GACL to expand caustic soda plant

Vadodara-based state government enterprise, Gujarat Alkalies and Chemicals Ltd has decided to expand the capacity of its caustic soda plant and has chalked out plans to diversify into the production of poly ammonium chloride.

The latest move follows the increasing demand for caustic soda and its by-products.

Meanwhile, GACL has commissioned its plant to manufacture calcium chloride from waste generated from the phosphoric acid plant at Dahej.

Addressing the annual general meeting, managing director, P K Taneja said that the company has posted extremely good results for the past two consecutive years and this has helped the company expand its capacities and diversify.

"In view of the good demand for caustic soda and its by-products, along with hydrogen peroxide, the company has been contemplating expansion of the caustic soda plant by 100 tonne per day. GACL is also considering diversifying into the production of poly ammonium chloride," said Taneja.

He added that the recent rights issue received encouraging response and was oversubscribed by 36 per cent. This takes the market capitalisation of the company to more than Rs 425 crore from Rs 234 crore last year, he said. The proceeds of the issue have been utilised to reduce high cost debts and payment of deferred sales tax.

GACL repaid high cost debts of Rs 117 crore during the year 2003-04 and also replaced some of its high cost debt with low cost debt.

The interest expenses in 2003-04 fiscal year have been reduced to Rs 79.13 crore, from Rs 93.15 crore in the previous fiscal, a reduction of 18 per cent.

P K Laheri, chairman, GACL, said the company achieved a total income of Rs 1,077 crore in the 2003-04 compared with an income of Rs 1,039 crore in the previous fiscal year. The net profit rose substantially by 125 per cent to Rs 63.15 crore in 2003-04, from Rs 28.04 crore in the previous year.

For the first five months of the current financial year, GACL has posted sales of Rs 475 crore, compared with sales of Rs 434 crore for the same period of the previous year.

The company has further repaid high cost debts of Rs 52 crore. Taneja said that the company achieved this sales figures despite closing plants at Vadodara and Dahej for scheduled maintenance.