5 stocks that stand to benefit from govt's decision to curb soda ash import
Subscribe to enjoy similar stories. The Indian government recently imposed a minimum import price (MIP) of ₹20,108 per tonne on soda ash until 30 June 2025. This decision, communicated by the Directorate General of Foreign Trade (DGFT), aims to curb the inflow of lower-cost imports and protect the local manufacturing sector.
Soda ash is the secret sauce for making detergents, glass, and chemicals. In this article, we will look at five stocks set to gain from the government’s new soda ash price policy. Tata Chemicals is among the world's largest and most geographically diversified soda ash companies.
It is one of the largest producers of synthetic soda ash in the world, accounting for as much as 35% of the total production in India. The Tata Group company produces four categories of this vital alkali: light soda ash, dense soda ash, medium dense soda ash and granular soda ash. Over the years, the manufacturing capacity of its soda ash plant has increased from 40 tonnes per day to the current level of 2,500 tonnes per day.
It has manufacturing facilities in India, the UK, the US and Kenya. It has a global capacity of around 5.5 million tonnes of soda ash per annum, of which 60% is from natural deposits at Wyoming, US, and Lake Magadi, Kenya. Given its strong foothold in the market, Tata Chemicals stands to gain significantly from the Indian government’s decision to impose a MIP on soda ash.
The move will bolster domestic demand for locally produced soda ash, providing Tata Chemicals with an opportunity to strengthen its market position. For the September 2024 quarter, the company reported a flat revenue of ₹3,990 crore. Meanwhile, the net profit for the quarter tumbled to ₹190 crore from ₹430 crore a year back.
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