Page 77 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
STATEMENTS
REPORT
REPORTS
Board’s Report

The Company markets four value-added grades of Bicarb – over FY 2020-21. The UK Operations maintained its core UK
Medikarb (pharma grade), Sodakarb (food grade), Alkakarb market share and robust export demand into Europe and
(feed grade) and Speckarb (industrial grade). rest of the world including navigating into the post-Brexit
period from January 2021.
Salt
The combined heat and power (CHP) facility at Winnington
The demand for salt was higher from the Company’s key performed well throughout the year.
customer, Tata Consumer Products Limited, during the
year and the production was increased appropriately to In the Salt business, sales volumes were better than those
meet the increased requirement even amid the pandemic. recorded in FY 2020-21 amid rising energy costs and price
The Company recorded highest ever production of salt at increases in the market reflecting the same.
12.61 lakh MT during FY 2021-22. In addition, a project is EBITDA for FY 2021-22 for the UK Operations was
under implementation to increase the salt manufacturing £ 12.2 million (` 124 crore) against £ 14.2 million (` 138 crore)
capacity to meet the projected demand increase. and the loss after tax was £ 8.4 million (` 85 crore) against

Other Products the loss of £ 5.8 million (` 56 crore) in the previous year.
Sale of cement stood at 4.37 lakh MT, an improvement Tata Chemicals Magadi Limited, Kenya (‘TCML’)
of 11% in FY 2021-22. Cement realisations and margins (as per IFRS)
remained healthy and Bromine production was impacted
due to bittern dilution. During FY 2021-22, sales volumes were higher by 37% over
FY 2020-21. TCML achieved a revenue of US$ 77.6 million
Subsidiaries (` 577 crore) for FY 2021-22 as against revenue of US$ 55.4
million (` 413 crore) in the previous year, an increase of
Tata Chemicals North America Inc., USA (‘TCNA’) 40%. For FY 2021-22, TCML registered an EBITDA of US$ 20.1
(as per USGAAP) million (` 150 crore) against the EBITDA of US$ 9.6 million
During FY 2021-22, overall sales volumes were up by 26%, a (` 71 crore) in the previous year, higher by 108%. The increase
record for TCNA, which was driven by an increase in volumes in EBITDA was due to better realisations and cost control.
in the export markets.
TCML recorded a net profit of US$ 12.7 million (` 94 crore) in
TCNA posted a revenue of US$ 495 million (` 3,688 crore) FY 2021-22 against a net profit of US$ 2.8 million (` 20 crore)
for FY 2021-22 compared to US$ 388 million (` 2,878 crore) in FY 2020-21.
in the previous year, registering a growth of 28%.
For FY 2021-22, EBITDA at TCNA was US$ 106.2 million The county government had issued a demand during
(` 791 crore) against US$ 48.1 million (` 357 crore) in FY 2018-19 for an arbitrary increase in land rates which was
FY 2020-21. struck down subsequently by the Hon’ble High Court. TCML
has filed an appeal for reconsideration of the other related
This sharp increase in volumes led to TCNA posting a profit issues raised in the petition before the Hon’ble High Court
after tax and non-controlling interest of US$ 49.9 million and the appeal is pending. TCML is working with Kenya
(` 372 crore) during FY 2021-22 compared to a loss of national authorities and government to arrive at a fair and
US$ 12.8 million (` 95 crore) in FY 2020-21. transparent resolution of the issues.
TCE Group Limited, UK (‘TCE group’) (as per IFRS)
5.2 Specialty Products
TCE Group Limited’s business consists of soda ash, sodium Standalone
bicarbonate and energy units and British Salt Limited which
manufactures and sells food and industrial grade white salt. Silica
Together they are referred as ‘UK Operations’ of the Company The Company manufactures Specialty Silica products
in this Report. and sells to tyre and food industries. Silica is a versatile
material with varied applications. With focus on green
The turnover from the UK Operations for FY 2021-22 was products and regulatory matters, its use in the tyre industry
£ 191.5 million (` 1,949 crore) against £ 145.2 million (` 1,409 is expected to accelerate. During FY 2021-22, capacity
crore) in the previous year registering a growth of 38%.
utilisation improved with increasing approvals from leading
Soda ash sales volumes were strong during the year with tyre companies in India. As a mark of recognition, the
consistent demand witnessed throughout the year. Sales of Company was awarded the ‘Best Supplier in Innovation
sodium bicarbonate were consistent although slightly down category for HDS Silica’ by a leading tyre company.

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