TATA Chemicals

LTD
.Executive summary:-
Tata Chemicals Limited (TCL) is a global company with interests in businesses that focus on LIFE — living, industrial
and farming essentials. It is the world's second-largest producer of soda ash. With manufacturing facilities in India,
UK, US and Kenya, TCL is the world’s most geographically diversified soda ash company, with an efficient supply
chain that can service customers across the globe.Established in 1939 at Mithapur (in Gujarat, India), TCL is a part of
the Tata group. It is a leading player in the agribusiness sector with a strong presence in crop nutrients (urea and
phosphatic fertilisers) and crop protection products. The company is a pioneer and market leader in the Indian
branded iodised salt segment through its pioneering brand Tata Salt.TCL’s global soda ash capacity is around 5.5
million tonnes per annum, out of which 60 per cent capacity is from natural soda ash deposits at Wyoming in the US
and Lake Magadi in Kenya. Along with soda ash (sodium carbonate), the company also manufactures sodium
bicarbonate and bulk chemicals such as sulphuric acid, phosphoric acid, and sodium tripoly phosphate (STPP). The
company has extended its operations into the services sector and touches lives through applications in agriculture,
animal nutrition, construction, consumer products, glass, metals, pharmaceuticals, soaps and detergents, and textiles
and leather industries.

Global reach: Since 2005 Tata Chemicals has adopted an internationalisation strategy. It acquired an equal
partnership in Indo Maroc Phosphore SA (IMACID), along with Chambal Fertilisers and global phosphate major OCP
of Morocco in that year. In early 2006, it completed the acquisition of UK-based Brunner Mond Group and its
subsidiary, the Magadi Soda Company in Kenya.In 2007, it entered the fruits and vegetables distribution business by
setting up Khet-Se Agriproduce India, a 50:50 joint venture in partnership with Total Produce of Ireland, the world's
third-largest fresh produce distribution company. In 2008, Tata Chemicals acquired General Chemical Industrial
Products, one of the largest soda ash manufacturers in the US. With this, TCL's global soda ash capability stands at
around 5.5 million metric tonnes per annum.

Innovation: TCL plans to leverage its expertise in chemicals and agri-businesses together with its in-house research
capabilities to develop strengths in new businesses and sustainable technologies. The company set up the TCL
Innovation Centre in 2004 to develop world-class R&D capability in nanotechnology and biotechnology, and is also
working to build a significant presence in the biofuels sector. Its Innovation Centre is also working on technologies
that can mitigate climate change through "green chemistry" and product offerings that will make a difference like flue
gas treatment, carbon absorption and nano glass-coatings for insulation.

Sustainable chemistry: Tata Chemicals is committed to meeting the highest standards of corporate governance and
business practices. All of its activities integrate the principles of corporate sustainability. The company is a signatory
to Responsible Care, a voluntary global initiative of the chemical industry that demonstrates allegiance to safety,
health and environmental issues. Its Mithapur and Babrala plants have won the highest British Safety Council 5-star
rating. Tata Chemicals works directly with farmers in India to help solve crop problems and enhance yields. The
company has set up a network of Tata Kisan Sansars (farmer centres) in the Indian states of Uttar Pradesh,
Uttaranchal, Punjab, Haryana, Jharkhand, West Bengal and Bihar. The network services around 22,000 villages, with
access to over 3.5 million farmers.In 1980, Tata Chemicals set up a non-governmental organisation – Tata Chemicals
Society for Rural Development (TCSRD) – that works towards holistic community development, including managing
water, land and other natural resources, encouraging enterprise development, and promoting health and education.
TCSRD's activities have been recognised at a national level. Tata Chemicals is also involved in efforts to preserve
the biodiversity of land along the coastline and the nesting sites of migratory birds. TCL and Wildlife Trust of India
(WTI) have signed an MoU for a conservation project that will create awareness and undertake research to save the
endangered species of whale shark that visits the coastal shores of Gujarat.

Tata Chemicals broadly operates in three sectors — living essentials (household products), industry essentials and
farm essentials (crop nutrition and protection) — giving it a wide and diverse customer base. The core concept
behind its product and services portfolio is to provide inputs for better living.The company’s sustainable approach to
business has led it to work towards optimising the use of raw materials, resources and technology and creating a
portfolio of products that find application across industries and consumers. It has taken several key steps to develop
a high-tech and sustainable product portfolio by leveraging its business and scientific expertise.Tata Chemicals has
established the TCL Innovation Centre in Pune with world-class R&D capabilities in the emerging areas of
nanotechnology and biotechnology. TCL's Centre for Agriculture and Technology at Aligarh provides advice on
practices and solutions related to farming and crop nutrition. The company has also entered into a joint venture with
Temasek Life Sciences Laboratory in Singapore for the development of better varieties of seedlings and agronomic
practices.

Living essentials
Basic products for daily living, such as salt, sodium bicarbonate or baking soda products, fresh produce and water-
related products
The company’s foray into household and consumer necessities started with an idea – using iodised salt to resolve
health issues arising out of iodine deficiency in India. Tata Chemicals has launched a range of iodised salts in India
and today is considered a business superbrand in Indian industry. Today, the Consumer Products Business (CPB)
comprises branded iodised edible salt, sodium bicarbonate and water purifiers, among other offerings. Besides the
iconic brand Tata Salt, the company's products include a new refined salt brand called I-Shakti; Tata Salt Lite
(contains 15 per cent less sodium than ordinary salts and caters to health-conscious low-sodium salt users); and
Topp Salt, a brand of edible salt created for export. I Shakti, a cooking soda, is marketed as a leavening agent.To
leverage its reach with farmers and housewives, TCL started Khet-Se, a fresh fruit and vegetable distribution
business in India, in 2007 as a 50:50 joint venture with Total Produce of Ireland. Total Produce is the third largest fruit
and vegetable distribution company in the world and Europe’s largest fresh produce provider. The first Khet-Se centre
has already opened in Punjab; the next will come up in Maharashtra. Khet-Se will source fruits and vegetables for the
fruit and vegetable retailer through its conveniently located wholesale stores.Safe drinking water is still a pipe dream
for the majority of India’s lower middle class and poor. TCL met this challenge by launching Tata Swach in December
2009. Tata Swach is a unique and innovative water purifier that combines low-cost ingredients such as rice husk ash
with nano-technology. The product provides performance, convenience and, above all, affordability, and serves a
basic human right of millions of consumers.

Industry essentials
Products that form essential inputs to diverse industries across the glass, detergents, mining and chemical
processing sectors
Soda ash, one of TCL’s main products, finds use in several industries, including the manufacturing of glass, pulp and
paper, detergents and industrial chemicals. TCL’s customer base includes some of the world’s leading and most
recognisable brands and companies, such as Procter & Gamble, Church & Dwight, Unilever, Saint Gobain,
Pilkington, Asahi, Owens Illinois, Guardian, PPG, Vale, Xstrata and Pilkington.Tata Chemicals' journey started as a
synthetic soda ash manufacturer at Mithapur, Gujarat. The salt works spread across 60sqkm can produce over 2
million tonnes of solar salt, the base raw material for almost all the 27 basic chemicals that the company produces.
The Mithapur plant is the largest integrated salt works and inorganic chemicals complex in this part of the world. It
has an installed capacity of 875,000 tpa -- about 34 per cent of the country's capacity -- making it one of the largest
producers of synthetic soda ash in the world.The company's soda ash capacity took a significant leap in early 2006
when it completed the acquisition of the UK-based Brunner Mond Group, one of the world’s leading manufacturer of
associated alkaline products, and added manufacturing plants in Northwich in the UK and Lake Magadi in Kenya.
Lake Magadi is a major alkaline evaporate deposit in Africa’s Great Rift Valley.In early 2008 TCL successfully
completed the acquisition of US-based General Chemical Industrial Products (GCIP), providing access to some of the
world’s largest and most economically recoverable trona ore deposits that are then converted to soda ash, and to
manufacturing facilities located at Green River Basin in Wyoming.

Along with soda ash, TCL also produces sodium bicarbonate, bulk chemicals such as sulphuric acid, phosphoric acid,
sodium tripoly phosphate (STPP), caustic soda, bromine-based products, chlorine based products, gypsum and
cement. TCL's cement business grew out of a sustainability and environment activity; the cement plant at Mithapur
was set up to consume the solid waste generated during the manufacture of soda ash. By instituting a more efficient
filtration process, TCL has worked towards capturing by-products and effluents of the soda ash manufacturing
process. The thousands of tonnes of effluent, thus diverted from negatively loading the environment, have been
converted into a usable commodity – cement – that is used for high quality construction in western India.

Farm essentials
Farm inputs needed to improve crop health and productivity, such as fertilisers, pesticides, specialty nutrients, seeds
and agri-services
The crop nutrition and agri-business unit has a presence across three key agro-nutrients – nitrogen, phosphorus and
potassium. Nitrogenous fertiliser (urea) is manufactured at Babrala in the northern state of Uttar Pradesh; phosphatic
fertilisers, DAP and complexes are manufactured at Haldia in West Bengal in eastern India; MOP is
imported.Currently, TCL is a dominant player in the crop nutrition segment and its subsidiary Rallis India is a leader in
the crop protection industry. Through Rallis, TCL is looking to enhance value creation as well as access to business
synergies in the crop nutrition and protection sectors, and thus strengthen its presence in the entire agri-input
space.The company also helps small farmers enhance farm yields by providing end-to-end solutions through a
network of Tata Kisan Sansars (farmer’s centres) in the Indian states of Uttar Pradesh, Punjab, Haryana,
Uttarakhand, West Bengal, Bihar and Jharkhand. Tata Kisan Sansars are one-stop resource centres; they stock
seeds, pesticides and fertilisers; lease out farm equipment and implements to farmers who cannot afford to buy
expensive modern machinery; provide agronomy services like soil testing and mapping and fertiliser testing; arrange
credit and crop insurance, and even provide buyback facilities.

New business

Tata Chemicals is leveraging its expertise in chemicals and agri-businesses to develop strengths in new sustainable
technologies in the nanotechnology and biotechnology space. The company is actively working to build a significant
presence in the biofuels sector. Its Innovation Centre is working on technologies that can mitigate climate change
through “green chemistry” and product offerings that will make a difference.

Biofuels
In 2007, Tata Chemicals decided to enter the biofuels business in India. A 30KL per day bioethanol facility, using
sweet sorghum as feedstock, has been set up at Nanded, Maharashtra. Arrangements have been made with farmers
in districts in and around Nanded, for growing sweet sorghum. The plant has proved the technical viability of
bioethanol production based on sweet sorghum. The company has also undertaken field research on Jatropha, a
non-edible tree crop for biodiesel production. Tata Chemicals has set up a research farm in Aurangabad and has
started varietal trials for developing a package of practice. The company has also set up multi location trials for
Jatropha in Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh.

TCL Innovation Centre

Tata Chemicals Innovation Centre was set up with the objective of developing world-class R&D facility working on
more than 20 projects in the areas of nanotechnology and biotechnology. It has now moved from being TCL-centric to
a having a much wider base of clients, from the Tata group as well as external companies.

The team of scientists at the centre is working in the following areas:

• Advanced materials

• Specialty chemicals

• Green chemistry and catalysis ,

Alternate energy

• Nutraceuticals

Advanced materials

Focus areas:
Nano materials, metals, ceramics, nano powder, nano composites , nano coatings,
customisation for both structural and functional applications

Capabilities:
Synthesis of nano materials
Surface functionalisation
Tailored nanostructure
Nano material synthesis through bio routes
Development of nano material scalable processes

Facilities:
Wet chemistry lab for nano material synthesis
Structural spectroscopic characterisation
Tie up with leading national and international, government and industrial research centres
for testing and synthesis facilities
Biochemicals and metabolites

Focus areas:
Enzymes, biopolymers and ingredients, platform chemicals,
surfactants and fine chemicals

Capabilities:

Isolation, screening and characterisation of the micro organisms

Recombinant DNA technology:
Gene cloning and expression of genes in bacteria for enzymes and specialty chemicals
Strain improvement using genetic engineering
 Protein purification and characterisation

Facilities:

All basic microbiology facilities

Facilities for molecular biology and strain improvement (PCR machine, electroporator,
DNA and protein electrophoresis units, DNA and protein blotting apparatus, GEL
documentation system etc.)

Green chemistry and catalysis, Alternate energy

Focus areas:
Sustainable and green chemical transformations, development of catalyst and catalytic
transformation for clean fuels and chemicals, bio fuels – ethanol, bio butanol from variety
of agricultural wastes and residues, technologies for bio diesel, solar energy, fuel cells,
bio-hydrogen and value addition of by-products thereof.

