Page 100 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

Higher energy costs and volatility in exchange rates are CY 2021 will also witness the introduction of the UK Emissions
significant risks to the Company’s business performance. Trading Scheme following the UK’s exit from the European
The Company continues to remain focussed on keeping Union and at this moment, how this operates, remains to be
fixed costs low and controlling variable costs through seen.
securitisation of the key raw materials, including fuel In Kenya, the focus is largely on quality and capacity
and limestone along with continuous improvement utilisation. In addition to Standard Ash Magadi (SAM),
programmes and a dynamic hedging strategy to help opportunities exist in Crushed Refined Soda (CRS).
mitigate the adverse impact of these risks. Utilisation of lean six sigma and lean manufacturing tools

TCNA will ensure the continued safety of employees, while and techniques, continuous process improvement and
increasing reliability and stabilisation of production through enhanced global sourcing will help reduce costs and
debottlenecking. Cost reduction programmes will be improve efficiency. Creating a talent pool is another focus
another focus area, specifically to reduce the maintenance, area identified by TCML for the coming year. It is working
material, labour and medical benefit costs. To address the on more engagement with local and national stakeholders
environmental non-compliance risk, TCNA will be investing and supports concerted efforts, including technical
in technologies to reduce greenhouse gas and other collaboration with third parties, to mitigate risks affected
emissions. It continues to investigate alternative energy by increased siltation in the northern part of Lake Magadi.
sources to coal to reduce emission and energy costs. TCNA For Agri Sciences, climate change can disrupt operations
is well prepared to address the short term export risks due and/or reduce demand for products. This can lead to
to the ANSAC exit in December 2022. water shortages and decrease sales. Uncertainty in timing
and severity of monsoon can impact overall business.
Adherence to more stringent environmental and regulatory Geographic spread of business and a wide portfolio
norms and sustainably improving safety performance are dampens the impact of climate-related issues. Rallis
other key issues for the business. A focus on these initiatives is focussed on developing new products to deal with
including investment and resource prioritisation form a climate change issues. The Seeds R&D team of Rallis is
mitigation strategy to systematically address them. working on hybrids that address stress conditions.

In the UK, there is a significant investment pipeline of Proliferation or instability in regulatory policies may lead to
projects across the Company's business particularly in adverse impact on growth and profitability and increased
high-end product growth. Developing sales opportunities exposure to civil and/or criminal actions leading to damages,
overseas for sodium bicarbonate and salt will continue to be fines with possible consequences for corporate reputation.
a focus. Major threats are likely to be a form of sluggish pick Our endeavour is to keep track of emerging regulations,
up in global growth by a slow exit from the pandemic, but including Environmental, Social and Governance (ESG) risks.
UK’s progress on vaccinations means the domestic market These are analysed to assess how they can impact business
should strengthen considerably. and mitigation plans are put in place.

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