3 December 1998: India“s Gujarat Heavy Chemicals Ltd. (GHCL), which specializes in soda ash, has reportedly proposed to enter the premium quality salt market. According to a recent press report, the …
3 December 1998: India“s Gujarat Heavy Chemicals Ltd. (GHCL), which specializes in soda ash, has reportedly proposed to enter the premium quality salt market. According to a recent press report, the company has already acquired two units of DCW Home Products Ltd. for producing salt. Meanwhile, the company has been consistently improving its performance. For the year ended 1998, it achieved the highest production of soda ash, at 403,000 tonnes. The production of salt, the main raw material, stood at 564,000 tonnes. Gujarat has been able to maintain its performance, despite the industry being severely hit by a salt crisis, as it captively produces all the raw materials, the report said. “With the effective utilization of raw materials, the company could reduce the cost of production, resulting in higher profit,” Vice-President N.S. Ramachandran said. For the six months ended September, 1998, the net sales increased to Rs 1.75 billion, as against Rs 1.68 billion for the same period in the previous year. The company“s net profit for the period increased marginally to Rs 210 million, from Rs 200 million in 1997. The domestic demand for soda ash increased to 1.563 million tonnes during 1997-98. However, the domestic soda ash sales of Indian producers reduced to 1.39 million tonnes, due to higher imports. “In spite of these constraints, the company further consolidated its position in the domestic market by achieving sales of 363,000 tonnes during 1997-98,” company sources said. Ramachandran said that a loyal customer base has been another reason for the company“s performance. Some of GHCL“s key customers in the domestic sector include Nirma Chemical Works, HLL, SAIL and Gujarat Borosil Ltd.