Tata Chem to revamp salt distribution structure Tata Chemicals, the fertiliser and chemicals major, has revamped

the distribution set-up for its salt business, in which it is India's largest player. The restructuring was done on the basis of recommendations by management consultants Business Consulting Group, and is expected to result in costs savings of upto Rs 5 crore annually. Kapil Mehan, vice-president - sales and marketing, Tata Chemicals, toldBusiness Standard: "We will be dis-intermediating our distribution levels by one layer. The basic idea is to make the distribution network more efficient and to function on the lines of a fast-moving consumer goods business." Tata Chemicals manufactures the brand 'Tata Salt' which is a market leader with 37 per cent share. Sales of the brand have been growing at about 10 per cent per annum over the last few years, but emerging competition made the company to have a relook at its distribution setup. "The new set up will address all areas of control issues as well as providing a platform for future expansion," Mehan added. The Business Consulting Group will be involved in the implementation of most of the measures suggested and which would be in place over the next six months. Tata Chemicals earlier sold its product through a single agency, which in turn sold it to a set of 33 distributors acting as clearing and forwarding (C&F) agents and as 'super distributors'. The distributors in turn sold the product to over 2,500 stockists who in then sold it to 7 lakh retailers across the country. The chemicals major will now have one layer less in

with the company now directly dealing with distributors. Tata Chemicals has also put in place a new sales setup with a responsibility to ensure high visibility as well as to expand and develop markets with the aim of increasing sales to a higher level. Tata Salt is the first salt in India to be manufactured using the vacuum evaporation technology. Tata Salt has drawn on India¶s rich relationship with salt to deliver a product that embodies reliability. This pioneering brand has played a role in the battle against iodine deficiency and set standards in the category for hygienic production thus satisfying the latent need of a high quality branded salt in the country. It will also be IT-enabling its distribution network with the pilot scheduled to go onstream soon and would involve all C&F and distributors by the yearend. qualities that emanate from the Tata creed of business. The company is also in the process of identifying suitable distributors in locations where it is not represented or where distributors failed to perform their desired role. salt and integrity have a connection that stretches back to a time much before Tata Salt was born.the chain. . All C&F functions and distribution functions have been separated and will be dealt by distinct entities.Desh Ka Namak Tata Chemicals pioneered the iodised branded salt movement with its launch of Tata Salt in 1983. In India. The company continues to educate consumers across the country about the benefits of using an iodised and pure salt. Tata Salt . honesty and credibility. This has transformed into a national movement over the past two decades.

Market Tata Salt today has a 60 per cent market share in the national branded salt segment. on the western coast of Gujarat in one of the most integrated inorganic chemicals complex in India. housewives. 3 Most Trusted Brand across categories in the same survey. It contains requisite amount of Iodine that ensures proper mental development of children and also prevents iodine deficiency disorders in adults. India¶s public health campaign against iodine-deficiency disorders. colas and namkeens. December 08). Applications Due to its purity and reliable quality. and by manufacturers of packaged snacks. Tata Salt has a fine crystalline structure and dissolves very quickly.000 metric tons per month and is available for its consumers at over 12 lakh retail outlets (source: Nielsen Retail Audit. as a carrier of the essential nutrient iodine. The Desh Ka Namak has also been ranked the No. As a salt Tata Salt enhances and accentuates the flavour of vegetables and meat to add the required taste in food. Additionally. wherein Tata Salt has been ranked as the Most Trusted Food Brand in India. Tata Salt is available for consumers in 4 Convenient Pack Sizes as follows: Brand Tata Salt Tata Salt Tata Salt Tata Salt Ad Campaign ³Ghul-Mil Ke Rehta Desh Mera´ Pack Size 1kg 2kg 500g 100g . It sells an average of 40. Tata Salt supports in its own way. conducted by AC Nielsen. It undergoes stringent quality standards prior to its distribution to different parts of India. It is manufactured through a technologically advanced production process by evaporating sea brine in steam-heated vacuum evaporators and is almost completely free from extraneous matter to reach consumers in the purest possible form. Tata Salt is a vacuum evaporated iodised salt produced by Tata Chemicals at Mithapur.A measure of what the brand has come to mean to its consumers across the country has been expressed in the Brand Equity ET Survey 2008. Tata Salt is widely used by hotels and restaurants. Product Consumed by nearly 40 million households each month.

