Page 8 - Tata_Chemicals_yearly-reports-2017-18

MD's message

Dear Shareholders, Going Forward – Our Strategy now is to scale our specialty and food
The Company today is engaged in an consumer businesses while we retain
It gives me immense pleasure to share energising transformation agenda scale in our basic chemicals business.
with you our performance for the year built on the three pillars of Innovation, The balance sheet strength of the
and perspectives on the way forward. Sustainability and Digitisation. Our future Company now enables it to drive scale in
This year marks 150 years of Tata Group’s growth catalysts are going to be specialty both the specialty and consumer portfolio.
service to society. Tata Chemicals has made chemicals and consumer products.
a signi cant contribution to the group’s Focus on Innovation, Digital,
agenda. Next year we will celebrate 80 For the Specialty Business, the past and Sustainability
years of Tata Chemicals and 90 years of the year marked the rst milestone of our Our investments in laboratories in Pune
founding of the enterprise as Okha Salt transformation. We seeded two new and Bengaluru are the backbone of
Works. Throughout the time our Company investments totaling ` 565 crore. We building knowledge driven businesses with
has constantly evolved to stay relevant to began work on our nutritional solutions strong foundations in future technologies.
meet the needs of customers and deliver plant in Nellore, Andhra Pradesh and Many of the product lines being pursued
value to all its stakeholders. signed the business transfer agreement at these facilities are in line with a growing
for our acquisition of the precipitated emphasis on sustainable solutions. Digital
Overall Business Performance silica business of Allied Silica from which technology is now at the centre of every
Our business is robust. Performance was we will build the Highly Dispersible Silica aspect of the Company’s operations.
upwards and on expected lines across all Business out of Cuddalore, Tamil Nadu. We are embracing the opportunities of
geographies including India, Kenya, the Both these businesses were spawned in the fourth industrial revolution through
UK, and the USA. In India, we launched our Innovation Centre in Pune and are rst Manufacturing 4.0 and Sales & Distribution
Medikarb, a pharmaceutical grade sodium in a pipeline of businesses being seeded by 4.0. These are central pillars to our ways
bicarbonate, and there were pilot launches the Company with a focus on innovation of working. Our e orts toward managing
of khichdi mix, a nutrimixes range, and our and applications of new technologies. the concerns of climate change and
organic pulses range. Distribution of new Our two subsidiaries Rallis and Metahelix, energy use are driven through a focus on
products is through modern retail stores which house the specialty businesses, responsible manufacturing, to deliver Zero
which is improving the focus and brand Agrochemicals and seeds respectively, are Harm to people, assets, and environment
equity of Sampann. also making excellent strides in terms of across the value chain in current and
new products and innovation in farms. future businesses. These e orts will
With a strong focus on productivity gather momentum in the current year
improvement, the Company achieved Our Consumer Products Business is and beyond.
pro ts in line with expectations. During following a strategy to expand range and
the year revenue from continuing reach. We expanded our range from Tata In Conclusion
operations was ` 10,345 crore, down Salt to pulses including organic pulses, I would like to thank all the shareholders
from ` 10,681 crore in the previous year. nutri-mixes and khichdi. We have a strong of the Company for their continued
This small reduction was consequent to a pipeline of value added products, to be support. We remain focused on building
management decision to recon gure the launched from time to time. In addition we a sustainable long-term future for the
supply chain in our Consumer Products have invested resources to build a resilient Company for all its stakeholders while
Business. Net pro t was up by ` 439 digitised sales and distribution engine to upholding the Tata Values and Group
crore at ` 1,560 crore. Adjusting for one drive greater reach and engagement. Our Purpose. Engaged employees are our
o events the net pro t from continuing direct reach continues to improve and all strength and they bring passion and
operations was up by ` 123 crore. our brands improved their brand equity energy in all our e orts. We now rededicate
position in the past year. ourselves to the journey ahead as we
Cash ow from operations continues to be celebrate 150 years of the Tata Group.
strong. On a standalone basis there was a Simplify, Synergise and Scale I assure you it will be a fruitful and ful lling
reduction of borrowings by ` 1,003 crore Our exit from the fertiliser sector has journey together.
and we showed a healthy cash position of simpli ed the portfolio of the Company
` 3,753 crore resulting from the divestment and there are now strong synergies Best regards,
of our urea business. between all our businesses, underpinned R. Mukundan
by a foundation of science. The focus Managing Director & CEO
6 Annual Report 2017-18