Page 76 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

2. Dividend Europe (UK), Africa (Kenya) and Asia (India). These inorganic
For FY 2021-22, the Board of Directors has recommended a chemicals primarily service industries such as Glass
dividend of ` 12.50 per share i.e. 125% (previous year ` 10 (Automotive, Architectural & Container), Detergent, Food,
per share i.e. 100%) on the Ordinary Shares of the Company. Pharma, Animal Feed and Industrial Chemicals.
If declared at the ensuing Annual General Meeting (‘AGM’), Specialty Products portfolio is driven by Chemistry-led
the total dividend outgo during FY 2022-23 would amount to differentiation. The Company has three key products in this
` 318 crore (previous year ` 255 crore). segment comprising Specialty Silica, Prebiotics and Agri
inputs. Specialty Silica range serves Food, Rubber and Tyre
3. Performance Review & State of Company’s industry. Prebiotics and Formulations are targeted at Food,
Affairs Animal Feed and Pharmaceutical applications. Rallis India
3.1 Consolidated: Limited, a listed subsidiary of the Company, produces and
On a consolidated basis, the revenue from operations markets range of Agri inputs including Seeds for Indian and
increased to ` 12,622 crore in FY 2021-22 from ` 10,200 crore overseas farmers.
in FY 2020-21. The increase was mainly on account of higher
soda ash volumes i.e. 3.7 million tonne in FY 2021-22 against The Company is increasing its focus on Green Chemistry with
3.0 million tonne in FY 2020-21. The soda ash realisations too Sustainability as a key driver of value. Basic Chemistry will
remained robust and were higher than previous year’s levels. scale further by adding capacities of the core products and
The profit before tax from continuing operations increased leveraging cost competitiveness. The growth in Soda Ash
to ` 1,667 crore in FY 2021-22 from ` 634 crore in FY 2020-21, demand is also driven by Solar Glass (used in Solar Electricity
up 163%. generation) and Lithium Carbonate. The Specialty Products
will focus on maximising value with a sustainable portfolio,
3.2 Standalone: low carbon footprint Specialty Silica and Prebiotics based on
fermentation platform.
On a standalone basis, the revenue from operations
increased to ` 3,721 crore for FY 2021-22 from ` 2,999 crore 5.1 Basic Chemistry Products
in FY 2020-21. The increase was mainly on account of higher Standalone (India)
soda ash volumes i.e. 0.68 million tonne in FY 2021-22 against
0.62 million tonne in FY 2020-21. Profit before tax from For FY 2021-22, the revenues from the Basic Chemistry
continuing operations stood at ` 988 crore in FY 2021-22 Products business stood at ` 3,475 crore, higher by 22%.
against ` 614 crore in FY 2020-21, up 61%. Soda Ash
For more details on the Consolidated and Standalone The year started with the second wave of COVID-19 which
performance, please refer to Management Discussion & suppressed the demand and prices in the first quarter.
Analysis. However, demand improved to pre-COVID levels by the
end of first half of the year. Subsequently, as the impact of
4. Management Discussion & Analysis COVID-19 subsided and the economy started opening up
The Management Discussion & Analysis, as required in with easing of restrictions, a gradual increase in demand
terms of the Securities and Exchange Board of India (Listing was visible. Imports were significantly lower due to global
Obligations and Disclosure Requirements) Regulations, 2015 tightening of supplies and supply chain disruptions.
(‘SEBI Listing Regulations’), forms part of this Integrated This period also witnessed significant cost increases due to
Annual Report. rising energy, freight and raw salt costs. Realisations improved
which helped the Company absorb these cost pressures.
5. Business Overview The skew in demand versus supplies has spilled over to
The Company has two business segments viz. Basic FY 2022-23 as supply chain disruptions continue.
Chemistry Products and Specialty Products.
Sales of soda ash for FY 2021-22 stood at 6,78,130 metric
Basic Chemistry segment comprises inorganic chemicals tonne (‘MT’), an increase of 9% over the previous year.
led by Soda Ash, Salt and Sodium Bicarbonate. Scale, supply
chain efficiencies and customer relationships drive this Sodium Bicarbonate
business. This segment has manufacturing operations Sales of sodium bicarbonate stood at 1,20,186 MT and
spread across four continents viz. North America (USA), witnessed a solid growth of 19% over the previous year.

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