Tata Salt has won accolades as India's most trusted food brand for several years.´ The Ghul Mil spirit comes alive in the way we Indians dissolve completely in our culture irrespective of diversity. Crystalline salt. New brands I-Shakti and Tata Salt Lite are also creating waves in the market. ³Deshwasiyon sa hi poora ghul mil jaata hai desh ka namak. jo hai iski shudhta ki pehchaan. This is visually expressed in the advertisement through a montage of situations where a diverse set of people from across the country come together for the celebrations of various Indian festivals be it a Holi celebration which is a kaleidoscope of colour. whatever be the occasion. The reason: Tata Salt and its fellow brands go far beyond taste to target health initiatives such as iodine deficiency and low sodium requirements. at an Onam Sadhya meal or at a Baisakhi celebration. waise khane ke liye Tata namak ka hona zaroori hai´ ± Pallavi Gupta. The ad has a catchy jingle: ³Ghul mil ke rehta desh mera Har rang mein ghulta desh mera Zubaan pe rishte pakaata desh mera Ghul mil ke rehta desh mera Rishton mein chalakta Yaari mein pakta Tyoharon se banta desh mera Ghul mil ke rehta desh mera´ Few Quotes by Consumers for Tata Salt ³Jaise zindagi ke liye saans ka hona zaroori hai. Vacuum salt and pure salt. Raipur Consumer Salt Tata Chemicals is the market leader in packaged salts in India with more than half the total market consuming Tata brands. Raipur ³Hum Tata namak bachpan se khate aa rahe hain. iske alava doosra namak hamen pasand nahin hai´ ± Shubha Tiwari. Devendra Nagar.Tata Salt¶s current advertising campaign ²³Ghul Mil´ demonstrates the purity of Tata Salt through its ability to completely dissolve in water. In fact a parallel can be drawn between Tata Salt and the people of the nation who come together as one. . The company manufactures four varieties of salt: Iodised salt.

India's largest financial newspaper. brings the goodness of iodine to the masses at an affordable price. Topp Salt The company also has an export brand Topp Salt in the Middle East. The salt is specifically aimed at a health± conscious segment of society that faces lifestyle affecting diseases such as hypertension. Crystalline salt Samunder Crystal Salt is a refined. It can be dissolved very quickly due to its fine crystalline structure and is more freely available in salting-out processes. unbranded crystalline salt widely available in Indian markets. Topp Salt has been introduced in Dubai. the solar refined salt brand of Tata Chemicals. I-Shakti I-Shakti. super refined and iodine-enriched. and will move on to Abu Dhabi and Sharjah to cover the entire United Arab Emirates. is a household name with top-ofthe-mind brand recall. I-Shakti reaches 20 million households. Tata Chemicals has made a foray into the low sodium salt category with its specialty product Tata Salt Lite. heart disease.000 metric tonnes and is the second biggest salt brand in the country.Iodised salt Tata Salt Tata Salt Lite I-shakti Topp Salt Tata Salt Tata Salt. August 2009. It has a majority share of the Indian branded iodised salt market and is way ahead of the nearest competitor. Tata Chemicals follows stringent quality specifications at its manufacturing facilities and each is endorsed by the International Council for the Control of Iodine Deficiency Disorders for containing an adequate quantity of iodine. TCL's vacuum salt is almost free from extraneous matter. with a market share of 14 per cent in the branded salt category according to the Nielsen Retail Audit. iodised. etc. to provide consumers with a new health option: salt that contains 15 per cent lower sodium than ordinary salt and is enriched with iodine and potassium. diabetes. It offers customers a purer and cleaner alternative to the loose. It was named the 'No. Vacuum evaporated. the outstanding offering in TCL's consumer products basket. manufactured by evaporating sea brine in steam-heated vacuum evaporators. white crystal salt. has an annual consumption of 150. clean.1 Food Brand' among the most trusted food brands list and has consistently proved its mettle by being rated in the top 10 most trusted brands in the survey conducted by The Economic Times. after Tata Salt. Vacuum salt Vacuum salt is edible common salt. Vacuum salt .

