Page 151 - Tata Chemical Annual Report_2022-2023

Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Management Discussion
& Analysis

The market is expected to continue growing as challenges. Strict cost control measures and rapid Prebiotics & Formulations will continue to improve manufacturing efficiency,
farmers adopt modern farming practices and seek digitisation helped mitigate some of these pressures. The Company stabilised its operations at its state-of-the- supported by improved operational efficiencies, and
solutions to protect their crops from various threats. art greenfield facility in Mambattu, Andhra Pradesh. Food capital improvements to alleviate bottlenecks and
Agriculture has various challenges, such as increasing TCL India is the largest manufacturer of edible iodised safety certifications (FSSAI, FSSC 22000, FAMI QS, Halal, minimise unplanned shutdowns, with a particular
pest pressure, soil degradation, and changing salt in the country. The Company recorded its highest Kosher), strong scientific backing, regulatory support, emphasis on controlling energy consumption to
weather patterns, which are affecting crop yields. ever sale of salt at 13.1 lakh MT during the year, an together with ongoing application development have mitigate recent increases in energy costs, and improve
To address these challenges, there is need for quality increase from 12.5 lakh MT in FY 2021-22. The Company enabled the Company to serve customers across the globe. electrical power management as the US continues to
agri-inputs. Use of bio-pesticides is increasing in India is investing to increase its salt production capacity experience significant inflationary pressures.
as they affect only the target pest. The Government to meet the growing demand of its key customer, In addition to continuing growth from the US and S.E.
has adopted Integrated Pest Management Practices Tata Consumer Products Limited (‘TCPL’). Asian markets, there has been encouraging potential also II. Financials (continuing operations) ` in crore
(IPM) with emphasis on the use of bio-pesticides. opening up from the EU. The facility has been qualified by
With favourable demand for sodium bicarbonate, FY FY
the Company achieved higher realisations across some global customers, putting the Company on the path TCNA (USA) 2022-23 2021-22
Seeds of achieving full capacity utilisation in the coming year.
branded and non-branded segments of the market
The seed industry size in India is projected to during the year. The Company continued focussing There were specific intervention projects during the year Revenue 5,271 3,688
maintain the 5% growth trend in the next five years. on growing its portfolio of high value branded to improve efficiencies and cost of operations. from Operations
The industry is working closely with the Government sodium bicarbonate sales. EBITDA 1,269 787
to enhance adoption of high-quality hybrid seeds. II. Financials (continuing operations) ` in crore PBT 750 338
This will support in increasing the productivity and ‘Chem Connect’, the Company’s online customer FY FY
quality of agri produce in India. portal and mobile app, remained at the forefront TCL India 2022-23 2021-22 PAT after 601 270
with user-friendly dashboards for ease of customer non-controlling interest
d. Entity-wise Performance support, engagement and navigation. Customer Revenue from Operations 4,930 3,721 The revenue increase is mainly driven by an
TCL India (Standalone) engagement activities such as senior leader connect, EBITDA 1,235 951 increase in prices.
annual reward and recognition events for channel
I. Operations Profit before tax (PBT) 1,265 988
partners, Club 15K meets, knowledge-sharing Tata Chemicals Europe Group Limited, UK (‘TCE Group’)
Sales trend of Basic Chemistry Products is as follows: sessions, ‘Web pe Charcha’, were the hallmarks of Profit after tax (PAT) 1,027 787
staying connected with the customers and partners. I. Operations
TCL India - Basic Chemistry Products Sales Volume Subsidiaries Sales trend of Basic Chemistry Products is
in lakh MT Sales trend of Specialty products is as follows: as follows:
a. Basic Chemistry Products
12.5 13.1 TCE Group Sales Volume in lakh MT
12.1 TCL India-Specialty Products Sales Volume in MT Tata Chemicals North America Inc., USA (‘TCNA’)
8,858 I. Operations 3.7 3.6
7,187 Sales trend of Basic Chemistry Products is 3.2
6.8 6.5
6.2 as follows: 2.7 2.8 2.6
5,130
TCNA Sales Volume in lakh MT

1.1 1.2 1.2 23.9 23.5
2,995 2,999 1.1 1.1 1.0
2,195
FY 2020-21 FY 2021-22 FY 2022-23 19.0
Soda Ash Sodium Bicarbonate Salt
FY 2020-21 FY 2021-22 FY 2022-23 FY 2020-21 FY 2021-22 FY 2022-23
Soda ash realisations improved during FY 2022-23, Soda Ash Sodium Bicarbonate Salt
resulting in increase in revenues and EBITDA over Silica FOS
FY 2021-22. Higher than expected demand, coupled
with supply constraints and the pressure of increased Tyre demand normalised during FY 2022-23. Tyre TCE catered to 50% of the UK market demand of
input and energy costs led to increased pricing. labelling norms will continue to drive HDS demand. FY 2020-21 FY 2021-22 FY 2022-23 soda ash from its manufacturing operations at
On the manufacturing side, solar salt production Lostock. All input costs rose strongly, particularly
was affected due to brine dilution, owing to extended Silica margins in FY 2022-23 were impacted by a Soda Ash in the second half of the year. The Company, by
rains and flooding. Proactive planning, strong steep increase in raw material and energy costs. In FY 2022-23, sales volumes decreased by 2% as engaging with its customers was able to secure
customer relationships, robust processes and product The Company’s primary focus will be on scaling HDS compared to FY 2021-22. Demand for soda ash has mid-year price increases to cope with these
configuration changes helped to overcome these use in tyre to protect overall realisations. fully recovered from the decline seen in previous unprecedented cost pressures.
years due to the COVID pandemic. Internally, efforts

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