DCM Shriram Industries completes complex corporate restructuring

The National Company Law Tribunal (NCLT) in New Delhi sanctioned a Composite Scheme of Arrangement for DCM Shriram Industries Ltd. (DCMSR), Lily Commercial Private Limited (LCPL), DCM Shriram Fine Chemicals Limited, and DCM Shriram International Limited. Approved on November 21, 2025, the scheme involves LCPL's amalgamation with DCMSR, followed by the demerger of DCMSR's Chemical and Rayon Undertakings into the respective resultant companies. DCM Shriram Industries Ltd. received the NCLT's certified order on December 5, 2025.

The scheme, designed to enhance management focus and operational efficiency, received strong shareholder approval, with 99.9999% of equity shareholders and 100% of unsecured creditors voting in favor. The Income Tax Department noted pending demands of INR 27,15,93,220 from DCMSR, which the company has undertaken to pay. The NCLT clarified that its order does not grant tax exemptions, and all statutory liabilities remain enforceable.

The scheme's effective date will be notified separately, with an appointed date of April 1, 2023. The order directs the transfer of contracts, employees, and liabilities of the transferor and demerged companies to the transferee and resultant companies. The NCLT will retain authority to ensure compliance and address any issues post-implementation.