Capabilities:
Catalyst preparation
Catalytic reactions
Surface and chemical characterisation
Bio chemical engineering
Fermentation design and process development
Anaerobic fermentation
Process intensification
Scale up
Downstream processing

Facilities:
High pressure batch autoclaves
Vapour phase high temperature and pressure continuous reactors
Analytical equipments for characterisation
Fermentors
Ultra filtration
Chromatographic separations
High pressure autoclaves
Proprietary (Novel and IC designed) equipment
Alternate energy

Focus areas:
Bio fuels: Ethanol and Biobutanol from variety of agricultural wastes and residues.
Technologies for Bio-diesel, solar energy, fuel cells and bio-hydrogen, and value
added by-products.
 Capabilities:
Bio chemical engineering
Fermentation design and process development
Anaerobic fermentation
Process intensification
Scale up
Downstream processing

Facilities:
Fermentors
Ultra filtration
Chromatographic separations
High pressure autoclaves
Proprietary (Novel and IC designed) equipment

Projects under completion:

Bio-ethanol
Bio-diesel

Nutraceuticals
Focus areas:
Oligosaccharides, sweeteners, anti-obesity products through green routes

Capabilities:
Microbiology
Fermentation
Enzyme extraction and purification
Immobilisation
Biosynthesis of chemicals using enzymes

Facilities:
Fermentors
Down stream processing spray dryer, ion exchange chromatography, HPLC,
lypholyzer, ultra and nano filtration

Centre for Agriculture and Techonology (CAT)

The CAT has been set up in Aligarh, Uttar Pradesh to provide advice to farmers on farming and crop nutrition
practices and solutions. This centre is staffed with experienced scientists who are working in various areas of agri-
technology. Specific projects have been undertaken on determining area and crop specific nutrition products and
combinations, soil health tracking through indexing etc.The CAT is expected to provide TCL a competitive advantage
in the future and will provide a very strong base for the growth of the company in its customised fertiliser business,
specialty crop nutrients business and agribusiness

Present situation:- Milestones achieved by the company

2001
Production severely affected due to earthquake on January 26, 2001 and the fire in the power plant on March 2,
2001. Cement sales taken over from ACC Limited.

2002
Mithapur is awarded ISO-14001 certification.
The Chemicals Division at Mithapur is awarded the ISO-9001-2000 Migration certificate.

2003
Tata Salt ranked No. 1 Food brand in Brand Equity Survey of India's most trusted brands.
Babrala fertiliser plant registered with British Safety Council.
New initiatives taken up to consolidate and drive growth in the core business.
Chemical plant at Mithapur bags 'Certificate of Honour' and saltworks awarded 'Certificate of Merit' by Gujarat
State Safety Council.
Mithapur becomes the first industrial township to be awarded the ISO 14001 certificate.
The fertiliser plant gets ISO-14001 and OHSAS-18001 certification.

2004
ISO 14001 certification for the Babrala Township for implementation of Environment Management System.
Certification audit conducted by KPMG, India.
Tata Chemicals set up the Innovation Centre to develop world-class R&D capability in the emerging areas of
nanotechnology and biotechnology.

2005
First step towards internationalisation. TCL acquires an equal partnership in Indo Maroc Phosphore SA
(IMACID) along with Chambal Fertilisers and global phosphate major, OCP of Morocco.

2006
TCL completes acquisition of UK-based Brunner Mond Group, one of the world's leading manufacturers soda
ash and associated alkaline products.

2007
Khet Se Agriproduce set up as a 50:50 joint venture with Total Produce, Ireland, the third largest fruits and
vegetable distribution company in the world.

2008
TCL acquires US-based General Chemical Industrial Products (GCIP). Becomes world’s second largest soda
ash manufacturer.
2009
Tata Chemicals Limited, UREA division achieves RC 14001 - 2005 Certification
TCL has been certified under SA 8000:2001 standard for the Mithapur, Babrala and Haldia sites by RINA India
Pvt Ltd.

TATA Chemicals current situation in various fields:

Agriculture
In India, agriculture constitutes one quarter of the Indian economy. More significant, it employs two-thirds of the
nation's workforce and feeds a population of one billion people. Tata Chemicals believes that empowering farmers,
enriching the land and enhancing agricultural productivity are key factors to the nation's prosperity.

Tata Chemicals touches lives in agriculture through several ways: its basket of crop nutrition products, its Tata Kisan
Sansar network, and its fresh produce sourcing and distribution business, Khet-Se Agriproduce.

Fertilisers
In India Tata Chemicals is present in all three crop nutrition groups through its fertiliser product base that spans:
Urea (a nitrogenous fertiliser)
DAP (contains both nitrogen and phosphorus)
NPK complexes (contains all three nutrients)
SSP (phosphorus based)
Imported MOP (potassium based fertilisers)
Organic manure or fertilisers
Specialty fertilisers (calcium nitrate and zinc sulphate)

Tata Kisan Sansar

The Tata Kisan Sansar (TKS) is a network of nearly 600 farmer resource centres that caters to more than 3.5 million
farmers in 22000 villages in the northern part of India. The centres are one-stop solution shops that provide farmers
access to a wide range of agricultural inputs such as vital fertilisers, seeds, and pesticides; agricultural services such
as soil testing, crop information, and credit and insurance facilities; and IT-enabled market information.

The objective of the TKS network is to enable and empower the farmer in creating and generating more value for
farm produce by providing information on new and improved agronomic practices and by facilitating better and more
efficient use of agricultural inputs.

Khet-Se Agriproduce
Khet-Se Agriproduce is a joint venture between Tata Chemicals and Total Produce Inc of Ireland that sources fresh
vegetables and fruits directly from farmers and distributes to small retailers, wholesalers and institutional buyers
through its conveniently located wholesale stores. The company offers hygienically handled, high quality produce
which is delivered absolutely fresh to its customers.

Animal nutrition
The vacuum salt and sodium bicarbonate manufactured by Tata Chemicals are the trusted choice of farmers and
dairy owners for cattle and poultry feed.

Vacuum salt
This salt forms a vital component of cattle licks, which provide much-needed salt and minerals to dairy livestock and
supplement their normal diet. Cattle licks are available either as plain salt blocks or mineralised salt blocks. Plain salt
blocks comprise only salt, while mineralised salt blocks also contain essential nutrients such as cobalt, zinc, iron,
copper, manganese and iodine. The supplements in mineralised salt blocks help enhance the milk production in milch
cattle and keeps them healthy by regulating their metabolism.

TCL's vacuum salt is almost free from extraneous matter. It is edible common salt, manufactured by evaporating sea
brine in steam-heated vacuum evaporators. It can be dissolved very quickly due to its fine crystalline structure and is
more freely available in salting-out processes.

Sodium bicarbonate
TCL's refined sodium bicarbonate is ideally suited for poultry feed and diet for dairy animals. It is of particular value
as a non-chloride source of sodium in poultry diets. Bicarbonate is also essential for strengthening eggshell quality
under intensive production systems. When added to diets for dairy animals, sodium bicarbonate effectively counters
the acidity of silage- and cereal-based concentrates, maintaining feed pH at its optimum level.

Construction
Builders, architects and masons know that if the cement they use is not of the required standards, their buildings will
suffer from seepage in the first monsoon after construction. Tata Chemicals manufactures three varieties of cement
under the brand name Shudh Cement:

Ordinary Portland Cement (grade 53)

Masonry Cement

All Tata Chemicals' cement products are made in a 1,500 tonnes per day capacity plant with state-of-the-art
technology, which includes quality control at every stage of the production process with an online x-ray analyser. This
ensures a high level of consistency of quality in the manufacturing process.

Shudh Cement has already acquired a five per cent share of the cement market in Gujarat despite tough competition
from its better-established competitors. It has been recognised in the market as a superior product, ideally suited for
quality constructions. Shudh Cement far exceeds the quality norms and specifications prescribed by the Bureau of
Indian Standards

Consumer products
Tata Chemicals is the market leader in packaged salts in India with more than half the total market consuming Tata
brands. The reason: Tata Salt and its fellow brands go far beyond taste to target health initiatives such as iodine
deficiency and low sodium requirements.

Tata Salt has won accolades as India's most trusted food brand for several years. New brands I-Shakti and Tata Salt
Lite are also creating waves in the market.

Iodised salt
Tata Salt, the flagship product of TCL's food-additives division, is the top-selling branded salt in India, with around 60-
per cent share of the market. TCL's state-of-the-art production processes ensure that Tata Salt arrives in your kitchen
and on your dining table untouched by human hand. The company is committed to providing a pure, proven, high-
quality product. In fact, Tata Salt has been identified as a Superbrand from among 800 shortlisted brands.

Because of its purity and reliable quality, Tata Salt is the favoured choice of housewives, hotels and restaurants, and
manufacturers of packaged snacks, colas and salted snacks. The company also recently launched its Topp Salt
brand in the Middle East. Vacuum evaporated, super refined and iodine-enriched, Topp Salt has been introduced in
Dubai, and will move on to Abu Dhabi and Sharjah to cover the entire United Arab Emirates. The company also plans
a rollout in Oman, Kuwait, and Saudi Arabia.

Tata Salt Lite is a new low sodium salt launched by Tata Chemicals that has high health benefits. I-Shakti is another
salt brand that has been well-received in the market.

Vacuum salt
The purity of TCL's vacuum salt makes it an effective replacement for solar salt in all applications. It is also the
preferred brand for manufacturers of papad-khar.

Sodium bicarbonate
Sodium bicarbonate, or baking soda, is used as a 'raising agent' in a wide range of bakery products. TCL's refined
baking soda offers improved texture in cakes, biscuits and a number of other confectionery products. Because of its
superior quality, TCL's sodium bicarbonate is the product of choice for manufacturers of food-grade baking powder
and self-raising flours.

Cooking soda
Tata Chemicals has launched a branded cooking soda sold in small, single-use sachets under the brand name Tata
Samunder Cooking Soda. Cooking soda is an ingredient already familiar to Indian consumers but so far has only
been available in an unbranded form and is purchased either loose or in unmarked plastic pouches. Tata Samunder
Cooking Soda will create a more evolved and quality-conscious market for this product, in much the same way as
Tata Salt did in the early 1980s.

Defined as a value for money offering, Samunder refined food grade soda bicarbonate (NaHCO3) is pure and
unadulterated, and is the first branded food grade sachet cooking soda in the country.

Pharmaceuticals
The sodium bicarbonate manufactured by Tata Chemicals is a product that meets the pharmaceutical industry's high
standards in drugs and dental medicine.

Sodium bicarbonate is a vital ingredient in the production of over-the-counter drugs such as effervescent antacids,
analgesic tablets and powders, toothpaste and antacid gel formulations. In addition, sodium bicarbonate in the form
of an effervescent solution is also effective in cleaning dentures. High-purity sodium bicarbonate is also used as an
alkali in the pharmaceutical industry.

TCL's sodium bicarbonate, when further processed, meets the stringent quality criteria demanded by the
pharmaceutical industry. The company has, over the years, formed a reliable bond with such processors for
supplying them sodium bicarbonate of the highest quality.

Another TCL product that finds applications in pharmaceuticals is pure salt.

Soaps and detergents

The soaps and detergents industry is a major customer of the soda ash manufactured by Tata Chemicals.
Soda ash is used as a builder or filler, to deliver a smoother surface in the formulation of soaps, detergents and other
cleaning compounds. It is also used as an alkali in pH adjustment.

In addition, soda ash is used to manufacture ultramarine, which gives white clothes a sparkling look. Shampoos use
soda ash as a pH modifier, while soda ash precipitate is used as a soft abrasive in toothpaste.

Detergents require light soda ash with chloride percentages of 0.4 to 1.0 per cent. The bulk density of this soda ash
ensures volume benefits, while the low chloride content makes it ideal for use in washing machines.

In the detergent manufacturing process, soda ash can be hydrated to carry water as an inexpensive filler and to
enhance the storage and dissolving properties of the detergent. Soda ash is used in a slew of laundry and cleaning
compound formulations: as a builder to emulsify oil stains, to reduce the deposit of dirt during washing and rinsing, to
provide alkalinity for cleaning, and to soften laundry water. Additionally, soda ash is a component of sodium
tripolyphosphate (STPP), another major builder in detergent formulations.

In powdered laundry detergent, soda ash conditions the water and enhances the processing and performance of
formulated cleaning products.

Objectives:-

These are the principles and values that govern Tata Chemicals.

Mission
Serving society through science

Vision
We shall be amongst premier chemical companies by:
Leveraging science to deliver new and innovative offerings
Enhancing value to our customers
Delivering superior returns to our shareholders
Leading in corporate sustainability
Nurturing innovation, learning through diversity and team work amongst employees

Values
Integrity
Safety
Excellence
Care
Innovation

Management Research:-

Ratan Tata, Chairman

Ratan N Tata has been Chairman of Tata Sons, the holding company of the Tata
Group, since 1991. He is the chairman of Tata Chemicals Ltd, along with several
other Tata companies, including Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Tea, Indian
Hotels, Tata Teleservices and Tata AutoComp Systems. During his tenure, the Group’s revenues have grown over
ten-fold to annualised Group revenues of $62.5 billion.

