Page 78 - Tata_Chemicals_yearly-reports-2021-22

Integrated Annual Report 2021-22

The Company’s products are well accepted in new 6. Responding to unprecedented challenges
segments of Silicone rubber applications and Battery with resilience
separator segments. As the global economy and society at large were gradually

and steadily recovering from the after effects of the COVID-19
Prebiotics & Formulations
pandemic in FY 2021-22, the Russia-Ukraine crisis and supply
The state-of-the-art manufacturing facility using chain disruptions created inflation headwinds.
fermentation technology of the Company is located
in Mambattu, Nellore District, Andhra Pradesh and has Throughout the pandemic, the Company practiced extreme
successfully stabilised its operations. There have been care and caution towards the health and well-being of its
various optimisation projects which have been employees and partners while ensuring this care and caution
implemented with all key certifications, like Food Safety was extended to the community at large. The Company
System Certification - FSSC 22000 and FDA registration regularly adhered to various guidelines and advisories issued
coupled with qualification from Key Global customers, by the authorities from time to time including maintaining
which will enable the Company to increase volumes and social distancing at all its plant operations.
reach 100% capacity utilisation in the coming year.
The Company’s UK business was impacted towards
Subsidiary the end of FY 2021-22 due to the Russia-Ukraine crisis.
Rallis India Limited (‘Rallis’) The impact was high on the natural gas prices that
(as per TCL consolidated books) substantially went up. The Company took timely measures
Rallis is the Company’s listed subsidiary focussed on specialty of hedging mechanism.
products for the farm and agricultural sector consisting
mainly of Crop Care and Seeds business. Rallis achieved a 7. Finance and Credit Ratings
consolidated revenue from operations of ` 2,602 crore in During the year under review, while the focus continued
FY 2021-22 compared to ` 2,424 crore in FY 2020-21, an on the liquidity, cash flows and working capital, intensified
increase of 7%. The profit after tax stood at ` 164 crore, down efforts were made towards: a) bringing down interest costs
by 28% against a profit after tax of ` 229 crore in FY 2020-21. at overseas subsidiaries through a series of refinancing and

During FY 2021-22, the Domestic business of Rallis achieved loan re-pricing exercises; and b) improving the yield on
a revenue of ` 1,468 crore as against ` 1,287 crore in cash surplus investments amid a low interest rates scenario
FY 2020-21, an increase of 14% on account of robust farm through broadening the spectrum of investment avenues
demand. Key crops which have shown major growth are without compromising with safety and liquidity.
Paddy, Cotton, Sugarcane, Soybean, Pulses, Chilli, Tea,
Tomato and Grapes. The overseas subsidiaries of the Company undertook a
re-pricing exercise for US$ 275 million facility in TCNA, USA
The International business of Rallis grew by 6% to refinancing exercises of US$ 100 million in Valley Holdings
` 787 crore in FY 2021-22 from ` 741 crore in FY 2020-21. Inc., USA, US$ 45.5 million in Homefield Pvt UK Limited and
The International business gained 17 new registrations in the US$ 46 million in TCML, Kenya. The interest rates have been
overseas market through strategic and partnership model. negotiated at rates lower than the erstwhile levels.
This model has helped Rallis register a healthy growth during
the year under review and has also built the road for achieving During FY 2021-22, Rallis, a subsidiary and IMACID, a
the revenue in line with its long-term strategic planning. joint venture, paid dividends of ` 29 crore (FY 2020-21:

Revenue of Seeds division of Rallis decreased by 13% over ` 24 crore) and ` 28 crore (FY 2020-21: ` 26 crore) respectively
the previous year to ` 349 crore during the year under review to the Company. Valley Holdings Inc., the Company’s step-
mainly due to reduction in hybrid crop acres in Paddy and down overseas subsidiary, which holds investments in
Millet and reduced availability of flagship hybrids in the the US operations, paid dividends aggregating to
Maize category. Changing weather and climate patterns US$ 21.1 million (` 157 crore) [FY 2020-21: US$ 20.9 million
impacted hybrid seed production and higher commodity (` 155 crore)]. Another overseas subsidiary of the Company,
prices led to increased cost of seed procurement, creating Tata Chemicals South Africa (Pty) Limited paid a dividend of
pressure on gross margins. South African Rand 30 million (` 15 crore) [FY 2020-21: Nil].

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