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Snapshot of the capitals
                  Magadi taps                                                                    Natural capital

                                                                                                 The existing natural resource
                                                                                                 of salt to which we have
                  salt for animal                                                                preferential access while
                                                                                                 requiring little additional
                                                                                                 manufacturing investment.

                  feed exports                                                                   Manufacturing capital
                                                                                                 The manufacturing asset of
                                                                                                 our premium soda ash plant at
                                                                                                 Magadi.

                                                                                                 Human capital
                  Tata Chemicals Magadi (TCM) is     Originally tested in Kenya, the products    Our marketing team in Magadi
                  transforming its product portfolio with   are now being marketed and sold in the   embarked on a rigorous
                  new salt applications. It has created a   USA, the world’s fourth largest livestock   product marketing assignment
                  new market in Kenya’s agricultural sector   market. They have been modi ed to meet   aimed at building new markets
                  with two animal feed brands and is now   Food and Drug Administration (FDA)    for the product.
                  expanding into international markets.   regulations that demand lower  uoride
                                                     content.                                    Intellectual capital
                  Salt is an abundant but largely untapped                                       Our Magadi team invested
                  resource at Magadi. Magadi Moore Nyama   TCM implemented a shallow trona       in its marketing and sales
                  and Magadi Moore Maziwa, are part of   mining plan and resuscitated part of the   capabilities and became
                  a policy to  nd new markets for forti ed   mothballed premium ash plant at Magadi.   an expert in branding
                  salt. Trona from the lake is mined and   The transshipment facility at Kagiado en   new products. We worked
                  re ned to produce soda ash, which is   route to Mombasa was revived. Marketing   in collaboration with the
                  exported to markets across the world. Salt   teams have worked hard to build the   marketing teams in India and
                  is a natural asset that has historically been   brand and customers were welcomed to   South Africa.
                  underexploited. A diversi cation project   see the facility at Lake Magadi. In 2017-18,
                  has borne fruit in the past year as export   sales more than doubled to 40,000 MT.  Financial capital
                  sales of animal feedstock made from                                            Required to develop a new
                  crushed re ned soda have taken o .   The feedstock has been pushed to          product and bring it to market.
                                                     customer segments unfamiliar with the
                  Cattle and sheep sweat proli cally in   Magadi brand through a mix of campaigns   Relationship capital
                  Kenya’s hot, arid climate. As a result,   including extensive radio advertising.   Our strong brand and heritage.
                  they lose salt and valuable minerals.   The country’s largest dairy farm is among
                  By replenishing lost minerals, the new   those that have endorsed the products.
                  forti ed feedstock improves the health
                  and well-being of livestock. They reduce   Challenges and dynamics    Key milestones and achievements
                  the prevalence of disease and increase   Optimum equipment is required to meet   Customer satisfaction on samples of
                  milk and meat production. Farmers see an   the required volumes in time for shipment.   shallow mined crushed re ned soda.
                  increase in the value of their animals.
                                                     Quality requirements are high and we   Following successful completion of
                                                     have had to modify the process to include   an initial trial order, large orders were
                                                     drying, crushing, and screening of the   subsequently shipped to a USA-based
                                                     product to attain the strict particle size   customer in February 2018. Shipments
                                                     requirement.                       are expected to increase signi cantly by
                                                                                        December 2018.
                                                     We have to overcome logistical challenges
                                                     to seamlessly move product from Magadi   Tata Chemicals Magadi has been certi ed
                                                     factory to the Mombasa shipping shed   for its Good Manufacturing Practices a
                                                     without a ecting the mainstream product   requirement for animal feed imports
                                                     transfers of salt and soda ash.    into Europe.

                  26   Annual Report 2017-18
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