GACL & German chemical major to invest Rs.2500 Cr in India

Vadodara: Gujarat Alkalies and Chemicals Ltd (GACL) plans to invest Rs 2,500 crore in a joint venture with German specialty chemicals major Evonik-Degussa GmbH to diversify product portfolio and cut dependence on caustic soda.

GACL will invest Rs 1,800 crore to set up a plant to manufacture polyols at its Dahej complex in Bharuch district of Gujarat.

Evonik will invest Rs 700 crore to supply basic raw materials for polyols.

The investments would be spread over three years.

The capacity of the polyols plant will be 1.5 lakh tonnes per annum (TPA) and it will produce import substitutes for Indian industries.

To fund these projects, GACL has tied up 70 per cent cost through debt while 30 per cent will come from internal accruals.