GHCL

GHCL Ltd, India's second-largest soda ash producer, has petitioned the government for anti-dumping duties on soda ash imports from China and other exporters as cheap imports squeeze margins. Import share has doubled to 25-26% from a historical 15%, pressuring domestic producers who lack access to low-cost natural reserves. China controls 45% of global soda ash capacity and recently added over 10 million tonnes in Inner Mongolia, creating market surplus. The Directorate General of Trade Remedies is investigating following petitions from domestic firms. India extended minimum import price of Rs 20,108 per tonne until December 31, but GHCL's managing director R S Jalan says it provides limited benefit. Despite challenges, GHCL operates at 98% capacity utilization with 26% domestic market share. The company reported standalone net profit of Rs 145 crore on revenue of Rs 823 crore, with soda ash prices dropping 19% year-on-year while margins eroded only 5%. GHCL is expanding capacity to 2.2 million tonnes annually through a Rs 6,500-crore Gujarat plant to capture demand from India's solar energy expansion, projecting additional 1 million tonne demand over five years.

GHCL Limited will temporarily close its Soda Ash plant for planned maintenance activities from September 26, 2025 to October 12, 2025. The shutdown is expected to result in a production shortfall of approximately 22,000-25,000 tons. The company stated it has sufficient reserve stock of Soda Ash to meet customer requirements during this period, ensuring no adverse impact on supply commitments. The maintenance activities are being conducted to ensure efficient and safe operations of the plant.

GHCL aims to expand its soda ash manufacturing capacity from 1.2 million tonnes per annum to 2.3 million tonnes per annum by 2030 through a new greenfield project. Managing Director RS Jalan stated the capacity addition will come online after three years, with margin expansion in the soda ash business expected at that time. The company expects to maintain EBITDA margins in the 25-30% range over the next two years. GHCL has allocated Rs 300 crore per year for capital expenditure over the next two years, focusing on bromine and vacuum salt businesses and operational efficiency improvements. Jalan projected return ratios of over 30% for new ventures and 20-22% overall for the company. The expansion comes despite short-term headwinds from global market dynamics, particularly China's influence with 45% of global soda ash capacity. GHCL shares closed 1% lower at Rs 543.05.