8.45 crore. PAT: ₹(0.15) crore. Net worth as of March 31, 2025: ₹0.81 crore.
Maruti Salt Farm Pvt. Ltd.
Paid-up share capital: ₹0.01 crore. Turnover: ₹5.59 crore. PAT: ₹0.06 crore. Net worth as of March 31, 2025: ₹1.80 crore.
Manek Salt Works Pvt. Ltd.
Paid-up share capital: ₹0.62 crore. Turnover: ₹10.88 crore. PAT: ₹0.26 crore. Net worth as of March 31, 2025: ₹1.52 crore.
Strategic Rationale
This acquisition will facilitate the backward integration of DCM Shriram’s chemical business into salt manufacturing, which is a key raw material.
Source: BSE