glass. It is used in the manufacture of pharmaceuticals. glass. Its branded products reach out to the farming community as also to domestic consumers. Pure salt Pure salt is almost pure sodium chloride and has all its inherent properties. which can absorb moisture from the atmosphere and render the salt lumpy. sal-ammoniac bars. textiles and dye chemicals.7 kilograms and compares poorly with countries like China at 9. The market in India for this critical segment of the economy is ranked twelfth in the world pecking order and is currently growing at more than 10% per annum (Source: marketresearch. It comes in the form of small colourless crystals or a white granular powder. As India's consuming middle class. Within this market scenario. soda ash is its biggest component meeting 55% of India¶s chlor-alkali needs. . sodium silicate. free from visible contamination with clay. sodium bicarbonate and sodium tripoly phosphate (STPP) account for about 48% of the company¶s total consolidated global revenues. etc. disposable incomes will continue to rise. Although it is in a highly purified state. Despite this.8 kilos and the US with 22. chemicals. This versatile chemical is used in the production of detergents. Market The coming years are expected to witness untrammelled growth for the chemical industry. chemicals manufacturing and paper manufacturing. This Rs. which need to use it in a solid form. this upward mobility is expected to impact chemicals consumption exponentially. Several key domestic companies have already unveiled ambitious expansion plans. It can be used with advantage in many saltingout processes. petrochemicals. Pure salt finds application in industries. gases and pharmaceuticals. catering to categories as diverse as detergents. Tata Chemicals plays a crucial and commanding role. fertilisers. There obviously is considerable scope for consumption-driven growth. pulp and paper and finds extensive use in water treatment. 160. paints. textiles. comprising about a third of the total population climb the socio-economic ladder.000 crore (US$ 40 billion) activity comprises a wide swathe of businesses that encompass basic chemicals. iodised salt. paper and newsprint.is an excellent alternative to solar salt in all applications. petroleum refineries and construction. It can also be used in the dairy industry after bacteriological immunisation. Since raw material from this industry is the active ingredient in several consumer products.com). papad-khar. a number of government-sanctioned special economic zones (SEZs) to promote investments in the sector have been launched. per capita consumption of soda ash in India is just 2. it still contains traces of magnesium. Recognising this coming boom. Soda ash. The company takes pride in the fact that it is a Tata company with the largest number of customer touch-points. It is converted to brine. It can also be used for the manufacture of cattle-licks. grit and other extraneous adulterants and impurities. which is then used to make caustic soda. India accounts for about 6% of global soda ash capacity. Of this.

Tata Salt is the company's most recognised product. The product is marketed mostly in the fertile plains of the north and north-western states. 4200 crore) has now given Tata Chemicals access to markets in North America. In 2005 it was declared India's most trusted food brand with a market share of almost 50%. Tata Salt is used in over 50 million households.05 billion (Rs. The acquisition of US-based General Chemical Industries Products (GCIP) for US$ 1.Tata Chemicals is a market leader in phosphatic fertilisers in West Bengal. its cooking soda. Bihar and Jharkhand. These will help increase Tata Chemicals¶ global footprint and complement the company¶s existing Asian. European. Tata Samunder. Latin America and the Far East. is the other significant brand in the company's stables. Middle Eastern and African markets. It finds extensive use in western India. .

These accolades are recognised the world over as the pinnacle of achievement in safety management . Virtuosity and versatility are two descriptions that come readily to mind for a company that makes fertilisers and soda ash as well as the most trusted brand of edible salt in the country. as also the International Award instituted by it for Business Sustainability. Converting the by-products of soda ash into a viable cement business.Achievements With national and international recognition in all spheres of its business. iconic company. setting up one of the world¶s most energy-efficient and environment-friendly fertiliser plants. The Babrala fertiliser plant in Uttar Pradesh has won the Sword of Honour Award of the British Safety Council four times in a row. Tata Chemicals has set benchmarks for the industry. are some of the enduring achievements of this remarkable. using significant indigenous technology.

Vakil wanted to expand and set up a soda ash plant. A decade later. History In the early 1920s. Always keen to develop his princely state. True to its solid reputation for innovation. saw the possibility of developing salt works in the Okhamandal region. now in the state of Gujarat. He approached the then Maharaja of Baroda. He approached Gaekwad who wrote to the Tata's if they would be interested in assisting in a project of national importance. the Diwan of Baroda. the company has transformed its role from being simply a supplier of fertiliser as a farm input to that of a major solutions provider to the agricultural sector of the economy. but did not have the financial resources. In 1927. In those days the soda ash formula was a closely . Sayaji Rao Gaekwad. Tata Chemicals was born in 1939 and Vakil stayed on as its director. Vakil set up the Okhamandal salt Works and V T Krishnamachari.systems and awarded to businesses that demonstrate sustainable performance through a clear and measurable commitment to environmental management. laid the foundation stone. Kapil Ram Vakil. a chemical engineer educated in England. the Maharaja gave his assent.