Mr Tata joined the Tata Group in December 1962. After serving in various companies, he was appointed director-in-
charge of The National Radio & Electronics Company Limited (NELCO) in 1971. In 1981, he was named chairman of
Tata Industries, the Group’s other holding company, where he was responsible for transforming it into a Group
strategy think-tank, and a promoter of new ventures in high technology businesses. He is also the chairman of two of
the largest private sector promoted philanthropic trusts in India.

Mr Tata is associated with various organisations in India and abroad. He is chairman of the Government of India’s
Investment Commission and a member of the Prime Minister’s Council on Trade and Industry, the National Hydrogen
Energy Board and the National Manufacturing Competitiveness Council.

Mr Tata also serves on the International Investment Council set up by the president of the Republic of South Africa
and the UK Prime Minister’s Business Council for Britain. He is a member of the International Advisory Council of
Singapore’s Economic Development Board, the Asia-Pacific Advisory Committee to the board of directors of the New
York Stock Exchange and of the international advisory boards of the Mitsubishi Corporation, the American
International Group, JP Morgan Chase and Rolls Royce. He also serves on the boards of Fiat SpA and Alcoa.

Mr Tata is president of the court of the Indian Institute of Science and chairman of the Council of Management of the
Tata Institute of Fundamental Research. He is a member of the board of trustees of Cornell University and the
University of Southern California and of the Foundation Board of the Ohio State University. He is also a member of
the Global Business Council on HIV/AIDS and the Programme Board of the Bill & Melinda Gates Foundation's India
AIDS Initiative.

Mr Tata received a Bachelor of Science degree in architecture with structural engineering from Cornell University in
1962 and worked briefly with Jones and Emmons in Los Angeles before returning to India later that year. He
completed the Advanced Management Program at Harvard Business School in 1975.

The Government of India honoured Mr Tata with its second highest civilian award, the Padma Vibhushan, in 2008.
Earlier, in 2000, he had been awarded the Padma Bhushan. He has also been conferred an honorary doctorate in
business administration by the Ohio State University, an honorary doctorate in technology by the Asian Institute of
Technology, Bangkok, an honorary doctorate in science by the University of Warwick, and an honorary fellowship by
the London School of Economics.

R Gopalakrishnan, vice chairman

R Gopalakrishnan is executive director of Tata Sons, vice chairman of Tata
Chemicals and chairman of Rallis India and of Advinus Therapeutics. He is a director
on the boards of several Tata companies, among them Tata Motors, Tata Power and
Tata Teleservices.

A key member of the Tata Group Corporate Centre, Mr Gopalakrishnan plays a vital
role in providing direction and impetus to the Group's forays into potentially viable
areas of the new economy.

Mr Gopalakrishnan joined Hindustan Lever (now Hindustan Unilever) as a

management trainee in 1967. In 1987, he joined the company’s management
committee as executive director of exports. In 1991, he was appointed chairman of
Unilever Arabia, based in Jeddah, to establish and manage Unilever's consumer products business in Arab countries.

On his return to India in 1995, Mr Gopalakrishnan was appointed managing director of Brooke Bond Lipton. After the
company's merger with HLL, he was designated vice chairman of Hindustan Lever. After 31 years with Hindustan
Lever, Mr Gopalakrishnan joined Tata Sons in September 1998 as executive director.

A graduate in physics from Calcutta University, Mr Gopalakrishnan also has a degree in engineering from the Indian
Institute of Technology, Kharagpur. He has been president of the All India Management Association and is involved
with education through his board memberships of a school and two management colleges. Mr Gopalakrishnan is the
author of The Case of the Bonsai Manager, published by Penguin India in 2007.

R Mukundan, managing director

Ramakrishnan Mukundan is the managing director of Tata Chemicals Limited (TCL), and was the executive director
of the company. Prior to that, he was the executive vice president (chemicals) and was responsible for the chemicals
business and consumer products business of TCL and its subsidiaries.

He joined TCL in 2001 and led various functions like strategy and business development, corporate quality, corporate
planning, and manufacturing before taking over as the chief operating officer of the
chemicals business of the company. He played an active role in the TCL
transformation efforts in 2002, and also in the growth of domestic business as well as
acquisition of new facilities in Brunner Mond (UK), Magadi Soda (Kenya) and General
Chemicals (US).

Mr Mukundan has been a member playing decisive role in several industry forums
like Indian Chemical Council, past executive member of Automotive Components
Manufacturers Association, past president of Alkali Manufacturers Association of
India, CII Chemical Industry forum.

An engineer from IIT Roorkee, Mr Mukundan, 42, joined the Tata Administrative Service (TAS) in 1990 after
completing MBA from Faculty of Management Studies (FMS), New Delhi and worked with Tata AutoComp Systems
and Indian Hotels Company Limited (IHCL). He is an alumnus of Harvard Business School’s advanced management
programme.

Mr Mukundan lives in Mumbai with his wife Sheila, a doctor, and son Siddharth who goes to school. He is an avid
reader, traveller, and a fitness enthusiast.

PK Ghose, executive director and CFO

Prashant Kumar Ghose is the executive director and CFO of Tata Chemicals Limited
(TCL). He was the executive vice president and chief financial officer of the company
responsible for treasury, accounting, taxation, strategic finance, secretarial, and
information technology.

He started his career with Tata Steel in 1973 and has held several important positions
in the company before becoming the chief financial controller (corporate) of the
company in 2001. He was elevated as the chief of strategic finance of Tata Steel later
during that year. After a successful stint at Jamshedpur, Mr Ghose joined TCL as the
CFO in 2002.

Mr Ghose was awarded the CFO of the Year (cost optimisation) in 2003, and CFO of
the year in 2006 for ‘Deal of the Year’.

Mr Ghose, 58, is a graduate in commerce and a member of the Institute of Cost and Works Accountants (ICWA) of
India and the Institute of Company Secretaries of India. He is also an alumnus of the Advanced International General
Management programme of CEDEP, France.

He lives in Mumbai with his son Saurabh, who is a banker, and daughter Shreya, who is studying business
management. Mr Ghose is an avid cricketer and photographer.

Directors
Prasad R Menon Nusli N Wadia Nasser Munjee
Dr Yoginder K Alagh Dr M S Ananth E A Kshirsagar
Dr Y S P Thorat

The business of service

With years of expertise in the agri-business space, Tata Chemicals has extended its business operations into the
services sector in India.

Tata Kisan Sansar

Tata Kisan Sansar outlets form a network of franchised retail outlets in the Indian states of Uttar Pradesh,
Uttaranchal, Punjab, Haryana, Jharkhand, West Bengal and Bihar. The network of agri-service centers, serve an area
of around 22,000 villages, with access to over 3.5 million farmers.

The centres are one-stop resource centres – they stock seeds, pesticides and fertilisers, lease out farm equipment
and implements, and provide services such as soil testing and mapping, fertiliser mapping, credit finance, crop
insurance, etc.

Khet Se
Tata Chemicals, through its new business venture Khet-Se Agriproduce India, has set up state-of-the-art facilities for
fresh fruit and vegetables sourcing, packaging and distribution. The first centre has already opened in Punjab; the
next will come up in Maharashtra. Khet-Se will source fruits and vegetables for the fruit and vegetable retailer through
its conveniently located wholesale stores.

The organisation will cater to customers such as small retailers, organised retailers, and the institutional segments
comprising of hotels, restaurants and caterers. Khet-Se offers hygienically handled, high quality produce, which is
delivered absolutely fresh to its customers viz, Bharti Wal-Mart India Pvt Limited
Spencers, Namdhari Fresh Limited.

Call centres
Tata Chemicals has set up business process outsourcing (BPO) centres in Mithapur, Gujarat and Babrala, Uttar
Pradesh. These centres are unique in the sense that they are based in rural India, and thus provide employment and
self-sustaining community development opportunities to the communities of these areas.
The centres, called Uday, are an initiative of the Tata Chemicals Society for Rural Development (TCSRD), a
community initiative arm of TCL. In areas where job opportunities were close to zero,Uday, the company's rural BPO,
along with SerWizSol at Mithapur and Babrala has been providing job opportunities to 206 rural youth and has
brought sunshine in their life.

Products:-

Tata Chemicals' products find use in a wide range of pharmaceutical, food processing and industrial applications that
touch our lives on a daily basis. From food processing and fresh produce, to detergents and drugs, Tata Chemicals
produces high quality chemicals and ingredients that go a long way to improving the quality of our lives.

Living essentials
Cooking soda : Tata Samunder
Fresh produce
Salt: Tata Salt, I-Shakti, Tata Salt Lite
Tata Swach

Industry essentials
Soda ash
Sodium bicarbonate
Alkakarb
Chemicals: Caustic soda, chlorine based products, bromine based products,
gypsum, phosphoric and sulphuric acids
Sodium tripolyphosphate
Cement: Tata Shudh

Farm essentials
Customised fertilisers
Fertilisers: Tata Paras urea,
DAP, NPK, SSP

New business
Biofuels

Bio fuels
Tata Chemicals' biofuels business has grown out of its extensive expertise in chemicals manufacturing, the
agriculture and crop-nutrition space, and its research capability through the Innovation Centre. Its product portfolio
includes

Bioethanol
Biodiesel

The business is currently focused on working with sustainably grown feedstock for first generation bioethanol and
biodiesel. The bioethanol plant in Nanded, Maharashtra, is a 30KL/day facility using sweet sorghum as feedstock for
bioethanol, and sweet sorghum bagasse as fuel for generating power. Sweet sorghum which contains 10-12 per cent
sugar content can be crushed and processed like sugar cane and has the added advantages of reaching maturity
within a 110-day period and requires only one-third quantity of water for cultivation.

For biodiesel, the company is currently focused on identifying, developing and cultivating superior varieties of
jatropha as feedstock. TCL has also recently acquired an equity stake in JOil (Singapore), a jatropha seedling
company founded by Temasek Life Sciences Laboratory, that will set up tissue culture labs in India and other
locations to develop jatropha seedlings using micro-propagation techniques. Tata Chemicals will also have exclusive
marketing rights for JOil’s jatropha seedlings in India and East Africa.

Apart from this, the company is actively involved in biofuels research. TCL's Innovation Centre is working on
advanced technologies including second generation biofuels, technology for better processing of feedstock and on
by-products. The company plans to utilise the Nanded facility as a pilot plant for the research and development of
cellulose-based bioethanol and biobutanol. TCL is also a part of ICRISAT’s Sweet Sorghum Ethanol Research
Consortium (SSERC).

Market Analysis:-
Tata Chemicals (TCL) was recognised as the second runner-up at Business world-FICCI-SEDF Corporate Social
Responsibility Award 2006 ceremony held at the FICCI Auditorium, New Delhi on May 7, 2007. Dr APJ Abdul Kalam,
the honourable president of India, gave away the awards.

The award recognises and applauds the contribution and achievements of corporates in the area of corporate social
responsibility in India. Business & Community Foundation (BCF), an NGO, visited all the short listed companies for
'on-site verifications'. A jury comprising of eminent personalities like Dr Adid Hussian, Justice Leela Seth and others
made the final selections for the award.

Homi Khusrokhan, managing director, TCL, said, "Concern for all our stakeholders is central to the value system at
Tata Chemicals and the company has always prided itself on its relationship with the communities that it serves. We
have a stated CSR policy that is strictly followed. The policy translates into various developmental initiatives that we
undertake for our employees, the environment and the communities around our plants. Additionally, volunteerism is
encouraged and recognised throughout the organisation. This also helps us to fulfill our CSR goals
TATA CHEMICALS’ BUSINESS UNITS AND GROWTH STRATEGY

Tata Chemicals Limited (TCL) is a global company with interests in chemicals,

cropnutrition and consumer products and serves a diverse set of customers across
fivecontinents. Established in 1939 at Mithapur, the Company today has the world’s
secondlargest capacity in soda ash and is a pioneer and market leader in the Indian
brandediodized salt segment. TCL is one of India’s leading producers of nitrogenous
andphosphatic fertilizers in the private sector and markets a range of crop
nutritionofferings under Tata Paras brand.

TCL has its manufacturing facilities across four continents. With manufacturingfacilities in
India, UK, Kenya and USA, TCL is the world’s most geographicallydiversified soda ash
company with almost two-thirds of capacity comprising natural sodaash giving it global
competitive advantage. TCL is also the fourth largest manufacturer ofsodium bicarbonate
in the world. Our nitrogenous fertilizer plant at Babrala is thecountry’s most energy
efficient fertilizer unit. Phosphatic fertilizers aremanufactured at Haldia.

