News Tata Chemicals announces Rs.2,400-crore capex for capacity expansion

   The Board of Directors of Tata Chemicals Ltd. have approved a capital expenditure of Rs. 2,400-crore, which would be deployed towards de-bottlenecking of the company’s Mithapur facility to enhance soda ash capacity by about 150,000-tpa, salt production by 400,000-tpa and upgrade turbines for higher efficiency with a reduction in carbon footprint to support the plant’s sustainability road map.

In line with the company’s strategy to grow their Specialty business, Tata Chemicals is also considering entry into the lithium-ion battery sector to develop cell chemistries to meet Indian applications. The company recently entered into an MoU with CSIR – CECRI (Central Electrochemical Research Institute), Karaikudi to explore collaborative technology for scaling up of manufacturing cathode materials for lithium-ion cells. The market in India for these applications could be 40-60 GWh by 2025.

Consolidated net profit up 17%

Tata Chemicals reported income from operations on consolidated basis at Rs. 2,961-crore, up 10% and Rs. 1,014-crore, up 23% on a standalone basis against the same quarter last year. The company’s results by reporting segment showed Income from operations for Basic Chemistry Pro-ducts at Rs. 2,033-crore, up by 7%, Consumer Products segment at Rs. 460-crore, up by 22% and Specialty Products Rs. 669-crore, up by 12%.

Basic Chemistry Products Indian operations continue to register healthy volumes and margins due to improved operational efficiencies, despite higher energy prices. Europe performance was muted due to lower trading activity and higher fixed costs, while North America operations witnessed strong demand. However performance was impacted due to lower operational efficiencies and the installation of new environmental equipment, partially offset by better sales realization. The Magadi performance was back on track, with improved sales and higher realisation.

The Nutritional Solutions business registered higher sales volumes. Margins were impacted due to higher fixed costs. Both facilities, Nutraceuticals in Nellore & Silica in Cuddalore, are on schedule for commissioning in 2019.

Speaking on the performance, Mr. R. Mukundan, Managing Director, Tata Chemicals Ltd., said, “India’s Basic Chemistry products business continues to register a robust performance, due to operational efficiencies, a robust product mix and better realisations. On the global front, adverse impact on North American operations was partially offset by better sales realisation.”