Chemistry of
Sustainable Growth
85th Year
2023-24
Integrated Annual Report
Contents
01-76
Integrated Report
- About Tata Chemicals
- MD & CEO's Message
- Performance Review
- Macro Trends
- Business Strategy
- Basic Chemistry Business
- Specialty Products Business
- Our Business Model
28 Leveraging Six Capitals in Business Model
- Engaging with Stakeholders
- Materiality Assessment
- Risks and Opportunities
- Adopting Digital and Technology
- Research and Development
- ESG Action Report 48 Environmental 54 Social
54 People
60 Health and Safety
63 Corporate Social Responsibility
68 Governance
- Awards and Accolades
- Corporate Information
77-198 | 199-371 | |||
Statutory Reports | Financial Statements | |||
77 | Business Responsibility | 199 | Standalone Financial Statements | |
and Sustainability Report | 271 | Consolidated Financial Statements | ||
124 | Board's Report | 370 | Form AOC-1 | |
149 | Management Discussion | |||
and Analysis | 372 | Notice | ||
171 | Corporate Governance Report | 391 | Financial Statistics | |
393 | Abbreviations | |||
396 | GRI Content Index |
United Nations Sustainable Development Goals (UNSDGs)
Basis of Reporting
We have based our annual report on the principles of Integrated Reporting , a global benchmark for best practices in corporate reporting with our philosophy of making disclosures beyond statutory norms. With each passing year, we continue to enrich our report with additional disclosures to provide relevant information to all our stakeholders on our value creation process using the multiple capitals which helps them make informed decisions.This report is prepared in accordance with the:
- Companies Act, 2013 and the Rules made thereunder
- Indian Accounting Standards
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- Secretarial Standards
Internationally recognised frameworks and guidelines followed include:
- United Nations Global Compact
- Global Reporting Initiative (GRI) Standards
- framework of the International Integrated Reporting Council (IIRC)
Reporting Period, Scope and Assurance
This Report covers financial and non- financial information and activities of Tata Chemicals Limited ('the Company' or 'TCL') and its subsidiaries for the period April 1, 2023 to March 31, 2024. The financial information has been audited by B S R & Co. LLP, Chartered Accountants.
The non-financial information as referred to in the Reasonable and limited assurance reports has been audited by KPMG Assurance and Consulting Services LLP.
The assurance for the non-financial indicators is in accordance with the ISAE 3000, revised for providing the Reasonable assurance criteria (for BRSR core attributes) and limited assurance criteria (for select GRI and BRSR indicators). The assurance criteria, methodology and conclusion are presented in the assurance report. The assurance reports are annexed to the Business Responsibility and Sustainability Report (BRSR) and also available on the Company's website at: https://www.tatachemicals.com.
There are certain restatements due to change in boundary of reporting and approach & methodology. The effects and reasons have been included under the respective Principles of the BRSR report. These restatements would enable completeness and comparability of information for the current year and previous year.
Forward-looking Statements
Certain statements in this Report regarding our business operations may constitute forward-looking statements. These include all statements other than statements of historical facts, including those regarding the financial position, business strategy, management plans and objectives for future operations. Forward-looking statements can be identified by words such as 'believes', 'estimates', 'anticipates', 'expects', 'intends', 'may', 'will', 'plans', 'outlook' and other words of similar meaning in connection with a discussion
of future operating or financial performance. Forward-looking statements are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and that may be incapable of being realised and as such, are not intended to be a guarantee of future results, but constitute our current expectations based on reasonable assumptions. Actual results could differ materially from those projected in
any forward-looking statements due to various events, risks, uncertainties and other factors. We neither assume any obligation nor intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
To get this report online and for any other information, log on to: www.tatachemicals.com
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About Tata Chemicals
Sustainable Chemistry Solutions
Geographic Footprint
Tata Chemicals Limited ('TCL' or 'the Company') is a sustainable chemistry solutions company, harnessing science and innovation to drive long-term growth and value creation for all its stakeholders. Our deep- rooted Tata values and ethos of sustainability have been driving our growth, and they are the enablers of excellence and leadership in our business.
Our Values
Safety | Passion | Integrity | Care | Excellence |
Our Ownership Structure
(as on March 31, 2024)
28.2% | 38.0% | ||
Promoter and Promoter Group | |||
Institutional | |||
Non-Institutional | |||
` 15,421 crore | ` 2,847 crore | 4,644 | 15 | 3 |
Revenue | EBITDA | People | Plants | R&D Centres |
Map not to scale. For illustrative purposes only.