In the industrial chemicals business, the focus is on defending share in the soda
ashmarket with simultaneous efforts towards greater value extraction from our assets.
Whiledemand and prices have shown an upward trend in 2010, overall sentiment
remains cautiousand we continue our efforts towards improving the efficiency of our
operating sites.During the year, our North American operations competed aggressively
with Chinese materialwhile we defended our positions in the Indian and European
markets. Operations atDelfzijl, Netherlands were discontinued with a view on long-term
sustainability of ourbusiness.

Within the crop nutrition and agri-business, the urea business achieved record
salesalong with continuing improvement in operational efficiency. We were able to
maintainphosphatics sales volumes at last year’s levels despite operations being
adverselyaffected by disturbances in Haldia. Our agri-business initiative Tata Kisan
Sansarcontinues to expand into new geographies increasing its footprint to 673 stores,
up from580 last year. Besides continued progress in the above, TCL is poised to start
productionat its pioneering customized fertilizer plant at Babrala this year. Also in 2009,
TCLacquired controlling stake (50.06%) in Rallis India Ltd., which is a leading player in
thecrop protection business, thereby strengthening our basket of offerings to the
farmer.Overall, TCL intends to increase its presence in the Indian farm while continuing
effortsto secure critical inputs for the fertilizer business. On the consumer products front,
TCLcontinues to leverage its strong brand equity and distribution network in the
saltbusiness. Tata Salt regained the No. 1 Most Trusted Food Brand label in India. I-
Shakti,launched in 2007-08 is already close to becoming the second largest national
packaged saltbrand in the country. Overall our brands achieved a market share of over
59% amongnational salt brands. During the year, TCL also launched its latest innovative
offering,the low cost water purifier TATA Swach, based on a new technology developed
with thesupport of TCL Innovation Center.

INORGANIC CHEMICALS SEGMENT

TCL’s Chemicals Business consists of Industrial Chemicals business and

ConsumerProducts business.

Industrial Chemicals

The Industrial Chemicals business manufactures and sells soda ash (Na2CO3),
sodiumbicarbonate (NaHCO3) and other industrial chemicals such as STPP and cement.
Of these,soda ash and sodium bicarbonate are products in which the Company is a
global player.Additionally, operations in India produce STPP, gypsum and cement, and in
Customers catering: Tata Chemicals broadly operates in three sectors — living essentials (household products),
industry essentials and farm essentials (crop nutrition and protection) — giving it a wide and diverse customer base.
The core concept behind its product and services portfolio is to provide inputs for better living.

The company’s sustainable approach to business has led it to work towards optimising the use of raw materials,
resources and technology and creating a portfolio of products that find application across industries and consumers.
It has taken several key steps to develop a high-tech and sustainable product portfolio by leveraging its business and
scientific expertise.

Tata Chemicals has established the TCL Innovation Centre in Pune with world-class R&D capabilities in the emerging
areas of nanotechnology and biotechnology. TCL's Centre for Agriculture and Technology at Aligarh provides advice
on practices and solutions related to farming and crop nutrition. The company has also entered into a joint venture
with Temasek Life Sciences Laboratory in Singapore for the development of better varieties of seedlings and
agronomic practices.

Living essentials
Basic products for daily living, such as salt, sodium bicarbonate or baking soda products, fresh produce and water-
related products
The company’s foray into household and consumer necessities started with an idea – using iodised salt to resolve
health issues arising out of iodine deficiency in India. Tata Chemicals has launched a range of iodised salts in India
and today is considered a business superbrand in Indian industry.

Today, the Consumer Products Business (CPB) comprises branded iodised edible salt, sodium bicarbonate and
water purifiers, among other offerings. Besides the iconic brand Tata Salt, the company's products include a new
refined salt brand called I-Shakti; Tata Salt Lite (contains 15 per cent less sodium than ordinary salts and caters to
health-conscious low-sodium salt users); and Topp Salt, a brand of edible salt created for export. I Shakti, a cooking
soda, is marketed as a leavening agent.

To leverage its reach with farmers and housewives, TCL started Khet-Se, a fresh fruit and vegetable distribution
business in India, in 2007 as a 50:50 joint venture with Total Produce of Ireland. Total Produce is the third largest fruit
and vegetable distribution company in the world and Europe’s largest fresh produce provider. The first Khet-Se centre
has already opened in Punjab; the next will come up in Maharashtra. Khet-Se will source fruits and vegetables for the
fruit and vegetable retailer through its conveniently located wholesale stores.

Safe drinking water is still a pipe dream for the majority of India’s lower middle class and poor. TCL met this
challenge by launching Tata Swach in December 2009. Tata Swach is a unique and innovative water purifier that
combines low-cost ingredients such as rice husk ash with nano-technology. The product provides performance,
convenience and, above all, affordability, and serves a basic human right of millions of consumers.

Industry essentials
Products that form essential inputs to diverse industries across the glass, detergents, mining and chemical
processing sectors
Soda ash, one of TCL’s main products, finds use in several industries, including the manufacturing of glass, pulp and
paper, detergents and industrial chemicals. TCL’s customer base includes some of the world’s leading and most
recognisable brands and companies, such as Procter & Gamble, Church & Dwight, Unilever, Saint Gobain,
Pilkington, Asahi, Owens Illinois, Guardian, PPG, Vale, Xstrata and Pilkington.
Tata Chemicals' journey started as a synthetic soda ash manufacturer at Mithapur, Gujarat. The salt works spread
across 60sqkm can produce over 2 million tonnes of solar salt, the base raw material for almost all the 27 basic
chemicals that the company produces. The Mithapur plant is the largest integrated salt works and inorganic
chemicals complex in this part of the world. It has an installed capacity of 875,000 tpa -- about 34 per cent of the
country's capacity -- making it one of the largest producers of synthetic soda ash in the world.

The company's soda ash capacity took a significant leap in early 2006 when it completed the acquisition of the UK-
based Brunner Mond Group, one of the world’s leading manufacturer of associated alkaline products, and added
manufacturing plants in Northwich in the UK and Lake Magadi in Kenya. Lake Magadi is a major alkaline evaporate
deposit in Africa’s Great Rift Valley.

In early 2008 TCL successfully completed the acquisition of US-based General Chemical Industrial Products (GCIP),
providing access to some of the world’s largest and most economically recoverable trona ore deposits that are then
converted to soda ash, and to manufacturing facilities located at Green River Basin in Wyoming.

Along with soda ash, TCL also produces sodium bicarbonate, bulk chemicals such as sulphuric acid, phosphoric acid,
sodium tripoly phosphate (STPP), caustic soda, bromine-based products, chlorine based products, gypsum and
cement.

TCL's cement business grew out of a sustainability and environment activity; the cement plant at Mithapur was set up
to consume the solid waste generated during the manufacture of soda ash. By instituting a more efficient filtration
process, TCL has worked towards capturing by-products and effluents of the soda ash manufacturing process. The
thousands of tonnes of effluent, thus diverted from negatively loading the environment, have been converted into a
usable commodity – cement – that is used for high quality construction in western India.

Farm essentials
Farm inputs needed to improve crop health and productivity, such as fertilisers, pesticides, specialty nutrients, seeds
and agri-services
The crop nutrition and agri-business unit has a presence across three key agro-nutrients – nitrogen, phosphorus and
potassium. Nitrogenous fertiliser (urea) is manufactured at Babrala in the northern state of Uttar Pradesh; phosphatic
fertilisers, DAP and complexes are manufactured at Haldia in West Bengal in eastern India; MOP is imported.

Currently, TCL is a dominant player in the crop nutrition segment and its subsidiary Rallis India is a leader in the crop
protection industry. Through Rallis, TCL is looking to enhance value creation as well as access to business synergies
in the crop nutrition and protection sectors, and thus strengthen its presence in the entire agri-input space.

The company also helps small farmers enhance farm yields by providing end-to-end solutions through a network of
Tata Kisan Sansars (farmer’s centres) in the Indian states of Uttar Pradesh, Punjab, Haryana, Uttarakhand, West
Bengal, Bihar and Jharkhand. Tata Kisan Sansars are one-stop resource centres; they stock seeds, pesticides and
fertilisers; lease out farm equipment and implements to farmers who cannot afford to buy expensive modern
machinery; provide agronomy services like soil testing and mapping and fertiliser testing; arrange credit and crop
insurance, and even provide buyback facilities.

New business

Biofuels | TCL Innovation Centre | Centre for Agricultre and Techonology (CAT)
Tata Chemicals is leveraging its expertise in chemicals and agri-businesses to develop strengths in new sustainable
technologies in the nanotechnology and biotechnology space. The company is actively working to build a significant
presence in the biofuels sector. Its Innovation Centre is working on technologies that can mitigate climate change
through “green chemistry” and product offerings that will make a difference.

Biofuels
In 2007, Tata Chemicals decided to enter the biofuels business in India. A 30KL per day bioethanol facility, using
sweet sorghum as feedstock, has been set up at Nanded, Maharashtra. Arrangements have been made with farmers
in districts in and around Nanded, for growing sweet sorghum. The plant has proved the technical viability of
bioethanol production based on sweet sorghum. The company has also undertaken field research on Jatropha, a
non-edible tree crop for biodiesel production. Tata Chemicals has set up a research farm in Aurangabad and has
started varietal trials for developing a package of practice. The company has also set up multi location trials for
Jatropha in Gujarat, Maharashtra, Tamil Nadu and Andhra Pradesh.

TCL Innovation Centre

Tata Chemicals Innovation Centre was set up with the objective of developing world-class R&D facility working on
more than 20 projects in the areas of nanotechnology and biotechnology. It has now moved from being TCL-centric to
a having a much wider base of clients, from the Tata group as well as external companies.

The team of scientists at the centre is working in the following areas:

Advanced materials
Specialty chemicals
Green chemistry and catalysis , Alternate energy
Nutraceuticals

Centre for Agriculture and Techonology (CAT)

The CAT has been set up in Aligarh, Uttar Pradesh to provide advice to farmers on farming and crop nutrition
practices and solutions. This centre is staffed with experienced scientists who are working in various areas of agri-
technology. Specific projects have been undertaken on determining area and crop specific nutrition products and
combinations, soil health tracking through indexing etc.

The CAT is expected to provide TCL a competitive advantage in the future and will provide a very strong base for the
growth of the company in its customised fertiliser business, specialty crop nutrients business and agribusiness

Competition with other competators:

Last Market Sales Net Total

Price Cap. Profit Assets
(Rs. cr.) Turnover

Tata
Chemicals 361.2 9,201.80 5,476.64 434.78 7,221.58
 United
Phos 183.4 8,087.17 2,555.13 181.29 4,075.41

Pidilite Ind 154.7 7,829.90 1,949.77 293.5 1,359.09

BOC India 318.95 2,720.14 807.99 53.24 1,175.73

BASF 635.45 2,590.73 1,394.14 96.81 865.77

Guj
Flourochem 214.65 2,357.93 997.24 334.16 2,066.18
Himadri
Chem 48.95 1,888.16 505.93 107.34 1,150.65
Gulf Oil
Corp 112.05 1,110.92 976.06 45.07 726.94
Solar Ind 599.65 1,038.82 483.5 31.27 294.91

Guj Alkali 126.5 928.98 1,315.87 171.84 1,714.31

Balance Sheet comaprision to the

------------------- in Rs. Cr. -------------------
competators balance sheet
Tata Chemicals United Phos Pidilite Ind BOC India BASF

Mar '10 Mar '10 Mar '10 Dec '09 Mar '10
Sources Of Funds
Total Share Capital 243.32 87.91 50.61 85.28 40.77
Equity Share Capital 243.32 87.91 50.61 85.28 40.77
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 4,031.75 1,833.62 887.05 971.15 825.00
Revaluation Reserves 0.00 0.00 0.00 1.68 0.00
Networth 4,275.07 1,921.53 937.66 1,058.11 865.77
0.00
Secured Loans 249.24 226.08 218.45 0.00

Unsecured Loans 2,697.27 1,927.80 202.98 117.61 0.00

Total Debt 2,946.51 2,153.88 421.43 117.61 0.00
Total Liabilities 7,221.58 4,075.41 1,359.09 1,175.72 865.77
Tata Chemicals United Phos Pidilite Ind BOC India BASF
Mar '10 Mar '10 Mar '10 Dec '09 Mar '10
Application Of Funds
Gross Block 3,803.50 1,603.54 801.18 1,065.81 629.62
Less: Accum. Depreciation 2,211.06 630.76 388.92 375.76 386.31
Net Block 1,592.44 972.78 412.26 690.05 243.31
Capital Work in Progress 237.65 29.33 282.62 426.53 9.52
Investments 4,905.59 687.87 510.66 15.00 9.00
Inventories 611.19 287.01 250.63 67.57 349.51
Sundry Debtors 581.60 747.66 238.76 120.32 258.00
Cash and Bank Balance 624.96 131.35 32.83 17.68 27.29
Total Current Assets 1,817.75 1,166.02 522.22 205.57 634.80
Loans and Advances 391.39 1,851.08 108.99 233.86 244.98
Fixed Deposits 87.69 252.35 0.29 54.54 136.55
Total CA, Loans & Advances 2,296.83 3,269.45 631.50 493.97 1,016.33
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 1,457.74 781.51 380.27 417.12 358.18
Provisions 353.19 102.51 97.68 32.70 54.21
Total CL & Provisions 1,810.93 884.02 477.95 449.82 412.39
Net Current Assets 485.90 2,385.43 153.55 44.15 603.94
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 7,221.58 4,075.41 1,359.09 1,175.73 865.77
Contingent Liabilities 560.26 878.21 124.89 168.74 29.80
Book Value (Rs) 175.74 43.71 18.53 123.87 212.36

Tata and its competencies company and their strategies:-

Tata Chemicals started with competition. First there was global competition due to falling duties and, at times,
even dumping. While Tata Chemicals is an efficient manufacturer of soda ash, it was not geared to withstand
competition from the US industry, which harnesses natural soda ash from lakes full of it. Domestic competition
too cropped up when its largest customer, Nirma, went ahead and set up its own half a million tonne soda ash
plant last year.

