GHCL is planning a Capex of Rs. 1,160 - 1,370 crore for FY 2022-24 and of this majority will be utilised for the soda ash greenfield project.

Speaking during Q2 FY ‘23 Earnings Conference Call, R. S. Jalan, Managing Director, GHCL Limited, said, "Capex broadly in the year FY2022-23 will be roughly around Rs. 360 - 370 crore and out of that, primarily it will be more on the textile side and some amount will be in the soda ash side. Out of that, almost 50% we have already spent and 50% is likely to be spent in the next six months. In FY 2023-24, the Capex could be in the range of around Rs. 800 - 1,000 crore. Out of that, probably Rs. 500 - 700 crore will be in the new greenfield project.

"The soda ash greenfield project is one step close post completion of an environment related public hearing. Sodium bicarbonate expansion project is on track and shall be completed in this quarter. Strategically, we are strengthening our raw material integration with the acquisition of limestone mines. Other initiatives, including digitization and product basket expansions, are progressing well. At our textile division, installation of 40,000 new spindles is in advanced stage and we shall achieve full utilization by the end of this fiscal," commented Jalan.

We are further enhancing our green energy footprint by implementing an additional 5-megawatt solar rooftop project, Jalan said.

On the demerger front, we have received approval from shareholders and unsecured creditors in August. Now we are awaiting orders from NCLT which may happen in December, commented Jalan. 

"For greenfield expansion by March '23, the complete environmental clearances should happen. Of course we'll try for early, but generally this kind of time is being taken. So that's one. And after that, probably two years so probably by March '25, probably we should see the plant being set up, everything has been completed. That is the target we have," said Jalan.

"The world is moving towards a greener initiative and therefore the soda ash expansion will happen more on the natural side. So we are also looking at how we make technological changes to make it more environment friendly," added Jalan.