DCW Limited has announced a strategic investment programme of around ₹250 crore as part of its next phase of growth. The first phase of the programme will focus on expanding Synthetic Iron Oxide Pigment (SIOP) capacity, developing value-added products and improving captive power infrastructure at the company’s Sahupuram manufacturing complex in Tamil Nadu.
DCW plans to increase its SIOP production capacity by 50%, from around 30,000 tonnes per annum to 45,000 tonnes per annum. The expansion will be carried out in phases and is aimed at meeting rising demand from domestic and international customers. The decision follows record SIOP sales in FY26, when the business operated at almost full capacity. Iron oxide pigments are widely used in construction materials, paints and coatings, plastics, paper, laminates, packaging, furniture and rubber products, providing DCW with a broad customer base across multiple industries.
The global iron oxide pigments market was estimated at around US$2.5–2.7 billion in 2025 and is projected to reach approximately US$3.9 billion by 2033. Asia-Pacific accounted for around 41.5% of global revenue in 2025. Along with capacity expansion, DCW will introduce new value-added pigment grades. The move is expected to expand the company’s product range and allow it to address higher-value applications and specific customer requirements.
The investment programme also includes strengthening captive power facilities at Sahupuram. The initiative is expected to improve energy efficiency and support lower operating costs across both the Basic Chemicals and Specialty Chemicals businesses. DCW has already invested in renewable energy projects, which have started contributing to lower power costs.
The programme builds on DCW’s growing Specialty Chemicals business. Between FY21 and FY25, the segment recorded a 26% compound annual growth rate, while Specialty Chemicals EBITDA in FY25 was 1.9 times the FY21 level. The segment has become a major contributor to the company’s profitability over the past five years.
DCW said its financial position provides room to fund the proposed investments while maintaining financial discipline. The company expects to become net cash positive by the end of FY27, before taking on additional debt for the proposed capital expenditure.
Saatvik Jain, President, DCW Limited, said the company had strengthened its balance sheet, expanded its Specialty Chemicals business and improved operating efficiency over the past few years. He said the ₹250 crore programme would focus on areas with clear growth opportunities, including SIOP capacity, value-added products and energy efficiency.
DCW operates manufacturing facilities at Dhrangadhra in Gujarat and Sahupuram in Tamil Nadu. Its portfolio includes Basic Chemicals such as Soda Ash, Caustic Soda and PVC, along with Specialty Chemicals including CPVC and Synthetic Iron Oxide Pigments. The company serves customers in India and international markets including the US, Europe and Japan.
