Page 101 - Tata_Chemicals_yearly-reports-2017-18

Differentiated product offerings and targeted communication is ANALYSIS OF FINANCIAL PERFORMANCE
being used to address the threat from the unbranded segment and
Standalone performance for the year ended 31 March, 2018
from regional and local brands.
Statement of Profit and Loss – Continuing operations
Risks and Concerns
The business has put policies in place to mitigate risks from changes 1. Revenue from operations (net):
in the regulatory environment which might limit realisations. There
` in crore
are continuous improvement efforts to exploit efficiencies in the
Particulars Year ended Year ended Change %
supply chain network to mitigate rising costs of labour and fuel.
31 March, 31 March, Change
Nutritional Solutions 2018 2017
Revenue from operations 3,524 3,837 (313) (8)
The growth of Nutritional Solutions, which began with an idea in
Less: Excise duty on sale of
our lab by a team of passionate scientists which, after intensive work
goods (58) (230) 172 (75)
and effort over the last four years is now transformed into a plant
Revenue from operations
in Sriperumbudur, Chennai and investments in Mambattu, Nellore Integrated Report
(net) 3,466 3,607 (141) (4)
for manufacturing of Prebiotics [Short chain Fructo-oligosaccharide
Revenue from operations (net) decreased due to lower volumes of
(‘FOS’) and Galacto-oligosaccharide (‘GOS’)]. The business, driven by
soda ash, salt, pulses and spices as well as lower realisation of pulses.
science understanding and customer engagements, to become a
leading nutritional innovation across various dimensions of human 2. Other income:
health. The Nutritional Solutions business is motivated to provide
` in crore
a significant improvement in the quality of life of our customers
through innovative solutions. Particulars Year ended Year ended Change %
31 March, 31 March, Change
Leveraging TCL’s knowledge in at-scale fermentation, food technology, 2018 2017
material sciences, biotechnology and biogenomics, the Company’s Other income 194 177 17 10
offerings cater to multiple end segments in the field of gut microbiota
Other income has increased mainly due to Gain on sale/redemption
modulation and customised health solutions.
of investments.
FY 2017-18 was yet another milestone year in terms of investments
in infrastructure and capabilities. With a committed capital outlay 3. Cost of materials consumed: Statutory Reports
of ` 270 crore, the construction of our world-class 5,000 tonnes per
` in crore
annum manufacturing plant at Mambattu, Nellore, Andhra Pradesh is
Particulars Year ended Year ended Change %
on schedule. The business has built capabilities in IPR clinical studies,
31 March, 31 March, Change
product conceptualisation through customer partnership, complex 2018 2017
fermentation technologies and gut microbiome data models. Cost of materials consumed 531 480 51 11
Operations at Sriperumbudur remained stable and the plant
Cost of materials is higher due to increase input costs of raw materials
supported the increased customer demand by producing higher
comprising of coke, coal and anthracite.
quantities across multiple grades of FOS. Project execution at
Nellore is underway with ground-breaking ceremony performed 4. Purchases of stock-in-trade:
in November 2017. While sales of FOS and GOS continue to remain
` in crore
buoyant, our newly introduced product offerings also found wide
Particulars Year ended Year ended Change %
acceptance across various customer segments in food and beverages,
31 March, 31 March, Change
infant nutrition, nutraceuticals, pharmaceuticals and animal nutrition.
2018 2017
A gross total of 1,700 tonnes of products were sold in India to 600+ Purchases of stock-in-trade 219 449 (230) (51)
customers across 105 cities. To support the upcoming expansion, the Financial Statements
Purchases of stock-in-trade decreased mainly due to pulse business
business is in the process of setting up of an international distribution
network for select markets. towards reconfiguration of supply chain management.
FERTILISER BUSINESS (DISCONTINUED OPERATIONS) 5. Power and fuel:
The Company divested its Urea and Customised Fertiliser business ` in crore
situated at Babrala, Uttar Pradesh to Yara India effective 12 January, Particulars Year ended Year ended Change %
2018. During the year under review, the Company also entered into a 31 March, 31 March, Change
Business Transfer Agreement with IRC Agrochemicals Private Limited 2018 2017
for the sale of its Phosphatic Fertilisers business and the Trading Power and fuel 474 378 96 25
business situated at Haldia, West Bengal subject to certain regulatory
The increase in power and fuel cost is mainly due to coal and pet coke
and other approvals. In view of the same, the MDA does not include
price increase.
an analysis of the Fertiliser business.

Management Discussion and Analysis 99