Tata Chemicals to increase focus on specialty, consumer product

Last Updated: Sat, Feb 16, 2013 04:14 hrs

Tata Group's chemical arm, Tata Chemicals Limited (TCL) is eyeing a larger pie from its consumer products and speciality chemicals segments. The company, largest soda ash player in India, aims to increase the revenue share from speciality chemicals and consumer products to about 50 per cent over the next five years.

"Innovation and sustainability will continue to drive Tata Chemicals' existing business operations and expansion plans in 2013. We will be focusing on our specialty and consumer product business and have plans to build on this portfolio to at least 50 per cent of our turnover in the next five years," R Mukundan, managing director, Tata Chemicals said in an emailed response.

Currently on standalone basis, complex fertilisers constitute about 42 per cent of the total revenues, while urea is 17 per cent followed by soda ash at 13 per cent. Vacuum salt contributes 9 per cent to the total revenues of Tata Chemicals. Other segments including speciality chemicals and consumer products other than salt constitute 13 per cent share in the total revenue at present.

As on March 2012, out of the total revenues worth Rs 7912 crore, inorganic chemicals segment contributed revenues worth Rs 2409 crore, which is around 30 per cent of the company's total revenues. However, the consumer products segment constituted less than 1 per cent of the total revenues for the year ended March 31, 2012.

Tata Chemicals is increasingly focusing on product innovation and retailing of consumer products. After successful penetration in the Indian consumer market through its salt products under the Tata Salt and i-Shakti brands, Tata Chemicals has also forayed into pulses market under the brand name i-shakti dals.

As per the industry experts, around 93 per cent of Tata Chemicals' revenues come from the chemicals and fertiliser businesses. Salt business contributes about seven per cent to the total revenues.

The company also mulls to foray into the Nutraceuticals market. Tata Chemicals is setting up a 300-tonnes per annum plant in Chennai to make nutraceuticals - probiotics and polyols, which will be used by food and pharma companies. It plans to invest around Rs 50 crore for a manufacturing unit in Chennai over in the early next year.

"TCL's agri-business vertical will also see growth and expansion. We hope to increase our domestic fertilizer production capacity and consolidate our global acquisitions and investments," Mukundan said.

Tata Chemicals accounts for about 3 per cent of Tata group's total revenues worth US $ 100 billion (approx Rs 5,40,000 crore) as on March 2012.

The company's board of directors will meet on February 8, 2013 to consider and take on record the financial results for the third quarter ended December 31, 2012.

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