Our Growth Enablers
Our mission
Serving Society through Science
Our vision
To be a leading sustainable chemistry solutions company serving customers with innovative products and solutions
33.8%
Our Chemistry-Focussed Business Portfolio
Basic chemistry | Specialty products | ||
y | Soda Ash | y | Agrochemicals and Seeds |
y | Sodium Bicarbonate | y | Specialty Silica |
y | Salt | y | Prebiotics (FOS) |
- Other inorganic products (Bromine, Caustic Soda, Cement)
Our Leadership
We have become the preferred choice for customers seeking sustainable chemistry solutions worldwide:
- 3rd largest Soda Ash producer globally
- 5th largest Sodium Bicarbonate producer globally
- Leading Producer of salt in India and UK
- Pioneer in fermentation product technologies in India
- Freshwater positive operations in Mithapur
Asia | America | Europe | Africa | |
Revenue (crore) | ` 7,032 | ` 5,377 | ` 2,404 | ` 709 |
EBITDA (crore) | ` 1,187 | ` 1,087 | ` 347 | ` 219 |
People | 3,499 | 604 | 366 | 175 |
Manufacturing | India - Mithapur, | USA - Green River Basin, | UK - Winnington, | Kenya - Magadi |
Facilities | Ankleshwar, Dahej, | Wyoming | Lostock and Middlewich | |
Cuddalore, Mambattu, | ||||
Lote and Akola | ||||
Innovation | TCL Innovation Centre, Pune ; Rallis Innovation and Chemistry Hub (RICH), Bengaluru, | |||
Centres | Agri Biotechnology Center, Bengaluru (Seeds) |
Markets Served Indian subcontinent, China, Middle East, South East Asia, Oceania, Americas, European Union, United Kingdom, Africa
02 | 03 |
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MD and CEO's Message
Performance Review
Dear Shareholders,
I hope you and your families are safe and well and I thank you all for your enduring trust in Tata Chemicals.
In retrospect, FY 2023-24 was a year of continuing challenges, due to geopolitical conflict in Europe and heightened tensions in Middle East, coupled with high energy and commodity prices which did moderate from their peak. Despite above challenges, India continues to be amongst the fastest growing economies in FY 2023-24.
While Tata Chemicals benefited from the sustained positive soda ash market dynamics in India, US and China, the conditions in Europe worsened where demand fell sharply by about 15%. This sharp erosion of margins in Europe resulted in impairment of mainly the soda ash assets of the Company in the UK. The pressure on margin in Europe spread across to all the regions and the full impact was visible in the second half of FY 2023-24. As a result, we delivered muted performance compared to FY 2022-23, with the Company achieving consolidated revenue of ₹ 15,421 crore, a decrease of 8% over FY 2022-23, EBITDA of
- 2,847 crore, a decrease of 26% over FY 2022-23. On the positive side, the team managed to improve cash from operations by 2% by better working capital management.
The Basic Chemistry segment declined by 7% in FY 2023-24 mainly impacted by lower sales volume of soda ash by 6% coupled with the reduction in realisation by 1%. Demand for edible Salt and Bicarbonate were relatively stable. The Company added 3.3lakhMTcapacityofedibleSaltandachieved highest ever edible Salt sale of 16.5 lakh MT in FY 2023-24. Bicarbonate continues to show resilient performance with its wide applications in food, feed, pharmaceuticals and industrial applications. Bicarbonate in India continues to grow, and the Company
is investing additional capacities. The Company's UK business is also focussed on pharma grade Salt and Sodium Bicarbonate having higher value capture.
The revenue of Specialty Products segment comprising Agrochemicals, Specialty Silica and Prebiotics declined by 12%. Rallis India Limited, the Company's listed subsidiary operating in agrochemicals sector reported operating revenue drop of 11% at ₹ 2,648 crore, due to the sluggish agrochemical market conditions. Rallis continues its focus of becoming partner of choice to Indian farmers. The silica market in India saw stable demand for the year FY 2023-24. The Company is focussed on consolidating its position in the targeted tyre segment with its differentiated product portfolio. Conversion of production line to tyre grade silica caused drop in volume, however, value realisation was higher as compared to FY 2022-23. Prebiotics (FOS) sales is gradually picking up and product is well received by key food, feed and pharma companies; however, there is a challenge of long approval cycles. The Company is committed to invest and scale specialty products business to deliver sustained growth.
