DSCL and its subsidiaries are owned by three Shriram brothers – the sponsors are Messrs. Ajay Shriram, Vikram Shriram and Ajit Shriram who have a 52.7% shareholding in DSCL. The balance shares are held by the general public (14.1%), banks and financial institutions (22.6%) and other corporates (10.6%).

The total project cost is estimated at about $74.2 million which includes incremental working capital and contingencies. The main project components are: - expansion of DSCL’s PVC resin and carbide capacities; - replacement of the Company’s chlor-alkali plant with more environment friendly membrane cell technology; - adding a 40MW power plant; and - expanding DSCL’s network of rural retail stores. Most of the project investment will be made at the company’s existing integrated manufacturing complex at Kota. The proposed IFC investment is $30 million A loan for IFC’s own account.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

* These investment figures are indicative

The project is located at the company’s existing facilities at Kota, in the Indian state of Rajasthan. Kota, an industrial city about 400 km south of Delhi on the main Mumbai-Delhi railway line, is well connected to both cities: four and a half hours by train to Delhi and overnight to Mumbai. The plant site is 3 km from the main Bombay-Delhi line, has its own siding and is linked to the country’s large railway network, facilitating dispatch of finished goods such as cement, urea and other products to customers as well as to bring in naphtha and other bulk feedstock. Though the nearest airport is about 240 km away at Jaipur, Kota is also well connected by road as it is on one of the major north-south national highways, giving the company additional logistical flexibility.

The primary development impact of the project will be to help strengthen and expand the operations of a mid-tier company to enable it to become internationally competitive. The project will generate strong developmental benefits through upgrading of environmental standards, creation of new jobs in an economically depressed area of the country and preservation of existing jobs as the Indian economy continues to liberalize as part of its globalization strategy. It will also strengthen agricultural and farming sector activities, which provide sustenance and employment for the vast majority of the local communities. This project is expected to have a positive demonstration effect on small and medium businesses in the chemical industry, particularly small fertilizer companies, smaller PVC and chlor-alkali companies, to adopt international best practice norms and operating standards in all aspects of their operations. IFC’s role is to support DSCL, which is in a highly capital-intensive business, mobilize long-term capital in line with its business requirements and to promote the Company’s sustainable growth in its diverse lines of business. - Long term funding: The average maturity of the A loan proposed by IFC would be about three years higher than the average maturity of the Company’s existing loans. Therefore, the strengthening of the Company’s capital structure will be a direct long-term benefit from IFC’s involvement. IFC’s involvement is also expected to encourage domestic lenders to provide long-term funds for the Company’s present and future projects. - Enhancing long-term sustainability: Over the years, DSCL has taken a number of steps to make its operations fully compliant with local environmental and social regulations as well as to align them with international best practices. IFC’s involvement is part of the company’s long-term strategy to ensure that its operations continue to achieve international best practice norms.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental information submitted by the project sponsor.

The following potential environment, health and safety, and social impacts of the projects were analyzed: Site location (including land ownership and land use), and environmental conditions; Environment, health, and safety (EHS) management; Water source and liquid effluent; Air emissions, workplace monitoring, and ambient air quality; Workplace and ambient noise levels; Hazardous materials handling; Mercury bearing brine sludge landfills; Other solid/hazardous waste handling and disposal; Occupational health and safety; Fire prevention and emergency response plans; Energy consumption and energy efficiency; Community involvement and relationship; EHS situations at other DSCL operation locations.

Further details are provided in the Environmental Review Summary available separately with this document.
Location of environmental documents in locally affected community
Environmental documentation will be made available at the following location: DCM Shriram Consolidated Limited Shriram Nagar, Kota 324 004 (Rajasthan) INDIA Phone: +91-744-248-0991 Fax: +91-744-248-0296