Page 110 - Tata_Chemicals_yearly-reports-2019-20

Outlook for Business target stable soda ash performance, including a major investment
Covid-19 has put the biggest question mark on the economic in plant assets during the year.
recovery of India and the world, even as nations began to phase out
their lockdowns by the second half of May 2020. there were fears the year will see the commissioning of the ground-breaking
on several fronts viz. (i) of the infection rate soaring as people came Carbon Capture and usage (CCu) plant, as part of the tCl group’s
out of self-isolation; (ii) of the virus mutating to a more virulent push to enhance its industry-leading low-carbon credentials and
strain; and (iii) of a vaccine not being found soon enough. despite supporting growth in the Sodium Bicarbonate business. Salt is set
the challenges of a global recession, currency risks and liquidity for a decent year as increasing levels of investment over several
concerns, long-term prospects for the Company’s business remain years continue to bear fruits. this includes a major boiler
positive. It is committed to executing its growth strategy to further replacement in the summer of 2020, which will significantly
strengthen and leverage its leadership position. improve efficiency and carbon emissions and complement
investments in packing/logistics and launching investment in
the soda ash market is expected to experience degrowth of about significant growth of the value added salt portfolio.
5-6% in FY 2020-21, with a demand loss of approximately 2.5 lakh
tonnes. Imports are expected to come down by about 20% over For tCMl, soda ash competitiveness will be defined by price and
FY 2019-20 due to current challenges related to global logistics, quality, which means that strategic market mixes will determine
shutting down of Ciech’s romanian plant and the adverse gains for tCMl. Its focus will be on markets with best returns.
exchange rate for imports. the soda ash and bicarb export that
gained some momentum during the previous year is expected CrS growth shall be driven by animal feed, silicate and mining
to continue. Soda ash availability is expected to be good despite sectors. product development continues since CrS has
lower imports due to increased domestic production. prices demonstrated potential for growth in diverse areas, such as lead
are expected to be stable through the initial period and might processing, tobacco, silicate, disinfection, compost treatment,
improve in the later part of the year as demand starts to pick up. jigger treatment and flue gas treatment.

the global soda ash market is expected to remain oversupplied, Risks and Opportunities
despite no significant announced capacity additions. demand in tCl’s growth strategy encompasses addressing risks and capitalising
europe and asia should be adequately supplied by turkish volumes. on opportunities. With increasing demand, defending the Company’s
International prices, in some markets, might witness a negative market leadership is a prime focus area. the Company will pursue the
bias with slowing trade and excess supplies after Covid-19 impact. execution of its capacity addition plans at Mithapur for all product
lower production rates in some countries due to lockdown and lines, especially, salt, soda ash and bicarb, under ‘project pragati’.
global logistical challenges may bring the demand and supply to additionally, it has planned to increase the production volumes of
a more balanced level. With lower energy and raw material prices, its subsidiaries for maintaining their market share.
manufacturers will gain from the cost compression factors. to stop
dumping and protect markets, countries may seek trade remedies the Company’s value-driven growth opportunity in the Bicarb
under the existing World trade organization (Wto) provisions. space with brands in food, feed, pharma and specialty segments
will entail scale and consolidation. Customisation of new bicarb
In the medium term, the outlook for tCna remains positive with applications with a focus on flue gas treatment, aqua farms, etc. is a
soda ash being sold out in most years. the pandemic, combined growth driver. Strategic partnerships around themes of innovation
with some oversupply in the worldwide market, is likely to have and sustainability will continue to offer better customer value.
an impact on production and revenue in FY 2020-21. Beyond next
year, strong growth in exports is expected to be a price-growth In cement, the Company’s rebranded high-strength opC,
driver for uS producers. tCna will continue with efforts to stabilise addressing specific requirements of customers, is gaining
its cost base and improve upon soda ash production to meet acceptability with a pickup in volumes. ppC volumes are also
the market demand. these efforts will also look at the future raw expected to increase during the year.
material (trona ore) requirements and process improvements at
the plant. leveraging technology with increased focus on digitisation,
automation, cloud solutions and data analytics to make
tCe heads into FY 2020-21 with some momentum on the back processes smoother for customers and for internal efficiencies
of excellent Sodium Bicarbonate performance and increasing will be crucial. Multiple projects around plant and supply chain
Soda ash output. the focus is to drive sales even further from automation, customer engagement and digital imaging are
the sodium bicarbonate plants at Winnington, while lostock will being implemented.

108 I Integrated annual report 2019-20