Gujarat Alkalies and Chemicals Ltd (GACL)

Gujarat Alkalies and Chemicals Ltd (GACL) and the second largest
global chemical giant, Dow Chemicals, have decided to �esynergise�f
their efforts in the state and are in the process of giving this
agreement a shape for long-lasting co-operation. The two companies
would set up a 50:50 joint venture for a proposed chemical plant at
Dahej in Gujarat or enter into a product sharing and marketing
agreement.

Projects And Expansions The Gujarat Government announced that it was
likely to divest this year its entire 40% holding in State-owned
Gujarat Alkalies and Chemicals Ltd (GACL). Among the potential
suitors reported to be interested in buying the State Government�Œs
40 per cent holding in GACL were the Reliance Group�Œs Indian
Petrochemicals Corporation (IPCL), the Aditya Birla group and Tata
Chemicals. Tata Chemicals Ltd, the country�Œs largest soda ash and
edible salt maker, announced that it planned to broaden its business
canvas by entering into the manufacture of bio-fuels and
distribution of fresh fruits and vegetables. The company planned to
set up its first bio-ethanol plant in Maharashtra at a cost of
INR400-500mn with a capacity of 30 kilolitres per day.

Industry Outlook The plastics industry is increasing at a rate of
14% per annum, and consumption is expected to be more than 12mn
tonnes per annum (tpa) by 2010. Further, according to India�fs Union
Minister for chemicals, fertiliser and steel, the demand for
fertiliser is forecast to rise to 35.9mn tonnes by 2010. As such,
the government plans to restart eight public sector fertiliser
plants in the next two years.