The outlook for the Company's portfolio is expected to remain stable in FY 2024-25 and medium-term prospects remain positive.
The Company is focussed on driving operational excellence to improve its resilience to address market cyclicality. We are leveraging revenue and cost synergies of our multi geographic presence by providing higher value and services to our global and key customers and minimising cost curves through efficient resource allocation. We are investing in digital transition to standardise business processes to improve operating efficiencies and costs.
The global chemical industry is undergoing transformation driven by sustainability forces. For Tata Chemicals, sustainability is the core of strategy. Our vision is aligned to Project Aalingana, Tata Group's flagship endeavour for greener, sustainable and equitable future for the planet. Our core portfolio of Soda Ash, Bicarbonate are relevant for sustainable applications such as solar glass, lithium processing, biodegradable packaging and industrial flue gas treatment. Our prebiotic portfolio based on fermentation technology uses renewable bio-feedstock. We are investing in setting up Rice Husk based Silica which will support greening the automotive tyres.
The outlook for the Company's portfolio is expected to remain stable in FY 2024-25 and medium-term prospects remain positive. Demand for Soda Ash will see recovery mainly in China, India and the Americas. Specialty Chemicals will continue growth momentum linked to India demand. We will commission additional soda ash, bicarbonate and silica capacities in India and pharma grade salt in UK in H1 FY 2024-25.
On behalf of Tata Chemicals, I thank you all for your continued support in our ongoing journey of transformation to deliver chemistry of sustainable growth.
Warm Regards,
R. Mukundan
Managing Director & CEO
We witnessed subdued performance compared to the previous year, primarily due to decreased volumes and adverse price movements driven by current market dynamics. Our emphasis is on customer engagement and cost management to ensure strengthening of balance sheet.
`⁜in crore (except for no. of shares) | ||||||
Particulars | Standalone | Consolidated | ||||
FY 2023-24 | FY 2022-23 | FY 2021-22 | FY 2023-24 | FY 2022-23 | FY 2021-22 | |
Revenue from Operations | 4,384 | 4,930 | 3,721 | 15,421 | 16,789 | 12,622 |
EBITDA | 875 | 1,235 | 951 | 2,847 | 3,822 | 2,305 |
Profit before exceptional items, share of profit of joint | 914 | 1,265 | 988 | 1,623 | 2,742 | 1,452 |
ventures and associate and tax | ||||||
Exceptional items (net) | 102 | - | - | (861) | - | (11) |
Profit Before Tax (PBT) | 1,016 | 1,265 | 988 | 830 | 2,740 | 1,667 |
Profit After Tax (PAT) | 896 | 1,027 | 787 | 449 | 2,452 | 1,400 |
PAT including Discontinued Operations | 896 | 1,027 | 802 | 435 | 2,434 | 1,405 |
Other Comprehensive Income | 2,283 | (59) | 1,538 | 2,814 | (531) | 2,959 |
Total Comprehensive Income | 3,179 | 968 | 2,340 | 3,249 | 1,903 | 4,364 |
Share Capital | 255 | 255 | 255 | 255 | 255 | 255 |
Other Equities | 18,470 | 15,737 | 15,087 | 21,986 | 19,466 | 17,998 |
Non-Controlling Interest | - | - | - | 873 | 921 | 904 |
Networth / Shareholders Equity | 18,725 | 15,992 | 15,342 | 23,114 | 20,642 | 19,157 |
Borrowings1 | 115 | - | 3 | 5,563 | 6,296 | 7,024 |
Non-Current | 82 | - | - | 3,289 | 5,677 | 3,860 |
Current | 33 | - | 3 | 2,274 | 619 | 3,164 |
Cash and Cash Equivalents (including Deposits with | 420 | 1,134 | 1,606 | 1,260 | 1,935 | 2,636 |
< 12 months maturity and Current Investments) | ||||||
Capital Employed2 | 18,840 | 15,992 | 15,345 | 28,677 | 26,938 | 26,181 |
Borrowings : Networth (Equity) | 0.01 | - | * | 0.24 | 0.31 | 0.37 |
Networth Per Share (in `) | 735 | 628 | 602 | 873 | 774 | 716 |
Earnings Per Share (EPS) - Basic and Diluted | 35.17 | 40.31 | 30.87 | 11.07 | 91.66 | 49.17 |
(continuing operations)(in `) | ||||||
Dividend Per Share paid | 15.00 | 17.50 | 12.50 | 15.00 | 17.50 | 12.50 |
(proposed for FY 2023-24) | ||||||
No. of Shares | 25,47,56,278 | 25,47,56,278 | 25,47,56,278 | 25,47,56,278 | 25,47,56,278 | 25,47,56,278 |
Notes:
- Includes Lease Liabilities
- Capital Employed =Networth plus Borrowings
- Less than 0.00
CFO on Performance Review
While the performance in FY 2023-24 was subdued as compared to FY 2022-23, our cash generation in FY 2023-24 was better than FY 2022-23 due to better working capital management. Our balance sheet continues to be strong with our net worth nearly double of what we had 5 years back with a net debt - equity ratio at 0.20. We continue to focus on cash management and are committed to repaying our debt in the next 3-4 years.
