DCM Shriram is planning to invest around USD 143 million in a brownfield expansion project in Gujarat. It will be backed by the International Finance Corporation (IFC). The proposed project is 700 tpd brownfield expansion of its chlor-alkali plant at Bharuch in Gujarat along with 500 tpd flaker plant and 120 MW captive power plant. The project is expected to cost approximately USD 143 million. IFC’s investment will be used to fund the chlor-alkali plant expansion and flaker plant costing USD 89 million, along with long term working capital and routine capex. IFC plans to provide senior loan of up to USD 40 million in the form of non-convertible debentures (NCD). The captive power plant will be funded through the company’s internal cash flows. IFC’s financing will also help to add around 100 permanent skilled jobs and 250 temporary jobs and preserve 800 temporary jobs during construction, because of the expansion. The expansion will also ensure availability of caustic soda at competitive prices, and key raw materials to downstream industries such as aluminum, paper, detergents, agro-chemicals and pharmaceuticals.
