GHCL eyes US, Chinese markets

CORPORATE SCORECARD

GHCL is planning to foray into the US and Chinese markets and aims at $1 billion turnover from its soda ash business in the next 30 months.

Sanjay Dalmia-promoted GHCL, the third largest soda ash manufacturer in the country, had clocked a turnover of $111 million in FY'06.

"We are actively evaluating proposals to enter into the Chinese market. We will come out with something concrete in a couple of months," GHCL senior Executive Director (Operations) T Malhotra said here today.

He said the company was also on the lookout to forge some strategic partnerships in the US market.

Declining to give any further details, he said, "You can see something soon."

GHCL has a strong foothold in the European market through a $45 million acquisition back in December 2005.

Having a capacity of three lakh tonnes per annum capacity, the plant should contribute around $50 million to the company's soda ash business in two years, Malhotra said.

In Europe too the company is looking for some "other strategic acquisitions", he said.

GHCL currently manufactures 8.5 lakh tonnes soda ash a year at its Sutrapada plant. It recently concluded a 2.5 lakh tonnes per year capacity expansion in the plant entailing Rs 300 crore investment.

"We will further raise capacity to 1.1 million tonnes. It will be completed in another 24-30 months time," Malhotra said.

Malhotra said the country's glass industry was growing at around 12 per cent year on year, while the detergent industry was moving up at six per cent.

Indian soda ash market had grown at a CAGR of five per cent over the last five years, he said adding the industry will receive further demand derived from booming construction and automobiles sectors.

"GHCL will continue to tap the growing dense soda ash market in Asia," he said.

The company currently generates one-third of its revenue in soda ash business from overseas.