Tata Chemicals was a pioneer in vacuum evaporated pure salt, but tremendous pressure was brought on it
through aggressive marketing by Hindustan Lever under the brand name: 'Annapurna'. Clearly, for HLL, salt was
a cheap way to establish an all-embracing food brand, Annapurna. Consequently, there were huge dealer
discounts. The delay in putting up a urea plant in Babrala too brought its own woes in terms of interest during
construction. At the same time, the current fertiliser policy, based on plant by plant allocation of subsidies, gives
no incentives to efficient producers while shielding inefficient ones.

As a result of all these factors, profits have been highly volatile and slipped from Rs 288 crore in 1998-99 to Rs
117 crore in 1999-2000. Consequently, the stock too is trading around Rs 50 down from a high of Rs 200-plus a
few years ago. Clearly, the main strength of Tata Chemicals is in manufacturing.

Rallis, on the other hand, is the exact opposite. Its main strength lies in marketing and distribution. Interestingly,
Rallis is one of the oldest companies still alive and kicking in India. A Greek entrepreneur, John Eustratio Ralli,
founded Ralli Brothers in India in 1851, which was rechristened Rallis India in 1948. From a trading company
Rallis transformed itself into an agrochemical company, spreading its activities from manufacturing and
formulating to distribution and marketing, primarily under the leadership of Vijay Rai. However, it also diversified
into pharma, trading in phosphatic fertilisers, seeds, etc and set up some subsidiaries, including one in Israel.
Rallis has pesticide manufacturing plants in several locations: Navi Mumbai, Akola (Maharashtra) Hyderabad,
Ankleshwar (Gujarat) but its main strength is its sales force that has made Rallis a premier brand in all the
important agrochemical markets. Rallis is also furiously focussing and has gotten rid of its engineering and
pharma business. Arguably, Rallis' R&D centre in Bangalore is the best in the Indian agrochemical industry. It is
the only toxicology lab in India of international standards.

But Rallis has lost money in its subsidiaries and has a huge debt burden of Rs 500 crore. As a result, Rallis'
record on the profitability front has been dismal. Even leading to a shocking Rs 25.6 crore loss last year. Even
when the going was good Rallis was not a very profitable company. With a top line that has grown from Rs
1,171 crore in 1996-97 to Rs 1,446 crore in 2000-01, the profits were a meagre Rs 22.80 crore and Rs 45.42
crore respectively. Of course, a lot of top line contribution comes from trading, where the margins are low.

As chairman Dr Freddie Mehta said in his address during the AGM on 10 September 2001: "The reported loss
during 1999-2000 is RS 25.6 crore. It actually includes a loss of Rs 33.2 crore, which had to be absorbed in the
clean-up operations, and Rs 19.3 crore non-operational income, mainly due to the sale of pharma brands and
property in Chennai. The losses came from: a write off of Rs 12.96 crore due to earlier debits, Rs 6.66 crore
from bulk drugs, sericulture and garment operations. Provisioning Rs 5 crore for more bad debts and Rs 8.5
crore loss in the JV in Israel."

Though Rallis expanded rapidly under the leadership of Vijay Rai, the recent dismal performance saw some
heads roll. The result: exit Rai in not too savoury circumstances, enter young Rajeev Dubey from Tata Metaliks
in September 2000.

The scene at Tata Chemicals too was no different. The poor performance of Tata Chemicals also brought in
management changes, leading to the rather dramatic exit of Manu Seth in August 2000 and the entry of Prasad
Menon, a veteran of the fertiliser industry. Gopalakrishnan, who is vice-chairman of Tata Chemicals and is also
on the board of Rallis, was pressed into service at Bombay House to set the house right. Gopalakrishnan
immediately saw the synergy in the two companies and, together with Menon and Dubey, started a restructuring
operation in earnest. Brainstorming about Tata's strategy in chemicals led to clear goals: the aspiration to
become the lowest-cost bulk industrial chemicals and to take a major initiative in rural India with a bouquet of
products and services to farmers distributing nutrients, fertilisers, pesticides and agronomical advisory services.

The outcome of this brainstorming and close coordination between Rallis and Tata Chemicals has also led to
speculation in the media about a merger of the two. Gopalakrishnan, however, pooh poohs it. The trio is now
totally focussed on turning around the two companies and recharging them to unassailable levels in customer
focus and manufacturing excellence.

Gopalakrishnan is so confident about the results of the process underway that he says: "Excellence achieved in
Tata Steel is a result of things set in motion several years ago. I am confident that what is happening in the
chemical companies of Tata Group — Rallis and Tata Chemicals — will lead to similar results in about three
years." Skeptics might consider it an overoptimistic statement, considering the dismal performance of the two
companies.

Business India spent several weeks visiting both Tata Chemicals and Rallis plants in Babrala, Mithapur,
Hyderabad, and the famous pesticide market Pattanam Bazaar, in Guntur (Andhra Pradesh), which is reputed to
be the largest in Asia, transacting over Rs 250 crore of business in a small street less than a kilometre in length.
We also visited the Rallis R&D centre in Bangalore and spoke to farmers in the Pesticide Efficacy Advisory
Centre (PEACE) in Andhra Pradesh and in Tata Kisan Kendras in the villages of Uttar Pradesh. The conclusion
was clear: adversity seems to have come as an opportunity to these companies. Rapidly they are being
transformed into powerhouses that can lead a major Tata initiative into agro business.
Of course, the exercise started with lopping off some old businesses and assets. For example, Rallis has
merged some of its subsidiaries like Ralchem into itself while selling off the pharma business to the Shreya
group for Rs 18.14 crore. It has also exited from the dyes and sericulture businesses. Gopalakrishnan also
discovered a large piece of valuable real estate in Andheri (Mumbai), which was not being used for anything
other than entertaining top management cadres. It has been sold for a sizable sum of Rs 133 crore to Tata
Sons. At that spot Tata Sons plan to build a world-class campus for the software geeks of Tata Consultancy
Services, thereby also exiting from several pieces of real estate in the more expensive Nariman Point. Using
group synergies, the expertise in instrumentation at Tata Honeywell and in IT-enabled manufacturing in TCS,
the two companies have been pressed into manufacturing Tata Chemicals.

Old dogs and new tricks

In the second phase of proactive steps, the first major initiative has come in HR. On the one hand, the Mithapur
plant had excess manpower, which has been pruned through a generous employee separation scheme. While
this was expected, what came as a pleasant surprise to insiders was the hefty hike that employees got in both
Tata Chemicals and Rallis. "We were working hard even earlier, but there were rumours of the Tatas
withdrawing from Rallis. But this hike came as a great morale booster, which showed that the leadership clearly
believes that despite current problems the company has a great future," says KT Vijaykumar, regional sales
manager of Rallis in Vijaywada.

It had a similar effect in Tata Chemicals as well. According to Anil Vaidya, COO, at Mithapur works, the most
interesting HR fall-out has come from an industrial accident. The fire in the power plant in Mithapur earlier this
year destroyed the plant and set back production in soda ash, salt and cement plants, but it also brought in great
teamwork. The power plant was rebuilt and brought on line in record time and plant engineers like IL Momin and
AG Vaidya take great pride in the same.

The momentum generated in this disaster management and rebuilding has greatly helped in pushing forward
'Action 500', a campaign to reduce the cost of production of soda ash by
Rs 500 per tonne by December 2001. Vaidya already claims to have achieved it and is preparing to launch the
next one to reduce the cost by Rs 1,500/tonne. Gopalakrishnan and Menon, however, are cautious on this front
and say "let the auditors substantiate the claim and then we will announce it". A healthy dose of realism no
doubt. But the goal is very clear: Tata Chemicals should become profitable even in a zero-duty regime despite
competition from natural soda ash producers.

On the fertiliser front too, Tata Chemicals is working hard to gain higher efficiencies. The fact that there is price
control and a consequent cost-plus regime, or that Tata Chemicals is already one of the most energy efficient
plants has not deterred them. However, the most interesting change that is coming over Tata Chemicals is on
the marketing front. "Strictly speaking, we did not have a marketing group five years ago, when I joined after a
long stint in Rallis," says Kapil Mehan, VP, sales and marketing. Tata Chemicals had preeminent market share
in soda ash, close to 60 per cent and customers used to get their quota. With imports and new capacity added
by Nirma, there came a rude shock. Since then its market share has fallen to about 40 per cent in soda ash and
margins have eroded too. "Now we have a team of 30 people in marketing and there are client service officers
for top-10 customers as in an ad agency," adds Mehan. Tata Salt, which had a preeminent position in the table
salt segment, has also been facing competition from HLL's Annapurna and smaller manufacturers. Mehan and
his team are working on a massive ad campaign to capitalise on the fact that Tata Salt is the only vacuum
evaporated pure salt in India. However, to cover the flanks they are also test marketing a cheaper crushed salt
under the brand name Samudra.

However, it is on the fertiliser front that Tata Chemicals has taken a major strategic initiative. Under Darbari
Seth's leadership, it set up a few modern centres, called Tata Kisan Kendras, in some parts of India, starting
with Ujjhani near Babrala (UP). Today they have blossomed into the front end of Tatas' ambitious and far-
reaching foray into agro business. Every Tata Kisan Kendra (TKK) has an agronomist who can advise farmers
on what cropping pattern to use or diagnose a particular pest attack in their crop and recommend the
appropriate agro chemical to be used. These centres also have a godown for fertilisers and a store that sells
anything from Tata Salt to pesticides. Several training sessions are held here for the surrounding farmers, who
enroll themselves in the TKK club. There is a waiting list to become a TKK member and a handful of people are
chosen from each village. The centres have all modern amenities, including conference rooms and cafeterias
and look futuristic in the impoverished UP milieu. For the sake of completeness, another service that is being
offered is modern farm machinery on hire at affordable rates.

When Business India visited the TKK in Ujjhani there was a day-long training session going on, covering
veterinary science to cropping patterns and agronomical information on new seeds and agrochemicals, in which
100 farmers were participating. The participants had come on their own expense and consisted of farmers
between 20 and 60 years of age. The community development team at Tata Chemicals, consisting of architect
couple Vivek and Alka Talwar, has plans to propel these villagers into the 21st century. They are working on a
major Geographic Information System project that will contain the most detailed rural database ever collected.
You just point and click on any piece of land in any surrounding village in the computer kiosk at a TKK and you
can get details of cropping pattern, satellite-based information regarding soil fertility contours, crop yield
estimation and even pest attacks. A farmer can just drop in at a TKK and get all the information he needs —
including the much-coveted land records.

Doesn't all this sound like expensive social work when the company is not doing too well? "Not at all. In fact, the
godown within a TKK sells about 3,000 tonnes of fertilisers and makes the whole centre self-supporting," says
BB Singh, who looks after fertiliser marketing.

It is this front end with farmers that Rallis excels in. "The Tata brand equity in rural India is a revelation," says
Rajeev Dubey, but he is understating Rallis' own network in bringing this about. But since there are so many
pesticide companies and any new product gets copied very fast, how do you maintain growth? There are two
ways of doing it. One is to constantly pump your R&D to come with better molecules and formulations.
Dr MS Mithyantha and his team at Rallis R&D centre at Bangalore are lining up such a pipeline. A factor which
reduces the time from lab to market for such products is this lab itself. It being arguably the best toxicology lab in
India, they can study the effect of any pesticide molecule on birds, bees, animals and so on, and file the required
data for regulatory approval. Even though this procedure is not as elaborate as that for new drugs, it is still quite
expensive and time consuming. Even MNCs who have discovered the molecules and are using them elsewhere
have to again file this data in India before introducing these molecules.

