Page 103 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
REPORT
REPORTS
STATEMENTS
Management Discussion
& Analysis
consider looking into few activities like investment in high Growth opportunities are largely driven by specialty segment
value-added opportunities, consumer preference, etc. due to rise in demand from end-user industries such as food
Source: Various industry reports (Deloitte Chemical Industry Outlook processing, personal care and home care. Supply disruption
2022, C&EN World Chemical Outlook, etc.) has caused the global end-user industries to diversify their
vendor base including Indian players. Closure of plants in
c. Indian Chemical Industry the EU and China due to increasing environmental concerns
While the Indian chemical industry was adversely affected have favoured Indian manufacturers to invest further in
due to COVID-19 in the first half of CY 2020, demand recovery specialty chemicals.
was seen in CY 2021 and the trend is expected to continue The Indian Government aims to boost manufacturing
through CY 2022. However, uncertainties exist due to rising share in GDP to 20% by 2025. The dedicated integrated
costs of energy, unavailability of raw material on account manufacturing hubs under Petroleum, Chemicals and
of supply chain disruption and other inflationary pressures Petrochemicals Investment Regions (PCPIR) Policy has the
by virtue of continued pandemic and recent geopolitical
conflict in Europe. ability to attract an investment of ` 20 lakh crore (US$ 276.46
billion) by 2035. The Government plans on production-linked
The Indian chemical industry makes up ~3.4% of the global incentive (PLI) schemes to promote domestic manufacturing
chemicals industry and is expected to grow to US$ 300 of agrochemicals, advanced cell batteries, etc. An added
billion by 2025. The domestic chemicals sector is expected to advantage of skilled and low-cost labour, world-class
showcase high revenue and volume growth in FY 2022-23, engineering and strong R&D set-up has the potential to
owing to an improvement in domestic demand, increased further boost growth.
Government spending and better price realisation of
chemicals. Bulk chemicals (Basic Chemistry) constitute 25% Source: Various reports – IBEF Chemicals Industry Report February 2022,
of the market, while Specialty chemicals, Petrochemicals, India: Global Chemicals & Petrochemicals Manufacturing Hub Report by
and Agrochemicals have 21%, 19% and 15% of the market, Department of Chemicals & Petrochemicals, November 2021
respectively. Biotech and pharmaceuticals (including active
pharmaceutical ingredients and others) together constitute *HS Code Chapter 28-32, 3301-3302, 3402-3404, 35,38, 3901-3914,
20% of the market. 4001-4003, 4005
Basic Chemistry Products such as Alkali chemicals are the 3. Company Overview
primary growth drivers for inorganic chemicals having a
stable outlook. Specialty chemicals market is expected A part of the US$ 103 billion (revenue for FY 2020-21) Tata
to increase at a Compound Annual Growth Rate (‘CAGR’) Group, Tata Chemicals Limited (‘the Company’ or ‘TCL’) is a
of 12% to US$ 64 billion by 2025. Specialty chemical sustainable chemistry solutions Company. The Company
companies are seeking import substitutions while exploring operates through two verticals - Basic Chemistry (Alkali
export opportunities to accelerate their businesses. Chemicals-soda ash, sodium bicarb, salt, silica & other
th
India is the 4 largest producer of agrochemicals globally. halogen chemicals) and Specialty Products (specialty
The agrochemicals market in India is expected to register silica, prebiotics & formulations, agrochemicals and seeds).
8.6% CAGR to reach US$ 7.4 billion between 2021 and 2026. The Company’s product portfolio provides key ingredients
From April 2021 to February 2022, exports of organic & to many of the world’s leading brands for glass, detergents,
inorganic chemicals* increased 15% y-o-y to reach US$ pharma, food, animal feed and other industries.
38.53 billion. Imports of organic and inorganic chemicals The Company is a global major in soda ash and sodium
th
rd
aggregated US$ 82.68 billion up 52% y-o-y. Nearly 25% of bicarbonate (market position of 3 and 6 respectively)
India’s imports of chemicals* is contributed by China. with manufacturing facilities in India, US, UK and Kenya.

The domestic chemicals sector is expected to showcase high revenue and volume
growth in FY 2022-23

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