Page 90 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

lockdowns. Demand gradually recovered in the US and the lowest per capita consumption of chemicals, offering
Europe following the fall in Covid-19 infection rates. adequate headroom for the sector to grow. Its vantage
The recovery in Asia has been more robust and is expected to location provides opportunities in servicing export demand.
continue in CY 2021. Increase in Government and consumer
spending has boosted demand for many chemicals. Basic Chemistry Products such as Alkali chemicals are the
primary growth drivers for inorganic chemicals having a
Commodity chemicals producers will see recovery and stable outlook. Specialty chemicals account for a major
Specialty chemicals producers with more diverse and share of chemical exports, dominated by agrochemicals,
resilient end markets will continue to see growth in CY 2021. dyes and pigments. Consumer trend towards good
health to drive demand for home and personal care
b. Key Global Trends items such as nutraceuticals, food ingredients and
Sustainability has increasingly become a focus for many packaged food & beverages. The Government of India
chemical companies globally and the trend will gain further aims to transform India into a manufacturing hub for
momentum in CY 2021. Large companies are leading the crop-protection chemicals. The Indian market is estimated
way to net-zero greenhouse gas emission commitments. at ` 43,000 crore, of which exports are ` 23,000 crore.
Initiatives such as European plastic tax and green hydrogen The sector is expected to grow more than 9% over the next
stimulus packages in the US, Canada and Europe are 5 years with exports growing faster than the domestic
accelerating the adoption of sustainable practices and goals. market.
The centre-of-gravity of the economic world will further Source: Various reports – Federation of Indian Chamber of Commerce &
re-balance with by simultaneous shifts, from west to east, Industry (FICCI) Report, Internal Assessment, Moody’s Report
from rural to urban, ageing to young economies. Asia's role
in global chemicals demand and trade will be even greater 3. Company Overview
over the next decade. A part of the US$ 106 billion (revenue as on March 31, 2020)
Tata Group, Tata Chemicals Limited (‘the Company’ or ‘TCL’)
The changing composition and expectations of
hyper-connected consumers will trigger structural industry is a Science-led chemistry solutions company.
and consumption shifts towards good health, personal Having espoused the corporate purpose of ‘Serving Society
wellness, ‘green’ products and plant-based nutrients. through Science’, the Company has come a long way
from laying its roots in Mithapur, Gujarat with its soda
c. Indian Chemical Industry
ash and salt operations. Its operations span continents,
While the Indian chemical industry was adversely affected serving a diverse set of customers across the globe. The
due to Covid-19 in the first half of CY 2020 resulting in diverse portfolio is divided into Basic Chemistry Products
disrupted supply chains and reduced demand, it witnessed and Specialty Products comprising Performance Materials,
a recovery in the second half of CY 2020. As seen in Nutrition Sciences and Agri Sciences.
the Index of Industrial Production (IIP) for Chemical
Manufacturing, the demand recovery is expected to Performance Materials, Nutrition Sciences and Agri
continue in FY 2021-22 and will achieve pre-Covid levels. Sciences are poised for robust growth along the vectors of
sustainability and good health.
The Indian Chemical Industry has a structural and
locational advantage to rapidly grow from its current size of The Company is a global major in soda ash and sodium
US$ 178 billion to US$ 300 billion over next 5 to 7 years. bicarbonate (market position of 3rd and 6th respectively)
In addition to its demographic dividends, India has one of with manufacturing facilities in India, US, UK and Kenya.

Consumer trend towards good health to drive demand for home and personal care
items such as nutraceuticals, food ingredients and packaged food & beverages

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