GHCL Seeks Anti-Dumping Duty On Soda Ash Imports
GHCL, India’s second-largest soda ash producer, has approached the government seeking anti-dumping duties on cheap imports from China and other exporters, as a surge in low-cost shipments erodes domestic producers’ margins. The company’s Managing Director, RS Jalan, said the flood of imports has intensified pricing pressure on the domestic synthetic soda ash industry, which already operates at a disadvantage compared to countries with access to natural soda ash reserves such as China, Turkiye, the US, and Kenya.Imports have climbed sharply, with their share in the Indian market nearly doubling to 25–26 per cent from a historical level of around 15 per cent. While India accounts for just 6 per cent of global soda ash demand, consumption is expanding at about 6 per cent annually, well above the global average.
“We have also gone to the government for protection from this dumping, which is being done by global players. We are seeking help from the government on that," reported news agency PTI.
China alone controls 45 per cent of the world’s soda ash capacity and has recently added more than 10 million tonnes in Inner Mongolia, creating a global surplus. The Directorate General of Trade Remedies (DGTR) is investigating petitions filed by domestic players, including GHCL, with an oral hearing scheduled later this month.
Limited Relief From MIP, Short-Term Protection Ahead
India extended its minimum import price (MIP) of Rs 20,108 per tonne on soda ash until December 31, but Jalan described the measure as providing only “some small benefit” since sub-MIP inflows continue. The MIP curbs, first imposed in 2023, were meant to check predatory pricing but have failed to counter surplus-driven dumping, he said.
“At this point, we are seeing quite a big surge in imports. After the MIP, the only step left is the anti-dumping duty, which we are pursuing with the government. That will be a scientific process where the quasi-judicial body will assess margin erosion, benchmark prices, and the level of import inflows,” Jalan explained.
He stressed, however, that anti-dumping duties are not a permanent solution. “It is only a short-term protection. The real way forward is for Indian players to build cost competitiveness and face global competition without compromising margins,” he said.
Despite the global headwinds, GHCL is operating at 98 per cent capacity utilisation, reflecting robust domestic demand. The company commands a 26 per cent share of the Indian market and has mitigated some of the margin impact through efficiency gains.
“Last year, the soda ash price dropped by 19 per cent, but our margins fell by only 5 per cent. We covered the 14 per cent gap through efficiency and cost discipline,” Jalan said.
Standalone net profit for Q1 FY26 fell 4 per cent year on year to Rs 145 crore, while revenue declined 3 per cent to Rs 823 crore due to weaker realisations.
Betting on Solar Glass Expansion and Exports
GHCL is positioning itself for India’s solar energy boom, which it expects to add over 1 million tonnes of soda ash demand over the next five years, driven by expansion in solar glass manufacturing as the government targets 300 GW of capacity, up from 119 GW at present.
To tap this opportunity, the company is doubling production capacity to 2.2 million tonnes annually with a Rs 6,500-crore greenfield project in Gujarat. “Total demand growth will be more than a million tonne in the next five years, and we are coming up with a plant of a million tonne,” Jalan said.
India has also extended anti-dumping and PLI support to the solar glass industry, further boosting the demand outlook. GHCL plans to serve export markets such as Bangladesh and Sri Lanka alongside domestic customers.
Jalan noted that a revival in global demand—particularly in Europe and China—could ease import pressure naturally. “If global demand rises even 1 per cent, it will help the domestic industry by reducing inflows into India,” he said. Calling soda ash a cyclical business, Jalan said GHCL’s four decades of execution give it an edge as a cost leader. “At this point, margins are under pressure, but demand growth is strong. Large investments are happening in solar glass, and we are well placed to capture that opportunity,” he said.
China’s soda ash sector grew 10–18 per cent in 2023–24, well above the global average of 3–4 per cent. While some of the new capacity has been absorbed domestically, Jalan said the rest should get absorbed into global markets within one or two years.
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