Gujarat Alkalies and Chemicals Ltd (GACL) is one of the largest producers of Caustic Soda Lye in India with installed production capacity of 4,75,224 MT as on 31 March 2023. The company has about 13% share in the domestic Chlor-alkali market. The Company's products basket comprise of more than 36 products including Caustic Soda (Lye, Flakes/Prills), Liquid Chlorine, Hydrochloric Acid, Chloromethanes, Hydrogen Peroxide, Anhydrous Aluminum Chloride, Caustic Potash (Lye & Flakes), Potassium Carbonate, Aluminium Chloride, Phosphoric Acid, Chlorinated Paraffin, Poly Aluminium Chloride (various grades), Chlorotoluene, Sodium Chlorate, etc. The company has two units located at Vadodara (Baroda) and Dahej, both in Gujarat.
Besides 90 MW gas based Captive Co-generation Power Plant and participation in a 145 MW Joint Captive Gas based Power Plant of Gujarat Industries Power Company Limited (GIPCL), the Company has taken major initiative for green energy by setting up Wind Farms for a total installed capacity of 171.45 MW as on 31 March, 2023. It already installed 35 MW of Solar Power Plant. With this, the aggregate renewable energy capacity is 206.45 MW including 171.45 MW of Wind Power capacity. The Company has also installed foating Solar
Power Plant having capacity of 640 kw and Solar Rooftop installations having 220 kw Solar Rooftop installations at Dahej complex and 563 KW Solar Rooftop Power Plants installed at Vadodara Complex.
The company is associated with various industries viz. Textiles, Pulp & Paper, Soaps & Detergents, Alumina, Water Treatment, Petroleum, Fertilizers Pharmaceuticals, Agrochemicals, Dyes & Dyes Intermediates, etc through their products. Also, they made their presence felt across the globe even against stiff competition by exporting products to USA, Europe, Australia, Africa, Far & Middle East Countries, China and South Asian Markets.
Gujarat Alkalies and Chemicals Ltd was incorporated in the year March 29th, 1973 in Gujarat and was promoted by Gujarat Industrial Investment Corporation Ltd, a wholly owned company of Govt. of Gujarat, as a core promoter. The company commenced their operations in the year 1976, with 37,425 MTPA capacity of caustic soda at their plant in Vadodara.
In October 1981, the first stage expansion of the caustic soda plant raising the capacity to 70,425 MTPA was undertaken, and in December 1982, a diversification programme to produce 2000 MTPA of Sodium Cyanide. In the year 1984, the second stage expansion to increase the capacity of caustic soda plant to 103,425 MTPA was undertaken. Also, the company undertook the diversification project for the manufacture of 10,560 MTPA of chloromethanes using chlorine, a co-product of the company. GACL replaced the Mercury Cell Technology with environment friendly and energy efficient Membrane Technology in the year 1989.
In March 1994, the conversion of second mercury cell to membrane cell was carried out, thereby eliminating the total use of mercury from the complex for the production of caustic soda. In order to add further value to their products, the company set up a manufacturing facility for production of 11000 MTA Hydrogen Peroxide at Vadodara in the year 1996 to utilize hydrogen gas, which is a co-product from caustic soda process.
In the year 1995, as a part of diversification programme and to meet the growing demand of its products in the State of Gujarat and nearby areas, the company set up a plant for manufacturing technical grade phosphoric acid with capacity of 26400 MTA at Dahej. In the year 1998, the company set up membrane cell based caustic-chlorine unit with a capacity of 100000 MTA at Dahej. Also, a captive 90 MW co-generation power plant was set up so as to ensure uninterrupted and low cost power for their captive operations.
In the year 2000, the company commissioned caustic potash plant at Vadodara and in the year 2001, they increased the production capacity of hydrogen peroxide to 12540 MTA. During the financial year 2003-04, the company added a new product, namely anhydrous aluminium chloride in their product list. In September 2004, the company commissioned calcium chloride plant at Dahej.
During the year 2004-05, the installation of 100TPD caustic soda flaking unit was completed and it commenced commercial production in April 2005. Also, the company set up 240TPD caustic evaporation facility during the year, which has commenced their commercial operation in May 2005.
During the year 2006-07, the company completed the expansion of their caustic soda plant at Dahej by 200 TPD and commenced their production from June 26, 2006. Also, the company completed and commissioned two units of poly aluminium chloride, one at Baroda and another at Dahej.
