AHMEDABAD: Vadodara-based Gujarat Alkalies & Chemicals Limited (GACL), country’s major caustic soda maker to spend Rs 3500 crore for its expansion that includes a new caustic soda plant at Bhavnagar and a power plant at Dahej. It also plans to set up a new caustic soda plant or acquire an existing plant in eastern India.

Confirming the development, Mr Pankaj Pujara, head of the project, said that the company would soon execute its expansion plans. According to the company, the expansion plans involve expanding the existing capacities of caustic soda, chloromethane and phosphoric acid besides caustic potash at its Dahej plant. The caustic soda capacity is being expanded by 1200 tonnes per day (TPD), that of chloromethane by 600 TPD, phosphoric acid by 300 TPD and the caustic potash to 120 TPD.

The company would also come up with 120 megawatt coal-based power project at Dahej. Apart from augmenting its existing caustic soda plants, the company also exploring possibility of setting up a new caustic soda plant at Bhavnagar with an capacity of 600 TPD. It will also set up a new plant in Eastern Indian states with a capacity of 300 TPD or alternatively it may acquire a similar capacity manufacturing unit of an existing caustic soda plant based in Eastern India.

Caustic soda is the basic chemical for any industry and thus it has a huge demand. Currently, India’s install capacity of caustic soda production is at 3.5 million ton annually. The growth potential is 3% to 4% and it may touch the GDP growth rate with the surge in the domestic economy. However, a considerable amount of caustic soda is imported in the country.

GACL’s total capacity is at 0.43 million ton annually and looking at the growing demand the company plans to expand its production capacity. GACL is only into domestic market and holds 14-15% market share.

GACL was once top caustic soda producer in India, now the top producer slot has been taken over by Aditya Birla Group after it set up new plants and made a few acquisition in caustic soda segment. There are into 30 small to big caustic soda producer in the country that includes companies like DCW, Nirma and Reliance.