The transfer comes as import share has almost doubled to 25-26 per cent from a historic 15 per cent, intensifying stress on India's artificial soda ash trade, which lacks entry to low-cost pure reserves out there in nations like China, Turkiye, the US and Kenya.
India accounts for under 6 per cent of worldwide soda ash demand however has been rising at 6 per cent yearly, considerably outpacing the worldwide common.
“We have now additionally gone to the federal government for a safety from this dumping which is being performed by the worldwide gamers and we're in search of a sort of assist from the federal government on that,” GHCL Managing Director R S Jalan advised PTI.
The urgency stems from China's dominance of 45 per cent of worldwide soda ash capability and up to date additions of over 10 million tonne in Internal Mongolia, which have created a surplus state of affairs within the international market.
The Directorate Common of Commerce Cures (DGTR) is probing the allegations following petitions from home corporations together with GHCL, with an oral listening to rescheduled for later this month. India prolonged the minimal import worth (MIP) of Rs 20,108 per tonne on soda ash till December 31, however GHCL's MD described it as providing solely “some small profit” since sub-MIP inflows proceed unabated. The curbs, first notified in 2023, purpose to test predatory pricing however fall quick in opposition to surplus-driven dumping. “However at this level of time, we're seeing fairly a giant surge in imports. After the MIP, there is just one factor which is anti-dumping responsibility which we're pursuing with the federal government and allow us to see how issues come.
“That can be a really scientific course of by which the federal government seems to be at many parameters when it comes to your margin erosion or the minimal benchmark of the worth, what's the import, at what worth import is going on,” the MD defined, including that it's a quasi-judicial physique with outlined guidelines that may assess what sort of safety the trade wants.
Nevertheless, he clarified that anti-dumping responsibility will not be a everlasting answer. “Anti-dumping responsibility is primarily a means of safety for a brief time frame. That is not the fitting everlasting answer for any competitor,” he mentioned, emphasizing that the Indian trade should improve value competitiveness to compete globally with out compromising margins.
Regardless of the difficult atmosphere, GHCL is working at 98 per cent capability utilization, demonstrating continued robust home demand.
The corporate, which holds a 26 per cent home market share, has buffered the affect via value efficiencies, limiting a 19 per cent year-on-year worth drop to only a 5 per cent margin erosion in Q1 FY26.
“Final yr, the soda ash worth dropped by 19 per cent whereas our margin dropped by solely 5 per cent. So this 14 per cent we now have been in a position to cowl by our effectivity and by difficult the associated fee,” the MD mentioned.
Standalone Q1 internet revenue slipped 4 per cent to Rs 145 crore on income of Rs 823 crore, down 3 per cent amid softer realisations.
“One drawback India has is that it would not have pure soda ash. Mongolia, US, Turkiye have pure soda ash. That pure soda ash is sort of half of the price of the artificial soda ash,” the MD mentioned, including that this problem will proceed.
To guard market place, the corporate is specializing in steady value optimization and superior customer support. The corporate's distinctive 12-hour supply service to clients has helped it keep market management regardless of pricing pressures.
“We're servicing clients in 12 hours, so these are the distinctiveness which we now have created over a time frame,” the MD mentioned.
The excess from China, estimated at 10 million tonnes added in Internal Mongolia over the previous two years, has flooded international markets with low-cost provide.
“They only need to dump at any worth as a result of they must promote someplace which isn't economical. They only need to dump it,” the MD defined.
India accounts for simply 6 per cent of worldwide demand however is rising at 6 per cent yearly.
The corporate is banking on India's photo voltaic vitality ambitions, projecting an additional 1 million tonne (MT) of soda ash demand over 5 years from photo voltaic glass enlargement, as the federal government eyes 300 GW capability from 119 GW at present. To seize this demand, GHCL is doubling output to 2.2 MT yearly by way of a Rs 6,500-crore greenfield plant in Gujarat.
The federal government supplied help to the photo voltaic glass trade final yr via anti-dumping duties and PLI incentives.
“The overall demand progress can be greater than 1,000,000 tonne within the subsequent 5 years and we're arising with a plant of 1,000,000 tonne,” the MD mentioned, including that the corporate additionally has pure export markets like Bangladesh and Sri Lanka to cater to.
The MD additionally famous {that a} restoration in international demand, notably in Europe and China, may naturally ease import stress. “If the worldwide demand progress goes up by 1 per cent, then that additionally will assist the home trade to have much less quantity coming into India,” he mentioned.
“Soda ash is a cyclical enterprise, however our 40-year monitor file of execution positions us because the low-cost chief,” the MD mentioned.
“At this level of time, margins are underneath stress, however the demand progress which we're seeing, lot of huge investments are happening into the photo voltaic glass,” he added.
The MD famous that China's soda ash sector grew at 10-18 per cent in 2023-24, outpacing the worldwide progress charge of 3-4 per cent. “Some quantity has bought absorbed into China itself. And over a time frame, in one other one or two years, this capability will get absorbed into the worldwide market.”
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