DCM Shriram Limited has entered into a definitive agreement with Serentica Renewables India to develop a 58 MW peak hybrid renewable energy power project, primarily for its energy-intensive business in Bharuch, Gujarat.

Upon completion, DCM Shriram’s total renewable energy capacity across its Bharuch and Kota sites will increase to 176 MW peak, significantly expanding its clean energy base. The project is expected to be commissioned by June 2027.

Under the agreement, DCM Shriram Limited will invest up to Rs 1.05 billion in one or more tranches to acquire a minimum 26 per cent equity stake in Serentica Renewables India.

Sabaleel Nandy, Executive Director and CEO, DCM Shriram Chemicals, said, “The agreement is a strategic step in expanding the share of renewable energy across our chemical operations in Bharuch and supporting our ongoing efforts to make the business more sustainable. The project is expected to help avoid nearly 0.4 million tonnes of CO2 emissions annually while increasing the share of renewable power. Further, given that power is one of the most significant input costs, this will help improve cost efficiency, provide greater visibility into long-term power costs and reduce exposure to fluctuations in conventional energy prices.”

Akshay Hiranandani, CEO, Serentica Renewables, said, “Our partnership with DCM Shriram Chemicals marks another significant step in advancing India’s industrial decarbonisation journey. Through a 190 MW renewable energy project comprising solar power from Rajasthan and wind power from Karnataka, we will supply 58 MW of renewable power to DCM Shriram Chemicals’ Bharuch plant, enabling reliable and sustainable energy for its operations.”

The agreement strengthens DCM Shriram Chemicals’ renewable energy portfolio while supporting the long-term energy requirements of its Bharuch operations. Once commissioned, the project is expected to contribute meaningfully to the company’s efforts to improve energy efficiency, reduce emissions and build a more resilient and sustainable manufacturing base.