Nandakumar S. Tirumalai
Chief Financial Officer
04 | 05 |
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Revenues | EBITDA and | PBT and | PAT and PAT Margin |
(` in crore) | EBITDA Margin | PBT Margin | (Continuing operations) |
12,622 | 16,789 | 15,421 | 2,305 | 3,822 | 2,847 | 1,667 | 2,740 | 830 | 1,400 | 2,452 | 449 |
23% | 13% | 16% | 15% | ||||||||
18% | 18% | ||||||||||
5% | 11% | ||||||||||
3% | |||||||||||
2021-22 | 2022-23 | 2023-24 | 2021-22 | 2022-23 | 2023-24 | 2021-22 | 2022-23 | 2023-24 | 2021-22 | 2022-23 | 2023-24 |
Macro Trends
AtTata Chemicals, we diligently monitor and evaluate the macro trends within the chemical industry to ensure growth and proactively mitigate potential risks. Our approach involves engaging stakeholders, collaborating with industry partners, conducting thorough risk assessments and tailored research. Presented below are several key trends that directly influence our operations.
FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | |||||||||||||||||
EBITDA (` in crore) | PBT# (` in crore) | PAT# (` in crore) | |||||||||||||||
EBITDA margin (%) | PBT margin (%) | PAT margin (%) | |||||||||||||||
Cash from Operations | Dividend Per Share | Net Debt : Equity | Net Debt : EBITDA |
(` in crore) | (`) | ||||||||||
1,645 | 2,971 | 3,016 | 12.50 | 17.50 | 15.00 | 0.26 | 0.22 | 0.20 | 2.1 | 1.2 | 1.6 |
2021-22 | 2022-23 | 2023-24 | 2021-22 | 2022-23 | 2023-24 | 2021-22 | 2022-23 | 2023-24 | 2021-22 | 2022-23 | 2023-24 |
Energy Transition
As the world pivots to decarbonisation commitment in accordance with Paris Agreement, transitioning to low carbon energy has emerged as the single most important lever as energy accounts for >70% of carbon emissions. In FY 2022-23, US$ 2.8 trillion was invested in energy transition of which the chemical industry contributed to nearly 75%.
Tata Chemicals aims to maintain NOx, SOx and SPM well below regulatory limits through increasing the use of biomass for heating, diversifying the mix of renewable power, implementing energy efficiencies
across all manufacturing facilities, entering supply arrangements for sustainable fuels like biomass, and reducing carbon emissions to achieve neutrality by 2045.
- Process innovation
Energy-intensive processes within the chemical industry are undergoing scrutiny and redesign to enhance efficiency and minimise carbon emissions. Technologies like electrification, hydrogenation and carbon capture and utilisation (CCU) are being explored to decarbonise chemical production.
Tata Chemicals took a pioneering step in 2022 by building Europe's first CCU plant. The Company is also exploring to progress electric calcination and mechanical vapour re-compression in its production.
- Development of new ecosystems
Chemical industry is a key contributor for developing sustainable energy eco-systems like e-mobility, solar economy, stationary energy storage systems and hydrogen economy by producing eco-friendly and energy-efficient materials. Tata Chemicals is exploring such opportunities within chemicals sector.
FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | FY | ||||||
Circular Economy
Non-Financial Measures: Six Levers of Operational Excellence
CustomerEnvironment
People
Circularity of key natural resources is being driven mainly by government regulations and customer demand. As a result, there is a growing demand for green and circular products, experiencing an annual growth
technologies which consumes sugar as renewable feedstock.
- Product and technology Innovation
Chemical companies are adopting principles of green chemistries to drive
biodegradable polymers, biosurfactants, and biopesticides. The valorisation
of molecules, atom efficiency, and recycling have become key mandates in developing new processes and products.
