GHCL to Commence ₹6,500 Crore Soda Ash Plant in Kutch After Land Clearance

GHCL Ltd is set to start construction of its ₹6,500 crore greenfield soda ash plant in Kutch, Gujarat, within the next 6 to 7 months. With required clearances and the majority of land already acquired, this project aims to nearly double GHCL’s production capacity to 2.3 million tonnes per annum by 2030.

GHCL Plans Major Capacity Boost with Soda Ash Plant

GHCL, India’s second-largest soda ash producer, will add 1.1 million tonne capacity in a two-phase initiative, supplementing the existing 1.2 million tonne capacity. Primarily focused on the growing solar industry, the plant will produce dense soda ash, a critical raw material for solar glass manufacturing, as India targets 300 GW of solar power. 

GHCL’s Managing Director confirmed that environmental clearances are secured and construction is expected to commence within the next 6 to 7 months.

Project Financing and Strategic Relevance

The ₹6,500 crore capex will be funded using a balanced mix of debt and equity. With GHCL currently debt-free and holding reserves of nearly ₹1,000 crore, the financial risk remains minimal. 

The project aligns with reducing India’s 20% import reliance on soda ash while aiming to curb cheap Chinese imports. Notably, Gujarat contributes 95% of India’s soda ash production, making Kutch a strategically sound location for the plant.

Diversification with Bromine and Vacuum Salt

GHCL is also adding product diversity through bromine and vacuum salt. By January 2025, its vacuum salt unit is expected to operate at near-zero cost, using waste energy for a sustainable output. Bromine output will start at 2,800 tonnes using existing infrastructure, creating a strong integrated chemical portfolio.

Commitment to Sustainability and Carbon Reduction

The new facility will leverage advanced AI-driven technologies and substitute fuels to curb emissions. GHCL is already ahead of its target to cut carbon emissions by 30% by 2030 at its existing plant. The greenfield unit aims to outperform global emission benchmarks.

GHCL Share Price Performance

On October 16, 2025, GHCL share price opened at ₹624.60 on NSE, near the previous close of ₹624.60. During the day, it surged to ₹639.00 and dipped to ₹619.30. The stock is trading at ₹625.40 as of 2:27 PM. The stock registered a marginal change of 0.13%.

Over the past week, it has declined by 0.97%, over the past month, it has moved up by 8.41%, and over the past 3 months, it has moved up by 1.35%.

Read More:Environment Ministry Set to Clear ₹31,380 Crore Sawalkot Hydropower Project on Chenab River

Conclusion

GHCL’s Kutch soda ash plant marks a significant step in enhancing domestic supply, supporting the solar sector, and promoting self-reliant manufacturing under the Make in India initiative. Despite short-term supply pressures, the company remains committed to expansion and sustainability goals.

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