DCW Plans ₹250 Crore Investment to Expand Synthetic Iron Oxide Pigment Capacity by 50% at Sahupuram
DCW has announced a strategic investment programme of approximately ₹250 crore, marking the first phase of its next growth cycle. The programme will focus on expanding Synthetic Iron Oxide Pigment (SIOP) capacity, introducing new value-added pigment products and strengthening captive power infrastructure at its Sahupuram manufacturing complex.
DCW plans to increase SIOP capacity by 50%, from approximately 30,000 tonnes per annum to 45,000 tonnes per annum, through a phased expansion. The investment follows record SIOP sales volumes in FY26, with the business operating at effectively full capacity.
The expansion is supported by growing global demand, with the iron oxide pigments market estimated at approximately US$2.5-2.7 billion in 2025 and projected to reach around US$3.9 billion by 2033. Alongside the capacity increase, DCW plans to introduce newer, value-added pigment grades to broaden its product portfolio.
The company will also invest in captive power infrastructure at Sahupuram to improve energy efficiency and strengthen cost competitiveness across its Basic and Specialty Chemicals businesses. The expansion builds on DCW's multi-year shift toward higher-value specialty chemicals, which have become the primary contributor to the company's profitability over the past five years.