- Customer Satisfaction Index - 88%
- Net Promoter Score - 84%
Safety
- Progressive Safety Index - 85.3%
- LTIFR (Lost Time Injury Frequency Rate) - 0.44
- Scope 1 & 2 GHG emission intensity -
- TCO2e/T
- Water Consumption Intensity -
- KL/T
- Energy consumption Intensity -
- GJ/T
Digital
- Digital Maturity Index - 3.74/5
- External Employee Engagement Score - 72%*
- 100% Gender Diversity in Entry-level Campus Hiring
- 100% of the Senior Management Personnel positions filled internally
Manufacturing
- Global Capacity Utilisation, (Soda Ash) - 81%
- Global Capacity (Soda Ash) - 4,381 KT
rate of over 10%.
Tata Chemicals aims to be water positive and achieve zero waste to landfill by 2030 in India. Currently it consumes 100% fly ash, reuses >
3 lakh metric tonnes of undersized limestone. Its cement plant is built on circularity concept consuming solid waste generated in soda ash process. It is also investing in fermentation
circularity across 3 levers:
- Renewable feedstock
- Green chemical technologies
- Sustainable applications
Biochemistry has emerged as one of the most preferred technologies for producing sustainable materials such as
Our research and development division is actively promoting green chemistry through a fermentation platform, which encompasses the development of sustainable bio-chemicals such as bio-based surfactants, all aligned with the principles of the circular economy.
#PBT and PAT includes exceptional loss of ` 861 crore *Engagement survey done once in two years
(Source: KPMG, PWC, EY reports) Mithapur Plant
06 | 07 |
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Business Strategy
Supply Chain Resilience
Growing geopolitical conflicts in Europe and Middle East (Red Sea crisis and Suez Canal disruption) is disturbing the free flow of material and energy across key demand centre.
Post covid, countries are focussing on localising supply chain of critical
Digital & AI Adoption
The chemical industry is experiencing a notable surge in the integration of AI technology. Generative AI, in particular, is revolutionising material discovery, expediting time-to-market and enhancing operational efficiencies.
Key areas within the chemical industry impacted by AI adoption include:
- Process optimisation
Digitisation and AI facilitate real-time monitoring and control of chemical
- essential commodities. This shift has also led to trade tensions. In the United States, the Inflation Reduction Act incentivises local manufacturing, making it an attractive option for growth. Similarly, India's "Make in India" policy offers incentives to promote
processes, leading to enhanced efficiency, reduced energy consumption and optimised resource utilisation. This results in heightened productivity and decreased operational costs.
- Product development
AI-powered modelling and simulation tools accelerate product development and innovation within the chemical industry. Predictive modelling techniques enable virtual screening of chemical
the localisation of manufacturing across various industries.
Transition from fossil fuel to renewable energy is gradually changing global supply chain, as green energy is largely localised.
compounds, hastening the discovery of new materials, catalysts and formulations.
- Other areas
Beyond process optimisation and product development, AI is also making significant inroads in areas such as quality control, supply chain optimisation, safety and compliance. Digitisation and AI play pivotal roles in enhancing efficiency and effectiveness across these domains.
Sustainability practices and business excellence together create a foundation that enables us to consistently deliver high-quality products and services to customers, reduce operational costs and remain resilient.
