Sanghi Industries sees fall in fuel cost

Sanghi Industries Ltd has seen a fall in fuel and power cost in the September quarter, contradicting the trend of rising fuel prices across India.

Sanghi Industries has benefitted from its close position to limestone mines and the increased use of lignite for fuel and power, according to Mint. The Indian government recently reduced the Goods Sales Tax (GST) on lignite to five per cent from eight per cent. Due to this reduction the company has increased its usage and now meets 75 per cent of total fuel requirements through lignite.

Whilst 90 per cent of Sanghi Industries’ sales growth comes from Gujarat, the company is now seeking to improve sales growth outside Gujarat by five to eight per cent in the next year. Growth is expected from Mumbai which could lead to the company eventually doubling capacity to 8Mta.