Since they have a rather elaborate set up, Rallis is offering this service to other companies and making money
on technical services. Quietly, Mithyantha's chemists and entomologists
have also come up with novel molecules which they are in the process of patenting. If one of these turn out to be
an effective pesticide molecule, then that will be the first agrochemical to be discovered in India.

There is a sea change on the marketing front in Rallis as well. "We have gotten rid of high-volume, low-margin
pesticides but the primary change that has come about in the last year is that the top management is on top of
the market situation and there is no dumping of inventory on us. Today we produce what we need and thus we
are able to get rid of the discount wars and realise better prices and also lower inventory in our distribution
network," says B Raj Kumar, regional sales manager of Hyderabad.

The other way to maintain farmers' mindshare is to have an extensive network of agronomists who act like crop
doctors. There is one major difference between pharma marketing and agrochemical marketing. Pharma
companies need only to educate the doctors about new drugs and make sure that the pharmacies carry them.
After all, the consumers — patients — have intrinsic belief in what the good doctor prescribes. In the case of
agrochemicals, there is no such structure. As a result, farmers depend on word of mouth and half-baked
information and tend to overuse pesticides, or the wrong ones and at the wrong time. They need farm doctors
who can test soil chemistry and advise on what fertiliser to use when and in what quantity. And when there is a
pest attack it should be diagnosed correctly and correct advice should be given on what agrochemical to use.
"Incorrect practices not only lead to extra chemical load on the crops and hence on the consumers, but also at
times serious resistance developing in the pests. Rallis is doing it with an army of paraagronomists. For
example, in Vijaywada alone we had deployed over 1,000 youth, armed with in-house training and a moped, to
stay with farmers during the busy season and deliver service," says KT Vijay Kumar.

The result of this kind of interface is an amazing amount of bonding. Business India was witness to an
impromptu farmers' meeting in a village near Aligarh (UP), where Dubey was questioned by about 30 farmers on
supplies of particular fertilisers and agrochemicals. The sense of bonding was so strong that these farmers were
least intimidated by the presence of the managing director of the company himself. Moreover, they seemed to
be surprisingly well-versed in phytochemistry.

Obviously, a quiet revolution is waiting to happen in the countryside and companies like Rallis and Tata
Chemicals are playing their part in hastening it. There is immense hunger among the farmers for agronomical
services, along with proper products. Rallis is also exploring seriously the seed market and Dr. A K Deshmukh
and his team at Pattancheru, near Hyderabad, are busy developing new hybrids and high-yielding varieties.

Rallis is also cautiously venturing into corporate agriculture by trying to reduce the role of intermediaries. "It is
clear that there is a multi-billion dollar opportunity in food processing and agro business, but the experience of
the corporate sector in this field is very mixed. There is Pepsi's experience in Punjab, there is Hindustan Levers'
experience with wheat growers and atta. There is also an unrelated but relevant experience of a lot of business
houses with aqua culture. That is why on a small scale we are doing some things in Chitradurga in Karnataka
and a different experiment in Madhya Pradesh and Haryana," says Dubey.

Tatas, ICICI and HLL have launched a 'Partnership Project' for contract farming in wheat and basmati rice in
Haryana and Madhya Pradesh to provide a profitable model for agriculture. Rallis and ICICI have also tied up
with big retail chains like Food World and Nilgiris and juice maker Sunsip for contract farming of fruits and
vegetables in Karnataka.

Thus two of the oldest companies in the Tata stable have weathered a financial crisis and the mixed legacy of
earlier management and are restructuring themselves. There are turnaround strategies ad nauseum in corporate
India, but what distinguishes the current change underway in Tata Chemicals and Rallis is the aggressive vision
of the group to position itself firmly in the hinterland of industrial India. In the process they are acting as agents
of social change even in the most backward villages, where the state has withered away.

Marketing strategy:-
The chemistry is clearly changing at Tata Chemicals. For starters, the exit of Mr Manu Seth from the Tata Chemicals
board in August 2000 gave way to chemical industry veteran Mr Prasad Menon coming in as managing director, and
Mr R Gopalakrishnan from the Tata Sons board as executive director. This comes at a time when the company is
also attempting to transform itself from a mere manufacturing company to a service-oriented, competent player in the
marketplace.

Like most of its peers in the Tata Group, Tata Chemicals too was labouring under the burden of the past. The
company is the largest producer of synthetic soda ash with its completely integrated plant at Mithapur, which also
produces nearly 300,000 tonnes of vacuum evaporated sodium chloride (common salt) as a byproduct. Also gypsum
(another byproduct) is used to make half a million tonnes of cement. What the company, however, lacked was
marketing skills to support its manufacturing strengths.

With a soda ash capacity of 8 lakh tonnes per annum and a nearly 60 per cent market share, there was a sense of
complacency. With falling import duties, Tata Chemicals was not armoured to withstand imports from the US, and
what perhaps acted as a catalyst is its largest consumer Nirma, setting up its own 42,000-tonne soda ash capacity.
As a result, the market share dropped to 42 per cent.

In the branded salt business, too, Tata Chemicals faced stiff competition from Hindustan Lever, who used their
distribution network to launch the Annapurna brand across India. Tata Salt, despite being the first player in the
branded salt market, lost a sizeable share to the Annapurna and the Captain Cook brands, largely due to its
inexperience as an FMCG player.

In fertilisers also, despite suffering many initial glitches, its urea plant of 7.5 lakh tonne capacity at Babrala, Uttar
Pradesh, is one of the most technologically advanced, cost efficient manufacturing facilities in the country. However,
price controls and a cost-plus regime does not help much. The fertiliser policy that shields inefficient players by
allocating subsidies based on plants, has not helped either.

Result: Profits had dwindled from Rs 288.63crore in 1998-99 to Rs164.95crore in 2000-01 and return on capital
employed had slipped from 17.41 to 11.26 during the same period.

Clearly, a constructive effort was the call of the day. "We realised that we had inherent manufacturing strengths, but
we had to enhance our operational efficiencies to become a formidable player and we have made significant progress
in that direction," says Mr Menon.

Operational revamp
To enhance its operations, the company, with the help of McKinsey, has chalked a four-pronged strategy: restructure
the marketing team, focus on the customer, streamline supply chain management and cut costs to improve margins,
and look out for alliances and partnerships to grow in new markets.

"We want to become the lowest cost producer of synthetic soda ash," says Mr Mukundan, vice-president (strategy
and business development). As the first step towards achieving that goal, the company had launched a programme
called Action 500, which was essentially to bring the variable cost of production down by Rs 500 per tonne. Currently,
the cost of production is around Rs 3,800 to Rs 4,000 per tonne.

Having achieved that, the next step is a project called Manthan, designed by McKinsey, which will be a continuous
effort to improve working capital and inventory management and rationalise costs. "With Manthan we have set no
targets, the idea is not to (merely) accept what is existing but continuously strive to achieve higher cost reductions
across all functions," says Mr Mukundan.

"What will perhaps stand the company in good stead in the long run is its recent focus on marketing," says an
industry expert. Mr Kapil Mehan, vice-president (sales and marketing) who joined the company five years ago, had to
virtually set up a marketing team, currently at 30. That, in a way, provided the much needed fillip to a non-existing
function at Tata Chemicals. To market soda ash, the company has not only widened its distribution network but has
also set up dedicated client servicing teams for its top few customers.

More market-friendly
The company has also set up a separate marketing team to handle the table salt business. "Marketing salt is a totally
different ball game and needs the strengths of an FMCG company," says Mr Mehan. Earlier, the company had sold
off its detergent brand Tata Shudh to Jyoti Laboratories, because it did not have the relevant expertise to market an
FMCG product like detergent.

Also, with Tata Shudh, Tata Chemicals was competing with its own customers, since the largest consumers of soda
ash are detergent companies. "It was difficult to get into that cutthroat competition with our own customers;
philosophically that business did not suit us," says Mr Mehan.

Today, the company is also toying with the idea of launching a cheaper crushed salt under the brand Samundar. The
test marketing is underway and this is likely to boost its salt business further. Already with an estimated 37 per cent
market share, it is ahead of HLL’s Annapurna which has 35 per cent.

On the fertiliser front, the Tata Kisan Kendras (TKKs) have provided the plank to reach out to customers. "We have
realised that to increase our urea sales we have to reach out to the farmers directly," says Mr Menon. The TKKs are
set up in areas where the company has a dominant presence, and farmers are advised on cropping patterns and the
use of pesticides and seeds. These centres also sell everything from fertilisers to Tata Salt, and modern farm
machinery is offered on hire. "These are meant to provide complete farm solutions to the farmers," says Mr Menon.
"These initiatives are in line with a long-term strategy of brand-building," says an analyst. The company will benefit
from eventual price decontrol due to superior margins and a firm relationship with its customers.

Even in its cement business, the company has revamped its marketing strategy. While it was marketed by ACC, the
company now markets its own produce. Tata Chemicals was scouting for a buyer for its cement unit, but due to its
size it has been unable to do so. "We have an open mind as far as cement is concerned. We will either sell it or rope
in a partner to take the capacity up to one million tonnes," says Mr Menon. Meanwhile, the company is marketing its
cement business under the purity plank and trying to get it back in the black.

What is perhaps encouraging is that in the third quarter of this fiscal, despite taking a Rs 20 crore cut in its top line on
account of the energy norms, the company has posted a 26 per cent increase in bottom line ."We are confident of a
stable future because of the measures we have initiated within the organisation," says Mr Menon.

The company has also revamped its human resource policies, by implementing an emolument scheme, based on
performance. The company has also reduced the number of layers within each department to avoid procedural
delays in any function.

To reward its shareholders, Tata Chemicals has launched a buyback option, for which the total outgo is expected to
be around Rs 125crore. Tata Chemicals has also realised that while it is important to get the basics right, so is
looking for greener pastures. In its second phase of engagement, McKinsey has been given the mandate to chalk out
areas of growth for the company. The company is also in talks with the government to pick up a stake in National
Fertilizers Limited (NFL) and Paradip Phosphates Limited (PPL). "We have completed the due diligence and are
waiting for the government’s decision," says MrMenon. The decision on PPL is likely to precede that of NFL.

The Tatas as well as the company’s investors are hoping that Mr Menon and his team will act as the right catalyst to
bring about these changes at Tata Chemicals.

Taking an example of TATA salt:-

Tata Salt's new communication strategy attempts to elevate the brand to the status of a national icon desh ka namak
(the country's salt). With this positioning, Tata Chemicals, the manufacturers of Tata Salt, hopes to break the brand
clutter caused by recent entrants in the salt market.

The pioneer in India's branded-salt industry, Tata Salt has held the No.1 position in the country since its launch in
1983. It has a 37 per cent share of the branded-salt market and an 18 per cent share of the total salt market.

Tata Chemicals' salt story began in 1983, when it needed fresh water for the boilers that produced soda ash at its
Mithapur plant. Fresh water was scarce, so the company set up a process to generate it by using seawater, a freely
available resource. Salt, of high quality and purity, was a by-product.

Says Kapil Mehan, vice president (sales and marketing), Tata Chemicals: "At that time both Unicef and the Indian
government were promoting the intake of iodine for health reasons. Salt is the most economical and convenient
dietary vehicle for iodine consumption."

The Tata brand advantage

These factors led to Tata Chemicals taking up salt production. "We marketed the product by prefixing the Tata name
to it," says Mr Mehan. "Our positioning statement emerged: Namak ho Tata ka, Tata namak." The line remains an
audio mnemonic for the brand. The communication was built around the fact that Tata Salt, India's first iodised salt,
was manufactured by a Tata company.
The first competitive challenge came in the early 1990s with the launch of Captain Cook. Positioned as a freeflowing
salt, it helped create awareness about brands in the salt segment. Tata Chemicals responded by releasing ads to
counter Captain Cook's claims. As more consumers moved from non-branded or local products to the national
brands, Tata Salt's inherent superiority and strong distribution network ensured its continuing growth in terms of
market share and category expansion.

In 1996, Annapurna, another national salt brand, was launched. It was positioned on the health benefits of iodine.
According to Mr Mehan, by that time iodisation had become almost a hygiene factor and consumers did not perceive
it as a differentiator.

The rising number of players in the branded-salt segment got Tata Chemicals to think of strategies to combat the
possibility of its market share being eroded. In 1998, the company conducted a comprehensive market research
study to understand the consumer psyche. The results ranked Tata Salt high on attributes such as iodisation, free
flow, purity and whiteness (consumers thought of Tata Salt as a saltier salt). The next commercial showed Sanjeev
Kapoor, the famous chef, endorsing the product for these attributes.

