Page 111 - Tata_Chemicals_yearly-reports-2019-20

Integrated report Statutory reportS FInancIal StatementS
Management Discussion and Analysis

the Indian Basic Chemistry products business unit is taking continuous process improvement and enhanced global sourcing
measures to address key risks. the availability of increased volumes will help reduce costs and improve efficiency. Creating a talent
of soda ash will impact price realisations, especially with Covid-19 pool is another focus area identified by tCMl for the coming
and the global slowdown. apart from this, the higher energy year. It is working on more engagement with local and national
costs and volatility in exchange rates are significant risks to the stakeholders and supports concerted efforts, including technical
Company’s business performance. the Company continues to collaboration with third parties, to mitigate risks to its raw
remain focussed on keeping fixed costs low and controlling material (trona) quality, affected by increased siltation in the
variable costs through securitisation of the key raw materials, northern part of lake Magadi.
including fuel and limestone along with continuous improvement
programmes to help mitigate the adverse impact of these risks. Specialty Products
Market mix change would be another lever to counter this risk. Agri Sciences (Rallis India Limited)
adherence to more stringent environmental norms and improving
the safety performance in a sustainable manner are other key rallis India limited (‘rallis’), a listed subsidiary of the Company, is
issues for the India Basic Chemistry products business. one of India’s leading crop care companies, serving Indian farmers
since decades and is a pioneer in the agricultural inputs industry.
at tCna, beyond managing the short-term impacts of Covid-19, the Company has created a distinct identity for itself with its
the focus will be on ensuring the continued safety of employees, extensive research & development (‘r&d’) capabilities, delivering
while increasing reliability and stabilisation of production through innovative products, positively impacting the livelihood of millions
debottlenecking. Improvement in maintenance programmes of farmers in India.
as well as capital spending will be other focus areas. Favourable
global market demand for soda ash bodes well for increased prices India is a large market with high growth potential for the crop
when contracts are renewed. protection industry on the back of its diverse agro-climatic
conditions and impetus to agricultural productivity. India’s
as experienced in the previous years, there continues to be capability in low-cost manufacturing, availability of technically
significant pressures on maintenance, material, labour and medical trained resources, seasonal domestic demand, overcapacity,
benefit costs, offset in part by programmes to eliminate costs.
there is also an increased emphasis on environmental compliance better price realisation and a strong presence in generic pesticide
dealing with regulations related to sulphur, carbon dioxide, dust manufacturing are the major factors boosting the crop care
and other emissions. tCna will be investing a significant amount chemicals growth.
of capital expenditure as well as expense to address environmental
compliance. It continues to investigate natural gas as an alternative during FY 2019-20, Indian agriculture experienced erratic,
energy source to coal to reduce emission and energy costs. delayed and extended monsoon, which resulted in modification
of the crop calendar. overall, purchasing power of farmers
at tCe, there is a significant investment pipeline of projects depicted an upward trend, buoyed by higher Minimum Support
across Salt, Sodium Bicarbonate, Soda ash and energy units. price (‘MSp’) in rice, wheat, spices, pulses and sugarcane. the
this is combined with a continued drive towards continuous demand for agri-inputs is set to rise due to less penetration,
improvement in cost competitiveness and product offering for rising labour cost, increased irrigation facility, credit availability
our customers, both product-wise and service-wise. developing and higher farmer income.
sales opportunities overseas for Sodium Bicarbonate and Salt
will continue to be a focus. Major threats are likely to be from any rallis has cautiously expanded from being a pesticide
economic downturn or problems associated with Covid-19 or manufacturing company to a more diversified player with
Brexit. presence across the agricultural value chain. It has widened its
product portfolio and today, caters to all critical agricultural needs
two specific items related to the uK leaving the european union such as Soil Conditioners, Quality Hybrid Seeds, plant growth
are: a) a smooth transition in december 2020 to a new trading nutrients, Specialty nutrients and plant protection Chemicals. It
arrangement with the eu; b) defined terms and rules relating to a
replacement emissions trading scheme for the uK in CY 2021 and has established four state-of-the-art manufacturing facilities in the
its alignment with the european union emissions trading System states of gujarat and Maharashtra.
(‘eu-etS’) phase IV proposals.
the commodity prices of key crops such as rice, maize and soybean
at tCMl, the focus is largely on quality and capacity utilisation. exhibited a rising trend in CY 2019, improving farmers’ purchasing
In addition to SaM, opportunities exist in CrS. utilisation of capacity. Farmers’ higher purchasing power coupled with the
lean Six Sigma and lean manufacturing tools and techniques, rallis’ new product introductions, commercial excellence, trade

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