Vedanta Ltd (Aluminium Business) and Gujarat Alkalies and Chemicals Ltd (GACL) have formalized a Memorandum of Understanding (MoU) to delve into potential business opportunities in the realms of Caustic-Chlorine and other related businesses. The primary objective of this MoU is to identify the potential for creating value in both Vedanta Aluminium and GACL’s operations. By adopting a collaborative approach based on their complementary skills, strengths, and shared business interests, the MoU aims to achieve synergy.
Vedanta Aluminium, a division of Vedanta Limited, stands as India’s largest producer of aluminium, contributing to over half of the country’s aluminium production, amounting to 2.29 million tonnes in FY23. Renowned for its value-added aluminium products critical to core industries, Vedanta Aluminium holds the 2nd position in the Dow Jones Sustainability Index (DJSI) 2022 world rankings for the aluminium industry, reflecting its commitment to sustainable development practices. On the other hand, Gujarat Alkalies and Chemicals Limited (GACL), established in 1973 in Vadodara, Gujarat, focuses on manufacturing Caustic Soda and allied products. Supported by the Government of Gujarat, GACL has evolved into one of the largest caustic soda manufacturers, employing cutting-edge technology, groundbreaking research and development, and strategic diversification. With state-of-the-art aluminium smelters, alumina refinery, and power plants in India, the company is working on advancing emerging applications of aluminium as the ‘Metal of the Future’ for a greener tomorrow. Starting with an initial capacity of 37,425 TPA caustic soda, GACL has significantly expanded its capacity to 8,52,400 TPA, with manufacturing facilities across four complexes in Vadodara and Dahej. GACL now offers a diverse range of over 35 products used as raw materials in various industries, contributing to the growth of the chemical industry in the country.
Both Vedanta Ltd (Aluminium Business) and Gujarat Alkalies and Chemicals Ltd (GACL) are eager to explore opportunities for cooperation in greater detail. The Memorandum of Understanding (MoU) aims to acknowledge the potential for enhancing the businesses of both Vedanta Aluminium and GACL by adopting a collaborative approach that leverages their complementary skills, strengths, and shared business interests to achieve synergy. Both companies express the desire to delve deeper into opportunities for cooperation, allowing them to pool resources in a mutually beneficial manner. This strategic collaboration aligns with Vedanta Aluminium’s efforts towards vertical integration. Under the MoU, both entities have, in principle, agreed to jointly explore business opportunities, considering options such as a joint venture project or contractual arrangements that align with their mutual interests.
This collaboration between Vedanta Aluminium and GACL signifies a strategic alignment to explore mutually beneficial avenues and drive innovation in the sectors they operate. As both entities embark on this journey, the MoU sets the stage for a potential transformation of the landscape in Caustic-Chlorine and related businesses, with a commitment to sustainable and mutually rewarding ventures.