During the year 2007-08, the company successfully commissioned their 12540 Tpa hydrogen peroxide plant at Dahej in which the commercial production started in July 2007. The company successfully commissioned 50 TPD anhydrous aluminium chloride plant to create a captive consumption of chlorine at Dahej in which commercial production started in March 2008.
During the year, the company commissioned additional 100 TPD caustic soda flaking plant at Dahej and commercial production started in January 2008. Also, they set up 23.75 MW wind energy farm in Kutch during the year.
In April 2008, the company signed a joint venture agreement with DOW Europe GmbH for setting up a 2,00,000 TPA chloromethanes plant at Dahej at an cost of Rs 600 crore. In July 1, 2008, a joint venture company, namely Dow-GACL SolVenture Ltd was incorporated, which is expected to start their manufacturing operations by 2011.
In January 2009, the company signed a MoU for setting up a joint venture company with Gujarat State Fertilisers & Chemicals Ltd and Gujarat Narmada Valley Fertilisers Company Ltd for manufacturing fine chemicals such as Phenol, Bisphenol, Polycarbonate, Butyl Rubber, Nitrile Butadiene Rubber, PBR, ABS, SBR, EDC and PVC at Dahej, in Gujarat. Also they singed a MoU with Gujarat State Fertilisers and Chemicals Ltd, Gujarat Narmada Valley Fertilisers Co Ltd and Gujarat Industrial Development Corporation for setting up a chemical park for small and medium enterprises (SMEs) to be formed jointly by those companies.
During the year 2013-14, despite competitive market conditions and depressed economic scenario, GACL achieved highest ever sales in respect of Caustic Soda Group, Caustic Potash Group, Hydrogen Peroxide, Phosphoric Acid, Aluminium Chloride, Poly Aluminium Chloride Group, Calcium Chloride, Chloro Toluene Group and Stable Bleaching Powder products.
The company commissioned 10.5 MW Wind Farm Project Phase V on July 17, 2013.
The project for producing 20,000 TPA of Sodium Chlorate was successfully commissioned and commercial production was achieved on March 29, 2014. The estimated annual revenue from the products to be manufactured in this plant at full capacity would be approximately Rs.100 crore considering the prevailing market prices.
GACL achieved highest ever sales (including Excise Duty) of Rs.2157.17 Crores during the year 2014-15 as against Rs.2087.50 Crores in the Previous Year. During the year 2014-15, the company has achieved highest ever productions in Caustic Soda, Chloromethanes and Hydrogen Peroxide at Vadodara Complex and highest ever productions in Hydrogen Peroxide, Poly Aluminium Chloride and Anhydrous Aluminium Chloride at Dahej Complex.
The company commissioned a 10.5 MW Wind Farm Project Phase VI on July 18, 2014 raising the installed Wind power capacity to 115.25 MW. Another 10.5 MW Wind Farm Project Phase VII was commissioned on September 29, 2014 raising the installed Wind power capacity further to 125.75 MW.
In Financial Year 2014-15, GACL received a demand notice for Rs.42.07 Crore from GAIL India Limited (GAIL) under take or pay clause (Pay if not Taken Liability Clause) under the long term Gas Supply Agreement entered into between the company and GAIL. The company has filed petition before the Hon. High Court of Delhi under the Arbitration and Conciliation Act to protect its interest.
GACL achieved highest ever sales (including Excise Duty) of Rs.2,178.62 crores during the year 2015-16 as against Rs.2,157.17 crores in the previous year. The highest ever sales have been achieved inspite of the stiff competition, adverse market situation and loss of top line due to mothballing of Calcium Chloride Plant at Baroda Complex, staggered operations of Calcium Chloride at Dahej Complex, stoppage of Sodium Cyanide Plant due to non-availability of raw material and decline in job work production of Chlorinated Paraffin Wax.
During the Financial Year 2015-16, the company achieved highest ever productions in Caustic Soda Lye at Vadodara Complex and Hydrogen Peroxide (100%), Poly Aluminum Chloride (PAC-18), Poly Aluminum Chloride Powder (PAC-30), Anhydrous Aluminum Chloride, Stable Bleaching Powder, Sodium Chlorate at Dahej Complex.
For the first time, GACL imported approximately 8750 MT of Caustic Soda Lye and traded the same to domestic consumers during FY 2015-16.
During the Financial Year 2015-16, the Board of Directors of GACL approved the establishment of 33,870 TPA Food grade Phosphoric Acid Project at Dahej with an estimated cost of Rs.300 crores. The project is planned to go on stream in 30 months from the zero date. The Phosphoric Acid Project when implemented would contribute to the annual sales revenue by approx. Rs. 200 crores.
