Tata Chem plans capacity hike for
clout
Business Standard — June 5,
2001
Tata Chemicals has drawn up an exhaustive business plan after
a limpy financial year with renewed focus on its core businesses
of soda ash, branded salt and fertilisers.
Managing Director Prasad Menon said size and market share
were the key elements in growing these businesses, and would
look at augmenting capacities as well as growth through acquisitions.
Tata Chemicals would also focus on soda ash and branded salt
exports in a major way. Menon said that returns from salt
exports would be five times higher than that of domestic sales.
South-east Asia, a region targeted by Chinese manufacturers,
would be a key market for soda ash as the company claims to
be one of the lowest cost producers. Menon said Tata Chemicals
would also look at chemicals portfolio through acquisitions.
The company is also planning to improve capacity and share
in the fertiliser business, and is contemplating doing that
through acquisitions.
Tata Chemicals has already put in an expression of interest
for both National Fertilisers and Madras Fertilisers.
Menon, however, declined to furnish investment details that
the company had lined up. "We have a fair idea of where
we want to be and what we have to do for that. But it will
be premature to comment on the investments that we would make,"
he said.
Tata Chemicals is already a leading player in most of its
businesses: it has a 42 per cent share of the domestic soda
ash market, 37 per cent in branded salt with Tata Salt, and
also claims to be one of the lowest cost producers of urea.
The company has identified detergents and cement as its non-core
operations and is in the process of selling both.
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