Page 63 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Report Statutory Reports Financial Statements
1-59 Board's Report 147-300

2. Dividend for Feed, Food and Pharma customers, Specialty Silica for
Rubber/Tyre industry and Crop Care and Seeds for the Farm
For FY 2020-21, the Board of Directors has recommended a
dividend of ` 10 per share i.e. 100% (previous year ` 11 per sector through its subsidiary, Rallis India Limited.
share i.e. 110%) on the Ordinary Shares of the Company. The Company is on a transformation journey with a focus
If declared by the Members at the ensuing Annual General to grow along the vectors promoting sustainability and
Meeting (‘AGM’), the total dividend outgo during FY 2021-22 good health. In line with this, growth will increasingly be in
would amount to ` 255 crore (previous year ` 280 crore). food ingredients such as bicarbonate, iodised and fortified
salt, prebiotics and other formulations in nutrition area and
3. Performance Review & State of Company’s silica for rubber and tyre industry in line with sustainability-
Affairs led changes in this area. Soda ash also is a key ingredient in
3.1 Consolidated: container glass (which is a substitute for plastic packaging),
On a consolidated basis, the revenue from operations solar PV glass panels, lithium extraction and detergents
decreased from ` 10,357 crore in FY 2019-20 to ` 10,200 (for wash). Crop Care and Seeds play a key role in food and
crore for FY 2020-21. This was mainly on account of the nutrition security and the Company is focussed on products
impact on soda ash business due to drop in the global which are sustainable.
demand during the first quarter of FY 2020-21 (sale 5.1 Basic Chemistry Products
volume down by approximately 11% in FY 2020-21). The
profit before tax from continuing operations decreased Standalone (India)
from ` 1,248 crore in FY 2019-20 to ` 634 crore in For FY 2020-21, the revenues from the Basic Chemistry
FY 2020-21, down 49% due to a drop in volumes and prices, Products business stood at ` 2,845 crore, marginally up as
both of which affected the profitability. For more details, against ` 2,837 crore in the previous year. Profit before tax
please refer to Management Discussion and Analysis. for FY 2020-21 was ` 645 crore as against ` 819 crore in the
previous year, lower by 21%.
3.2 Standalone:
On a standalone basis, the revenue from operations was Soda Ash
` 2,999 crore for FY 2020-21 as against ` 2,920 crore for The supply of soda ash exceeded the demand throughout
FY 2019-20. Profit before tax from continuing operations the year. Lower demand due to Covid-19, higher pipeline
decreased from ` 834 crore in FY 2019-20 to ` 614 crore in inventories and imports at low prices kept the realisations
FY 2020-21, down 26%, mainly due to the drop in prices of under pressure. Sales of soda ash for FY 2020-21 stood
soda ash during the year. For more details, please refer to at 6,21,299 metric tonne ('MT'), marginally lower by 2%
Management Discussion and Analysis. compared to the previous year. Operations were impacted
due to flooding caused by cyclonic conditions over the
4. Management Discussion and Analysis Arabian Sea during part of the year which led to increase
The Management Discussion and Analysis, as required in in cost of raw materials like salt.
terms of the Securities and Exchange Board of India (Listing Sodium Bicarbonate
Obligations and Disclosure Requirements) Regulations, 2015
(‘SEBI Listing Regulations’), forms part of this Integrated Sales of sodium bicarbonate witnessed a marginal drop of
Annual Report. 2%. Production volumes also witnessed a drop of 6% over
the previous year. The Company markets three value added
5. Business Overview grades of Bicarb – Sodakarb (food grade), Alkakarb (feed
grade) and Medikarb (pharma grade).
The Company has two business segments viz. Basic
Chemistry Products and Specialty Products catering to Salt
varied customer segments such as Industrial, Food and The demand for salt from our key customer, Tata Consumer
Farm customers. Basic Chemistry Products mainly consist Products Limited was higher during the year and the
of soda ash, salt, sodium bicarbonate, etc. The operations plant was successful in increasing the output to meet
in this segment are spread across India, the United States the requirement even amid the pandemic. The Company
of America ('USA' or 'US'), the United Kingdom ('UK') and recorded highest ever production of salt at 12.22 lakh MT
Kenya. It caters to customers in Glass, Detergent, Feed, during FY 2020-21 compared to FY 2019-20 of 10.78 lakh MT.
Food and Pharma industry. Specialty products consists of In addition, the project to expand salt capacity further to
specialty food ingredients such as Prebiotics, Formulations meet with projected demand increase is on schedule.

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