Page 61 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
Integrated Annual Report 2021-22 REPORT REPORTS STATEMENTS
Basic Chemistry Products

Leading with Competitive Advantage Operational and Strategic US operations recovered from the US operations undertook refinancing /
Developments pandemic in the earlier part of FY 2021-22 repricing of its US$375 million long-term
Delivering resilient performance and delivered a record Trona and Soda debt; and Kenya operations made partial
Ash production through improvement loan pay-off amounting to US$10 million
High brand equity ESG commitment for a FY 2021-22 was marked by strong demand initiatives undertaken during the downturn. in March 2022. This will help the respective
sustainable future rebound across segments despite a
Global market leadership in severe second wave of COVID-19, followed It remained responsive and successfully met businesses to become more efficient in
Soda Ash (#3) and Bicarb (#6) Safety and sustainability (across by a third wave. the strong customer demand. terms of lower interest costs.
value chain) at the core
USA and Kenya operations have The UK operations ensured sustained Progressing to a low carbon emission
global leadership in manufacturing The UK operations is among the India operations remained agile, running production rates through FY 2021-22, The UK operations successfully
high-purity Soda Ash and Soda Ash, top 3 European leaders for carbon plants at higher utilisation rates and along with maintaining a good sales run commissioned its 40,000-tonne Carbon
respectively, from natural Trona footprint among Soda Ash and reaching out to customers, thereby growing rate, especially in the second half of the Capture and Utilisation plant (CCU)
reserves that are cost and energy- Sodium Bicarbonate manufacturer sales of Soda Ash, Sodium Bicarbonate, year. Business operations were impacted for capturing and purifying carbon
efficient compared to Soda Ash Long-standing customer relations Cement, Salt and Caustic. The supply chain by high input costs, primarily energy and dioxide emitted from operations,
produced from synthetic process was consolidated through increasing
with robust CRM container rakes, which served as flexible variable costs; this was balanced by a rise in and reusing it in high-grade Sodium
High-grade pharma/haemo grade warehouses, ensuring product availability. demand and product pricing. There were Bicarbonate production.
Sodium Bicarbonate, high-quality Strong CSR processes We faced the challenge of input cost also a number of challenges around the
salt differentiation of British Salt introduction of the UK’s Emissions Trading Kenya operations has a strong focus on
pressure due to firm energy and coal prices, Scheme (UKETS), but things are now utilising solar energy to reduce energy
increased freight rates and higher solar stabilised after several interventions. costs and optimise greening. It has initiated
salt costs (as the extended monsoon and a project to produce 24 KT of Pure Ash
cyclone in May 2021 impacted raw salt Kenya operations delivered a Magadi (PAM) through solar power.
production). However, increasing global good performance despite supply
prices of Soda Ash and Sodium Bicarbonate chain constraints.
enabled better realisation in domestic
markets and more efficient cost absorption.
Operational efficiency
and resilience

Integrated power and steam Way Forward
facility, superior effluent treatment
plant (ETP) and sewage waste
management (SWM), self- Wide and effective global United States of
sufficiency in key resources (salt supply chain network India America
and water) and operational Multimodal logistics (rail/road/
flexibility to counter volatility in ship) and lean supply chain Enhance manufacturing capacity of key products by expediting Deepen and widen customer relations by serving growth
raw material and fuel price for cost-efficient and faster ongoing capacity expansion projects and by initiating new capex opportunities in solar, glass, and lithium carbonate for energy capture,
movement projects. storage and delivery. We are also developing deeper customer connect
Manufacturing presence in Fulfil sustainability commitment by enhancing efforts on safety, through our own sales network of international distribution partners
key markets provides scope for process safety and risk management and sustainable operations for Soda Ash in focus markets following the planned exit from the
localisation of supply chains American Natural Soda Ash Corporation (ANSAC) tie-up in January
as well as following SBTi roadmap for low emission manufacturing.
Leveraging our global capabilities 2023. Further, we are maximising efforts towards safe, efficient Trona
to deliver Soda Ash across the Strengthen product portfolio by intensifying R&D around and Soda Ash production to satisfy customer demand.
world, in a manner that is cost- the development of new products, new applications, and Enhance people capabilities by implementing training and career
effective and high on service process improvements. Strong focus is on green products and development programmes to deliver the next generation of leaders.
on enhancing value-added Sodium Bicarbonate portfolio to
consolidate our market leadership. Collaborative initiatives with Augment sustainability commitment by enhancing waste soda
customers are being undertaken for innovations. ash recovery to support production and reduce environmental load,
and by investing in environmental improvement projects for long-term
Strive for technology excellence by increasing the use of
Industrial Internet of Things (IIoT), Artificial Intelligence (AI), data sustainability.
analytics and technology to improve manufacturing practices and Leverage our strong financial profile with high cashflow
business processes. generation to meet business opportunities as demand outpaces
supply with limited new capacities coming onstream.

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