During the year under review, the successful development of an indigenous technology in collaboration with Indian Institute of Chemical Technology (IICT), Hyderabad to manufacture Hydrazine Hydrate, an import substitute product, using Hydrogen Peroxide as the raw material, has been completed.
During the Financial Year 2015-16, the Board of Directors of GACL approved the establishment of 10000 TPA (80%) Hydrazine Hydrate Project at Dahej with an estimated project cost of Rs.160 crores. The project is planned to go on stream in 24 months from the zero date. The Hydrazine Hydrate Project when implemented would contribute to the annual sales revenue by approx. Rs.200 crores.
In order to continue promoting Green technology, the company has further taken up Wind Farm Projects for 31 MW during the year. A 10 MW Wind Farm Project Phase VIII was commissioned on September 30, 2015 raising the installed Wind power capacity to 135.75 MW. Another 21 MW Wind Farm Project Phase IX was commissioned on February 12, 2016 raising the installed Wind power capacity further to 156.75 MW.
The Board of Directors of GALC at its meeting held on 30 October 2015 approved the complete stoppage of Calcium Chloride Plants at Vadodara and Dahej Complexes and sale of equipments & machinery.
During the Financial Year 2015-16, the company has shut down its Sodium Cyanide Plant due to non-availability of raw material, viz. HCN, from the supplier. Since, the Sodium Cyanide Plant is ready for operation, as soon the raw material, viz. HCN is available from supplier, the company shall resume the production. The Company is also exploring possibilities to produce another product in the said plant from available raw material.
During the year under review, GACL and National Aluminium Company Limited (NALCO), a Government of India Enterprise (a Navratna Company) have jointly incorporated a new Joint Venture Company viz. GACL-NALCO Alkalies & Chemicals Pvt. Ltd. (JV Company) on 4 December 2015 for setting up of 800 TPD Caustic Soda Plant and 100-120 MW Coal based Power Plant at Dahej, Gujarat. As on 31 March 2016, GACL holds 60% stake in the joint venture company.
GACL achieved highest ever sales (inclusive Excise Duty) of Rs.2,255.34 crore on standalone basis during the year 2016-17 as against Rs.2,178.62 crore in the Previous Year. The company achieved highest ever Profit Before Tax of Rs.381.78 crores and Profit After Tax of Rs.308.10 crores during the year 2016-17.
During the Financial Year 2016-17, GACL achieved highest ever productions in Hydrochloric Acid (30%), Hydrogen Peroxide (100%) both at Baroda & Dahej Complexes and Aluminium Chloride, Poly Aluminium Chloride, Stable Bleaching Powder, Sodium Chlorate and Chlorotoluene Products at Dahej Complex.
During the Financial Year 2016-17, the Company achieved highest ever sales in Caustic Soda Lye, Hydrochloric Acid (30%), Caustic Potash Lye, Hydrogen Peroxide (100%), Aluminium Chloride, Poly Aluminium Chloride, Benzyl Chloride, Benzyl Dehyde, Benzyl Alcohol, Sodium Chlorate and Stable Bleaching Powder.
The company completed expansion of the capacity of Potassium Hydroxide Plant from 60 TPD to 120 TPD at its Vadodara Complex during the Financial Year 2016-17. Further, the company has increased capacity of Anhydrous Aluminium Chloride (AAC) Plant by installing four additional reactors during the Financial Year 2016-17 due to which the capacity of AAC Plant at Dahej has increased from 63 TPD to 72 TPD i.e. 14% increase.
In order to continue promoting Green technology, the company had further taken up a Wind Farm Project for 14.7 MW during the year, which was commissioned on March 31, 2017 raising the installed Wind Power capacity further to 171.45 MW.
GACL achieved highest ever sales (including Excise Duty) of Rs.2,479.52 crore on standalone basis during the year 2017-18 as against Rs.2,255.34 crore in the Previous Year. During the year under review, the company achieved highest ever production in Caustic Soda Lye, Caustic Potash Lye, Aluminium Chloride and Chlorinated Paraffin Wax at Vadodara Complex and Aluminium Chloride, Poly Aluminium Chloride, Sodium Chlorate and Stable Bleaching Powder at Dahej Complex. During the year under review, the company achieved highest ever sales in Caustic Soda Lye, Caustic Potash Lye /Flakes, Phosphoric Acid 85%), Aluminium Chloride, Benzyl Dehyde, Benzyl Alcohol, Sodium Chlorate and Stable Bleaching Powder.
