Synopsis:
GHCL Ltd has received approval from the Gujarat State Government for the renewal of its mining lease for the Khadsaliya Lignite Mines for a period of 20 years.
The shares of this chemical and petrochemical company, which is involved in the production of soda ash and other related products, are in focus after the Gujarat government approved the renewal of its mining lease.
With a market capitalization of Rs. 5,826 Cr, shares of GHCL Limited opened at Rs. 609.30 per equity share, from its previous day’s closing price of Rs. 604.85, and made an intraday high of Rs. 616.35 per share.
GHCL Limited has received official approval from the Government of Gujarat for the renewal of its mining lease for the Khadsaliya Lignite Mines. This lease covers an area of 171 hectares in Bhavnagar district and has been extended for 20 years, up to December 8, 2043. This is a key development that ensures the continuity of the company’s primary lignite mining operations for the long term.
In addition to lignite, GHCL had earlier signed a Rs.950 crore Memorandum of Understanding (MoU) with the Government of Gujarat in December 2023 to begin the development and commercial sale of secondary minerals, such as Bentonite and Sand.
With the renewal, the Khadsaliya mining project will now grow into a composite mining operation, combining lignite mining with secondary mineral extraction. This move is expected to support the company’s long-term growth plans, promote sustainable practices, and strengthen its commitment to resource optimization and the circular economy.
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About the company
GHCL Limited is a well-known Indian company primarily involved in the manufacturing of inorganic chemicals and home textiles. It is a leading producer of soda ash, which is widely used in industries like glass, detergents, and chemicals. The company also has a presence in the textile sector, producing high-quality cotton yarn and bedding products.
GHCL is focusing on expanding its business through key projects. It plans to enter the B2B edible salt market by using waste energy to produce vacuum salt. The company is also setting up a bromine plant with 2,800 MT capacity.
To support this, GHCL will produce 17 lakh MT of raw salt and 10,000 MT of bromine on newly leased land in Kutch, Gujarat. These efforts aim to improve efficiency and boost profits.
The company’s revenue from operations declined from Rs. 3,447 crores in FY24 reaching Rs.3,183 crores in FY25, reflecting negative business growth, and the net profits of the company dropped from Rs. 794 crores in FY24 to Rs.624 crores in FY25, indicating a decrease in earnings.
Written by Sudeep Kumbar
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