Page 106 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

and strong bounce back in demand. This demand- iii. Salt
supply imbalance was further aggravated by China Being an essential food ingredient, edible salt did not
turning into net importer coupled with disruptions in experience demand challenges in India even during
supply chains during the year. The combined effect of the pandemic. However, in the UK market, the
all of this led to operating rates exceeding 90%. demand for both edible and non-edible applications

Aggressive focus on green energy is driving increased was affected due to decline in leisure and hospitality
usage of glass for solar panels and Lithium Carbonate sectors.
for EV battery applications with a consequent sharp c. Specialty Products
demand growth for soda ash which is a vital ingredient
in these two sectors. I. Specialty Silica
TCL’s wide range of conventional and HDS products allows
Indian soda ash demand recovered in FY 2021-22 it to participate in markets poised for growth driven by a
across all application sectors. Unplanned outages of push for sustainability across application sectors. In FY 2021-
domestic suppliers and limited import availability 22, the overall market demand growth remained healthy.
caused significant supply tightness. Increasing supply The Company believes that long-term trends like tightening
chain costs and rise in global soda ash prices resulted of automotive labelling standards will drive demand for
in import parcels coming at higher prices. high-performance, low noise and fuel-efficient green tyres
India’s soda ash demand is expected to grow at which need superior materials like HDS.
8% to 9% during FY 2022-23 to about 4.5 million II. Prebiotics & Formulations
tonnes. With both global and local supply tightness
amidst firm demand growth, Indian soda ash market is The Company has growing expertise in Fermentation
expected to remain tight in the short to medium term. platform for synthesis of products and solutions.
The business offers solutions for human and animal gut
ii. Sodium Bicarbonate health through its flagship product - FOSSENCE® - a prebiotic
Sodium bicarbonate is a versatile product having a dietary fiber that promotes the growth of the gut microbiome
wide range of applications like food additives, animal which in turn positively improves digestive health, mineral
feed, pharmaceuticals, dyes, textiles and emission absorption and immune health.
control. The Company believes that given its wide The Company’s partnership with Indian and global academic
range of current and emerging new applications, institutions and research bodies to further understand the
sodium bicarbonate will sustain consistent growth gut microbiota and related health effects is helping the
along with offering significant value addition potential Company build a leadership position in this space. This has
in the future. created a base for extending the fermentation platform to
several other green and sustainable solutions for a wider
The Company has a total annual capacity of 0.24 range of products and applications.
million tonnes per annum in India and the UK. Sodium
bicarbonate demand grew at a healthy rate of about III. Agrochemicals & Seeds
8% in FY 2021-22. Higher demand for processed food Agriculture is the primary source of livelihood for about 58%
products, pharmaceuticals, textiles, specialty chemicals of India’s population. The sector was least impacted by the
and animal feed will continue to drive bicarb demand pandemic. India is one of the world’s largest producers of
in India at 6% to 7% CAGR for next five years. Indian farm products including milk and pulses, and the second
bicarb capacity was flat in FY 2021-22 and overall largest producer of rice, wheat, sugarcane and groundnut.
demand-supply remained balanced to tight. However, India’s crop yields are lower than the Americas,

India’s soda ash demand is expected to grow at 8% to 9% during FY 2022-23

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