### **Overview** Gujarat Alkalies and Chemicals Limited (GACL), established in **1973** as a Government of Gujarat-promoted entity, is one of India’s **largest chlor-alkali producers**, with a legacy of over 50 years in chemical manufacturing. Headquartered in Vadodara, Gujarat, the company has evolved from a single-product caustic soda manufacturer into a **diversified, integrated chemical conglomerate**, producing over **35 industrial and specialty chemicals**. GACL is a market leader in key segments and is widely recognized for its **sustainable operations, technological innovation, and forward-integrated business model**. --- ### **Core Operations & Market Position** #### **1. Chlor-alkali Leadership** - **Second-largest caustic soda producer in India**, with an installed capacity of **852,750 metric tons per annum (MTPA)** (including GNAL joint venture), up from just 37,425 MTPA in 1976. - Holds **~16% domestic market share** in caustic soda, making it the **largest merchant seller** in India during FY2024–25. - Operates **exclusively on membrane cell technology**—pioneered in **1989**, becoming the first Indian company to phase out mercury cells—setting benchmarks in energy efficiency and environmental compliance. - In FY2024–25, GACL produced **7.53 lakh MT** against an installed capacity of 8.50 lakh MTPA, achieving **89% capacity utilization**, outpacing the national average of **79%**. - Western India dominates India’s caustic soda capacity (**63–67%**), creating a regional surplus. GACL plays a critical role in **balancing supply-demand imbalances** by supplying **over 155,000 MT of caustic soda lye** to large eastern consumers like **NALCO, Vedanta, Utkal Alumina, and Hindalco** via rail and coastal logistics. #### **2. Chloromethanes Segment** - **Market leader in India’s chloromethanes sector** with a **19.65% share**. - Installed capacity of **1.61 lakh MTPA**, producing **1.29 lakh MT** in FY2024–25 (**80% utilization**). - A **net exporter of Methylene Dichloride (MDC)**, shipping to **over 20 countries**, despite a dip in bulk exports to **27,585 MT** in FY24–25 (vs. 34,736 MT in prior year). - The new capacity expansion has enabled GACL to become India’s largest exporter in this high-demand specialty chemical segment. #### **3. Integrated Manufacturing Model** GACL follows a **fully integrated, forward-vertically integrated model** where outputs from one process become inputs for others, enhancing efficiency, cost control, and sustainability: - Byproducts like **Hydrochloric Acid (HCl)** and **Hydrogen Gas** are captured and valorized: - **HCl** used in **Food Grade Phosphoric Acid** and **Poly Aluminium Chloride (PAC)** production. - **Hydrogen** maximized in the **Hydrogen Peroxide plant**, supporting domestic supply and revenue diversification. - This integration **insulates profitability** from cyclical demand in individual markets. --- ### **Expansion into Specialty & Value-Added Chemicals** GACL has strategically diversified into **specialty and import-substitute chemicals**, strengthening its resilience and reducing dependency on cyclical caustic soda markets: #### **1. Hydrazine Hydrate (India’s First & Only Plant)** - Commissioned India’s **first and only hydrazine hydrate plant at Dahej (2022)** under the **"Make in India"** initiative. - Capacity: **10,000 MTPA**, with **commercial production now underway**. - Developed in collaboration with **CSIR-IICT (Hyderabad)** using **indigenous, environmentally friendly technology**. - **Joint patents granted in India and the USA** (US Patent No. 11,225,413), reducing India’s dependency on imports. - Applications: Agrochemicals, water treatment, pulp & paper, aerospace, and pharmaceuticals. #### **2. Food Grade Phosphoric Acid** - **Commercially launched** in 2024; now operating at **100% capacity**. - Capacity: **33,870 MTPA**; FSSAI-certified. - Enables entry into **edible oil, carbonated drinks, food-grade phosphates, and pharmaceuticals**. - Consumes large volumes of **waste HCl** from chloromethanes operations, solving a major disposal challenge. #### **3. Poly Aluminium Chloride (PAC)** - Manufactured at **Vadodara (Coelho