In the wake of Tata Chemicals“ takeover of UK-based Brunner Mond in order to expand its presence in the soda ash business, Gujarat Heavy Chemicals Ltd (GHCL) has also announced plans to acquire a for…
In the wake of Tata Chemicals“ takeover of UK-based Brunner Mond in order to expand its presence in the soda ash business, Gujarat Heavy Chemicals Ltd (GHCL) has also announced plans to acquire a foreign soda ash maker. To this end, the company has formed a wholly-owned subsidiary in the Netherlands. A few weeks ago, GHCL picked up a 65% stake in a Romanian soda ash making company, SC Bega Upsom, for USD 19.5 million. Soda ash makers in India are on an expansion drive, thanks to the booming domestic economy and the growth in the soda ash business worldwide. Analysts note that the main growth drivers for the soda ash sector will be expansion in user industries such as construction and automobiles. China and India are well placed to take advantage as they have huge reserves of salt and limestone, the main raw materials for soda ash production. “Several European countries are emerging as low cost manufacturing bases for soda ash production. For instance the cost of production of a tonne of soda ash is INR 25,000 in India, while through an overseas acquisition, it is only around INR 7000,” said a GHCL official.