Strategy
Chemistry of Sustainable Growth
Expand | Embed | Excel | ||||||
Leadership | Sustainability | Operational | ||||||
focussed | aligned to ESG | and Functional | ||||||
Sustainable | framework | Performance | ||||||
Growth | ||||||||
Responsible Leadership rooted in Sustainability and Excellence
Governance oversight: Board of Directors
Ahmedabad Office
08 | 09 |
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Strategic Objective 1 | Grow Capacities to Maintain Leadership in Core Products |
Strategic Objective 3 Embed Sustainability across All Segments
Basic Chemistry Products
KPIs tracked
Risks
Key levers | Key challenges |
Risks
Key levers
Capacity expansion (brownfield and debottlenecking)
Status and action plan
y Soda Ash - 228 KT Capacities to |
commence by May 2024 |
Capacity Expansion
FY 2023-24
Salt | Sodium Bicarbonate |
330 KT | 40 KT |
Talent risk, energy risk and cyber risk
Capitals impacted
MC FC NC
- Climate change action
- Circular economy - water neutrality, solid waste management and recycling
Status and action plan
- Carbon reduction projects across all the plants under evaluation and execution
- Low commercial viability of decarbonisation solutions
- Technology readiness levels for new emerging solutions
- Absence of regulations creating barrier for decarbonisation
Sustainability risk
Capitals impacted
NC
y | Salt - 330 KT capacities added in FY2023- |
24 | |
y | Sodium Bicarbonate - 140 KT |
capacities to commence by September |
FY 2024-25 | |
Soda Ash | Sodium Bicarbonate |
228 KT | 140 KT |
Material matters
M5
y Increasing co-firing biomass with coal | |
y Implementing energy efficiency projects | |
y | Installing 2.7MW solar power in India |
y | Plastic recycling as per EPR compliance |
KPIs tracked
Scope 1 GHG emissions (in Million tCO2e):
4.27
Material matters
M5 M7 M6 M10
2024 | Salt | SDGs |
Key challenges | 70 KT | |
y Escalation in Capex due to input costs
- Delay in the Capex execution plan
y 100% Fly ash Consumption |
Scope 2 GHG
emissions (in Million tCO2e):
0.07
SDGs
Strategic Objective 4 Drive Operational Excellence
Strategic Objective 2 Invest to Attain Leadership in Specialty Products
Key levers | KPIs tracked |
Customer-centricity |
Specialty Products | KPIs tracked |
Key levers | Capacity Expansion |
FY 2023-24 | |
Capacity Expansion and Customer | |
Multipurpose Plant (Agrochemicals) | |
Acquisition | |
240 TPA | |
Status and action plan |
Risks
Talent risk, energy risk and cyber risk
Capitals impacted
IC MC FC
- Cost competitiveness
- Customer-centricity
Status and action plan
y | Fixed cost optimisation plan |
y | Maximise capacity utilisation |
Capacity Utilisation:
Basic Chemistry (Global)*
Soda AshBicarb
90% 87%
Salt
Parameters | |
CSI Score: | NPS Score: |
88% | 84% |
Risks
Recession risk, high energy risk,
y Agrochemicals: Launch of new |
formulations in pipeline |
FY 2024-25
y | Energy hedging across regions |
y | Develop robust partner network. |
91%
cyber risk
Capitals impacted
y Silica: Increasing share of Specialty Silica in |
tyre segment; Capacity expansion of HDS |
to commence by August 2024 |
y Fermentation Platform - Prebiotics: |
Increase share of FOS for applications |
in nutraceutical and pharmaceutical |
segments; |
Silica
3.5 KT
Water Soluble Fertiliser Plant
8 KT
Material matters
M5
SDGs
- Optimising inbound and outbound logistics network
Key challenges
- Manufacturing -
y | Rising energy cost |
y | Talent attraction and retention |
Specialty Products (India)
SilicaFOS
73% 43%
Safety Parameters
MC SC
Material matters M5
Key challenges
y Long product approval cycle | |
y | Delay in adherence to project timelines |
(Agrochemicals) | |
y | Seasonal adversities impacting product |
y Climate change |
- Supply Chain -
- Threat from imports
- Maintaining high service levels
PSITRIFR
85.3% 0.98
SDGs
launch |
*Utilisation based on effective capacities
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Strategic Objective 5 Achieve Functional Excellence through Innovation, Digitalisation and People
Innovation | y | Develop future competencies in Silica value | Risks |
Key levers | chain | Talent risk, cyber risk | |
y | Co-creation with Customers and | ||
y Science-led differentiated products | collaborations with CSIRs, IITs | Capitals impacted | |
y R&D projects rooted in Green Chemistry and | |||
Key challenges | IC FC HC | ||
in collaboration with external entities | |||
- The evolving global regulatory framework
Status and action plan | related to sustainability aims at achieving net- | |
y All R&D projects adhering to green chemistry | zero emissions and energy usage | Material matters |
principles | y Emerging regulations in Nutri and Agri | |
y Green HDS, environment-friendly process for | solutions | M4 |
silanes, Platform technologies for synthetic | ||
biology and encapsulation | ||
