DCW Embarks on Next Phase of Growth with ₹250 Crore Expansion Programme

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“The ₹250 crore investment programme is focused on areas where we see clear opportunities to scale. With SIOP operating at high utilisation, an established customer base and growing end-market demand, the expansion will increase capacity while moving us further into value-added pigment products.” - Saatvik Jain, President, DCW Limited

August 2026 : DCW Limited has kicked off a major expansion, committing approximately ₹250 crore to scale its production capacity and upgrade infrastructure. The first phase of this growth programme centers on its Sahupuram complex in Tamil Nadu, targeting higher-value chemical products and improved energy efficiency.

Following record-breaking sales volumes in FY26 that pushed existing facilities to near-full capacity, DCW will expand its Synthetic Iron Oxide Pigment (SIOP) output by 50% - boosting annual capacity from 30,000 tonnes to 45,000 tonnes. Beyond pure volume, the rollout introduces specialized, high-margin pigment grades designed for advanced applications across construction, paints, plastics, laminates, and packaging.

The move positions DCW to capitalize on a rapidly expanding global market for iron oxide pigments, projected to grow from $2.5-2.7 billion in 2025 to roughly $3.9 billion by 2033. Asia-Pacific currently leads this sector, generating over 41% of global revenue.

To reinforce cost efficiency across both its Specialty and Basic Chemicals divisions, DCW is also investing in enhanced captive power infrastructure at Sahupuram, building on recent renewable energy initiatives. Financially, the company enters this capital expenditure cycle with momentum: Specialty Chemicals EBITDA expanded 1.9x between FY21 and FY25, and DCW expects to reach a net cash positive status by the end of FY27.

Commenting on the investment, Mr. Saatvik Jain, President, DCW Limited, said: "Over the last few years, we have strengthened our balance sheet, scaled Specialty Chemicals and improved operating efficiency. Specialty Chemicals are now a major contributor to profitability, providing a stronger base for our next phase of growth.

The ₹250 crore investment programme is focused on areas where we see clear opportunities to scale. With SIOP operating at high utilisation, an established customer base and growing end-market demand, the expansion will increase capacity while moving us further into value-added pigment products.

Alongside this, investments in energy efficiency will strengthen manufacturing competitiveness. Our balance sheet provides the flexibility to fund growth while maintaining financial discipline, with a continued focus on sustainable returns and long-term value creation."

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