The state-run Gujarat Alkalies and Chemicals Ltd (GACL) on Friday said it will set up a 5,000 tonnes per annum (TPA) high-purity grade hydrogen peroxide plant at Dahej in South Gujarat, targeting niche applications in the semiconductor and solar manufacturing value chain.
The board of directors of the company in a meeting held on Friday approved an estimated investment of ₹67 crore for the project, which will produce electronic-grade hydrogen peroxide used in advanced electronics manufacturing processes.
The new facility is aimed at catering to rising demand from semiconductor fabrication units and solar cell manufacturers, as India expands its domestic electronics and clean energy production ecosystem. “This will enable the company to produce high purity grade hydrogen peroxide for niche applications in semiconductor fabrication, solar cell manufacturing and other advanced electronics applications for which manufacturing units are being put up in India,” the company stated in a regulatory filing.
The project is expected to be commissioned within 18 months from the zero date, defined as the kick-off meeting with the technology supplier. Once operational, the plant is expected to generate annual revenue of around ₹42 crore, according to the company. The company said the project will be funded through internal accruals, with any additional requirement to be met through borrowings, if needed.
Green drive
On the operational side, GACL is focusing on reducing energy costs through greater use of renewable power and process efficiencies. “Energy is a continued focus area for the company and during FY26 the company could reduce energy cost as compared to previous year on account of increased share of renewable power,” Avantika Singh, MD of the company, stated in a filing with the stock exchanges.
She added that the share of renewable energy in the company’s total power consumption has increased significantly. “During FY26, the share of renewable energy has increased to 35.7 per cent from 29.7 per cent,” she said.
GACL is also investing in technology upgrades and digitisation to improve operational efficiency. The company is also undertaking efficiency improvement initiatives under its internal transformation programme, Project Ahvaan, which focuses on cost optimisation, better capacity utilisation, organisational restructuring and capability enhancement. “These initiatives are expected to contribute to improved operational efficiencies in the short to long term,” Singh added.
Expansion plan
On the infrastructure and expansion front, GACL is preparing for multiple project commissioning in the current financial year, including chemical and renewable energy assets. “In FY27, the company expects to commission HCl synthesis unit, chlorotoluene downstream plant, caustic soda flaking plant, cell elements replacements and 138.60 MW renewable energy projects,” she stated.
The company is also strengthening its renewable energy portfolio through partnerships with private sector players. GACL’s joint venture with Clean Max Group for a 75.9 MW hybrid renewable energy project in Gujarat is progressing as planned in two phases. Similarly, a 62.7 MW renewable power arrangement with Aditya Birla Renewables SPV 4 Ltd is expected to begin supplying power in the second half of the current financial year. “These initiatives would significantly improve both top and bottom lines of the company,” the MD added.
Revenue rises
GACL reported a significant improvement in its full-year FY26 performance, narrowing its consolidated net loss to ₹2.41 crore from ₹65 crore in the previous year, supported by higher capacity utilisation, improved production and better realisations across select product segments. Revenue from operations rose 7 per cent year-on-year to ₹4,358 crore for FY26, reflecting steady demand and improved operating performance across plants.
“The company successfully enhanced capacity utilisation across plants and achieved higher production across major products and benefited from improved sales realisations in select products,” said Singh. The improvement in annual performance was also supported by stronger quarterly momentum in the fourth quarter, where consolidated net profit rose 70 per cent year-on-year to ₹14.98 crore, while revenue increased 5 per cent to ₹1,125 crore.
The board has recommended a dividend of ₹17.70 per equity share, equivalent to 177 per cent on the face value of ₹10, for the financial year ended March 31, 2026.