Page 95 - Tata_Chemicals_yearly-reports-2017-18

wealth of marine chemicals from the ocean, with a potential to touch The Company is anticipating a normal monsoon in the year ahead
human lives in many ways. From these humble beginnings, a global and plans to leverage its strong farmer connect and digitisation
international business was evolved, with operations across the four initiatives to provide enhanced solutions to improve crop productivity
continents located in India, UK, Kenya and USA. TCL is the world’s third and farmers income.
largest producer of soda ash with manufacturing facilities in North
The Innovation Centre in Pune will continue to support the diverse
America, Europe, Asia and Africa, reaches over 148 million households
needs of TCL’s businesses, alongside synergistic programs with Tata
through its Tata Salt brand portfolio in India and covers 80% of India’s
Group companies, by augmenting facilities, internal capabilities and
districts impacting over 5 million farmers through its subsidiaries, Rallis
competencies in the chosen technology platforms across Consumer
India Limited (‘Rallis’) and Metahelix Life Sciences Limited (‘Metahelix’).
Foods, Nutritional Solutions and Advanced Materials. The Nutritional
To fuel TCL’s existing growth and also build a pipeline of innovative
Solutions unit, operating with a start-up mindset, will focus on
products for the future, the Company has established world class R&D
building scale in specialty businesses covering food ingredients and
facilities such as the Innovation Centre in Pune and Rallis Innovation
formulations, developed at TCL’s Innovation Centre.
Chemistry Hub (‘RICH’) in Bangalore. Our R&D facilities are home to
capabilities in nanotechnology, biotechnology, food science and In Advanced Materials, TCL will focus on manufacturing its Highly
technology and nutrition science. Dispersible Silica (‘HDS’) formulation, to drive the growth of its Integrated Report
specialty silica business. In this regard, the Company signed a
Apart from innovation, sustainability is also at the core of all of Tata
Business Transfer Agreement with M/s. Allied Silica Limited (‘ASL’), on
Chemicals’ activities. This includes TCL’s social responsibility initiatives
7 April, 2018, to acquire their business of precipitated silica, on a slump
and is intricately woven into all of the Company’s business functions.
sale basis along with the existing manufacturing site, which is recently
The Company continues to transform itself from a commodity and commissioned, at SIPCOT Industrial Park Cuddalore, Tamil Nadu. Upon
an inorganic chemicals manufacturer towards providing wellness completion of the acquisition, it will represent yet another step in TCL’s
solutions, with a strong focus on consumer, agri and specialty journey to build technologically enabled, differentiated businesses,
businesses, while further strengthening its core. TCL is making with greater customer centricity, leveraging its core strengths.
significant progress in its transformation journey by focusing on
During the year, the divestment of Urea and Customised Fertiliser
building brands through greater customer centricity and technology
Business to Yara Fertilisers India Private Limited (‘Yara India’) was
led differentiation. The Company has also embarked on simplification
completed effective 12 January, 2018. During the year under review,
of its business processes, customer experience, portfolio and
the Company also entered into an agreement with IRC Agrochemicals
structures to achieve its transformation goals. TCL is also addressing
Private Limited (‘IRC’), a wholly owned subsidiary of Indorama Holdings
requisite capability building in each of its businesses to drive long
BV, Netherlands, to transfer its Phosphatic Fertiliser business located Statutory Reports
term value creation for stakeholders.
at Haldia and the Trading business comprising bulk and non-bulk
In the inorganic chemicals business, demand and market has been fertilisers, on a slump sale basis, subject to regulatory and statutory
favourable in the year under review with demand and production approvals and conditions precedent. This transaction is expected to
in China playing a significant role in determining the global prices. close in the first quarter of FY 2018-19.
Overall inorganic chemicals business will focus on maintaining
Maintain Leadership
its leadership position by driving cost efficiencies and customer
engagement with a special focus on leveraging technology and scale ʀ Maintain cost leadership and scale further through operational
through operational excellence. excellence - Global Chemicals (India, US, UK, Kenya)
The consumer products business witnessed strong growth across Grow Rapidly
all categories through relentless focus on customer centricity and
brand building. Tata Salt was voted as No. 3 in the India’s most ʀ Grow through increased product portfolio and strategic sourcing -
trusted brands under Food Products category*. During the year, the Consumer Products (Salt, Pulses, Spices and Foods)
Company launched new products such as ‘Multi-Grain Khichdi Mix’,
‘Multi-Grain Chilla Mix’, ‘Moong Dal Chilla Mix’ and multiple variants Seed and Build
in organic pulses under the Tata Sampann umbrella brand with ʀ Develop niche specialty chemicals portfolio through scientific Financial Statements
positive feedback. The Khichdi Mix provides the power of nutritious innovation at IC and acquisition of niche specialty chemicals
grains like unpolished moong dal chilka, rice with Indian super grains opportunities - Agrochem, Nutritional Solutions, Advanced Materials
like ragi, rajgira, jowar and bajra. These newly launched products Fig: Tata Chemicals Strategic Direction Ahead
provide differentiation through scientific innovation. Looking
ahead, the business will further improve the reach of salt and build BUSINESS UNITS
scale for Tata Salt Lite, pulses, besan and spices, with focus on
INORGANIC CHEMICALS
value added products. The business aims to delight consumers by
offering wholesome everyday nourishing foods and will continue to
GLOBAL CHEMICALS BUSINESS SALES (USD million)
conceptualise market shaping value-added opportunities beyond
existing categories in the future portfolio.
FY 2017-18 1,087
The agri business will continue to build the specialty agro chemicals
FY 2016-17 1,067
and seeds portfolio through TCL’s subsidiaries, Rallis and Metahelix.
FY 2015-16 1,031
* Source: ET Brand Equity India’s Most Trusted Brands 2017
Management Discussion and Analysis 93