Page 24 - Tata_Chemicals_yearly-reports-2017-18

Connecting for success

Our chemicals business is building on firm foundations laid
down over nearly eight decades to forge a new journey

of growth. Its strategy is to pursue volume growth where
appropriate and grow value by getting even closer to
customers with a slew of value-added, branded products.

Our business environment
Brand Category Segments Customers
Global markets are characterised by sea Sodium bicarbonate
and land borne trade of soda ash and Pharma (US Pharmacopeia is used in many
sodium bicarbonate, the key products Pharmakarb and British Pharmacopeia) industries including
for the Global Chemicals Business (GCB). Medikarb Pharmaceutical (Indian food and animal
Manufactured primarily in China, the EU, Sodakarb Pharmacopeia) feed production,
USA, Turkey, and India, these products are Alkakarb Food dyes, intermediaries
consumed in a variety of applications. Bicarb Animal and poultry feed
Dessikarb leather, and jaggery.
Hemokarb Food grade dust It also has
Our manufacturing sites are located in Briskarb Explosion suppressant pharmaceutical
regions abundant with salt and limestone Haemo Dialysis and haemodialysis
or natural trona, the key raw materials for Flue Gas Treatment applications.
the products. We expect a challenging
global soda ash environment in the DetMate Soda ash Detergent Businesses
coming year. Soda ash prices in Europe Flat glass - construction Flat glass is used in
may reduce due to signi cant capacity and housing; commercial, construction and
added in Turkey. Prices in China, which o ce and retail space; and automotive industries.
saw some correction in 2017, have rmed automotive sector
up and are likely to be in a narrow band Container Glass - soft drinks, Container glass
of about $40. In India, healthy GDP Dense Beer, Indian made used in the drinks,
growth and low per capita consumption soda ash Soda ash Foreign liquor, pharmaceuticals, and
has helped us operate successfully in Pharmaceuticals, tableware, tableware sectors.
extremely competitive markets with Light glass etc. It is a key input to
soda ash
imports coming from all the major soda Detergents detergents, and
ash and sodium bicarbonate producers. Chemicals - sodium bi other chemicals
carbonate, sodium silicates, manufacture.
We also expect a di cult domestic other chemicals
soda ash market in the next year. An Dyes and intermediaries
additional 0.625 million tons per annum Individual house
(MTPA) capacity may come on-stream. Tata Shudh Cement Construction owner, small builders,
A 5% increase in soda ash demand may retail
marginally reduce the share of imports, Magadi Industries, animal feed Households, industrial
with Europe strengthening its position moore Salt application customers
as the key exporter and China losing its brands
signi cance. Despite the challenging Crushed Crushed Sodium silicates, animal Industrial customers
scenario, we project a marginal increase re ned soda re ned soda feed and poultry feed
in our realisation. At the same, we see a Caustic soda Caustic soda Paper, textiles, dyes, chemicals Industrial customers
rise in variable costs resulting from higher
fuel costs.

22 Annual Report 2017-18