A leading player in the Indian chemicals industry has recently made a strategic move by signing a Memorandum of Understanding (MoU) with a subsidiary of the global chemical giant.
Through this MoU, the company and the global partner have agreed to incorporate a joint venture company in India. The new JV will focus on the construction and operation of a world-scale acetic acid production facility in the country. This partnership is expected to leverage the strengths and expertise of both companies to expand their footprint in the growing Indian chemicals market.
Share Price Movement
The share price of Gujarat Narmada Valley & Chemicals Limited went down by 0.29 percent to Rs. 559 per share on Thursday, a decrease from its previous close of Rs. 561.05 per share. The market capitalisation now stands at approximately Rs. 8,220 crore as of November 21, 2024.
What Happened
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) has signed an MoU with Acetyls International Limited, United Kingdom (INEOS) to form a joint venture company in India. The JV company will construct and operate an acetic acid plant, with GNFC and INEOS having a stake of 50% each.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Gujarat Narmada Valley’s consolidated revenue from operations has decreased by 7.8 percent YOY from Rs. 2,080 crore in Q2 FY24 to Rs. 1,917 crore in Q2 FY25 and decreased by 5.1 percent QoQ from Rs. 2,021 crore in Q4 FY24.
The company’s consolidated net profit has declined by 42.6 percent, from Rs. 178 crore in Q2 FY24 to Rs. 102 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 11.3 percent QoQ from Rs. 115 crore.
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Market Outlook
The total installed capacity for major chemicals and petrochemicals in India has grown at a CAGR of 4.5% between 2018 and 2022 and is expected to continue growing further as demand for chemical consumption increases in India. The government has implemented favorable policies to facilitate indigenous chemical production, including allowing 100% FDI in the chemicals sector.
Additionally, the government is addressing the impact of ESG, globalisation, and innovation on the chemicals value chain. Overall, the Indian chemical industry is poised for continued expansion and growth driven by strong domestic demand and supportive government policies.
Shareholding Pattern
As of the November 2024 shareholding pattern, Gujarat Narmada Valley & Chemicals Limited is primarily held by the promoters at 41.30 percent, foreign institutional investors hold 16.15 percent, and the public with 31.38 percent.
About Company
Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC), founded in 1976, is a pioneering Indian manufacturer of fertilizers and chemicals. Based in Bharuch, Gujarat, GNFC benefits from a strategic location within an industrial belt, optimising natural resources for production. Established as a joint venture between the Government of Gujarat and GSFC, the company has become a cornerstone of India’s industrial landscape.
GNFC operates across diverse segments, including fertilizers, chemicals, IT solutions, and neem-based products. Its fertilizers, marketed under the brand “Bharat,” and industrial chemicals such as methanol and acetic acid drive significant revenue. The company’s subsidiary, n-Code Solutions, delivers digital security solutions, solidifying its role in India’s IT infrastructure. This diversification underscores GNFC’s innovative approach to business.
Committed to sustainability, GNFC minimises waste and protects the environment in its operations. Recognised for excellence, GNFC continues to shape India’s industrial and technological progress.
Written By Fazal Ul Vahab C H
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