DCM Shriram and Aarti Industries sign long-term chlorine supply deal, establishing secure pipeline to enhance safety, efficiency, and sustainability.

New Delhi, India:  DCM Shriram Ltd and Aarti Industries Ltd (AIL) have entered into a long-term strategic agreement for chlorine supply, further strengthening their collaboration in the chemical sector. Under the partnership, DCM Shriram Chemicals will serve as the exclusive supplier of chlorine from its chlor-alkali plant to AIL’s upcoming downstream chemicals facility at Zone IV, Jhagadia, Gujarat.

As part of the agreement, a state-of-the-art, jacketed underground chlorine pipeline will be established between the two plants. Engineered with a strong focus on safety, reliability, and environmental protection, the pipeline will ensure efficient and secure chlorine transfer. Once fully operational, AIL is expected to source an additional 200 tonnes of chlorine per day, supplementing the 150 tonnes currently procured from DCM Shriram Chemicals.

Commenting on the development, Sabaleel Nandy, ED and CEO, DCM Shriram Chemicals, said, "This agreement is a milestone in strengthening the deep trust and collaboration between DCM Shriram Ltd and Aarti Industries. By committing long-term chlorine supply through world-class infrastructure, we are reinforcing our leadership in safe, sustainable, and reliable chemical integration. This partnership not only validates DCM Shriram's credibility as a preferred supplier but also enables us to further enhance our 'indirect chlorine integration'—a key lever in maximising value and ensuring optimal utilisation of our caustic soda capacities."

Echoing this sentiment, Suyog Kotecha, CEO, AIL, said, "This partnership between AIL and DCM Shriram Ltd is based on mutual synergies to support the cost-effective manufacturing of critical chemicals. It reflects AIL's commitment to forging long-term, strategic partnerships that strengthen supply security while prioritising operational safety and sustainability in a cost-efficient manner. Chlorine is vital to our value chain and securing it through a dedicated pipeline ensures reliability and efficiency. Building on our earlier experience at Zone-II, Jhagadia, this partnership with DCM Shriram reflects our commitment to delivering value to customers, investors, and communities through safer and more reliable operations."

The collaboration highlights the companies’ focus on sustainable chemical integration, cost efficiency, and long-term supply security, marking a significant step forward in India’s chemical manufacturing landscape.

According to TechSci Research, the long-term chlorine supply partnership between DCM Shriram and Aarti Industries is expected to positively impact the chemical industry by enhancing supply chain reliability, operational safety, and cost efficiency. The establishment of a dedicated underground pipeline ensures a secure and uninterrupted supply of chlorine, a critical raw material for various downstream chemical processes. This reduces dependence on road transport, thereby lowering logistical risks and minimizing environmental impact. For the industry, such infrastructure-driven collaborations highlight a shift toward sustainable integration and long-term strategic planning, which is crucial in maintaining competitiveness in global markets. Additionally, the expansion in chlorine offtake will support optimized utilization of caustic soda capacities, further strengthening value addition across the chlor-alkali value chain. Overall, this development underscores the growing emphasis on safety, sustainability, and efficiency, setting a benchmark for future partnerships within the chemical sector.