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Executive summary Introduction

Tata Chemicals Ltd is a Tata Group Company (India) based in Mumbai. The company is one of the largest chemical companies in India with significant operations in India and Africa. Incorporated on January 23, 1939, Tata Chemicals Limited is India's one of the leading manufacturers of inorganic chemicals. It also manufactures fertilisers and food additives. TCL manufactures a wide range of high-quality and competitively priced pr. Tata Chemicals (TCL) is the second largest producer of soda ash in the world. It is India's market leader in the branded and iodised salt segment as well as in urea and phosphaticfertilisers. Established in 1939 at Mithapur in the Indian state of Gujarat, TCL has, over the last few years, invested in increasing its stake in the global soda ash business. It has acquired UK-based Brunner Mond group and American company General Chemical Industrial Products Inc, making the conglomerate the second largest soda ash producer in the world. The company also makes food additives and fertilisers and has a varied user industry base comprising glass, paper, textiles, food additives, petroleum, refining, chemicals, dyes, pesticides, direct farm application, etc. It exports to markets in Europe, Africa, South East Asia and the Middle East. Areas of business
y

Chemicals: The range of chemicals produced at the companys integrated complex at Mithapur includes soda ash, caustic soda, salt, cement, sodium bicarbonate, bromine and bromine based compounds and gypsum.

Fertilisers: The company manufactures nitrogenous fertilisers at the Babrala plant. The companys plant at Haldia produces phosphaticfertilisers like diammonium phosphate, NPK complexes and single super phosphate.

Food additives: TCLs food additives business has two premium products: branded salt and sodium bicarbonate. TCL manufactures four varieties of salt, iodised salt, crystalline salt, vacuum salt and pure salt, and has over 40 per cent market share in the branded salt segment in India.

Agri-services: The company has set up a network of Tata KisanSansars (or Tata farmer centres) in the northern Indian states of Uttar Pradesh, Punjab, Haryana and Uttaranchal. The centres are one-stop resource centres for farmers

Location TCL is headquartered in Mumbai, India. The soda ash plants are located in India, the UK, Kenya and the US. TCL's cement and salt facilities are in Mithapur, the nitrogenous fertiliser facility is in Babrala and the phosphaticfertiliser plant is in Haldia.

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Company history
In the early 1920s, Kapil Ram Vakil, a chemical engineer educated in England, saw the possibility of developing salt works in the Okhamandal region, now in the state of Gujarat. He approached the then Maharaja of Baroda, SayajiRaoGaekwad. Always keen to develop his princely state, the Maharaja gave his assent. In 1927, Vakil set up the Okhamandal salt Works and V T Krishnamachari, the Diwan of Baroda, laid the foundation stone.

A decade later, Vakil wanted to expand and set up a soda ash plant, but did not have the financial resources. He approached Gaekwad who wrote to the Tata's if they would be interested in assisting in a project of national importance. Tata Chemicals was born in 1939 and Vakil stayed on as its director.

In those days the soda ash formula was a closely guarded secret between six companies in the world. It was, therefore, no easy task setting up such a project. The British chemicals giant Imperial Chemical Industries (ICI), located in the Sindh province of what is now Pakistan, was the only company in the subcontinent with the necessary expertise and technology. When ICI was approached, they taunted Vakil, saying: "You put in salt and you get out salt."

Darbari Seth, a young chemical engineer who had joined Tata Chemicals told the Board that they did not need foreign help. The management bought into the argument and Tata Chemicals cracked the code. Finally, in 1944, the 80 tonnes per day plant started production. In 1964, a capacity of 400 tonnes was achieved. To commemorate this feat the 'Four Hundred Tonnes Production tower (FHTP) was erected in front of MithaMahal, the company guesthouse at Mithapur, where it still proudly stands.

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Vision/ Mission of the company

These are the principles and values that govern Tata Chemicals.

