Page 111 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
STATEMENTS
REPORTS
REPORT
Management Discussion
& Analysis
on the back of significantly increasing input price pressures. with critical customers on a constant basis to fast track the
The sodium bicarbonate plant is now self-sufficient in carbon product approval and initiate commercial sales.
dioxide having successfully commissioned the CCU plant as The Government’s push towards renewables will accelerate
part of the Company’s overall sustainability push towards soda ash consumption in India in a significant manner.
its SBTi targets. Future sodium bicarbonate and salt growth Government’s focus on “Atmanirbhar Bharat” opens
is being driven by focus and investment in high grade up opportunities in terms of kick-up of demand from
pharmaceutical grade applications including an investment infrastructure development, boost to domestic
in a pharmaceutical salt plant at the Middlewich site due on manufacturing through several initiatives like PLI’s, import
stream in 2024.
restriction measures and softer finance facilities. This will
For TCML, Kenya, sustained demand in export markets with a have a positive impact on soda ash, bicarb and cement
focus on developing new and expanding the domestic East consumption either directly or through increase in demand
African market to maximise overall price realisation through of end segments.
strategic market mix would be an area of focus. In addition, Bicarb use in flue gas segment continues to be a promising
ensuring plant reliability as well as optimising costs would opportunity but there still remains uncertainty in consistent
continue to be key result areas. Generating free cash flow off-take by power plants. The Company had started supplies
and prepaying debt remains a critical area of focus. in FY 2019-20 and expects the engagement to continue as
For Rallis, increased manufacturing capacity and introduction the regulations are implemented.
of new products will provide a growth platform for both In addition to enhanced ease of doing business, customer
exports business and domestic sales. Rallis is augmenting partnerships around themes of innovation and sustainability
its product portfolio through co-marketing and inhouse continue to offer opportunities for stronger customer
research & development (R&D). Manufacturing capacity is connect. Increasing value-added products and sustainable
being augmented, marketing activities are intensified and supply chain practices like bulk material are some steps the
distribution networks are being strengthened in key states. Company will continue to focus on.
Seeds business will address challenges to stabilise operations Using technology for digitalisation of the plants and making
in FY 2022-23.
processes smoother for customers and internal stakeholders
6. Risks and Opportunities is going to be crucial as the Company heads into a digital age.
Multiple projects around plant and supply chain automation,
India customer relationship management are being implemented.
Higher energy costs is the most significant risk to our business Rallis has a robust and comprehensive framework to address
performance. The Company continues to remain focussed the vagaries of monsoon and its impact on India’s agriculture
towards keeping fixed costs low and controlling variable sector by deeper engagement with farmers. In addition, the
costs including fuel, salt and limestone through raw material steep increase in input costs is being addressed through
securitisation and continuous improvement programs to combination of localisation of intermediates and appropriate
help mitigate the adverse impact of these risks including engagement and contracting with suppliers. Increased
working on changing fuel mix and different contracting domestic usage of agrochemicals and exports out of India
strategies.
are immediate opportunities. The long-term trend of shift to
Adherence to more stringent environmental norms, Biologics remains an area of product development focus.
packaging and improving safety performance in a
sustainable manner are other key areas that the Company Overseas
continues to focus on during FY 2022-23. TCNA, US is well prepared to address the short-term
Excessive rains are leading to dilution of brine which is export risks due to the American National Soda Ash
affecting captive solar salt production and availability Corporation (‘ANSAC’) exit in December 2022. Adherence
leading to rise in cost of production due to rise in need of to more stringent environmental and regulatory norms and
purchased salt. sustainably improving safety performance are other key
issues for the business. A focus on these initiatives including
Additional impact on cost of production can be from cost of investment and resource prioritisation form a mitigation
carbon credits. The Company is developing a holistic carbon strategy to systematically address them. TCE, UK continues
abatement strategy which will help in mitigating this risk.
to address inflationary and energy environment with a
Delay in product approval from major tyre and non-tyre focus on reduction of fixed costs and appropriate customer
customers will negatively impact the plant utilisation rates. engagement. In Kenya, the focus is largely on quality and
Both R&D and business development teams are engaging capacity utilisation.

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