During the year under review, GACL commissioned Chloromethanes up-gradation and De-bottlenecking Project at Vadodara Complex. GACL raised the production capacity for Chloromethanes Plant from 110 TPD to 170 TPD at Vadodara which became operational in March, 2018.
A pilot project on converting waste liquid into a marketable product, Anhydrous Sodium Sulphate, has become operational with trial production during the Financial Year 2017-18.
The Competition Commission of India (CCI) vide its Order dated 5 October 2017 imposed penalty of Rs.1.88 Crores on GACL for impunged violations of provision of Competition Act, 2002. The company has filed an Appeal before the NCLAT challenging the order of the CCI. The NCLAT through its Order dated 4 December 2017 granted stay on the operation of the impuged order of the Hon'ble Commission. The company had deposited 10% of the imposed penalty i.e. Rs.18.80 Lakhs as per the Order of the NCLAT. The matter is pending before the NCLAT.
In order to continue promoting Green technology and to meet the Solar Renewable Purchase Obligations, the company had taken up a Solar Power Project for 15 MW at site Charanka, Patan, which was commissioned in phased manner in June & July 2018. The company has also taken up 20 MW Solar Power Project for captive use at the same site.
GACL's 32,000 TPA Poly Aluminium Chloride Plant (18% PAC) at Vadodara went on stream in July 2018.
The Government of Gujarat, vide Notification dated 27th August, 2018 in terms of Gujarat Electricity Industry (Re-organisation and Regulation) Act, 2003, formulated the Gujarat Electricity Reform (Transfer of Generation Undertakings) Scheme, 2018, whereby, BECL shall be merged with effect from 1st April, 2018 into Gujarat State Electricity Corporation Limited (GSECL). In view of this scheme of Merger, the Company has received Original Share Certificate for 01 Equity Share of Rs.10/- from GSECL against 7,12,20,000 Equity Shares of Rs.10/- each of BECL.
During 2019, the Company commissioned 14,000 TPA Hydrogen Peroxide Plant at Dahej Complex, Replacement of 700 old generation II elements with more energy efficient generation VB+ elements and 32,000 TPA Poly Aluminium Chloride Plant at Vadodara Complex and 15 MW Solar Power Plant at Charanka, Gujarat.
Effective from 1st May, 2020, all plants at Vadodara Complex had started operating at full capacity, whereas, plants at Dahej Complex had started operating at full capacity effective from 15th July, 2020.
The Company and National Aluminium Company Limited (NALCO), a Government of India Enterprise (a Navratna Company) have jointly incorporated a Joint Venture Company, viz., GACL-NALCO Alkalies & Chemicals Pvt . Ltd. (GNAL) on 4th December, 2015 for setting up 2,66,667 MTPA (100%) Caustic Soda Plant and 130 MW Coal based Power Plant at Dahej, Gujarat. The Company holds 60% and NALCO holds 40% in GNAL. Accordingly, GNAL is a subsidiary of the Company.
The Board of Directors of the Company at its Meeting held on 6th February, 2020 had approved formation of Special Purpose Vehicle / Joint Venture Company comprising of Gujarat State Fertilizers & Chemicals Limited (GSFC), Gujarat Alkalies and Chemicals Limited (GACL), Gujarat Industries Power Company Limited (GIPCL) and Vadodara Municipal Corporation (VMC) as its joint venture partners for establishment of a new secondary treated waste water plant (STP) of 50 MLD capacity in Gujarat. Accordingly, a Special Purpose Vehicle / Joint Venture Company in the name of Vadodara Jal Sanchay Private Limited(VJSPL) was incorporated on 22nd July 2020 for establishment of new secondary treated waste water plant (STP) of 50 MLD at Vadodara, Gujarat. The Company (GACL) had subscribed 3,00,000 equity shares of Rs.10/- each (i.e. Rs.30 lakhs) (15%) to the Memorandum of Association (MoA) of VJSPL on 15th July 2020.
In 2021-22, the Chloromethanes Plant was commissioned in August 2022; the Hydrazine Hydrate Plant commissioned in September 2022, the Caustic Soda expansion Plant commissioned in September 2022.
The Captive Power Plant and the Caustic Soda Plant was commissioned during the current Financial Year 2022-23. The Purifed Phosphoric Acid Plant at Dahej was commissioned in April, 2023.