GHCL Ltd, amongst the largest soda ash and industrial salt-makers in India, will invest Rs 6,500 crore to set up a one-million-tonne soda ash plant in Kutch, Gujarat, over a six-year period. The company will be nearly doubling its production capacities targeting a 30% market share in India.
The greenfield unit will be built in two phases. In the first phase, the capacity addition will be 0.5 million tonnes per annum (mtpa) and will be built at Rs 4,500 crore; while phase II will see an addition of another 0.5 mtpa at Rs 2,500 crore.
“Work is already on at our greenfield soda ash plant near Kutch and in three years the first phase will be commissioned. We would be ready to tap the increasing demand in Indian markets with Phase 2 being ready and commissioned by 2030,” Ravi S Jalan, Managing Director, GHCL, said.
The company’s current soda ash manufacturing facility at Sutrapada, also in Gujarat, stands at 1.2 mtpa.
According to Jalan, the company’s existing market share is 26% and capacity expansion will help increase its market share not just in India, but also help tap neighbouring markets such as Sri Lanka, Nepal, and Bangladesh.
Growth in demand is anticipated on account of rising demand for solar glass and lithium ion batteries.
India’s soda ash consumption is currently at 4.3 mtpa and is expected to reach 7 mtpa by 2030. Global consumption is 63 mtpa and is expected to touch 80 mtpa by 2030.