Page 62 - Tata_Chemicals_yearly-reports-2017-18

tonnes p.a. in the previous year), including the sales in small was partly offset by adverse sales pricing and mix, sales and
consumer packs. In line with our strategy to increase the share general administration expense, inventory adjustment and
of higher value grades in bicarb, the Company also launched plant spend.
“Medikarb”, a pharmaceutical grade product which received
Profit before tax and profit after tax and non-controlling
excellent response from customers. The price realisations for
interest for the year under review were at US$ 76.22 million
bicarb showed good gains as the share of value added and
(` 491.27 crore) and US$ 74.13 million (` 477.80 crore)
differentiated brands targeted towards specific consumer
respectively against US$ 67.15 million (` 450.40 crore) and
segments of the bicarb portfolio continued to show strong US$ 31.56 million (` 211.69 crore) respectively during the
growth. previous year.
Cement 1.2.2 Tata Chemicals Europe Limited and British Salt Limited
The cement market scenario showed improvement in both Tata Chemicals Europe Limited’s business consists of soda
demand and price realisation in the Company’s targeted ash, sodium bicarbonate and energy units while British Salt
markets in Gujarat. Cement production volumes were at Limited manufactures and sells industrial and food grade salt.
approximately 5.00 lakh tonnes during the year under review Combined, they represent the UK Operations.
against 5.16 lakh tonnes during the previous year. Cement sales The turnover of UK Operations for the year was £168.00 million
during the year were at approximately 4.83 lakh tonnes against (` 1,436.53 crore) against £184.4 million (` 1,614.81 crore) in
5.08 lakh tonnes during the previous year. While production the previous year. The reduction represents lower volumes
and sales volume of cement were marginally lower than the of imported soda ash through its dedicated facility during
corresponding figures in the previous year due to operational the year, leading to a reduction in the group’s share of the
constraints, its price realisations and profitability improved UK market. Otherwise the group companies maintained their
significantly during the year, largely due to its rigorous quality share of UK markets in its key products. There was no income
focus and customer connect initiatives undertaken during the from gas storage related activities during the year against £5.00
year. million (` 42.75 crore) in the previous year. Overall production
and manufacturing efficiency levels were similar to the previous
Salt year, despite interruptions caused by a fire at the Lostock
site in May 2017 and the loss of the spare gas turbine at the
During the year, the Iodised salt production in Mithapur was
UK Operations’ combined heat and power plant in
9,60,596 tonnes, 4.4% higher than the previous year. Overall,
January 2018. Sales demand remained strong throughout
branded salt sales were at 10,58,772 tonnes in FY 2017-18.
the year across the product range and exports continued to
Tata Salt grew by 2.2% in sales volume over the previous benefit from the weakness of Sterling vs. Euro and US Dollar.
year to reach sales volume of 9,24,863 tonnes in FY 2017-18. The UK group took the opportunity to refinance and restructure
It continues to be the largest distributed brand with a reach its operations in March 2018. This has reduced borrowing costs
of 17.8 lakh retail outlets across India. Tata Salt Lite grew by as well as provided additional, targeted funding for a number
3.3% in sales volume and achieved volumes of 20,261 tonnes of key developmental capital projects, which are in progress.
in FY 2017-18. I-Shakti salt continued to drive the iodisation
EBITDA for the year was £ 25.50 million (` 218.04 crore) against
movement, complimenting Tata Salt with a sale of 91,656
£ 26.30 million (` 230.31 crore) in the previous year and the
tonnes in FY 2017-18.
profit on ordinary activities before taxation was £6.90 million
1.2 OVERSEAS OPERATIONS (` 59.00 crore) against £ 11.50 million (` 100.71 crore) in the
previous year after taking into account credits in respect
1.2.1 Tata Chemicals North America Inc. (‘TCNA’) of derivative mark-to-market adjustments of £ 0.20 million
(` 1.71 crore) against £2.50 million (` 21.89 crore) in the
The production volumes at TCNA were higher by 5.8% during
previous year.
the year, the highest since FY 2010-11 and the second highest
volumes ever made by the site, due to the success of the The profit after tax was £ 6.90 million (` 59.00 crore) against
reliability program initiated in recent years. Sales volumes were £ 11.50 million (` 100.71 crore) in the previous year.
higher by 4.9% during the year. TCNA posted gross revenue 1.2.3 Tata Chemicals Magadi Limited (‘TCML’)
of US$ 498.88 million (` 3,215.52 crore) for the year ended
During the year, TCML soda ash production volumes increased
31 March, 2018 against US$ 476.11 million (` 3,193.48 crore) in
by 7.9% and the sales volume increased by 23.4% over the
the previous year.
previous year.
Revenue increased during the year due to higher sales volumes During the year, TCML achieved total sales of US$ 76.54 million
which helped offset the adverse sales mix and pricing. (` 493.34 crore) against the previous year’s sales of US$ 59.77
million (` 400.90 crore), registering an increase of 28.1%.
During the year, EBITDA at TCNA was US$ 108.66 million
(` 700.36 crore) against US$ 95.85 million (` 642.91 crore) in During the year under review, TCML posted EBITDA of
the previous year. Favourable soda ash production, Trona pile US$ 13.14 million (` 84.69 crore) against US$ 5.53 million
movement, soda ash sales volumes and miscellaneous income (` 37.09 crore) in the previous year, an increase of 137.6%

60 Annual Report 2017-18