Page 109 - Tata_Chemicals_yearly-reports-2019-20

Integrated report Statutory reportS FInancIal StatementS
Management Discussion and Analysis

community engagement. Zero groundwater withdrawal for plant the year. energy prices and raw material costs generally softened
operations, 100% fly ash utilisation, solid waste filtration, usage of as the year progressed. plant operation was affected by major
soda ash solids to minimise solid waste and focussed biodiversity infrastructure work during the summer of 2019, as part of the
preservation programmes indicate the Company’s commitment energy-from-Waste plant investment on the site, but this was in
to the environment. as part of its local community engagement, line with expectations in the second half of the year. the associated
tCl continues to offer a multitude of skill development and energy business had a robust year, generating good income
self-employment generation programmes. and contributing strongly to the soda ash/energy business unit
performance. the uK salt market volumes were largely flat in the
during the year, the Company continued to focus on throughput year. production was steady throughout, matching expectations.
optimisation of all key products within the prevailing operational
constraints and achieved strict cost control across all functions. the sodium bicarbonate market continues to grow and while
despite weak demand and pressure on realisation, financial retaining the core uK market share, the major success in this
performance improved due to the mix of volume increase in product has been continued strong export growth across the
salt, value-added products in Bicarb, savings in raw materials globe, helping the business to grow strongly again through
and fuel costs and improved operational efficiencies. the the year. during the year, the modified sodium bicarbonate
Company delivered the highest production and sale of Salt at Winnington performed very well, yielding another record
and Bicarb. the Company’s new offering in Specialty pharma production level.
grade bicarbonate, ‘Medikarb’ has received encouraging market
response. With consistency in sales and volume, the product has For tata Chemicals Magadi limited (‘tCMl’), soda ash is the most
established its presence in its niche segment. Besides ‘detmate’ prominent product in the total portfolio, the main destination
coloured soda ash speckles for detergents is on stream with being the container glass and silicate sectors. the remainder of
consistent volume delivery. the Company also initiated sales the portfolio includes Salt, Crushed refined Soda (‘CrS’) and other
of ‘Speckarb’, the specialty grade Bicarb for customers with low by-products. the Magadi operation has stabilised the Standard
chloride requirements, during the year. ‘ChemConnect’, the ash Magadi (‘SaM’) plant performance, which continues to be
Company’s online customer portal and app, has recorded above the lifeline for tCMl turnaround. going forward, tCMl will focus
98% customer engagement. the Company’s channel partners on ensuring consistent quality and efficient operations of the SaM
have access to quick and easy online access of channel finance facility to deliver higher volumes at a lower cost.
through designated banks. this arrangement has been facilitated
by the Company between banks and our channel partners. BCP - Soda Ash Production Volumes (’000 tonnes)

the production volumes at tata Chemicals north america FY 2019-20 3,670
Inc. (‘tCna’) were higher by 3.4% during the year, principally
due to improved efficiency at the plant, resulting from FY 2018-19 3,634
significant investment in maintenance projects. due to the FY 2017-18 3,858
pandemic, production in FY 2020-21 will likely be scaled back
to match sales demand, expected to decline by 5-10% from the
FY 2019-20 level, consistent with projected gdp regression in the BCP - Sodium Bicarbonate Production Volumes
Company’s primary markets. during FY 2019-20, sales volumes (’000 tonnes)
were essentially flat as compared to the previous year (up by 0.6%). FY 2019-20 222
In spite of increased production levels, a temporary oversupply of
soda ash worldwide, compounded by the pandemic, resulted in FY 2018-19 220
an unusual position of not being able to sell all of the products FY 2017-18 213
manufactured during this period. due to the slightly higher sales
volume, tCna posted gross revenue of uS$ 480.00 million for the
year ended March 31, 2020, as against uS$ 475.82 million in the
previous year, in spite of slightly lower american natural Soda IVSD Salt-Production-India Chemical Operations (’000 tonnes)
ash Corporation (‘anSaC’) pricing and a market mix reflecting an
increased supply to lower priced export markets relative to the uS. FY 2019-20 1,078
FY 2018-19 1,068
tata Chemicals europe limited (‘tCe’) catered to 50% of the uK
market demand of soda ash from its manufacturing operations at FY 2017-18 967
lostock, with only very small amounts of imported material during

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