Complex)**. - Captures **significant domestic share** across multiple grades. - PAC powder exports growing rapidly with strong margins. - A value-added use of HCl, enhancing circularity. #### **4. Sodium Chlorate** - Operates **India’s only Sodium Chlorate plant at Dahej**. - Serves the **pulp and paper industry** for **Elemental Chlorine Free (ECF) bleaching**, promoting environmentally sustainable paper production. #### **5. Ongoing & Future Projects** - **Chlorotoluenes Project (30,000 TPA)**: Under construction at Dahej to produce **benzyl chloride, benzaldehyde, and benzyl alcohol**, aimed at increasing in-house chlorine consumption. - **Caustic Soda Prills Plant Upgrade**: Daily capacity increasing from **120 MT to 200 MT** at Dahej. - **PAC Powder Unit**: Being established to fully utilize the existing PAC plant; expected completion Q1 FY2024–25. - **Joint Venture with NALCO (GNAL)**: 800 TPD Caustic Soda + 130 MW coal-based power plant at Dahej—**fully operational by 2022–23**. - **Bioethanol Plant (500 KLD)**: In partnership with **GAIL**, expected to produce ethanol from corn/broken rice, with by-products like animal feed and corn oil. Project cost: ~Rs. 1,000 crores; will create ~700 jobs. --- ### **Sustainability & ESG Commitment** GACL is a **pioneer in clean technology adoption**: - **100% membrane cell chlor-alkali operations**. - **Renewable Energy Portfolio**: - **171.45 MW Wind** - **35 MW Solar Park** - **640 kW Floating Solar** - **220 kW Rooftop Solar** - In **July 2022**, signed an **MoU with NTPC Renewable** to explore **100 MW additional renewable capacity** and green chemical production (e.g., green ammonia, methanol). - **In-house R&D** solutions for **cooling water treatment (Scalewin, Biowin)** have helped increase cycle of concentration, reduce blowdown, and conserve water—even during Dahej water shortages. - **Waste regeneration projects**: Spent catalysts (palladium, alumina), alamine, and effluent streams are being recycled, supporting zero-liquid discharge goals. --- ### **R&D & Innovation** - Collaboration with **CSIR-IICT** on multiple green chemical processes. - **Holds 8+ patents**, including for: - Hydrazine Hydrate (India & USA) - Hydroxy Propyl Methyl Cellulose (HPMC) - Crystalline Calcium Nitrate from phosphoric acid waste - Active projects in **import substitution** (e.g., Iso Amyl Alcohol, Alamine-336) and **cooling water formulations**. - R&D focus: **New products, process optimization, waste valorization, and decarbonization**. --- ### **Manufacturing & Logistics** - **Three major manufacturing complexes**: 1. **Vadodara Complex** – Established 1976 2. **Coelho Complex (Ranoli)** – Vadodara 3. **Dahej Complex I & II** – Bharuch (Dahej-II commissioned in 2022) - **Dahej site** covers **600 acres**, with direct rail link, proximity to **GCPL (chemical port, 4 km)**, and access to bulk industrial customers. - **Multimodal logistics** (rail, road, and sea) enables efficient domestic distribution and export. - **Dedicated pipeline supply** to major customer at Vadodara (120 MTPD chlorine) ensures stable chlorine disposal and supports maximum caustic soda production. --- ### **Markets & Customers** - **B2B customer base spans 15+ industries**: - Soaps & Detergents, Textiles, Fertilizers, Pharmaceuticals, Agrochemicals, Water Treatment, Pulp & Paper, Alumina Refining, Petroleum, Plastics, Dyes, Refrigeration, Epoxy, Glass, Food Processing. - **Key products**: Caustic Soda (flakes, lye, prills), Liquid Chlorine, Chloromethanes, Hydrogen Peroxide, Phosphoric Acid, Sodium Chlorate, Hydrazine Hydrate, PAC. - **Exports**: To **Europe, Middle East, Africa, Southeast Asia, SAARC** and beyond. - Strong **dealer network** across India; direct supply to large customers via pipelines. --- ### **Raw Material & Supply Chain** - **Salt**: Primary raw material (~8 lakh MT/year), sourced from **Gujarat-based MSMEs**. - GACL provides **technical support** to farmers to improve quality, reducing purification costs. - Uses **rail rakes** (not trucks) for eco-friendly transport from distant salt beds. - Switched to **washed salt (since 2017)**—reduces chemical usage and sludge.