GHCL Limited , a prominent player in the chemical industry, has announced a temporary closure of its Soda Ash plant for annual scheduled maintenance activities. The shutdown, aimed at ensuring efficient and safe operations, is set to take place from September 26 to October 12, 2025.

Impact on Production

The planned maintenance is expected to result in a production shortfall of approximately 22,000 to 25,000 tons of Soda Ash. However, GHCL has assured stakeholders that this temporary closure will not adversely affect its supply commitments.

Customer Supply Assurance

In a statement to the stock exchanges, GHCL emphasized that it has maintained sufficient reserve stock of Soda Ash to meet customer requirements during the maintenance period. This proactive measure aims to ensure uninterrupted supply to its clients despite the temporary halt in production.

Regulatory Compliance

The company has duly informed the National Stock Exchange of India Limited and BSE Limited about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. This transparency in communication underscores GHCL's commitment to keeping its stakeholders informed about significant operational changes.

Trading Window Closure

In a related development, GHCL has also announced the closure of its trading window for designated persons and their immediate relatives. This closure will be effective from October 1, 2025, until 48 hours after the declaration of the unaudited financial results for the quarter ending September 30, 2025. This measure is in line with the company's Code of Conduct and SEBI regulations on insider trading.

The temporary plant closure highlights GHCL's focus on maintaining its production facilities to ensure long-term operational efficiency. By scheduling the maintenance during a period when they have adequate inventory, the company aims to minimize any potential disruptions to its business operations and customer commitments.

GHCL Limited , a leading chemical manufacturer, has announced plans to significantly expand its soda ash production capacity over the next seven years. The company aims to nearly double its current output, targeting an increase from 1.20 million tonnes per annum to 2.30 million tonnes per annum by 2030.

Expansion Strategy

The expansion will be achieved through a new greenfield project, as revealed by GHCL's Managing Director, RS Jalan. According to Jalan, the additional capacity is expected to come online after a three-year development period. This strategic move is anticipated to drive margin expansion in the company's soda ash business segment.

Financial Outlook

Despite the ambitious expansion plans, GHCL maintains a cautious yet optimistic financial outlook:

• EBITDA Margins: The company expects to maintain EBITDA margins in the range of 25-30% over the next two years.
• Capital Expenditure: GHCL has allocated Rs 300.00 crore per year for capital expenditure over the next two years.
• Focus Areas: The capex will primarily be directed towards the bromine and vacuum salt businesses, as well as operational efficiency improvements.
• Return Projections: Jalan projected return ratios of over 30% for new ventures and 20-22% overall for the company.

Market Challenges

The expansion plans come against a backdrop of short-term headwinds in the global soda ash market. China's dominant position, controlling 45% of global soda ash capacity, presents a significant influence on market dynamics. GHCL's strategy appears to be focused on long-term growth despite these challenges.

Stock Performance

GHCL's shares closed 1% lower at Rs 543.05 on the day of the announcement, reflecting cautious investor sentiment in light of the expansion plans and market conditions.

The company's bold move to expand capacity significantly demonstrates confidence in the long-term demand for soda ash. However, the success of this strategy will depend on global market conditions, execution of the expansion plan, and GHCL's ability to maintain its projected financial performance in the face of market challenges.