DCW Ltd. Restores Soda Ash Production After ₹190 Million Loss From Underutilization

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DCW Ltd., a leading Indian chemical manufacturer, announced the successful restoration of its soda ash production capacity, following internal operational changes. The company had previously incurred a ₹190 million loss due to lower capacity utilization, prompting swift corrective measures to stabilize output and margins.

Operational Highlights

The loss stemmed from suboptimal utilization at DCW’s Dhrangadhra facility in Gujarat, which houses India’s first soda ash plant.
DCW implemented internal re-engineering and process optimizations, elevating plant operations back to full capacity.
The company confirmed that soda ash production has resumed, with utilization levels now approaching 88%, up from earlier lows.

Financial & Strategic Impact

The restoration is expected to improve operating margins and reduce volatility in the commodity segment.
DCW’s specialty chemicals segment continues to outperform, with CPVC and SIOP volumes up 99% and 72% YoY, respectively.
The company is also nearing completion of a renewable energy project, which could further reduce costs and enhance sustainability.

Management Commentary

“We’ve taken decisive steps to restore capacity and mitigate losses. Our internal teams have worked tirelessly to bring operations back on track,” said a DCW spokesperson.

Sources: Yahoo Finance, Economic Times, Moneycontrol, Screener