Exclusive: In chat with Anil Singhvi, GHCL MD Ravi S Jalan talks about business outlook, company demerger plans
In today’s edition of News Par Views, Zee Business Managing Editor Anil Singhvi spoke to Ravi S. Jalan, Managing Director (MD) of GHCL, erstwhile known as Gujarat Heavy Chemicals Limited – a company which has been operating since 1983 and has an enviable portfolio with business interests in chemicals, textiles and consumer products
In today’s edition of News Par Views, Zee Business Managing Editor Anil Singhvi spoke to Ravi S. Jalan, Managing Director (MD) of GHCL, erstwhile known as Gujarat Heavy Chemicals Limited – a company which has been operating since 1983 and has an enviable portfolio with business interests in chemicals, textiles and consumer products. It is one of the leading companies in Soda Ash manufacturing in the country. (#NewsParViews)
Jalan began by saying that there were only four companies in India which manufactured Soda Ash and with 11 lakh tn, the company is among the biggest manufacturers in the country. While most of it is consumed in India, some quantity is also exported in Bangladesh, Sri Lanka and Nepal.
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On the issue of focus shifting from China in the chemical sector and if the company is benefitting from it, the MD said that Soda Ash is imported from China, and the sector is likely to gain, going forward.
But, this is a different business, different from the speciality chemicals. He said that though some benefit could come, it would not be at the level at which speciality chemical business would gain.
On textile business
The textile business has been seeing some turnaround, especially for companies like GHCL which work in the entire value chain including yarn, weaving, dying and printing.
The demand for textile has grown at a global level, he said. This sector is the direct beneficiary from the China fallout. The demand has grown since the people are now staying at home. The company has performed well in this segment over many months now, he further said.
This has also benefitted cotton farmers as the price of cotton has gone up by 30 per cent.
The Competition Commission of India (CCI) and Securities and Exchange Board of India (SEBI) have given their consent to the demerger of the textile business, Jalan said. The company will soon file an application in NCLT, he added.
The purpose of demerger of the two business is that the chemical and textile businesses were altogether different, he said. The competence and focus required in the two are completely different and it was important to separate the two, he said.
Both businesses will gain from the demerger. It will help in value unlocking and benefit the stakeholders.
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The new company has already been formed with the name GHCL Textile and after the NCLT approval, the delisting will take place. The company aims to complete the entire process by 31 March 2021.
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