FORMULATING SUCCESS

From soda ash to salt and bromine, GHCL has transformed itself into a chemical powerhouse in the last four decades. What's powering this journey?

- By ASHISH SINHA

WHEN GHCL began its journey in 1983, few would have predicted that it would become India’s largest single-location producer of soda ash. Yet four decades later, GHCL is not only standing strong—it’s thriving.

“From the outset, we recognised the pivotal role of soda ash as an industrial raw material and committed ourselves to building scale,” says R.S. Jalan, Managing Director, GHCL (formerly Gujarat Heavy Chemicals). But growth hasn't come without bumps. There were failed acquisitions, exits from certain businesses, and serious financial pressures. Yet, GHCL turned every obstacle into a learning curve.

“One of our earliest turning points,” Jalan recalls, “was acquiring and turning around a struggling spinning unit. It was a bold move that diversified revenue and showed our ability to turn challenges into opportunities.”

That appetite for smart risk defined their next big step—securing captive limestone mines in Junagadh. This shored up GHCL’s cost efficiencies and provided strategic control over a critical raw material. Today, the company boasts an installed soda ash capacity of 12 lakh metric tonnes per annum, cornering a 26 per cent market share in India.

Then came a major inflection point. In 2021, GHCL demerged its chemicals and spinning businesses into separate listed entities. The move sharpened focus and unlocked shareholder value. “The decision to restructure wasn't easy,” says Jalan, “but it was necessary to align better with our long-term strategy and operational strengths.”

Add to that a remarkable fiscal turnaround—down from a Rs 1,800-crore debt in 2010 to a net cash surplus now—and it’s clear that this isn’t your average chemical company. “Our FY25 revenue has surpassed Rs 3,200 crore,” Jalan says with pride. “But more than the numbers, it’s the resilience and agility that define our journey.”

Big Bets, Bigger Vision