y New variants and application development in | KPIs tracked | SDGs |
FOS and Silica | ||
Patents filed (Cumulative) | ||
y Customised fertilisers and herbicidal
combinations (Water soluble fertiliser, Daksh215 plus among others)
R&D Investments
People
Key levers
- Skills and capability building for a future- ready workforce
- Inclusive and engaging work climate
- Self-developmentlearning platforms
Status and action plan
- Learning architecture for skills and capability building
- Manager and leadership development programs
- Measure and improve employee engagement levels
- Improving gender diversity
- Global implementation of the HRMS System
*engagement survey done once every two years
Key challenges
- Remote plant locations makes attracting, retaining talent challenging as well as impacts diversity agenda
KPIs tracked
- External employee engagement score - 72%*
- Voluntary attrition - 10%
- Gender diversity in hiring - 11%
- Senior Management Personnel positions filled internally - 100%
- Employee Productivity (PBT/total employees) - ₹ 0.35 crore
Risks
Talent risk, recession risk
Capitals impacted
IC FC HC
Material matters
M3 M11 M13
SDGs
- 95 crore
Digitalisation
Key levers
- Modernisation of IT Systems
- Data Driven Business Excellence
- Digital re-imagination to drive functional excellence
- Strengthening technology backbone
Status and action plan
- Completed global business process reengineering (BPR) and kick-started S4 HANA implementation
- Designed enterprise architecture, built a data lake and developed digital dashboards
- Attained functional excellence through digitalisation: implementing Industry 4.0, Automating tasks using RPA and strengthening supply chain reliability
- Improving cyber security with multi- layered security measures
Key challenges | Risks |
y Technology obsolescence | Digital risk, cyber risk |
- Transforming to digital culture
- Scarcity of skilled resources
y Managing cyber risks | Capitals impacted | |||
IC | FC HC | |||
KPIs tracked | Material matter | |||
Digital Maturity Assessment Score | M3 | M5 | ||
3.74 | SDGs | |||
as against a target of 5 | ||||
Team at Wadala Office
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Basic Chemistry Business
Delivering to the competitive and changing needs of businesses around the world remains the focus of our Basic Chemistry Business. It is our continuous endeavour to strengthen our capabilities and competencies
We serve global and regional manufacturers of glass and detergent,
Our Strong Value Proposition
We deliver a strong value proposition for our customers based on our core strengths, which we nurture through targeted programmes, processes and investments.
in this business, with a focus on technological upgradation, supply chain efficiency and quality enhancement. With state-of-the-art manufacturing facilities spread across four continents, backed by an extensive distribution network, we efficiently cater to a large customer base around the world. Our manufacturing systems, supply chain and processes are designed to promote operational and cost efficiencies.
along with industries across food, animal feed, power generation, pharmaceuticals and chemical manufacturing.
y High brand value and strong |
relationships with partners |
y Operational efficiencies and business |
resilience |
y Innovation Centre (IC) at Pune, driving |
innovative product development |
and enhanced collaboration with |
customers |
y Self-sufficiency in key resources: salt |
works or pans |
y Proximity to ports / end markets |
y Multimodal logistics (rail/road/ship) |
lending us the ability to compete at |
most price points |
y Leveraging global capabilities to bring |
soda ash to customers in a cost- |
- ESG commitment, backed by safety and sustainability
- High customer focus on sustainability
- Large, effective and sustainable supply chain
- Strong CSR processes with a growing community outreach
Raw materials
India/UK
Processing
India/UK
y | Synthetic: Soda |
Ammonia Process | |
y | Salt: Vacuum evaporation |
Products
India/UK
y Soda Ash, Sodium Bicarbonate, |
y Integrated power and steam + superior |
ETP/SWM + operational flexibility, to |
counter RM/fuel price volatility |
effective manner |
- Limestone, coke, coal/ natural gas is procured in bulk from suppliers
- Solar salt and brine from captive salt works/ Underground Brine field
USA/Kenya
- Natural: Mining and processing of ore
2
Salt |
USA
y Soda Ash
Kenya/South Africa
y Soda Ash, Crushed Refined
#3 | #5 |
Global Market Leadership in Soda Ash | Global Market Leadership in Sodium Bicarbonate |
USA/Kenya
y Trona ore from | 1 |
captive mining |
3
Soda, Salt
- Coal, HFO, Natural gas are procured in bulk from suppliers
Sustainable
Production
We use both synthetic
and natural trona mining
processes in the manufacture
of soda ash, enabling a reduction in our carbon footprint.
