GHCL Ltd , India's second-largest soda ash producer, has taken a significant step to protect its market position by petitioning the government for anti-dumping duties on soda ash imports from China and other exporters. This move comes as cheap imports are putting pressure on domestic producers' margins.

Market Dynamics

The soda ash market in India has seen a substantial shift, with the import share doubling to 25-26% from a historical 15%. This increase has created challenges for domestic producers like GHCL, who lack access to low-cost natural reserves. The situation is further complicated by China's dominance in the global soda ash market, controlling 45% of global capacity.

Chinese Expansion and Market Surplus

China has recently added over 10 million tonnes of soda ash capacity in Inner Mongolia, contributing to a market surplus. This expansion has intensified the competition and price pressure on Indian producers.

Government Investigation

In response to petitions from domestic firms, including GHCL, the Directorate General of Trade Remedies has initiated an investigation into the matter. The Indian government has already extended the minimum import price of Rs 20,108.00 per tonne until December 31. However, GHCL's managing director, R S Jalan, notes that this measure provides limited benefit to domestic producers.

GHCL's Performance

Despite the challenging market conditions, GHCL has managed to maintain strong operations:

• Operating at 98% capacity utilization
• Holding a 26% domestic market share
• Reported standalone net profit of Rs 145.00 crore on revenue of Rs 823.00 crore

However, the company has felt the impact of market pressures:

• Soda ash prices dropped 19% year-on-year
• Margins eroded by 5%

Future Expansion and Market Outlook

GHCL is taking proactive steps to strengthen its position in the market:

• Expanding capacity to 2.2 million tonnes annually
• Investing Rs 6,500.00 crore in a new Gujarat plant

This expansion is strategically aligned with India's growing solar energy sector, which GHCL projects will create additional demand of 1 million tonnes over the next five years.

Market Implications

The outcome of GHCL's petition for anti-dumping duties could have significant implications for the Indian soda ash market. If implemented, these measures could help level the playing field for domestic producers and potentially stabilize prices. However, the decision will need to balance the interests of domestic manufacturers with those of industries that rely on soda ash as a raw material.

As the investigation unfolds, stakeholders in the chemical industry will be closely watching for any developments that could reshape the competitive landscape of the Indian soda ash market.

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.