a capacity of 400 tonnes was achieved. located in the Sindh province of what is now Pakistan. is its new offering for low sodium salt users. Tata Salt Lite. Cheshire in the UK and Delfzijl in the Netherlands. When ICI was approached. . in 1944.guarded secret between six companies in the world. branded iodised edible salt. with 15% lower sodium content. It was. the 80 tonnes per day plant started production. In 1964. was the only company in the subcontinent with the necessary expertise and technology. generate the basic raw material for most of the chemicals the company manufactures. Natural soda ash comes from Wyoming in the US and is dredged from Lake Magadi in Kenya. while Tata Samunder is the company¶s cooking soda. To commemorate this feat the 'Four Hundred Tonnes Production¶ tower (FHTP) was erected in front of Mitha Mahal. The management bought into the argument and Tata Chemicals cracked the code. saying: "You put in salt and you get out salt. spread across 60 square kilometres. I-Shakti is the recently-launched refined salt. therefore. Product Apart from being the world¶s second largest producer of soda ash." Darbari Seth. Topp Salt has been developed especially for the export market. no easy task setting up such a project. Finally. the company guesthouse at Mithapur. Its salt works. where it still proudly stands. Mithapur in Gujarat. Tata Chemicals¶ consumer products business (CPB) comprises predominantly of salt and its variants. The British chemicals giant Imperial Chemical Industries (ICI). Soda ash is produced synthetically at three locations. Tata Chemicals also manufactures sodium bicarbonate and STPP. Tata Salt is its flagship. a young chemical engineer who had joined Tata Chemicals told the Board that they did not need foreign help. they taunted Vakil.

Phosphatic fertilisers DAP and complexes (58. Through this unique initiative. Tata Chemicals has a presence in all the three key segments: Nitrogen. which is farm-centric. is a predatory one.5%) manufactured at Haldia.2%) which the company imports.5 million tonnes per annum.000 villages. In order to establish the Tata Chemicals corporate brand connect across target groups. Brand Values In public perception. along with Chambal Fertilisers and global phosphate major. This explains why the company fosters the concept of human touch in everything it does.has been recently launched. The portfolio comprises of nitrogenous fertilisers. which are industry-centric. Bulk chemicals like Sulphuric acid. This plant also produces about 60. Phosphoric acid are manufactured in Haldia.The Human Touch of Chemistry . The company now plans to develop a significant presence in the bio-fuels space. taking without giving back. Tata Chemicals completed the acquisition of the UK-based Brunner Mond Group which also owned Magadi Soda Company in Kenya. Tata Chemicals entered in to a 50/50 joint venture with Total Produce of Ireland. In early 2006. The generalisation has never applied .A. The following year. it is widely believed. the company directly reaches and interacts with more than five million farmers in about 20. crop nutrition. to set up a fruits and vegetables distribution business in India. Urea (34. comprising almost 65% of India¶s total capacity. The Tata Chemicals Innovation Centre is its research arm and aims to develop world class R&D capability in the emerging areas of nanotechnology and biotechnology. and consumer products. The acquisition of GCIP in 2008 takes Tata Chemicals' global soda ash capacity to around 5. and MOP (4. Recent Developments The growth story of Tata Chemicals is a saga of strategic global acquisitions. Its first green-field bio-fuels plant is being established in Maharashtra. the third largest fruits and vegetable distribution company in the world and Europe's largest and most accomplished fresh produce provider.In agro-nutrients. Phosphorus and Potassium. Chemistry and Care do not always go hand in hand. which are its interface with domestic India. The chemicals business. a campaign based on the credo .000 tonnes of STPP annually. Some 600 Tata Kisan Sansar outlets dotting the north and east are effective platforms for developing new farm-related activities and future businesses in agriculture. Promotion Tata Chemicals has three core lines of business: chemicals.7%) manufactured at Babrala. The company believes that in all three spheres its products impact human life and improve its quality. OCP of Morocco. Tata Chemicals took its first step towards internationalisation in 2005 with the formation of an equal partnership in Indo Maroc Phosphore S.

From its inception. . it is dried and iodised. of harnessing the fruits of science for goals that go beyond business. to give. some 45km away from the Tata Salt plant. to receive. has been its corporate leitmotif. where sea water is pumped into solar pans. fair play and sound business practices. the settled solids are pumped into a centrifuge to separate the moist salt. making it ready for use. the story of the company has been about chemistry with a conscience. 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 steamheated vacuum evaporators. Being part of the Tata group with its blazing reputation for integrity. of care and commitment. and to give back many times over. Salt is then packed in 50kg bags and despatched via rail and road to 27 HACCP-certified salt-packing centres across India. the company believes that corporate governance is not only about complying with a set of norms and regulations. Tata Chemicals is committed to meeting the highest standards of corporate governance and disclosures. but is also an article of faith. where it is packed into 1kg retail packs. In the second stage. The heating process creates a solid-liquid mix which is pumped into decanters for the first level of separation. It all begins at Charkala Saltworks. How Tata Salt is made Turning the waters of the Arabian Sea into Tata Salt using vacuum evaporation technology is a fascinating process.to Tata Chemicals. It is here that the sea water is concentrated by natural evaporation. The principles of corporate sustainability are integrated in all its activities. The location is so environment friendly that scores of migratory birds from Europe and elsewhere fly in to nest. Rather. Once separated.

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