The Indian government has introduced a Minimum Import Price (MIP) of Rs. 20,108 per tonne on Disodium Carbonate, commonly known as soda ash, effective until June 30, 2025. This policy, announced by the Directorate General of Foreign Trade (DGFT), aims to safeguard domestic manufacturers by curbing the influx of cheaper foreign imports. Soda ash is a critical raw material for industries such as detergents, glass, and chemical manufacturing. Once the MIP period ends, the free import policy will be reinstated. The announcement is expected to benefit several domestic players in the soda ash and chemical sectors, boosting their performance and market valuation.

Tata Chemicals Limited

Tata Chemicals Limited, a flagship company of the Tata Group, is a major player in sustainable chemistry solutions. The company’s operations are divided into two segments: Basic Chemistry Products, including soda ash and sodium bicarbonate, and Specialty Products, such as agrochemicals and prebiotics. With a market capitalization of Rs.26,823.29 crores, Tata Chemicals’ stock rose by 2.04%, trading at Rs.1,052.90 per share, compared to the previous close of Rs.1,031.80. In Q2FY25, the company reported a marginal increase in revenue, from Rs.3,998 crores in Q2FY24 to Rs.3,999 crores, while its profits declined from Rs.495 crores to Rs.267 crores. The company is well-positioned to benefit from the MIP policy due to its robust soda ash production capacity and diversified product portfolio.

GHCL Limited

Founded in 1983, GHCL Limited is a leading Indian producer of soda ash and sodium bicarbonate, catering to industries such as detergents and glass. The company operates through two main segments: Inorganic Chemicals and Consumer Products, including edible and industrial salts. GHCL’s market capitalization stands at Rs.6,968.55 crores, with its stock surging by 8.01%, trading at Rs.727.75 per share, up from Rs.673.80. Despite a slight decline in revenue from Rs.805 crores in Q2FY24 to Rs.793 crores in Q2FY25, the company’s profits grew from Rs.143 crores to Rs.155 crores. GHCL’s strong market presence and production capabilities make it a key beneficiary of the government’s protective measures.

DCW Limited

Established in 1939, DCW Limited is a prominent chemical manufacturer specializing in soda ash, caustic soda, PVC, and synthetic rutile. The company operates manufacturing units in Gujarat and Tamil Nadu, with a focus on sustainability and innovation. DCW’s market capitalization is Rs.2,705.10 crores, with its stock rising by 2%, trading at Rs.91.65 per share, compared to Rs.89.85 previously. The company posted an 18% growth in revenue, from Rs.414.09 crores in Q2FY24 to Rs.488.74 crores in Q2FY25, though profits declined from Rs.2.66 crores to a loss of Rs.1.25 crores. The MIP policy is expected to provide DCW a competitive edge by reducing import pressure on its soda ash business.

This strategic move by the government is likely to enhance the competitiveness of domestic soda ash producers while strengthening their financial positions in the market.