Page 92 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

In India, there have been no layoffs, retrenchment or wage challenging demand environment, the Company was able
reductions in the permanent and contract workforce. to maintain its market position across businesses. Operations
were impacted due to lockdown restrictions to varying
The Company fulfilled all its contractual obligations and degrees across the Company. The soda ash business was
agreements and continues to do so and does not foresee impacted the most (sale volume down by approximately
any material impact due to non-fulfilment of obligation by 11% in FY 2020-21) with global demand dropping sharply
any party in existing contracts or agreements. in the first quarter of FY 2020-21. The India and UK
businesses normalised sales in the third quarter of
As part of the Corporate Social Responsibility (CSR) activities,
the Company was able to extend support to the surrounding FY 2020-21, however, the US and Kenya operations were
and extended communities through multiple initiatives. The able to recoup historical baseline sales only in the fourth
key initiatives were: quarter of FY 2020-21. Pricing remained under pressure
especially in the export markets served by Tata Chemicals
1. The Company manufactured and distributed North America Inc., USA (‘TCNA’) and Tata Chemicals Magadi
approximately 1.17 million litres of sodium Limited, Kenya (‘TCML’), subsidiaries of the Company and
hypochlorite in Gujarat and approximately 0.6 million also in the Indian domestic market.
litres to Brihanmumbai Municipal Corporation,
Mumbai. Nutrition products demand proved to be resilient in
FY 2020-21. Sale volume of salt in India grew approximately
2. Financial assistance was provided to various by 15% and volume of sodium bicarbonate was sustained
organisations including Chief Minister's fund, District despite reduced demand. The agri market continued with
Collector forums, hospitals and rural sector of India. resilient demand and was able to meet its targets. It faced a
3. The Company supported Government hospitals supply disruption due to a shortage of key raw materials but
with PPE kits for frontline medical workers near was able to counter it by building strategic partnerships to
factory locations. 1.07 lakh litres of hand sanitiser was mitigate the risk in the short to medium term. The business
manufactured by Akola and Ankleshwar units of Rallis also witnessed opportunity losses in the export markets due
and distributed freely across Telangana, Maharashtra, to the impact of Covid-19 in the USA, Latin America and
Gujarat and Karnataka. A 100-bed isolation ward Europe.
at Mithapur, Gujarat was built to supplement There has been no material change in the Company’s
Government structure.
liquidity position after the year ended March 31, 2021, with
The pandemic led the Company to further build resilience a positive liquidity position in India with no borrowings
in its operations and systems and in many cases accelerate and sufficient credit lines available. The Company has also
the implementation of digital initiatives. This includes instituted, across all its operations, aggressive and focussed
effective work from home policies, digital product launches cost control programmes and an even more disciplined
by Rallis, digital customer connects through virtual meeting and prudent capital expenditure program to build up and
platforms, virtual operational initiatives such as virtual conserve its already healthy cash position. Further, there is
crop tour and remote salt pan monitoring. Zero incidents no impact on internal financial controls due to Covid-19.
of breach of information security were recorded despite
remote working. b. Basic Chemistry Products
Industry Structure & Developments
II. Annual Performance Overview The Company serves customers across five continents
The Company achieved a consolidated revenue of through its Basic Chemistry Products (‘BCP’) business
` 10,200 crore (2% decline over FY 2019-20) and EBITDA (soda ash, salt, sodium bicarbonate, cement and marine
of ` 1,501 crore (23% decline over FY 2019-20). Despite chemicals). The Company’s global supply chain gives it

The Company manufactured and distributed approximately 1.17 million litres of
sodium hypochlorite in Gujarat and approximately 0.6 million litres to Brihanmumbai
Municipal Corporation, Mumbai

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