DCW Allocates Rs. 140 Crore to Boost CPVC Production Capacity to 50,000 MT

DCW Limited, one of India’s leading specialty chemical companies, has unveiled plans for a significant expansion of its CPVC (Chlorinated Polyvinyl Chloride) production capacity. The company aims to increase its output from the current 20,000 metric tonnes (MT) to an impressive 50,000 MT. To facilitate this ambitious project, DCW has earmarked Rs. 140 crore for the expansion.

This investment reflects DCW's strategic commitment to enhancing its manufacturing capabilities in response to the increasing demand for CPVC products across various sectors, including plumbing, construction, and electrical applications. CPVC is known for its durability, resistance to corrosion, and ability to withstand high temperatures, making it a preferred choice for many industrial and consumer applications.

The expansion is expected not only to strengthen DCW's market position but also to enable the company to better serve its customers by providing a wider range of high-quality CPVC products. Furthermore, this move aligns with the broader trends in the specialty chemicals industry, where companies are increasingly focusing on innovation and capacity enhancement to stay competitive.

With this expansion, DCW aims to tap into emerging markets and enhance its operational efficiency, thereby contributing to the overall growth of the specialty chemicals sector in India. The company’s proactive approach underscores its dedication to sustainability and technological advancement, positioning it well for future challenges and opportunities in the market.

DCW Limited plans to finance approximately 30% of its CPVC expansion project through internal accruals, with the remaining funds secured through debt. However, the company aims to maintain a focus on reducing its overall debt in the coming years.

The expansion will increase production capacity by 30,000 MT through a combination of new installations, de-bottlenecking existing facilities, and process optimization. This capacity increase will be implemented in phases, with 20,000 MT expected to become operational in the second half of Q2 FY26, and an additional 10,000 MT projected for completion by the end of FY26. This phased approach ensures rigorous quality control while addressing the growing demand for CPVC, which is well-regarded for its excellent thermal and chemical resistance properties, making it ideal for construction, plumbing, and industrial piping applications.

Saatvik Jain, President of DCW Limited, emphasized the strategic importance of this investment, describing it as a key pillar of the company's growth-with-deleveraging strategy. He noted that this approach enables DCW to expand while maintaining a robust financial position. By leveraging its existing infrastructure and expertise, the company is positioning itself as a major player in the specialty chemicals sector.

Jain also highlighted the demand-supply mismatch for CPVC in India, linking the expansion to the “Make in India” initiative spearheaded by the Prime Minister. He pointed out that this move supports the country's increasing infrastructure needs. Ultimately, this capacity expansion is set to reinforce DCW Limited's leadership in the specialty chemicals market, allowing it to cater to more sophisticated and stable end-user markets, thereby enhancing profitability and creating long-term growth opportunities.