Pressing the purity button

By late 2001 several brands had entered the market. In September, 2001, Tata Salt was relaunched with a new
advertisement that talked about its purity, a core property of the brand. The packaging was also changed to a more
premium-looking pack, a response to consumer feedback.

Tata Chemicals brought in consultants to track the brand and review its marketing strategy. The results showed that
Tata Salt's brand equity index was 7, which was ahead of the competition. But a study by Quadra Consultancy on the
marketing strategy revealed that, though the brand awareness was still strong, the differences between the players
was getting cloudy.

"In order to sustain a competitive advantage over a long period of time, what is needed is for the consumer to
perceive you to be different from others," adds Mr Mehan. "The best way to differentiate is to connect with the
consumer at an emotional level."

The challenge, according to Mr Mehan, was to take purity, a rational product benefit, and create an emotional link
with the consumers. A new agency, Bates India, was chosen to work on the communication. Says JS Mani, vice
president and general manager, Bates India: "A strong fact that emerged from our research was that consumers were
troubled about the gradual erosion of our value system. Another factor was that salt is deeply rooted in grassroots
values. Putting them together, we linked the product (salt) with integrity of character."

The advertisements, released in August 2002, show ordinary people doing their duties with integrity and commitment.
"Integrity should not be seen only in the context of a uniform, or as integral to the occupation," says Mr Mani. Apart
from a policeman and an army officer, there is a railway linesman checking the fishplates in spite of heavy rains, and
a taxi driver returning a cell phone but refusing the reward.

The emotional link

"Our campaign is a reassurance for Tata Salt users," says Mr Mehan. "By using Tata Salt, a pure salt, he is a pure
human being. That's the emotional link."
The communication route is interesting because Tata Salt's leadership position is implied, not stated. The
commercials end with the consumer stating: "Maine desh ka namak khaya hai." "If everyone is eating the salt, then it
suggests that Tata Salt is the leading salt in the market," says Mr Mani.

Additionally, the company decided to contribute 10 paise on every packet of Tata Salt sold between August 15 and
September 15, 2002, towards the education of deprived girl children. The Desh Ko Arpan programme encouraged
ordinary individuals to make a difference. Over Rs35 lakh was collected and given to Child Relief and You through
this initiative.

The new campaign got an enthusiastic response from all Tata Chemicals employees, who signed a specially
designed poster reiterating their commitment to the product. "It was a very emotional event, " says Mr Mehan. "They
felt very proud to be part of a successful company with a No.1 brand."

Tata Chemicals had taken over the distribution of Tata Salt in December 2001 to make it more efficient. "The selling
and logistics functions are now separate entities," says Mr Mehan. "Sales and distribution teams concentrate on
developing markets and improving the penetration level of Tata Salt. The team is structured and focused like an
FMCG company."

In order to strengthen relations with its channel partners, the company organised a workshop to help them manage
business through insights into marketing and strategy skills. The workshop was greatly appreciated by the partners.

Potential to grow
Mr Mehan feels that the brand has tremendous potential to grow, since 70 per cent of the market consists of non-
branded salt. "Our focus is on two levels: to retain our core users and bring in new users."

The efforts have been successful. Tata Salt was voted the fourth most trusted brand in a survey conducted recently
by The Economic Times. "We were pleasantly surprised by the result, since salt was thus far not considered a
product exciting enough to feature in the survey," says Mr Mehan. "We knew that our brand was the best. This is due
to a combination of personal experience, the Tata name and product quality, which people have experienced for so
many years."

Tata Salt has a strong presence in the northern, western and eastern regions of India. The south is a weak area, but
the company is currently evaluating options to tackle this weakness. There are also plans to go global, and
discussions for Bangladesh and the Middle East are on the anvil.

"With the current level of activities in the market, we are looking at enhancing Tata Salts market share to 38-40 per
cent," says Mr Mehan. "But, more than that, we are looking at expanding the base of the category so as to bring in
new users."

Manufacturing:-

It is the most common thing on every dining table and yet it is the most important. To the richest and the
poorest, salt provides saltiness and basic taste to food; and if it is Tata Salt it also provides the requisite daily
dose of iodine.

Launched in 1983, Tata Salt pioneered packaged iodised salt in India. It offered millions of housewives an
opportunity to move away from the loose, unbranded salt of suspect quality to the reassurance of clean, pure
salt, guaranteed by India’s most trusted business house. Today, Tata Salt touches the lives of 40 million
households in India and is one of the two Tata brands (the other is Tata Indicom) which directly impact a large
part of the Indian population.

Tata Salt enjoys market leadership in the branded salt category with a 44-per cent market share. As a brand, it
is extremely popular, enjoying 100-per cent awareness among customers, the highest for any food brand
tracked in various studies. The trust that consumers have in the brand is reflected by the fact that since 2003, it
has been consistently ranked the number one food brand (except in 2007 when it was at number 2) by The
Economic Times Brand Equity ‘most trusted brands’ survey.

Quite an impressive achievement, especially when one considers that Tata Chemicals — the company which
manufactures Tata Salt — had no experience in marketing consumer products. It was essentially a company
producing soda ash. And salt was merely a by-product of using steam to make soda ash, at the company’s
Mithapur plant in Gujarat, India.

The decision to brand and sell this by-product as iodised table salt was adventitious. It so happened that in early
1980s the Indian government identified iodised salt as the most effective vehicle to deal with iodine deficiency
diseases rampant among the masses. Concerned with the widespread health problem, then industry minister
ND Tiwari approached Darbari Seth, the then managing director of Tata Chemicals, to find a solution. It was a
worthwhile cause and Mr Seth decided to support the government’s health campaign to eradicate iodine
deficiency disorders through iodised salt. So, desh ka namak (salt of the nation) is not just a marketing slogan;
Tata Salt actually came into existence to serve a national need.

However, for a company focused on bulk manufacturing, the move to consumer products was not easy. Tata
Chemicals had to learn lessons in packaging, distribution, branding and marketing. It also had to face the
challenge posed by loose, unbranded salt, which dominated the market then. Added to this was the reluctance
of consumers to pay more for a commodity as common as salt. With no knowledge of how the market would
work or respond but with the intention of helping the Indian government in its cause, Tata Chemicals went
ahead with the launch of Tata Salt in 1983, pioneering the cause of iodisation in India.

The product was revolutionary by all standards. It
was branded. It was iodised. And it was vacuum
evaporated — a technology never used before for
making salt in India. Plus, because of the
technology used, it was white, pure and
consistent, and free from any extraneous matter
unlike the solar salts in general use then. As
awareness of health issues has grown and
consumers have become more discerning, the
Tata Salt brand has also grown from strength to
strength.
In the food business, where companies spend a
fortune on brand building, this is no mean feat. So
what’s the secret? Ashvini Hiran, head, consumer
products business, explains: “The word Tata
lends the value of trust and quality to Tata Salt.
The functional benefits and unmatched quality,
coupled with the emotional connect the brand has
with the people of India, has positioned it as the
most trusted food brand of India.”
I-Shakti
I-Shakti, the solar refined salt brand of Tata
Chemicals (TCL), brings the goodness of
iodine to the masses at an affordable price.
For the extremely budget-conscious
housewives in rural and semi-urban areas,
it provided an opportunity to upgrade from
loose, coarse, unbranded salt to the
benefits of good quality, free-flowing
iodised salt. Launched in October 2006, I-
Shakti reaches 20 million households, has an annual
consumption of 150,000 metric tonnes and is the second
biggest salt brand in the country, after Tata Salt, with a market
share of 14 per cent in the branded salt category according to
the Nielsen Retail Audit, August 2009.
TCL has laid down stringent quality specifications for I-Shakti.
This has resulted in good manufacturing practices at facilities
and improvement in solar salt quality. Each packet of I-Shakti is
endorsed by the International Council for the Control of Iodine
Deficiency Disorders for containing an adequate quantity of
iodine.

Tata Salt clicked with the consumers from the I-Shakti conducts several consumer activation programmes
beginning. The purity positioning, supported by around the Iodine sahi to dimag tez (roughly translated it
the government campaign to promote iodised means adequate quantity of iodine results in an intelligent
salt, established it as a favourite with housewives mind) campaign to spread awareness about the goodness of
in no time. It was only in 1990 that other players iodine and its health benefits. I-Shakti has helped in spreading
joined the fray and Tata Salt had competition. iodisation from 50 per cent of the population to 65 per cent.
Captain Cook, with its promise of a “free flowing”
salt that doesn’t become soggy, swamped the market. In 1996, Hindustan Unilever (then Hindustan Lever)
launched Annapurna salt, positioning it on the health and iodine platform. Other brands such as Nirma and
Dandi followed.

This competition was something new for Tata Salt, so used to being the sole brand in the market. To combat
this sudden onslaught on its supremacy in the market, a revolutionary new strategy was needed. So, in 2001,
moving beyond the ‘health’ and ‘purity’ platform, Tata Salt launched the highly emotional Desh ka namak
campaign, which reinforced its leadership position in the marketplace and the consumer’s mind and elevated the
brand forever from the mundane to the sublime. This strong connect with the national good remains, to date, the
key differentiator between Tata Salt and other brands.

The latest ad campaign Ghul mil ke, carries the ‘salt of the nation’ positioning forward by establishing a connect
between salt and the way Indians celebrate festivals, putting aside religious and cultural differences.

Quality matters
Desh ka namak was a masterstroke. But this campaign could not have worked and that too in such a sustained
manner, if the quality of the product had not been so unimpeachable. At Tata Salt’s Mithapur plant, the stringent
quality checks at every stage of the production process ensure that Tata Salt keeps to its promise of purity,
whiteness, consistency, adequate iodisation and consistent saltiness. The 27 centres spread all over India that
package the salt for distribution maintain the strictest hygiene, even though they are not owned by Tata
Chemicals. “Ensuring quality right through the supply chain is extremely important for us,” explains Mr Hiran,
“that is why we have deputed senior managers to supervise the process.”

Each pack of Tata Salt is Hazard Analysis and Critical Control Points (HACCP) certified, which is the most
respected food grade certification globally. To consumers it means that they get safe, pure and hygienic salt in
every pack of Tata Salt. Interestingly, the HACCP certification for food safety is not a requirement for salt, and
probably nowhere in the world do companies HACCP-certify their salt. Then why does Tata Chemicals do it?
“Because,” says Mr Hiran, “we go the extra mile to ensure quality. And because we
want to be future ready.”

On the ‘lite’er side

That the company is forward looking, modern and innovative is evident in other areas
too. It conducts regular research to identify new segments, new products and new
markets. Take for instance, Tata Salt Lite, launched in October 2007. Lite was the
result of research studies which indicated that 40 per cent of the urban adult
population suffers from hypertension and that salt could play an important role in its
management. After extensive research, Tata Salt Lite was launched as a healthier
option for consumers wanting to manage their weight and blood pressure.

Lite aims at wellness and is packed with the triple goodness of 15 per cent less sodium (good for management
of hypertension and heart-related diseases), potassium enrichment (good for maintaining the potassium-sodium
balance in the body) and iodisation (to counter iodine deficiency and related problems). Since its launch, Lite
has grown to four times that of its nearest competitor. The challenge for the marketing team now, according to
Mr Hiran, is to “make Tata Salt Lite as big as Tata Salt”. Wellness is the new focus for Tata Chemicals and its
research efforts are directed towards developing products that have far-reaching health benefits for the masses.

Salt of the earth

In keeping with the Tata tradition of giving back to society and in recognition of consumers’ loyalty towards the
brand, Tata Salt introduced the Desh ko arpan (dedicated to the nation) programme in 2002. Every January (to
coincide with India’s Republic Day) and August (to coincide with India’s Independence Day), Tata Chemicals
contributes a part of its sales revenues to the nation through organisations involved in working to improve the
lives of underprivileged children, thereby providing millions of Tata Salt users an opportunity to participate in a
worthy cause.

For the last two years the programme has extended educational support to 1,500 underprivileged girl children
through the Nanhi Kali project. The 2009-10 programme funds and supports four hostels run by the Cohesion
Foundation Trust for the children of salt pan workers in Gandhidham, a major salt hub in Gujarat. The seasonal
hostels ensure the kids stay back and continue with their education, even when their parents migrate in search
of a livelihood.