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

Mission

Serving society through science

Values

Integrity Safety Excellence Care Innovation

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Organization structure

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Financial performance

Tata Chemicals' Q2 FY2011-12 net profit up 116.5 per cent at Rs275 crore , November 11, 2011 EPS (diluted and non-annualised) at Rs10.81 per share Q2 FY2011-12 consolidated financial highlights Net sales higher by 19.7 per cent at Rs3,571 crore. Profit from operations up 57.5 per cent at Rs674 crore compared to Rs428 crore. EBIDTA margins at 18.9 per cent. In Q2 FY2011-12, the company has not recognised subsidy income of Rs14 crore on opening stock of raw materials for phosphatic and potassic fertilisers, in accordance with the office memorandum issued by the Department of Fertilisers (DoF) dated July 11, 2011. The matter is being contested. PBT at Rs481crore vis--vis Rs250 crore. PAT (after minority interest) at Rs275 crore against Rs127 crore; up 116.5 per cent includes impact of: Rs47 crore towards charge for M-T-M for foreign currency debt. Rs10 crore in accordance with the above circular issued by DoF in Q2 FY2011-12.

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Market Capitalization of the Tata Group.

31 Tata companies listed on various stock exchanges

Accounts for approx 3.5% of the total market capitalization of all listed companies in India

Over 2.1 million shareholders

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Size in terms of no of employees and turnover

TCL is a global company operating in the chemicals, food additives and agri space. It is listed on the Bombay Stock Exchange (BSE) as well as National Stock Exchange (NSE) with consolidated revenues in excess of $1 billion ( 0.78 billion) annually. The company has over 3000 employees and is part of the $22 billion ( 17 billion) Tata group.

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Executive profiles
R Mukundan, Managing Director

RamakrishnanMukundan 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). MrMukundan 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, MrMukundan, 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 Schools advanced management programme.

De Lyle Bloomquist, President Global Chemicals Business

De Lyle W. Bloomquist is President, Global Chemical Business of Tata Chemicals Limited (TCL). Prior to July 2009, he was the President & CEO of General Chemical Industrial Products Ltd (GCIP). He joined TCL when TCL acquired GCIP in March 2008. Mr. Bloomquist has been in the chemicals industry for over 20 years with experience in various functions including finance, sales, logistics, operations, IT, strategy and business development. He led the transformation of GCIP in 2004 and 2005 to a highly profitable business after it emerged from bankruptcy reorganization. He has served on various Boards of Directors including Oglebay Norton Company, ANSAC and PDS Biotechnology Corporation.

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Business Operations and Plant locations all over the world

Plant locations
      

Mithapur (Gujarat) Babrala (UP) Nanded (Maharashtra) Haldia (West Bengal) Northwich, Cheshire (United Kingdom) East Hanover, New Jersey (United States) Magadi (Kenya)[6]

Tata Chemicals has the second largest soda ash production capacity plant in India. This was the second soda ash plant built in India by ShriKapilramVakil that started operating in the year 1944. The township Mithapur, derives its name from "Mith" which means salt in Gujarati language.

Since 2006 Tata Chemicals has owned Brunner Mond, a United Kingdom-based chemical company with operations in Magadi (Kenya) and General Chemicals, in United States of America. On March 27, 2008, Tata Chemicals Ltd acquired 100 per cent stake in US-based General Chemical Industrial Products Inc (GCIP) for $1.05 billion (around Rs 4,000 crore) to become the worlds second largest maker of soda ash. With all these acquisitions, combined capacity of production has increased to around 5.17 million tonnes of soda ash. In April 2010, Tata Chemicals acquired 25% stake in ammonia-urea fertilizer complex in Gabon for US$290 million The first phase of the plant will have a full operational capacity of 2,200 million tonnes of ammonia and 3,850 million tonnes of urea per day.

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Joint Ventures and Alliances

yTata Chemicals Europe (the former Brunner Mond group, acquired in 2006): The UK-based company is Europe's second largest soda ash business. yTata Chemicals North America (the former General Chemical Industrial Products Inc acquired in 2008): US-based soda ash manufacturer. yKhet Se Agriproduce India: A 50:50 joint venture set up in 2007 with Total Produce, Ireland, the third largest fruits and vegetable distribution company in the world, to start a fruits and vegetables distribution business in India. yIndoMarocPhosphore SA: An equal partnership with Chambal Fertilisers and global phosphate major, OCP of Morocco; set up in 2005.

