Ashapura Minechem mines, processes, and sells industrial minerals and their downstream products to manufacturers across dozens of industries. They dig bauxite out of mines in Guinea (West Africa) and ship it to aluminum smelters globally, while in India they extract bentonite clay, kaolin, silica sand, and other specialty minerals from Gujarat and Kerala, then process them into hundreds of products that go into paints, plastics, foundries, detergents, catalysts, and construction materials. The company has been in the minerals business since 1960 and now operates across two distinct geographies with very different scales - massive bulk bauxite exports from Guinea and value-added specialty minerals from India.
Business Segments
Guinea Bauxite & Iron-Ore Export - Mining and exporting bauxite ore directly to global aluminum producers, primarily through three captive ports including the newly commissioned ABB Boffa Port with 25,000 tons daily loading capacity located 52 km from mines. This is pure bulk commodity trading—dig it, load it, ship it.
India Bentonite & Allied Minerals - Mining and processing bentonite clay, kaolin (china clay), silica sand, and gypsum from deposits in Kutch (Gujarat) and Kerala into functional minerals sold to Indian foundries, paint makers, edible oil refiners, detergent companies, iron-ore pelletizers, and construction firms.
Specialty Adsorbent Solutions - Through 50% joint venture Ashapura Perfoclay Ltd, manufacturing high-performance bleaching clays that remove color and impurities from edible oils, industrial greases, and petroleum products.
Advanced Ceramic Materials - Through associate company Orient Ceratech Ltd (31.76% ownership), producing engineered refractory aggregates like sintered mullite, tabular alumina, and ceramic proppants for steel plants, refineries, glass furnaces, and oil/gas fracking.
Guinea Bauxite & Iron-Ore
Guinea holds one-fourth of the world’s bauxite reserves. Ashapura entered in 2016 and spent nine years building infrastructure before the business started generating meaningful returns. The infrastructure includes three captive ports, 300 kilometres of heavy-truck roads, and over 100 kilometres of mining roads. The newest port, ABB Boffa, commissioned in FY25, handles 25,000 tonnes daily. Total port capacity stands at 16 million tonnes annually, with expansion underway toward 27 million tonnes by Q2 FY27.
Ashapura holds three bauxite concessions with reserves exceeding 700 million tonnes. The concessions run for 15 years plus 15 years renewable. Two concessions are operational. One is under development. The company also holds iron ore concessions with reserves above 300 million tonnes. In November 2025, Ashapura opened a bridge over the Konkoure River. The bridge connects the eastern section of the Boffa mining lease to the port logistics corridor. This section, previously inaccessible, contains an estimated 80 million tonnes of exportable-grade bauxite. The bridge cost exceeded Rs 80 crore.
Why Guinea Matters for Global Bauxite
Guinea holds 25% of global bauxite reserves. The ore sits close to the surface with low stripping ratios. Coastal deposits mean short trucking distances to port. West African bauxite travels shorter distances to China than Australian bauxite, reducing freight costs. China produces roughly 40 million tons of aluminum annually and needs bauxite imports to feed its smelters. Guinea exported 139 million tonnes of bauxite through September 2025 and targets 200 million tonnes for calendar 2026. Ashapura is one of six companies in the Dapilon corridor modernization project adding 50 million tonnes of export capacity.
Ashapura is the only non-Chinese company with a sustainable large-scale Guinea bauxite operation. Chinese state-backed companies like SMB-Winning (a consortium of Singaporean and Chinese interests) and Chalco dominate the Guinea bauxite landscape. Ashapura carved out its niche through early infrastructure investment and local relationship building.
The China Railway Partnership
In January 2025, Ashapura signed an MOU with China Railway, a Fortune 500 company, for long-term development of the Fako bauxite deposit in the Kindia region. Under this arrangement, China Railway handles production and logistics operations. Ashapura focuses on sales, marketing, and technical support. This partnership de-risks the volume ramp. China Railway brings mining expertise and equipment. Ashapura contributes the concession rights and customer relationships. The structure allows volume growth without proportional capital deployment from Ashapura.
India Bentonite & Allied Minerals
Kutch in Gujarat is India’s only source of high-quality bentonite. Ashapura, by virtue of its 40 years in the business, controls significant reserves. The company operates processing plants at Paddhar and Mamuara near Bhuj, plus additional facilities in Kerala. It also runs plants in Antwerpen, Belgium for European customers and Sohar, Oman for Middle East markets.
Ashapura claims to be the world’s third-largest bentonite producer, with reserves exceeding 60 million tonnes. It also claims to be the world’s third-largest bleaching clay producer and India’s largest producer of both refractory materials and proppants. The bentonite business splits across applications. Iron ore pelletisation bentonite, sold under the ASHCOLL brand, goes to steel mills that agglomerate iron ore fines into pellets. Foundry-grade bentonite goes to metal casting operations for green sand moulding. Drilling-grade bentonite, sold as DRILLCON, goes to oil and gas well boring operations. Civil engineering bentonite, sold as POLYGEL, goes to construction companies for diaphragm walls and tunnel boring.
