Page 64 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

Other Products of 18%. For FY 2020-21, TCML registered an EBITDA of US$ 9.6
Sale of other products like bromine, cement, etc. was close million (` 71 crore) as against the EBITDA of US$ 8.3 million
to the previous year’s figures. Bromine production was (` 59 crore) in the previous year, higher by 16%. The increase
impacted due to the extended monsoon and resultant in EBITDA was due to better cost control and lower sea
dilution of bittern. The Company’s cement production freights to markets.
volumes recovered by 8% during the year and stood at TCML recorded a net profit of US$ 2.8 million (` 21 crore) in
3.91 lakh MT. Cement pricing and margin were under pressure.
FY 2020-21 against a net loss of US$ 0.1 million (` 1 crore) in
FY 2019-20.
Subsidiaries
Tata Chemicals North America Inc., USA (‘TCNA’) The county government had issued a demand during
(as per USGAAP) FY 2018-19 for an arbitrary increase in land rates, which was
During FY 2020-21, the production volumes at TCNA were struck down subsequently by Hon’ble High Court. TCML has
lower by 18% compared to the previous year, mainly on filed an appeal for reconsideration of the other related issues
account of reduced demand owing to Covid-19 pandemic. raised in the petition before the Hon’ble High Court and
During FY 2020-21, overall sales volumes were down by 15% the appeal is pending. TCML is working with Kenya national
compared to the previous year. This was driven primarily by authorities and government to arrive at a fair and transparent
volumes decreasing in the export markets. resolution of the issues.

TCNA posted a revenue of US$ 388 million (` 2,878 crore) 5.2 Specialty Products
for FY 2020-21 compared to US$ 480 million (` 3,403 crore) Standalone
in the previous year. For FY 2020-21, EBITDA at TCNA was Performance Materials
US$ 48.1 million (` 357 crore) against US$ 104.8 million The Company manufactures and sells Specialty Silica
(` 743 crore) in FY 2019-20.
Products to food, rubber and tyre industry. Silica is a
This sharp reduction in volumes led to TCNA posting a loss versatile material with varied applications and with changes
after tax and non-controlling interest of US$ 12.8 million in regulations, its use in the tyre industry is expected to
(` 95 crore) during FY 2020-21 compared to the profit accelerate. FY 2020-21 was also the first year of steady
after tax and non-controlling interest of US$ 36.0 million operations at the Silica plant at Cuddalore, Tamil Nadu
(` 251 crore) in FY 2019-20. which the Company had acquired few years ago. Several
improvements in facilities were done to make it compliant
TCE Group Limited, UK ('TCE group') (as per IFRS) with requisite standards. The Company’s food grade silica has
TCE Group Limited’s business consists of soda ash, sodium received customer approvals. Trials with customers for other
bicarbonate and salt (referred as ‘UK Operations’). The applications in rubber and tyre industry are underway and
revenue from the UK Operations for FY 2020-21 was are in different stages of acceptance.
£ 145.2 million (` 1,409 crore) compared to £ 150.4 million Nutrition Sciences
(` 1,356 crore) in FY 2019-20.
The Company manufactures and sells Specialty Nutrition
Soda ash and salt sales volumes were down by 7% and 5% Products under the brand 'Tata NQ' which primarily
respectively compared to the previous year on account of consists of Fructooligosaccharide (‘FOS’) a prebiotic dietary
reduced demand caused by lockdowns in relation to the fibre that promotes the growth of gut microbiome which
Covid-19 pandemic, leading to reduction in EBITDA for in turn has been known to positively impact digestive
FY 2020-21 for the UK Operations to £ 14.2 million (` 138 crore) and immune health. FY 2020-21 was the first full year of
from £ 17.4 million (` 157 crore) in FY 2019-20. UK Operations commercial operations of newly set-up greenfield unit in
posted a loss after tax of £ 5.8 million (` 56 crore) compared to Nellore, Andhra Pradesh that produces prebiotic fibre, FOS.
a profit after tax of £ 1.5 million (` 13 crore) in the previous year. The Company received key certifications viz. Food Safety
System Certification - FSSC 22000 and FDA registration which
Tata Chemicals Magadi Limited, Kenya ('TCML') enabled it to service new markets and provide assurance to
(as per IFRS) the customers of quality standards. The FOS volumes grew
During FY 2020-21, sales volumes were lower by 7% by 143% over the previous year mainly owing to the growth
over FY 2019-20. TCML achieved revenue of US$ 55.4 from International markets that the Company serviced for
million (` 411 crore) for FY 2020-21 as against revenue of the first time. The Company is focussed on further improving
US$ 67.9 million (` 481 crore) in the previous year, a decrease the utilisation rates.

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