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Business status (market Situation / Relative market Position) PEST analysis

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Industry overview and analysis (Porter's five forces model and competitor analysis )
Chemical Industry in India is one of the fastest growing industries under the Indian Economy. At the same time it is also one of the oldest domestic industry of India which started working soon after India's independence in 1947. From those early years, the Chemical Industry in India continued to contribute to the Economic Growth of Indian Economy. At present, the industry accounts for almost 13% of Indian GDP. The Chemical Industry in India which generates almost 13% of country's total export is growing annually at a growth rate anywhere between 10% and 12%. Now we can discuss the growth rates and other important things of Chemical Industry in India sector wise.

The Chemical Industry in India is based on the idea of Diversification. The industry is a multi product and multi-faceted one. Depending on these product categories we can divide the Chemical Industry in India in following sectors:

Inorganic Chemicals-In this sector the growth rate is near about 9% and the chemicals produced in this sector are mainly used in alkalis, fertilizers, detergents and glass. Drugs and Pharmaceuticals- This sector of Indian Chemical Industry holds the 4th place in the world in terms of volume. Export led growth is the characteristics of this sector. Plastics and Petrochemicals-This sector of the Indian Chemical Industry is the fastest growing one among all the sectors. Reliance Petrochemical is the company which dominates this sector. Pesticides, Fertilizers and other Agro-chemical products- This sector of the Chemical Industry in India account for almost 2.5% of the global market. It possesses an impressive domestic market growth rate of 10%. Specialty and Fine Chemicals like Dyes and Paints- This sector is characterized by high level of fragmentation. The sector is involved in production of paints, dyes,

inks,polymers and a lot of other chemical products. The sector has a growth rate of near about 12%.

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SWOT analysis Marketing strategies a. Product Strategies (Product Mix, PLC, NPD, Branding etc) b. Pricing Strategies c. Place Strategies (channels and physical distribution) d. Promotion Strategies (IMC)

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CSR activities Tata Chemicals believes in a cohesive, inclusive and integrated society, in which all individuals have access to opportunities for personal growth and inclusive economic growth. The present socio-economic environment necessitates a more constructive role by industry for achieving inclusiveness and complementing the ongoing efforts of Government and civil society in enhancing social equity. Improving the quality of life and fostering sustainable and integrated development in the communities where it operates is central to Tata Chemicals corporate philosophy. In order to do so Tata Chemicals established Tata Chemicals Society for Rural Development (TCSRD) in 1980 as a society and trust. The principle aim and objective as written in the memorandum of association, of which Tata Chemicals is a principle promoter is to undertake, carry out, promote, sponsor, assist or aid directly or in other manner, any activity for: The promotion and growth of rural economy Rural welfare Activities relating to environmental protection Conservation of natural resources Creating and developing facilities for public education Fostering conservation and research in the field of natural history Other programs for promoting the socio-economic development and welfare or uplift of the people in any rural area in India, particularly the rural areas around the town of Mithapur in the state of Gujarat; around

Babrala Township in the state of Uttar Pradesh; around Haldia in the state of West Bengal and in other states where Tata Chemicals may have a presence. Tata Chemicals Limited being the principal promoter and the founder corporate member provides to the society technical know-how and skills as may be available with the company and implements at its discretion, the rural development programs wholly or partly through the Society. The objective of social responsibility is equally well-entrenched in the minds of its employees, who play an active part in providing financial support and empowering rural communities to chart their own development.

Initially, the projects implemented by TCSRD focused on welfare and relief activities. In early 90 s the focus shifted to a proactive approach that aimed at sustainable community development. Baseline studies were initiated and interventions were divided into development activities direct economic gain and service activities no direct gain but important for the overall socio-economic development of the area.

The programs which are being carried out are under these heads:

Natural Resource Management Program Income generation / Livelihood Development Program Health, Education and Infrastructure (Services) Environment care and conservation

Currently, TCSRD has refined its approach and developed the following framework to specifically cater to meeting its vision & mission.

xviii) New Marketing Opportunities