Goa Carbon Limited (GCL), the manufacturing flagship of the **Dempo Group**, is a premier Indian manufacturer and exporter of **Calcined Petroleum Coke (CPC)**. With over five decades of operational history, GCL serves as a critical link in the industrial supply chain, converting **Raw Petroleum Coke (RPC)**—a refinery by-product—into high-value carbon solutions essential for the aluminium, steel, and graphite industries. --- ### **Strategic Manufacturing Footprint & Logistics** GCL operates three strategically positioned plants across India, providing a total licensed capacity of **3,08,000 MT p.a.** The geographic dispersion allows the company to serve both domestic hubs and international markets efficiently. | Plant Location | State | Licensed Capacity (MT p.a.) | Strategic Advantage | | :--- | :--- | :--- | :--- | | **Goa (Salcete)** | Goa | **1,00,000** | Proximity to **Mormugao Port** (42 km) and **Angre Port** for imports/exports. | | **Paradeep** | Odisha | **1,68,000** | Proximity to **Paradeep Port** and major Eastern India aluminium smelters. | | **Bilaspur** | Chhattisgarh | **40,000** | Centralized location serving **BALCO** and regional steel/foundry hubs. | **Operational Status:** The company maintains high standards with **ISO 9001:2015** and **ISO 14001:2015** certifications. It holds **Authorised Economic Operator (AEO) Tier II** status, which streamlines customs processes and international logistics. --- ### **Product Evolution: From Commodity to "Total Carbon Solutions"** While GCL’s core business remains the thermal processing of carbon, the company is actively diversifying its portfolio to move up the value chain and reduce dependence on the cyclical aluminium sector. * **Calcined Petroleum Coke (CPC):** The flagship product, used primarily as carbon anodes in aluminium smelting. * **gcarb+ (Launched 2024):** A breakthrough branded **recarburiser and carbon additive** targeting the steel and foundry sectors. * **Specifications:** High fixed carbon, **low sulphur content**, and premium globally sourced raw materials. * **Market Entry:** Successfully completed trials with major OEMs, including **Ashok Leyland**. * **Value-Added Services:** Transitioning toward a service-oriented model by offering **need-based carbon solutions** tailored to specific industrial requirements in the glass, chemical, and friction industries. --- ### **Market Dynamics & Industry Outlook** GCL’s growth is intrinsically linked to the expansion of the Indian aluminium and steel sectors. * **Aluminium Growth:** The Indian aluminium market is projected to grow from **US$ 17.5 Billion (2024)** to **US$ 35 Billion by 2035**. Domestic production capacity is expected to reach **5.09 Million Tonnes by 2025-26**, driving the domestic CPC requirement to approximately **2.1 MMT**. * **Import Quota Regime:** Operations are governed by **CAQM** and **DGFT** quotas. For **FY 2024-25**, the **RPC** import limit is capped at **1.9 MMT** (0.19 crore tonnes) for the industry. * **Customer Base:** Key clients include industry giants such as **Hindalco Industries, NALCO, BALCO, and Vedanta Aluminium**, alongside titanium dioxide and graphite electrode manufacturers. --- ### **Financial Performance & Capital Structure** GCL experienced a volatile transition from a record-breaking **FY 2023-24** to a more challenging **FY 2024-25**, characterized by a shift to a loss-making position and a subsequent rating downgrade. #### **Comparative Financials** | Metric (₹ in Lakhs) | FY 2024-25 (Audited) | FY 2023-24 (Audited) | FY 2022-23 (Audited) | | :--- | :--- | :--- | :--- | | **Total Revenue** | *N/A* | **1,07,147** | **1,37,695** | | **Profit After Tax (PAT)** | **(Loss)** | **8,550.22** | **8,075.20** | | **CPC Sales (MT)** | *N/A* | **2,02,670** | **1,79,608** | | **Dividend Per Share** | **Nil** | **₹20.00 (200%)** | **₹17.50 (175%)** | #### **Credit Profile (Acuite Ratings, Feb 2025)** * **Long-Term Rating:** **ACUITE BBB+ / Stable** (Previously A-) * **Short-Term Rating:** **ACUITE A2** (Previously A1) #### **Liquidity & Capital Initiatives** * **Borrowing Limits:** Proposed enhancement of limits up to **₹750 Crores** to support working capital. * **Rights Issue:** A planned **₹200 Crore** Rights Issue is under periodic review to fund incremental working capital. * **Tax Recoveries:** Recently secured **₹8.37 crore** in income tax refunds and a **₹5.73 crore** GST interest waiver, providing immediate liquidity cushions. --- ### **Environmental Stewardship & ESG Integration** GCL is proactively managing the environmental impact of carbon calcination to meet stringent **MoEF&CC** norms effective **June 2025**. * **Emission Technology:** Installation of **Flue Gas Desulphurisation (FGD)** systems to capture **SO2** and particulate matter. * **R&D Collaboration:** Partnering with **BITS Pilani (Goa)** to develop **Computational Fluid Dynamics (CFD)** models for rotary kiln optimization. * **Sustainability Metrics:** Achieved **40% cumulative green cover** across its **47 acres** of land. * **Decarbonization:** Focus on **low-sulphur** products to align with global green energy trends. --- ### **Risk Factors & Mitigation Strategies** #### **1. Raw Material & Supply Chain** * **Risk:** Increasing dependence on imported **low-sulphur anode-grade RPC** due to declining quality from domestic refineries. * **Mitigation:** Appointment of a new **Head of Supply Chain Management** (April 2024) and utilization of **Letters of Credit/Buyer’s Credit** (SOFR-linked) to optimize procurement. #### **2. Regulatory & Legal Headwinds** * **Goa Green Cess:** A long-standing dispute currently in the **Supreme Court**; GCL has paid **50%** of demands (**₹3.49 crore**) under protest. * **Tax Litigation:** Successfully quashed a **₹73.71 crore** demand for AY 2023-24 in the High Court, though fresh assessments are pending. * **Labour Codes:** New regulations in late 2025 are expected to have an incremental cost impact of **₹38 lakhs**. #### **3. Operational Volatility** * **Downtime:** The business requires frequent scheduled shutdowns for maintenance. In **Q3 FY26**, the Bilaspur plant was offline for **92 days** and Goa for **49 days**. * **Market Cyclicality:** **85%** of demand is dependent on the aluminium industry, making margins sensitive to global commodity price swings. #### **4. Financial Exposure** * **Forex Risk:** Heavy reliance on imports exposes the company to **USD/INR** volatility; managed through **currency hedging** and forward contracts. * **Interest Rates:** Exposure to **SOFR + 30-50 bps** on buyers' credit facilities.