Packaging
y Bags
4 y Bulkers
End use | 7 |
y Detergents, Glass,
Food, Animal Feed,
Pharma and Chemical6 intermediates
Distribution
y Direct (incl. Tata Consumer
Products Limited) 69%
y Channel Partners 31%
5 Logistics
- Sea
- Rail
- Road
Mithapur Plant
14 | 15 |
Integrated Annual Report 2023-24 | 01-76 | 77-198 | 199-371 |
Integrated Report | Statutory Reports | Financial Statements |
Key Operational and Strategic Developments - India business
During FY 2023-24, the soda ash markets remained oversupplied in India. On a higher base, growth across end use segments was marginal. The significant rise in import volumes resulted in lower prices. The market demand for bicarbonate, cement and other halogen products remained healthy. Salt demand also remained stable.
emissions but also co-developingeco-friendly products. For example, we are working with several large detergent makers on a novel bio-based surfactant. Besides this, we continuously work with our key accounts to improve the efficiency and speed of transactions for an improved customer experience, e.g. automating order process and shipment tracking through
C A S E S T U D Y
Improving Logistics through 'Saarthi'
The global challenges and complexities related to supply chain and logistics necessitate sustained investments in impactful solutions to streamline deliveries. During the year, we rolled out an important initiative - 'Saarthi', as part of our new Integrated Logistics Management System (ILMS). The customer-centric initiative is aimed at enabling effective visualisation, tracking and management of all inbound and outbound despatches from a centralised platform.
On the raw material cost front, coal prices softened during the year, relative to coke prices that led to lower input costs. After starting to ease in the first half of the fiscal, supply chain costs were again adversely impacted on account of the Red Sea crisis, causing delays in supplies and increases in freight costs. Lower availability of raw salt due to bittern dilution required securitisation of salt from external sources, which further increased the production cost.
automated process (Saarthi).
Way forward
Given the macro environment and our strategic focus, we have identified the following areas for driving our onward growth journey in this business:
y | Focus on safety, process safety, risk management and |
sustainable operations | |
y | Thrust on improving operational efficiency and yield |
Phase I of Saarthi, implemented during FY 2023-24, involved:
- Digitisation of our outbound operations for road and ocean despatches
- Completion of pilot for inbound despatches
- System went live for loading operations in rail despatches; plans underway to implement it for unloading operations
- Offers mobile and web portals, allowing customers to track and manage their shipments from anywhere
- Provides real-time tracking so that customers have visibility on the status of their shipment at any given moment
- Gives notifications and alerts, providing customers with convenience and peace of mind when it comes to shipping goods
Initiatives and developments
- We strengthened our supply chain through an increase in container rake movements and other multi-modal solutions
- Our focus on operational excellence, automation and digitalisation projects for improvements and efficiency enhancement remained unwavering
Customer-centricity
Expanding Market Presence in Bicarbonate:
With increased production, we are working on further improving our market footprint across the regions and developing new application areas, e.g. for Flue Gas Desulfurisation. This emerging application not only expands the market for Bicarb but also helps in reducing pollution. We are engaging with various thermal power plants to assist in this endeavour.
Sales process enhancement for key and global soda ash customers:
We are consciously aligning with our key customers on their sustainability journey, not just optimising Scope 3
Our focus on operational excellence, automation and digitalisation projects for improvements and efficiency enhancement remained unwavering
y Implementation of projects to improve safety, operational |
efficiencies and yield |
y On-time execution of capex projects, maximising capacity |
utilisation across products |
y Enhancing market leadership and value addition in sodium |
bicarbonate |
y Market expansion of sodium bicarbonate in new segments |
and geographies |
y Optimising outbound logistics and modes to enhance |
customer service and reduce freight cost |
y Improving realisation by optimising product portfolio and |
market mix |
y Intensifying R&D to develop new products, new |
applications and process improvements |
y Increasing the use of lIoT (Industrial Internet of Things), AI |
(Artificial Intelligence), data analytics and technology to |
improve manufacturing practices and business processes |
y Implementing key projects to achieve SBTi targets and |
moving towards the goal of carbon neutrality |
y Sustainable operations with augmentation of power |
through renewables - establishing biomass usage and |
alternate fuel and installation of solar and wind resources |
Key benefits
- Enhancements to critical processes achieved
- Enhancements included automation of truck indenting, digital LR generation, online vehicle tracking, e-POD confirmation and digital freight billing
Other benefits
- Helps customers stay informed on the progress of their orders, enabling them to make necessary adjustments for their cargo arrival, inventory management and production planning
Way ahead
In Phase 2, Saarthi will optimise operations across various units within our plant. This comprehensive phase encompasses seamless movement of materials across units within the factory premises. It intends to enhance collaboration, streamline operations and enable better decision-making across the spectrum of our logistics activities.
16 | 17 |
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Tata Chemicals Limited published this content on 03 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 June 2024 16:03:06 UTC.