Page 110 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

b. Specialty Products Globally, soda ash demand is increasing after the dip in
Rallis India Limited (‘Rallis’) FY 2020-21 with prices moving upward as a lag-effect of
demand recovery. Much of this recovery has again been
i. Operations:
driven by sustainability trends like solar glass, lithium
Rallis Revenue ` in crore carbonate and the move from plastic to glass containers.
2,255 With no capacity additions, operating rates have moved
2,028
1,881 up to fulfil this demand. China’s production will service the
domestic demand leading to a fall in its export. With supplies
from Turkey mainly getting absorbed in Europe, North Africa,
few markets in SEA and India, USA could step in to meet the
global demand growth.
364 401 349
Improving rural and urban demand in India and ongoing
vaccination programs are the key positives which will play in
FY 2019-20 FY 2020-21 FY 2021-22 the medium term. GDP has started registering good growth
Crop Care Seeds in the third and the fourth quarters of FY 2021-22 and the
Note: Excluding inter-company transactions trend is expected to continue through FY 2022-23 with
In a challenging business environment, consolidated COVID-19 infections easing out.
revenue from operations continued to grow to ` 2,602 In India, recovery in soda ash demand across application
crore during FY 2021-22 compared with ` 2,424 crore sectors, an anticipated reduction in imports and increasing
recorded in the previous year. Rallis was able to transfer energy and freight costs will necessitate increased focus on
only part of the increasing input costs to the domestic operating rates and the ongoing programs on driving cost
and international customers resulting in Profit After reductions and efficiencies which are likely to yield benefits
Tax of ` 164 crore compared to ` 229 crore achieved in margins. The phase I expansion plan under execution and
during FY 2020-21. projected phase II expansion in Mithapur will further drive
ii. Financials ` in crore growth across the Company’s product portfolio in its core
FY FY business.
Rallis
2021-22 2020-21 Continuing push on growing value-added sodium
Revenue from operations 2,602 2,424 bicarbonate sales into the growing food, feed and pharma
EBITDA 276 325 sectors in line with the Company’s transformation strategy
PBT 222 303 and offering customers in these sectors a portfolio of
PAT 164 229 products including its NQ range of prebiotics will be a focus
Note: The figures are as per TCL’s consolidated books area. This would also further ramp up capacity utilisation
The revenue grew 7% compared to the previous year of the new prebiotics plant. Similarly, ongoing project to
on account of growth in Crop Care. Growth in Crop increase salt capacity in order to service long-term growth in
Care business was positive at 11.2%, however, margins demand from the key customer, TCPL will continue.
coming under pressure due to steep cost volatility. Sustainability driven trends in the rubber and tyre industry
Seeds business had a challenging year resulting in are calling for incorporation of specialty grades of silica which
degrowth of 13% impacted by both internal and augurs well for the growth of the specialty silica business in
external factors. terms of customer acquisition and capacity growth.
5. Business Outlook The outlook for TCNA, USA remains positive with soda ash
The Company continues to focus on growth of its core operating rates at maximum levels driven by a continued
businesses and develop new products that serve customer ongoing recovery in export markets. At TCNA, continuous
needs along the vectors of sustainability and green improvement, cost reduction and sustainability in operations
chemistry. The demand growth is in sectors such as food, will remain areas of focus to drive margin improvement.
feed and pharma and also in sustainability driven Generating free cash flow and prepaying debt remains a
applications like solar glass, lithium carbonate and a critical area of focus.
shift from plastic to glass containers. These in turn would In TCE, UK, product demand across the range has built
continue to drive the Company’s current and future strongly throughout CY 2021 from a slightly hesitant start,
investments as ingredient supplier of choice to these sectors. with price rises occurring during the second half of the year

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