Looking ahead, Mr Hiran is confident that Tata Salt will continue to innovate and to contribute to the public
health of India. In a market flooded with branded salt, innovation does seem to be the best bet to keep ahead.
However, the need to innovate for Tata Salt is not driven by competition. Mr Hiran explains: “Most salt brands in
 the market are solar salts and compete with I-Shakti (Tata Chemicals’ solar refined salt brand for the rural and
semi-urban markets). Tata Salt is on a different platform.” The competition or challenge, if any, is to keep the
brand modern with new, healthy offerings for the nation. He adds: “Tata Salt will remain the umbrella brand and
in the coming years we hope to bring more variants, each with a story of its own.”

How Tata Salt is made

Turning the waters of the Arabian Sea into Tata Salt using vacuum evaporation technology is a fascinating
process. It all begins at Charkala Saltworks, some 45km away from the Tata Salt plant, where sea water is
pumped into solar pans. The location is so environment friendly that scores of migratory birds from Europe and
elsewhere fly in to nest. It is here that the sea water is concentrated by natural evaporation. This concentrated
sea brine is brought to the Mithapur plant by two pipelines where the sand and foreign particles are first
removed and then fed into steam-heated vacuum evaporators.

The heating process creates a solid-liquid mix which is pumped into decanters for the first level of separation.
In the second stage, the settled solids are pumped into a centrifuge to separate the moist salt. Once separated,
it is dried and iodised, making it ready for use. Salt is then packed in 50-kg bags and despatched via rail and
road to 27 HACCP-certified salt-packing centres across India, where it is packed into 1kg retail packs.

Financial Analysis:-

Balance Sheet of Tata ------------------- in Rs. Cr. -------------------

Chemicals
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 215.16 215.16 234.00 235.23 243.32

Equity Share Capital 215.16 215.16 234.00 235.23 243.32

Share Application Money 0.00 0.00 0.06 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 1,952.54 2,177.68 3,337.62 3,386.68 4,031.75

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 2,167.70 2,392.84 3,571.68 3,621.91 4,275.07

Secured Loans 160.43 60.63 47.97 249.48 249.24

Unsecured Loans 1,294.06 981.14 2,297.31 3,426.62 2,697.27

Total Debt 1,454.49 1,041.77 2,345.28 3,676.10 2,946.51

Total Liabilities 3,622.19 3,434.61 5,916.96 7,298.01 7,221.58

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 3,142.22 3,219.35 3,291.44 3,602.99 3,803.50

Less: Accum. Depreciation 1,678.02 1,811.83 1,948.24 2,058.01 2,211.06

Net Block 1,464.20 1,407.52 1,343.20 1,544.98 1,592.44

Capital Work in Progress 86.77 107.22 169.38 298.77 237.65

Investments 713.74 1,350.28 3,741.40 4,473.73 4,905.59

Inventories 560.82 506.48 657.64 969.80 611.19

Sundry Debtors 601.35 668.55 639.50 1,001.73 581.60

Cash and Bank Balance 46.06 72.48 175.90 510.52 624.96

Total Current Assets 1,208.23 1,247.51 1,473.04 2,482.05 1,817.75

Loans and Advances 1,276.08 647.08 713.45 863.35 391.39

Fixed Deposits 0.00 22.00 101.73 128.23 87.69

Total CA, Loans & Advances 2,484.31 1,916.59 2,288.22 3,473.63 2,296.83

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 806.49 970.89 1,273.98 2,120.39 1,457.74

Provisions 327.36 379.81 351.79 372.71 353.19

Total CL & Provisions 1,133.85 1,350.70 1,625.77 2,493.10 1,810.93

Net Current Assets 1,350.46 565.89 662.45 980.53 485.90

Miscellaneous Expenses 7.02 3.70 0.53 0.00 0.00

Total Assets 3,622.19 3,434.61 5,916.96 7,298.01 7,221.58

Contingent Liabilities 965.34 287.64 530.80 394.96 560.26

Book Value (Rs) 100.78 111.24 152.64 154.01 175.74

Source : Religare Technova

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Tata Chemicals announces Q4 FY09 results

Mumbai, May 28, 2009

Business Highlights
Soda ash business environment worldwide continues to be fluid; domestic demand stable on back of growing
detergents and chemicals market
Debottlenecked capacity at Babrala clocks highest ever urea sales
Consumer products business continues to grow. I-Shakti sales almost double YOY
Focused efficiency ADAPT programme delivering results
The Board of Directors recommended a final dividend of 90% translating in a total outflow of Rs247.62 crore
including dividend distribution tax.

FY09 Financial Highlights

Revenues at Rs12,258 crore up 103 per cent YOY
Profit from operations increases 80 per cent to Rs1,436 crore
PAT at Rs648 crore

Q2FY09 Financial Highlights

Revenues at Rs4,661 crore up 169 per cent YOY
Profit from operations increases 169 per cent to Rs670 crore
Profit before exceptional items and tax at Rs587 crore, up 120 per cent

Tata Chemicals Limited, a leading manufacturer of chemicals, fertilisers and food additives today announced it’s
consolidated & standalone financial results for the quarter ended March 31, 2009. The Company is the second
largest manufacturer of soda ash and the third largest producer of sodium bicarbonate in the world, apart from being
the leader in the Indian market. Tata Chemicals also enjoys leadership in the Indian edible salt market and is the
most efficient manufacturer of urea fertiliser in the country.

Commenting on the Company’s performance for FY 2009, Mr. R Mukundan, Managing Director said: “This has been
a challenging year for businesses all over and our case is not different. In some international markets for soda ash we
are seeing some pressure on volumes and prices. I am happy to say that due to a portfolio of businesses which serve
a diverse range of customer base spread across agri, household and industrial sectors, we are well placed. Tata Salt
delivered record breaking market share in FY09 and our newly launched salt products are already market leaders.
Urea sales have been at its highest ever. It has truly been a year of value management. We have in place a focused
efficiency program that we believe would enable us respond to challenges in the environment. Going forward Tata
Chemicals will continue to create value for shareholders and customers alike.”

Note:
Consolidated financials indicated in this communication are reviewed and primarily include those of Tata Chemicals
standalone entity, the Brunner Mond Group acquired in December 2005, the one third stake acquisition in Indo Maroc
Phosphore S.A. (IMACID) and the acquisition of General Chemicals and Industrial Products acquired in March 2008.

YEAR – ON – YEAR CONSOLIDATED PERFORMANCE COMPARISION

FY2009 (April 2008 – March 2009) v/s FY2008 (April 2007 – March 2008)
Income from operations (net of excise) at Rs12,257.66 crore compared to Rs6023.15 crore in FY 2008, an
increase of 103 per cent
Profit from operations at Rs1,436.48 crore higher by 80 per cent compared with Rs796.19 crore in
corresponding period last year
Profit before exceptional items and tax down by 9.5 per cent at Rs1,124.6 crore; as against Rs1,243.51 crore
(including Rs487.47 crores on account of profit on sale of long-term investments) in the previous year
Profit after Tax (PAT) (after Minority Interest) at Rs648.1 crore compared with Rs964.4crore in FY 2008, down
by 33 per cent
Basic EPS : Rs27.59
Diluted EPS : Rs26.19

Dividend
The Board of Directors recommended a final dividend of 90 per cent translating in a total outflow of Rs247.62 Crore
including dividend distribution tax.

Details of extraordinary items

Foreign exchange - AS-11 amendment

The Company has exercised the option of AS-11 as per the notification issued by the Ministry of Corporate Affairs on
March 31, 2009. Amount amortised for FY 09: Rs125 Cr and amount transferred to the balance sheet Rs360 Cr. To
be amortised till March 31st 2011.

Reversal of impairment of cement plant

Introduction of Masonry cement which utilises fly ash increases opportunity. As a result profits are expected to
improve and the company has as a result reversed the impairment of the cement plant.

Balance sheet perspective

Total cash on the balance sheet as on March 31, 2009 amounted to Rs1,452 crore (inclusive of value of fertiliser
bonds of Rs446 crore as on March 31, 2009). Operating cash flows have been and are expected to continue to be
healthy lending strength to Tata Chemicals’ balance sheet and enabling it to support the Company’s objective of
strengthening its competitive position through a mix of and organic and viable inorganic initiatives as well as
efficiency enhancement.

The Company’s consolidated gross debt as on March 31, 2009 stood at 6,283 crore. This comprises borrowings of
USD 475 million taken on the Tata Chemicals balance sheet and a loan of USD 300 million taken on the GCIP
balance sheet, both of which have been taken at extremely fine rates. Payment towards the former will commence in
June 2012 while towards the latter has begun in February 2009.

After deducting cash, value of investments and fertilizer bonds as on March 31, 2009, debt stands at Rs4,831crore.

SEGMENTAL PERFORMANCE
Soda ash
Global and Domestic Industry perspective and outlook
The global soda ash industry is presently operating at approximately 75 per cent capacity utilisation in line with
 demand. Prices are currently in the range of USD 160-175 FOB China
The Government of India has imposed a 20 per cent safeguard duty for a six month period to protect the soda
ash industry from Chinese dumping
The Chinese government has also reintroduced a 9 per cent export incentive for producers leading to increased
production in China
While demand in the UK continues to be encouraging, the rest of Europe is witnessing a decline
US demand looks to be stabilising; however there are some challenges being witnessed in Latin America which
accounts for a considerable portion of GCIP exports
Domestic soda ash demand continues to be healthy mainly on the back of traction of the detergents and
chemicals segments
Consolidated sales amounted to Rs5,415 crore for the quarter ended March 31, 2009; PBIT margins for the
chemicals business stood at 18.6 per cent for the quarter

Mithapur, India
Tata Chemicals maintained its leadership position in the domestic soda ash market
Sales volumes (including exports) for soda ash at Mithapur for the quarter ended 31March 2009 stood at 695
thousand tonnes.

Brunner Mond Group Limited

Higher volumes, price increases that effective during three quarters of the year and lower overheads enabled
improved performance of BMGL
However there is some volume shrinkage now being witnessed and capacity utilisations are being seen to
normalise at approximately 70 per cent. Rapid increase in production seems unlikely in the near future
Prices in Europe are presently in the region of USD 240 pmt.
Increased imports from China into South East Asia has considerably impacted Magadi's performance

GCIP
While US domestic demand appears to have stabilised, increased Chinese imports into Latin America
combined with weaker demand in the region is impacting exports of the Company
GCIP has begun a focused cost reduction and cash generation programme to help keep costs under control

Consumer Products
Tata Chemicals remains market leader with 58.4% market share in the national branded segment ¡V its highest
ever.
Tata Salt's continues at number one position with market share of about 44 per cent
I-shakti sales double YOY
Tata Salt Lite has become the market leader in the low sodium salt category within the first year of its launch

CROP NUTRITION BUSINESS (formerly Fertilisers Business)

Sales for Q4FY09 from the crop nutrition business were Rs6,912 crore
PBIT margins stood at 7.3 per cent
Urea production at the Babrala plant has stabilized at over 3,500 tpd levels
The quarter under review saw the highest ever urea sales on the back of improved availability after
debottlenecking the plant
 While DAP consumption in India saw its highest levels ever, prices have corrected over this quarter impacting
margins
Continuing high phosphoric acid prices may render manufacture of DAP unviable

Details of subsidy received & outstanding

Total subsidy received in FY 2009 – Rs4,264 crore
Cash subsidy received in FY 2009 – Rs3,245 crore
Bonds subsidy received in FY 2009 – Rs1,019 crore
Total subsidy outstanding as on 31 March 2009 – Rs874 crore

Details of fertiliser bonds received during the year under review

Coupon, year Date of allotment Amt of Sold till 28th Balance
of maturity Bonds May 09 (Rs Crore)
Rs Crore) (Rs Crore)
7%, 2022 10th Dec 611.93 516.27 95.66
6.2%, 2022 24th Dec 123.47 NIL 123.47
6.65%, 2023 29th Jan 283.66 NIL 123.47
Total 1019.06 502.79

IMACID
IMACID resumed operations in the quarter under review
Inventory writedowns to current realizable values impacted EBITDA

D. NEW BUSINESSES
Fresh Produce
Operations in Ludhiana stabilising
During the quarter the business focussed on cutting costs and improving margins by reaching higher volumes

Bio-fuels
Feedstock for the 30 KL/day Ethanol plant is being sourced and production is expected to begin soon
Trial cultivations of Jatropha for the Biodiesel operations continue smoothly

ADAPT
The Company has adopted this programme to combat the extremely challenging prevalent macroeconomic
environment. Under the three heads below, ADAPT is carrying out the following actions –
Capex Postponement
Focus on Critical, Safety and maintenance Capex; All non critical and non routine capex being deferred
Cash Conservation
Working Capital management; Cash conversion efficiency; Locking in energy costs, royalty
payments; Taking price increases wherever possible; Stringent monitoring of ARs and APs
Cost Reduction
Reducing wastage; Focus on supply chain efficiencies; Leveraging Scale; Deleveraging, Selling
Non Core Assets; Review of raw material contracts; Paring overheads