Page 105 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
REPORTS
REPORT
STATEMENTS
Management Discussion
& Analysis
Vaccination Drive & Awareness a net importer of soda ash which is expected to continue.
1. More than 70,000 people were covered under the This provides an opportunity for further capacity expansion
COVID-19 vaccination drive through ASHA workers and the Company has planned for phase 2 capacity
(Okhamandal) & Rallis locations expansion in Mithapur for soda ash, sodium bicarbonate and
silica as a part of the growth plans.
2. Over 9,000 health kits were distributed in the villages of
Okhamandal block Salt volumes grew at a steady pace of 2% to 1,609k MT in
FY 2021-22 and volume of sodium bicarbonate was up 7% to
3. Awareness creation using information, education & 231k MT in FY 2021-22.
communication material, social media, video, vaccines,
hygiene, nutrition, immunity, do’s and don’ts, etc. There has been no material change in the Company’s
liquidity position. Cash and bank balance (including current
4. Organised felicitation program for Corona Warriors
investments) of the Group as on March 31, 2022 stood at
II. Annual Performance Overview ` 2,635 crore vs ` 2,975 crore in the previous year with
a positive liquidity position in India with no borrowings
The Company achieved a consolidated revenue of ` 12,622
crore (24% increase over FY 2020-21) and EBITDA of ` 2,305 and sufficient credit lines available. The Company has also
crore (54% increase over FY 2020-21). instituted, across all its operations, aggressive and focussed
cost control program and an even more disciplined and
Global soda ash market demand remained strong across all prudent capital expenditure program to build up and
applications and recovered from the COVID impacted low of conserve its already healthy cash position.
FY 2020-21. The consolidated soda ash sales volumes grew b. Basic Chemistry Products
by 21% to 3,665k Metric Tonnes (‘MT’) in FY 2021-22 vs the Industry Structure & Developments
previous year. The soda ash supply side situation remained
tight with high operating rates across plants globally. The Company serves customers across five continents
The input cost environment on raw materials and energy through its Basic Chemistry Products (‘BCP’) business
increased during the year and remained at elevated levels (soda ash, salt, sodium bicarbonate, cement and marine
through FY 2021-22. There was a further sharp spike in natural chemicals). The Company’s global supply chain gives it
gas prices in Q4 FY 2021-22 on account of global geopolitical the unique advantage of maintaining reliable supply and
events. Market dynamics and input cost pressures led to efficient service at competitive prices.
higher soda ash realisations across geographies during the The Company has a soda ash capacity of 4.1 million
year. Despite a challenging input cost and supply chain tonnes. More than two-third of this is natural soda ash,
environment, the Company was able to generate a record located in Green River Basin, Wyoming, USA, where world’s
profitability in FY 2021-22. largest deposits of Trona occur and Lake Magadi in Kenya.
In addition to having lower manufacturing costs,
While the overall execution of the expansion plans remained natural soda ash has a lower energy and environmental
intact, supply chain disruptions and labour availability had footprint. Synthetic soda ash and sodium bicarbonate
marginal delays on the Company’s capex project schedules. are manufactured at Mithapur, India and Northwich, UK to
cater to their respective domestic and export markets.
All the geographies except UK had improved operating
and financial performance in FY 2021-22 vs FY 2020-21. UK i. Soda Ash
in particular had unprecedented cost increases in energy World soda ash capacity which was 71 million tonnes
inputs and carbon pricing which had an impact on its in 2021 faced a net loss of 0.22 million tonnes in China
profitability. The soda ash export markets which are in and 0.45 million tonnes in the US. China’s stand on
particular served by US and Kenyan units saw strong demand pollution curbs kept tighter control on production.
and pricing recovery during the latter half of FY 2021-22. The Soda ash demand exceeded supply during the year
Indian market continues to be short supplied and remains due to COVID-19 related delays in capacity addition

Despite a challenging input cost and supply chain environment, the Company was
able to generate a record profitability in FY 2021-22

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