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DCM Shriram Ramps Up Loni Unit Sugar Capacity: Share Price Gains 27.5% in November

19 November 20243 mins read by Angel One
DCM Shriram expands Loni Unit's capacity by 2100 TCD, boosting cane potential. Share price surges 27.5% in November on growth optimism.
DCM Shriram Ramps Up Loni Unit Sugar Capacity: Share Price Gains 27.5% in November
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DCM Shriram has successfully commissioned the 2100 TCD (tons of cane per day) expansion at its Loni Unit in Uttar Pradesh. This strategic move increases the plant’s crushing capacity from 7300 TCD to an impressive 9400 TCD. Achieved on November 19, 2024, this milestone enables the company to capture the growing cane potential in its catchment area, aligning with its goal of scaling operations efficiently.

Impact on Operations and Growth Potential

The expansion is poised to enhance operational efficiency and meet the rising sugarcane availability in the region. With the upgraded capacity, the Loni Unit stands out as a significant contributor to DCM Shriram’s sugar segment, which has already demonstrated stable performance despite industry challenges. The company’s proactive approach to capacity expansion positions it to capitalize on upcoming opportunities in the sugar and ethanol space.

Positive Market Response: Share Price Surge

Investors have shown strong confidence in DCM Shriram’s growth trajectory. The share price has climbed by 27.5% in November, reflecting optimism about the company’s strategic investments. Market watchers attribute this rally to the successful execution of the Loni expansion, alongside DCM Shriram’s broader growth initiatives across its business segments.

Strategic Outlook: More Than Sugar

This expansion is part of DCM Shriram’s commitment to sustainable growth across its diversified portfolio. With investments in green energy and innovative projects, the company continues to strengthen its position in key markets. For the sugar segment, the Loni upgrade not only boosts capacity but also sets the stage for potential ethanol production enhancements, aligning with India’s ethanol blending targets.

Conclusion

The 2100 TCD expansion at the Loni Unit is a testament to DCM Shriram’s forward-thinking strategy. As the company leverages this increased capacity, its ability to meet market demand and drive profitability is set to improve. With its share price on a strong upward trajectory, DCM Shriram remains a stock to watch in the sugar and broader chemical space.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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