AP Government Progresses in Industry Growth with Caustic Soda Unit

As part of its initiative to foster industrial growth and generate employment opportunities for the youth, the Andhra Pradesh government, led by CM Jagan, is nearing the completion of the caustic soda unit in Balabhadrapuram, East Godavari district. The unit, inaugurated on April 21, 2022, at a cost of Rs. 2,700 crore, is expected to be fully operational in the coming days.

The Grasim industry, responsible for producing 1.50 lakh tonnes of caustic soda annually, is set to offer employment to more than 2,400 individuals. The Grasim Industries-Chlor Alkali industry, already under the Birla group and currently employing 1,300 people, will see an additional 1,100 job opportunities once the unit reaches full capacity.

Largest Chlor-Alkali Unit

Situated in Balabhadrapuram, this unit is the first of its kind in the East Coast region of Andhra Pradesh and is poised to become the largest chlor-alkali unit in the country for the Aditya Birla Group. While the group already operates seven such units across India, this new establishment will contribute significantly to the region’s industrial landscape.

Transformative Impact

The advent of Grasim Industries and similar units manufacturing specialty chemicals as raw materials in Balabhadrapuram is expected to position Kakinada as a prominent hub for various industries. The region anticipates the establishment of companies engaged in the production of pharmaceuticals, agro chemicals, aqua culture, and food processing, transforming the overall economic landscape.

Future Production and Export Potential

With the current demand for caustic soda in the country at 35.6 lakh tonnes, the government envisions this figure reaching around 55 lakh tonnes by 2035. The existing production capacity across various units in the country stands at 47.63 lakh tonnes. Industry officials indicate that, once fully operational, the surplus caustic soda production could be exported to multiple countries. Caustic soda is primarily used in various sectors, including the paper industry, textiles, aluminum, pharmaceuticals, pesticides, water purification, oil refineries, soaps, detergents, and the food processing sector, particularly for cleaning fruits and vegetables.