The company also sells bentonite for paper manufacturing, animal feed additives (BENFEED brand), fertiliser carriers, wine clarification, cosmetics, earthing compounds, and cat litter. Each application requires different specifications and commands different prices.
Bleaching clay, made from acid-activated bentonite, removes colour and impurities from edible oils. Ashapura’s bleaching clay plant at Bhuj can produce 200,000 tonnes annually, the largest single-location plant in the world. Customers include refiners of soybean, palm, sunflower, and groundnut oils.
The kaolin business produces hydrous and calcined grades for paints, coatings, paper, fibreglass, rubber, and construction chemicals. Production capacity stands at 108,000 tonnes annually. Ashapura claims to be India’s second-largest kaolin producer.
Two new bentonite mines in Kutch started production in FY26. These are expected to contribute 300,000 tonnes annually. The company also commissioned captive solar power, reducing electricity costs and improving cost visibility.
Growth Triggers
Volume Ramp to 15 Million Tons
The company exported 3.37 million tons in FY25. H1 FY26 already hit 3.38 million tons. Annualized Q1 volume exceeds 8 million tons. Management targets 15 million metric tons by FY27-28.
The path from current run-rate to target requires:
- Port capacity expansion from 16 to 27 million tons (on track for Q2 FY27)
- Boffa East mine development enabled by the new bridge
- China Railway partnership contribution from the Fako deposit
- Continued ramp of existing concessions
Operating Leverage
The fixed infrastructure is already built. Ports, roads, bridges, and processing facilities are operational. Incremental bauxite volumes require incremental mining and trucking costs but not incremental port construction or major capital deployment.
If EBITDA per ton holds at $9 and volumes hit 15 million tons, Guinea EBITDA reaches approximately $135 million or Rs 1,125 crores (at Rs 83 per dollar). That compares to Rs 320 crores of consolidated EBITDA in H1 FY26.
Iron Ore Contribution
Ashapura holds iron ore reserves exceeding 300 million tonnes in Guinea. Ashapura supplies ore to a local beneficiation plant and earns a margin-based fee rather than taking commodity price risk.
Aluminum Demand Drivers
Global aluminum demand grows 5-6% annually. Electric vehicle adoption accelerates aluminum usage in vehicle light-weighting. Solar panel frames require aluminum. Aluminum-salt batteries represent an emerging demand source. Infrastructure spending across emerging markets adds to base case aluminum demand. Bauxite is the primary ore for aluminum production. China’s bauxite imports grow faster than domestic aluminum production as local ore quality declines.
Corporate History
1982-2008: Founded as a single-product bentonite company in Gujarat. Grew steadily through geographic expansion and product diversification. Built positions in kaolin, silica, and other industrial minerals.
2008-2011: The global financial crisis coincided with shipping contract disputes and forex derivative losses. The company faced liquidity stress. BIFR (Board for Industrial and Financial Reconstruction) proceedings began in 2011.
2011-2016: Restructuring period. The company exited BIFR in 2016 after settling with lenders and rebuilding the balance sheet. During this period, Ashapura began exploring Guinea opportunities.
2014-2016: Family disputes emerged following the remarriage of promoter Navnitlal Shah. Court proceedings addressed asset transfers and succession matters. These issues appear resolved though legacy litigation continues.
2016-Present: Guinea infrastructure buildout. Initial port commissioning in 2018-2019. Progressive volume ramp.
Risks
China Demand Cliff
China produces roughly 40 million tons of aluminum annually. Industry estimates suggest production may plateau around 45 million tons due to energy constraints and decarbonization pressures. If Chinese aluminum demand stagnates, bauxite import growth slows. Price pressure could emerge if supply ramps exceed demand growth.
Guinea Political Risk
Guinea experienced a military coup in September 2021. The current junta government has maintained mining contracts but could seek renegotiation of royalty terms or ownership stakes. Other African nations have moved to increase state participation in mining ventures. Ashapura’s concessions have 15+15 year terms. The company has operated through the political transition without contract disruption. Local relationships developed over eight years provide some buffer. But sovereign risk in West Africa remains.
Commodity Price Floor
Bauxite prices could decline in a global recession or demand shock. The commodity has traded as low as $35-40 per dry metric ton in severe downturns. At those levels, Ashapura’s Guinea margins compress significantly though likely remain positive given the captive infrastructure advantage.
Monsoon Seasonality
Guinea receives heavy rainfall for five to six months annually. Q2 (July-September) typically sees lower export volumes as rain disrupts mining and trucking operations. The Q2 FY26 result (1.33 million tons despite monsoon) showed resilience, but seasonality will create quarterly volatility.
Execution Risk
The volume ramp from 3.4 to 15 million tons requires flawless execution across mining, logistics, and port operations in a challenging operating environment. Equipment failures, labor issues, or infrastructure bottlenecks could delay targets.
Bauxite Pricing Power
Ashapura sells into a commodity market with index-linked pricing. The company has no pricing power. Revenue and margins depend on global supply-demand dynamics. Chinese buyers and large trading houses set terms. Ashapura takes the price the market offers.
Further Reading
Explore more deep dives on Finance Pulse: