GNFC looks to hike domestic marketshare as govt imposes anti-dumping duty on TDI
Gujarat Narmada Valley Fertilizers and Chemicals is looking at increasing its share in the domestic TDI market, as the government has proposed an anti-dumping duty of USD 140-400/tonne to be levied on imports of TDI from China, Korea and Japan.
April 26, 2017 / 05:02 PM IST
Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) is looking at increasing its share in the domestic TDI (toluene diisocyanate) market, as the Directorate General of Anti-Dumping and Allied Duties (DGAD) has proposed an anti-dumping duty of USD 140-400/tonne to be levied on imports of TDI from China, Korea and Japan. TDI is a key ingredient used in the manufacture of plastics and synthetic fibers.
The Directorate General of Anti-Dumping and Allied Duties Gazette dated March 28, says: "After examining the submissions made by the interested parties and issues raised therein and considering the facts available on record, the Authority concludes that the product under consideration has been exported to India from subject countries below normal values. The domestic industry has suffered material injury.”
The state-run GNFC is the country’s only producer of TDI and has a marketshare of 50 percent in the domestic market. After the imposition of anti-dumping duty the company expects to increase its market share as cheap imports would be restricted.
GNFC has invested Rs 2500 crore in a new plant, which has a capacity of 160 tonnes per day. Talking to Moneycontrol, GNFC’s Managing Director Rajiv Kumar Gupta, said: “TDI is a very guarded technology and we are the only producer in India with a total capacity of 65,000 tonnes across two plants. There has been a lot of dumping by players from Korea and Japan, which is why we applied for anti-dumping duty to be imposed. The DGAD carried out due verification and has suggested a provisional anti-dumping duty to be imposed.” The entire process is expected to be completed in a few weeks.
Over the next few weeks, the company expects the process to be complete and the Finance Ministry to come out with a notification. GNFC is the country’s largest producer of TDI and the company was impacted as cheap imports from Korea, Japan and China were hurting the company.
According to sources, a levy of USD 310/tonne has been proposed for imports from Korea BASF and USD 260/tonne for imports from all Chinese manufacturers and USD 140/tonne for all Japanese manufacturers.