DCW Ltd has announced a ₹250 crore investment programme to expand its Synthetic Iron Oxide Pigment (SIOP) capacity, introduce value-added pigment products and strengthen captive power infrastructure at its Sahupuram manufacturing complex.
The company plans to increase SIOP capacity by 50%, from 30,000 tonnes per annum to 45,000 tonnes per annum, through a phased expansion.
SIOP capacity to expand
The investment follows record SIOP sales volumes in FY26, with the business operating at effectively full capacity. The expansion is expected to support further growth in domestic and international markets.
The company is also planning newer, value-added pigment grades to broaden its portfolio and cater to higher-value applications and additional customer requirements.
Demand outlook remains strong
An industry study estimates the global iron oxide pigments market will grow at a 4.6% CAGR to $3.9 billion from around $2.5-2.7 billion in 2025. Asia-Pacific accounted for approximately 41.5% of global revenue in 2025 and remains the largest regional market.
Iron oxide pigments are widely used in construction materials, paints and coatings, plastics and other industrial applications. DCW’s SIOP portfolio serves construction, paints, paper, laminates, packaging, furniture, plastics and rubber applications.
Captive power gets investment
DCW will also invest in captive power infrastructure at Sahupuram to improve energy efficiency and strengthen the cost competitiveness of its Basic and Specialty Chemicals businesses.
“The ₹250 crore investment programme is focused on areas where we see clear opportunities to scale. With SIOP operating at high utilisation, an established customer base and growing end-market demand, the expansion will increase capacity while moving us further into value-added pigment products,” said DCW, President, Saatvik Jain.