Tata Chemicals Limited, a subsidiary of Tata Group Conglomerate, is engaged in the production of

Commodity chemicals. The company was founded in 1938 with HQ in Mumbai. It is an Indian global
company mainly dealing in chemicals, crop protection and speciality chemical products. It is one of
the largest chemical companies in India, with a global presence with subsidiaries in the United
States, Kenya and United Kingdom. The company has the 2nd largest Soda Ash production capacity
plant in India – Mithapur.

Industry Overview:
Covering more than 80,000 commercial products, India’s chemical industry is extremely
diversified and can be broadly classified into bulk chemicals, specialty chemicals,
agrochemicals, petrochemicals, polymers and fertilisers.
Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan
and China. 
Despite the current pandemic situation, the Indian chemical industry has numerous
opportunities considering the supply chain disruption in China and trade conflict among the US,
Europe and China. Anti-pollution measures in China will also create opportunities for the Indian
chemical industry in specific segments.

Business Model:
Market Size
The Indian chemicals industry stood at US$ 178 billion in 2019 and is expected to reach US$
304 billion by 2025 registering a CAGR of 9.3%.

Soda Ash
Soda Ash is produced by mining naturally occurring Trona ore and then
processing this via a simple process of filtering, concentration, crystallisation and
drying into Soda Ash which can be sold.
Location from where they buy soda ash
We have a global capacity of around 5.5 million tonnes of soda ash per annum, of
which 60 per cent is from natural deposits at Wyoming, US, and Lake Magadi,
Kenya.
Uses
 Manufacture of glass, where it reduces the melting temperature of the sand
used in glass formation and helps in the 'workability' or shaping of glass articles
such as tableware and float glass,
 Making soaps and detergents, where it is employed as a builder, or filler, to
give a smoother surface,
 Production of chemicals such as sodium silicate, sodium bicarbonate and
percarbonate, and sodium chromate and dichromate,
 Pulp and paper manufacture, water treatment, effluent treatment, metallurgy
and drugs. 

Light Soda Ash

 Tata Chemicals manufactures light soda ash using the ammonia-soda process.
  Soda Ash is used in Manufacture of glass, where it reduces the melting temperature of the
sand used in glass formation helping in shaping of glass articles such as tableware and float
glass,
 Also used in the making soaps and detergents, where it is employed as a builder, or filler,
to give a smoother surface,
 Production of chemicals such as sodium silicate, sodium bicarbonate and percarbonate,
and sodium chromate and dichromate,
 Pulp and paper manufacture, water treatment, effluent treatment, metallurgy and drugs. 

Soda karb
Sodakarb is a food grade Sodium Bicarbonate used as a raising agent in biscuits,
cookies, bread, cakes, farsan, jaggery & confectionery. It acts like a buffer and
carbonation agent in beverages, electrolyte and rehydration solutions. The chemical is
manufactured in the highly automated Mithapur facility. Sodium bicarbonate is a salt
that breaks down to form sodium and bicarbonate in water.

Tata shudh (cement)

The most important raw materials for making cement are limestone, clay, and gypsum.
Uses- construction site. Tata Shudh is preferred by customers because of its
superior and consistent quality, and availability through a well-knit distribution
network across the state of Gujarat.

Zinc oxide
Zinc oxide Zinc oxide is found in the Earth's crust as natural mineral zincite. Most
zinc is manufactured by French process, in which the zinc is melted, vaporized and
cooled to produce zinc particles. Nano zinc oxide (nZnO) offers improved anti-fungal
and UV blocking properties for industrial and cosmetic applications, including
cosmetics, paints/coatings, plastics and baby care products. Currently, it is finding use
in facemasks as an added layer of protection against Covid-19.
TATA NQ
Tata Chemicals is among the few manufacturers of prebiotics using whole-cell
fermentation and in-house developed patented technology. Tata NQ is supported
by a multidisciplinary team of scientists working on microbiome science (the core
science platform) and fermentation technology (the manufacturing platform). The
Nutritional Science division of Tata Chemicals Ltd, under the brand Tata NQ, offers
nature-inspired and science-backed ingredient and formulation solutions catering
to human and animal health. The flagship product lines of Tata NQ — FOSSENCE®
and GOSSENCE® — are Prebiotic dietary fibers that promote the growth of gut
microbiome, and improve digestive & immune health.
Specialty Silica:
The products are offered in both powder and granulated forms to meet the specific
requirements of customers across a wide range of industry applications like High
performance tyres, Rubber, Oral care, Food & Feed, Agrochemicals, Detergents, Paints,
Coatings and inks & adhesives.
improve human ability to absorb nutrients, especially minerals, from food thereby,
improving bone health and immunity and reducing allergies, cholesterol and harmful
bacteria.
MOAT (USP of the company) (What differentiates the company from its competitors)

Market leader in the branded and iodized salt segment in India

World’s 2nd largest soda ash producer

Growth Plans:

The food & nourishment platform and the farm input platform are 2 key pillars for growth, Working
closely with Tata International to harness the export potential for the farm input business,
especially in Africa, South East Asia and Latin America, The consumer business has crossed the Rs
11 bn mark expected to cross more than 3x in the next 5 years, Tata is looking at options to expand
the portfolio in basic and ready-to-cook segments as well.

Reasons for investing:

The company has a Goodwill in the market, it has made Investments in farm inputs and food &
nourishment products, Consistent share growth and regular dividend, Partnering with ISRO for R&D
on Li-ion batteries in Gujarat plant. Rallis, a part of Tata Group, Largest agro-business company &
2nd largest seed producer in India.

Let us look at the financials of the company and look at the forecasted values.

Why to Invest?

Strong revenue growth in the company in 2021 , in Fy22 the company has achieved the PAT of
Rs340crs, the company also has expansion plans to invest in the Mithapur plant.

Tata Chemicals Limited is globally the 3rd largest producer of soda ash and a provider of key
ingredients to a group of some giant global manufacturers of glass, industrial products and
detergent. It is interested in businesses that focus on life: industry essentials, living and farm
essentials. It is a holding company engaged in the manufacturing of soda ash and sodium
bicarbonate for various industries such as silicates, glass, textiles, pharmaceuticals, mining, food,
animal feed and chemical processing. The company operates in four segments: Fertilizers, Inorganic
chemicals, other agro-inputs (like Ralli's India Limited's operations) others, which comprises spices,
pulses, and nutritional solution. This wide range of products is categorized into farm essentials,
living essentials, and industry essentials. The company is also having the largest saltworks in Asia.
The company is inclined towards carbon-conscious growth across all geographies. In addressing the
community's needs globally, the company launched Tata Chemicals Golden Jubilee Foundation and
Ncourage Social Enterprise Foundation in 2018. In 2020, the company increased its ownership to
100% by acquiring the balance 25% stake in Tata Chemicals (soda ash) Partners' holdings from
Andover Group.