Industry Structure
The industry is
concentrated in Gujarat due to abundant availability of salt and
limestone - key raw materials required for the production of soda
ash, but this area is prone to periodical cyclones and droughts,
this affects production.
Though the industry is
concentrated in Gujarat, the demand for soda ash is spread all over
the country. This creates transportation problems. Transportation
costs, especially to the eastern and southern regions ranges
anywhere between Rs1500-2000 per ton.
The industry is
highly concentrated in terms of the total producers. There are six
major producers of soda ash in India. These are Tata Chemicals,
Gujarat Alkalis, VXL Limited, DCW Limited, Tuticorin Alkalis and
Punjab National Fertilizers.
The high
concentration is mainly due to the scale sensitivity and high
capital costs. The minimum economic size is 1000 tpa and involves a
cost of Rs8.2bn.
The capacities,
alongwith the unit-wise production is given in the table
below.
Capacities
And Production (FY98)
|
Producers
|
Capacity
|
Production
|
|
('000 ton)
|
('000 ton)
|
|
DCW Ltd
|
96
|
82
|
|
Tata
Chemicals
|
875
|
797
|
|
Saurashtra
Chemicals
|
335
|
300
|
|
Tuticoran Alkalies
& Chemicals
|
73
|
70
|
|
Punjab National
Fertilisers & Chemicals
|
66
|
45
|
|
Gujarat Heavy
Chemicals
|
420
|
402
|
