GHCL Plans To Invest INR 6500 Crore In A New Soda Ash Facility In Gujarat, India

New Soda Ash Facility in Gujarat

GHCL Invests In An INR 6,500 Crore Greenfield Soda Ash Facility In Gujarat

GHCL Ltd, one of the most significant chemical companies and the largest producers of soda ash and industrial salt-maker in India, is set to make an INR 6500 crore investment for the establishment of a one-million-tonne soda ash plant in Kutch, Gujarat. The project is expected to take place over a period of six years.

The company aims to double its production in the coming years and will strive to achieve a 30 percent stake in the Indian market share (the present market share is 26 percent).

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The latest greenfield unit will be constructed in two phases. In the initial phase, a 0.5 million tonnes per annum (mtpa) capacity addition will be carried out, accounting for INR 4,500 crore, following which another addition of 0.5 mtpa will take place, accounting for INR 2,500 crore.

These additions will significantly boost the company's production capacity, which currently stands at 1.2 mtpa.

Regarding the status of the new investment, the greenfield soda ash plant near Kutch is underway, with an estimated completion date of three years when the first phase will be commissioned.

Demand For Soda Ash

In light of  recent investments by market players, it can be concluded that India's soda ash demand is expected to rise on the back of increasing demand for solar glass and lithium-ion batteries. Presently the country's soda ash use stands at 4.3 mtpa, which is forecasted to increase by 2030 to 7 mtpa.

Additionally, the overall consumption across the world is expected to reach 80 mtpa by 2030, compared to the present 63 mtpa.

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According to Procurement Resource, the largest soda ash manufacturing company in India, GHCL is going to invest INR 6,500 crore in a two-phase greenfield soda ash in Gujarat. The aim of the investment is to boost the production capacity of the company in order to meet the rising demand for soda ash in the domestic market and transform the company into the largest shareholder of the product's market share in India.


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