Page 108 - Tata_Chemicals_yearly-reports-2019-20
P. 108

th
           6 largest producer of Bicarb globally, with a total annual capacity   category to offer new and value-added products that could
           of 2.3 lakh tonnes in India and the uK.           address the needs of different segments, reaching them directly or
                                                             through tCpl, depending on the nature of the consuming sector.
           the Indian Bicarb market grew by approximately 7% in FY 2019-20.
           the demand for Bicarb was largely balanced throughout the year.   Cement
           Imports remained in line with previous year levels.  an increase   In addition to soda ash, salt and sodium bicarbonate, the Company
           in  supplies  was  met  through  higher  throughput  from  capacity   also manufactures cement as part of its integrated operations at
           expansions of domestic producers. adequate supplies and easing   the Mithapur site. the operation of the cement plant demonstrates
           of international prices also led to price softening.  prices saw a   the Company’s commitment to the environment; it utilises fly ash
           decline of 8% during the year and the Company achieved sales of   and other solid waste generated at the site. With a special focus
           1.09 lakh tonnes.                                 on quality and key customer requirements, the Company’s cement
                                                             portfolio offers high-quality Cement with a strong customer
           Key drivers of Bicarb growth continue to be food, feed and   service  infrastructure  in  the  targeted  markets.  In  May 2019,  the
           pharma segments.  the emerging flue gas treatment segment   Company relaunched its  ordinary  portland Cement (opC) with
           appears to be another promising sector for Bicarb consumption.   “Superior 1-day strength” to meet specific customer needs of
           Mid-capacity  power  plants  in  India  hold  key  to  this  demand.   early high strength cement.  also in sync with market demand,
           the Company won the first tender for this trial order from   portland pozzolana Cement (ppC) was introduced to expand the
           government-owned power plants. However, lower plant   product offerings.
           load factors curtailed immediate continuity of this demand.
           the Company’s Bicarb brands,  ‘Sodakarb’,  ‘alkakarb’ and   the Company now offers three products, including Masonry
           ‘Medikarb’, scaled higher volumes, registering double digit growth.   cement. In FY 2019-20, the gujarat Cement market experienced
           Medikarb is now an established product for the haemodialysis   a demand contraction by 9% due to a combination of factors like
           segment and is increasing its reach and penetration. the Company   weak economy and extended monsoons. However, better market
           has introduced ‘Speckarb’, a new brand with low chlorides to meet   prices supported profitability. Combined Cement and Clinker sales
           specific customer requirements of specialised Bicarb. the Company   volumes at 3.95 lakh tonnes were lower by 2% compared to the
           continues to explore new opportunities to retain its volume and   previous year’s performance.
           value leadership in the Bicarb market. the various developments in
           Bicarb undertaken by the Company are an expansion of the Bicarb   Business Performance
           capacity at its uK plant, the Carbon Capture expansion project, etc.  tCl’s Indian Basic Chemistry products business unit maintained
                                                             the performance of the past years, amidst sequential drops
           Salt                                              in  quarterly  gdp  growth  and  slowing  consumer  demand.
           Being  a  food  ingredient,  salt  did  not  experience  demand   profitability was supported by reduction in input costs on account
           challenges, even when Covid-19 affected demand for most of the   of fuel and as a result of cost control programmes. during the year
           sectors. the demand continued to be strong and the increased   under review, the Company executed its operational excellence
           salt production helped the Company to capitalise on the demand   initiatives with rigour, leading to reasonable cost optimisation
           growth.  the Company’s  long-term Supply  agreement (‘ltSa’)   across all functions.
           with  tata Consumer  products  limited (erstwhile  tata  global   the Company targets a Zero Harm - Zero Harm to people, asset
           Beverages  limited) [‘tCpl’], will support the Company’s growth   and  environment.  While the Company is continuously striving
           and investment plans for capacity-building.   the  ltSa provides   to improve its safety performance, the Mithapur site witnessed
           for  supply  of  vacuum-evaporated  edible  salt  as  a  take  or  pay   one unfortunate fatality in January 2020.  all the incidents that
           arrangement for an initial period of 25 years, with the option of   take place are investigated and corrective measures are taken to
           extending this on mutual agreement. tCl recorded the highest   prevent the recurrence of the incidents. It has led the Company
           production of salt at 10.78 lakh tonnes compared to the previous   to introspect and now the Company is working on evaluating
           year high of 10.68 lakh tonnes. the Company plans to increase   innovative solutions to monitor the health and safety of its
           the Salt production capacity in order to meet growing demand of   employees and contract employees working at critical areas or
           Indian market.                                    remote locations. during the year, the Company also increased its
                                                             focus on process safety at the site.
           as part of its strategy of value addition and portfolio expansion,
           the Company is exploring various ideas for new value-added salt   When it comes to sustainability, the Company continues to
           variants.  the Company’s Innovation Centre and the marketing   aim beyond compliance requirements and sets the industry
           teams are working on the development of new products in this   agenda with initiatives related to the environment and local


           106  I  Integrated annual report 2019-20
   103   104   105   106   107   108   109   110   111   112   113