Page 105 - Tata_Chemicals_yearly-reports-2019-20

Integrated report Statutory reportS FInancIal StatementS
Management Discussion and Analysis

FY 2019-20) and 36 million bales (one bale is equivalent to 170 kg) sodium bicarbonate) and Specialty Chemistry (agri Sciences,
as against 34.89 million bales in FY 2019-20. nutritional Sciences, Materials Sciences and energy Sciences).
through its Basic Chemistry business, the Company is the world’s
agriculture has done well and is likely to grow at 3%. Significantly, 3 largest and most geographically diversified soda ash company,
rd
India, in FY 2018-19, exported crop protection chemicals worth in addition to being the 6 largest Sodium Bicarbonate producer
th
` 22,090.18 crore. the one big opportunity the Indian industry with manufacturing facilities in India, uK, Kenya and the uS.
has is to undertake the manufacturing of active ingredients that the Company supplies to global detergent and glass brands in
are scheduled to lose patent protection in the next few years. the addition to food, power generation, animal feed, chemicals and
current crisis opens a synergetic window for the Indian seed sector pharma brands. It is also a leading manufacturer of edible salt in
to work in sync for the greater benefit of the nation and its farmers. India. under its Specialty Chemistry business, it houses the agri
adequate low-interest working capital and soft loans for building Sciences business in its subsidiary, rallis India limited (‘rallis’)
infrastructure and investments in r&d can be upcoming areas of having a reach of 13 million farmers across 80% of India’s districts,
focus. with 5 power Brands. the Companies nutritional science business
offers solutions for microbiome modulation with global scale
Other Infrastructure Indicators capacities for scFoS & goS (Short chain Fructo-oligosaccharide
as per the Central electricity authority, electricity generation grew & galacto-oligosaccharide. Its Material Sciences business has a
by 2% in January 2020 (YoY basis). the total installed capacity novel patented technology for manufacturing Highly dispersible
for electricity generation was 3,68,690 MW at the end of January Silica (‘HdS’) for tyres. through energy Sciences, tCl is focussed on
2020, of which the share of thermal, hydro, renewable and nuclear energy storage opportunities in India.
sources was 62.4%, 12.3%, 23.4% and 1.8%, respectively. In order to maintain sustained economic growth and build an
innovative product pipeline, the Company has established world-
WpI inflation increased to 3.1% in January 2020 as compared to class r&d facility in pune, an Innovation Centre (‘IC’), which is home
2.6% in december 2019. Consumer price Index (CpI) – combined to technical knowhow in Material Sciences, nutritional Sciences
inflation was 4.5% in april-January 2019-20 as compared to 3.6% in and energy Sciences and two r&d centres in Bengaluru – the rallis
april-January 2018-19. growth of money supply (M3) (YoY basis) Innovation Chemistry Hub (rICH), focussing on next-generation
as on January 31, 2020, stood at 10.2%, as compared to a growth crop protection and nutrition products and agri-Biotech r&d
rate of 10.4% recorded in the corresponding fortnight end in the Facility for Seeds division of rallis (erstwhile Metahelix life Sciences
previous year. limited), developing new and functional seed traits. the three r&d
centres continue their research for growing new businesses and
Source: IMF WEO, April 2020 released April 14, 2020; IBEF-March 2020 update;
providing value addition by creating a different approach to its
https://economictimes.indiatimes.com; Government of India Ministry
existing businesses backed by science-led differentiation.
of Commerce & Industry Department of Commerce Economic Division
(India’s Foreign Trade: February 2020); Mckinsey Report on Indian Chemical the Company’s Basic Chemistry products business has delivered a
Industry; https://www.investindia.gov.in/sector/chemicals strong performance, despite a mixed business environment marked
by good demand growth on one hand and significant increase in
Company Overview and Sustainable, Profitable input energy costs and competitive pressures on the other. the
Growth Strategy Company continued to focus on throughput optimisation of all

a part of the uS$ 113 billion tata group, tata Chemicals limited its key products within the prevailing operational constraints and
(‘the Company’ or ‘tCl’) is a global company with interests in maintained its leadership position.
businesses that focus on Basic Chemistry products and Specialty the Specialty products business is high-growth potential business
products. the story of the Company is about harnessing the fruits segment comprising four major verticals namely agri Sciences,
of science for goals that go beyond business. While the Company’s nutritional Sciences, Material Sciences and energy Sciences.
businesses are diverse and varied, they are underpinned by the Company is an established player in agri Sciences business
science-led differentiation with digitisation and innovation at the offering crop protection solutions, seeds, plant growth nutrients
centre of every aspect of business. this year marks the 81 year for (pgns) and agri input solutions through its subsidiary rallis. rallis
st
tata Chemicals limited.
is amongst one of India’s leading crop care companies and hold
leadership in products like acephate, Hexaconazole, pendimethalin
the Company’s story began in Mithapur, gujarat, in western and Metribuzin. the business has a strong distribution network
India in 1939, with the creation of a small plant that would raise having 13 million farmer connects and over 4,000+ distributors.
a wealth of marine chemicals from the ocean. the Company
today serves a diverse set of customers across five continents, the Company’s nutritional Sciences business offers nature-
with interests that focus on Basic Chemistry (soda ash, salt and inspired and science-backed ingredient and formulation solutions

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