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Gujarat Alkalies rises on expansion of AAC plant at Dahej

Capital Market 

Gujarat Alkalies & Chemicals on Tuesday (24 March 2020) announced expansion of Anhydrous Aluminium Chloride (AAC) plant at Dahej in Gujarat.

The scrip was up 1.43% at Rs 206.15, extending gains for the second day. It has risen 10.18% in two sessions from its recent closing low of Rs 187.10 recorded on 23 March 2020.

Gujarat Alkalies and Chemicals said it has taken up the project for expansion of 16,500 tonnes per annum (TPA) of Anhydrous Aluminium Chloride (AAC) plant at Dahej with total project cost of Rs 35 crore. The commercial production at the said AAC plant at Dahej has been achieved on 23 March 2020. The estimated increase in annual revenue of the company from this plant would be about Rs 65 crore. With this expansion, the total capacity of the AAC plant at Dahej will be 42,420 TPA.

Further, the company informed that it has decided to take complete safe shut-down of all its plants at Baroda and Dahej complexes from 24 March 2020 till 31 March 2020. Some of the plants at Dahej will shut-down gradually to ensure safety. The AAC plant will take around 4 to 5 days to get complete shut-down. These measures have been taken to control the spread of Covid-19 in Gujarat. Due to these measures all employees will work from home except those employees who are required for plant safety and security as also for maintenance of utility services.

Gujarat Alkalies and Chemicals is a chemical manufacturing company which offers caustic soda lye and caustic soda flakes.

On a consolidated basis, the chemical maker reported 63.4% fall in net profit to Rs 59.58 crore on a 19.7% decline in net sales to Rs 655.58 crore in Q3 December 2019 over Q3 December 2018.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 25 2020. 10:37 IST