Gujrat Alkalies in a joint venture with Nalco sets up 800 TPD caustic soda plant

The shares of Gujrat Alkalies and Chemicals (GACL) witnessed a steep rise of INR 959, counting a surge of 7% at the Bombay Stock Exchange (BSE) on 2^nd April 2022 intra-day trade.

Following the company announced their restricted outset of caustic evaporation unit (CEU) in collaboration with GACL-NALCO Alkalies and Chemicals (GNAL), their stocks began to soar and have been on the upward swing during the end days of the previous week’s trading days. On 1^st April 2022, the stock had pulsated above its previously recorded number which was INR 932 in January 2018.

GNAL is a Joint Venture between GACL and National aluminium Company (NALCO) mainly bonded to set up an 800 TPD caustic soda plant along with a 130 MW captive power plant at Dahej in the Bharuch district of Gujrat. GNAL can also be deemed as a material subsidiary of both companies.

As of now, GNAL has prominently accomplished the erection of a 200 TPD (tonne per day) CEU along with boiler and other required utilities in the cogeneration captive power plant and has also successfully produced 100 tonnes of caustic soda lye (rayon grade 47%). The product has been dispatched with the help of tankers. Due to the above achievements, the company has been partially commissioned according to certain GNAL officers’ testimony.

During the last month, the stock has outdone the market and revived 51%, as compared to a 5% gain in the BSE Sensex. In the last year, it has been enlarged to a 170%, against some 18% rise in the benchmark index.