GHCL Shares Slide Despite Environmental Clearance For ₹6,500 Crore Soda Ash Plant

GHCL, one of India’s leading chemical companies, announced it has received environmental clearance from the Ministry of Environment, Forest and Climate Change for its ambitious Soda Ash Greenfield Project in Kutch, Gujarat. Despite this significant milestone, GHCL shares were trading down by 3% as of 10 AM on December 13, 2024.

Project Overview and Investment Plans

The Soda Ash Greenfield Project is set to be a game-changer for GHCL. With an investment of ₹6,500 crore over six years, the company plans to establish a state-of-the-art facility with a production capacity of 1.1 million metric tonnes per annum (MMTPA). The project aims to enhance India’s contribution to global soda ash production, addressing the increasing domestic demand, which is expected to reach 7.0 MTPA by 2030.

Driving Sustainability and Economic Growth

GHCL’s Managing Director, R.S. Jalan, highlighted the project’s alignment with India’s vision for green energy and self-reliance (AtmaNirbharta). The plant will leverage advanced technologies to achieve carbon neutrality by incorporating green energy solutions. Furthermore, GHCL plans to engage with local communities through various CSR initiatives, creating direct and indirect employment and encouraging the growth of MSMEs in logistics and packaging.

Supporting India’s Industrial and Green Goals

Currently, India contributes only 6% to the global soda ash production capacity. GHCL, as the second-largest soda ash manufacturer in India, aims to double its capacity with this new plant, thereby supporting industries such as detergents and glass manufacturing. The initiative also aligns with India’s target of achieving 500 GW of installed green energy capacity by 2030.

About GHCL

GHCL Limited specialises in manufacturing soda ash, a critical input for detergents, glass, and other industries. The company recently demerged its spinning business into GHCL Textiles Limited. Sustainability forms the cornerstone of GHCL’s business strategy, encompassing responsible stewardship, social inclusiveness, and value creation under the ‘GHCL Way.’

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