GHCL’s US$760M synthetic soda ash plant set to boost Indian supply to meet growing domestic demand.

Indian conglomerate, GHCL, is involved in the chemicals, textiles, and consumer industries. In the chemical industry, it is the second-largest manufacturer of soda ash in India. With the recent environmental clearance granted for a new 1.1Mtpy synthetic soda ash plant at Mandvi in Kutch, Gujarat, GHCL is poised to become the largest soda ash manufacturer in India.

The company currently operates a 1.2Mtpy soda ash facility at Sutrapada in Gujarat. The Sutrapuda plant is undergoing an expansion to add another 500ktpy, which is expected to be completed by the end of 2025. The new soda ash plant is scheduled to be built out over six years, with two instalments of 0.55Mtpy, and a total investment of INR65Bn (about US$760M). The facility will incorporate technologies focusing on carbon neutrality goals through the use of green energy sources.

Synthetic soda ash is a major growth driver for the salt industry, as it is one of the key consumption sectors for salt. While soda ash is a key raw material used in glass and detergent manufacturing, it is also expected to see increasing demand from the solar and electric vehicle industries. Currently, India produces about 3.6Mtpy of synthetic soda ash, with up to 1Mtpy imported to meet domestic demand. With India targeting 500GW of installed green energy capacity by 2030, soda ash demand could rise to 7Mtpy.

GHCL’s new facility represents a potential 30% increase in India’s current soda ash production, which will contribute to closing the projected supply-demand gap by 2030.