Description
Covers branding, promotions, communications.
Market
The coming years are expected to witness untrammelled growth for the chemical industry. 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.com). This Rs. 160,000 crore (US$ 40 billion) activity comprises a wide swathe of businesses that encompass basic chemicals, petrochemicals, fertilisers, paints, gases and pharmaceuticals. As India’s consuming middle class, comprising about a third of the total population climb the socio-economic ladder, disposable incomes will continue to rise. Since raw material from this industry is the active ingredient in several consumer products, this upward mobility is expected to impact chemicals consumption exponentially. Recognising this coming boom, a number of government-sanctioned special economic zones (SEZs) to promote investments in the sector have been launched. Several key domestic companies have already unveiled ambitious expansion plans. Within this market scenario, Tata Chemicals plays a crucial and commanding role, catering to categories as diverse as detergents, glass, textiles and dye chemicals, paper and newsprint, petroleum refineries and construction. Its branded products reach out to the farming community as also to domestic consumers. The company takes pride in the fact that it is a Tata company with the largest number of customer
touch-points. Soda ash, sodium bicarbonate and sodium tripoly phosphate (STPP) account for about 48% of the company’s total consolidated global revenues. Of this, soda ash is its biggest component meeting 55% of India’s chlor-alkali needs. This versatile chemical is used in the production of detergents, glass, chemicals, sodium silicate, pulp and paper and finds extensive use in water treatment. India accounts for about 6% of global soda ash capacity. Despite this, per capita consumption of soda ash in India is just 2.7 kilograms and compares poorly with countries like China at 9.8 kilos and the US with 22. There obviously is considerable scope for consumption-driven growth. Tata Chemicals is a market leader in phosphatic fertilisers in West Bengal, Bihar and Jharkhand. The product is marketed mostly in the fertile plains of the north and northwestern states. Tata Salt is the company’s most recognised product. 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. Tata Samunder, its cooking soda, is the other significant brand in the company’s stables. It finds extensive use in western India. The acquisition of US-based General Chemical Industries Products (GCIP) for US$ 1.05 billion (Rs. 4200 crore) has now given Tata Chemicals access to markets in North America, Latin America and the Far East. These will help increase Tata Chemicals’ global footprint and complement the company’s existing Asian, European, Middle Eastern and African markets.
Virtuosity and versatility are two descriptives 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. Converting the by-products of soda ash into a viable cement business, setting up one of the world’s most energy-efficient and environmentfriendly fertiliser plants, using significant indigenous technology, are some of the enduring achievements of this remarkable, iconic company. The Babrala fertiliser plant in Uttar Pradesh has won the Sword of Honour Award of the British Safety Council four times in a row, as also the International Award instituted by it for Business Sustainability. These accolades are recognised the world over as the pinnacle of achievement in safety management systems and awarded to businesses that demonstrate sustainable performance through a clear and measurable commitment to environmental management. True to its solid reputation for innovation, 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.
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, Sayaji Rao Gaekwad. 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, once again, 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
Achievements
With national and international recognition in all spheres of its business, Tata Chemicals has set benchmarks for the industry.
Samunder is the company’s cooking soda. In agro-nutrients, Tata Chemicals has a presence in all the three key segments: Nitrogen, Phosphorus and Potassium. The portfolio comprises of nitrogenous fertilisers, Urea (34.7%) manufactured at Babrala, Phosphatic fertilisers DAP and complexes (58.5%) manufactured at Haldia and MOP (4.2%) which the company imports. Bulk chemicals like Sulphuric acid, Phosphoric acid are manufactured in Haldia. This plant also produces about 60,000 tonnes of STPP annually, comprising almost 65% of India’s total capacity.
improve its quality. This explains why the company fosters the concept of human touch in everything it does. 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. Through this unique initiative, the company directly reaches and interacts with more than five million farmers in about 20,000 villages. In order to establish the Tata Chemicals corporate brand connect across target groups, a campaign based on the credo – The Human Touch of Chemistry – has been recently launched.
Brand Values
In public perception, Chemistry and Care do not always go hand in hand. The chemicals business, it is widely believed, is a predatory one, taking without giving back. The generalisation has never applied to Tata Chemicals. Rather, to give, to receive and to give back many times over, has been its corporate leitmotif. From its inception, the story of the company has been about chemistry with a conscience; of harnessing the fruits of science for goals that go beyond business; of care and commitment. Tata Chemicals is committed to meeting the highest standards of corporate governance and disclosures. Being part of the Tata Group with its blazing reputation for integrity, fair play and sound business practices, the company believes that corporate governance is not only about complying with a set of norms and regulations, but is also an article of faith. The principles of corporate sustainability are integrated in all its activities.
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 Mitha Mahal, the company guest house at Mithapur, where it still proudly stands.
Product
Apart from being the world’s second largest producer of soda ash, Tata Chemicals also manufactures sodium bicarbonate and STPP. Its salt works, spread across 60 square kilometres, generate the basic raw material for most of the chemicals the company manufactures. Soda ash is produced synthetically at three locations; Mithapur in Gujarat, Cheshire in the UK and Delfzijl in the Netherlands. Natural soda ash comes from Wyoming in the US and is dredged from Lake Magadi in Kenya. Tata Chemicals’ consumer products business (CPB) comprises predominantly of salt and its variants. Tata Salt is its flagship, branded iodised edible salt; I-Shakti is the recently-launched refined salt; Tata Salt Lite, with 15% lower sodium content, is its new offering for low sodium salt users; Topp Salt has been developed especially for the export market; while Tata
Recent Developments
The growth story of Tata Chemicals is a saga of strategic global acquisitions. The acquisition of GCIP in 2008 takes Tata Chemicals’ global soda ash capacity to around 5.5 million tonnes per annum. Tata Chemicals took its first step towards internationalisation in 2005 with the formation of an equal partnership in Indo Maroc Phosphore S.A. along with Chambal Fertilisers and global phosphate major, OCP of Morocco. In early 2006, Tata Chemicals completed the acquisition of the UK-based Brunner Mond Group which also owned Magadi Soda Company in Kenya. The following year, Tata Chemicals entered into a 50/50 joint venture with Total Produce of Ireland, the third largest fruits and vegetable distribution company in the world and Europe's largest and most accomplished fresh produce provider, to set up a fruits and vegetables distribution business in India. The company now plans to develop a significant presence in the bio-fuels space. Its first green-field bio-fuels plant is being established in Maharashtra. 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.
www.tatachemicals.com
THINGS YOU DIDN’T KNOW ABOUT
Tata Chemicals
Tata Chemicals introduced India to iodised salts Its 5.5 million tonnes per annum capacity makes Tata Chemicals the world’s second largest manufacturer of soda ash The Babrala facility was commissioned in 36 months – a world record for a fertiliser plant. Its township is ISO 14001 and OHSAS 18001 certified Mithapur is the first industrial township to be awarded the ISO 14001 certificate Lake Magadi in Kenya is a self-replenishing proven trona reserve with a projected life of 100 years With a 60 square kilometre area, Mithapur is one of the largest integrated salt works and chemical complexes in the world Tata Salt has been ranked the Number One food brand in India by Economic Times for three years in a row Babrala is the most energy efficient plant in India and amongst the best globally Tata Chemicals accounts for 34% of the country’s soda ash production
Promotion
Tata Chemicals has three core lines of business: chemicals, which are industry-centric; crop nutrition, which is farm-centric; and consumer products, which are its interface with domestic India. The company believes that in all three spheres its products impact human life and
doc_474676105.pdf
Covers branding, promotions, communications.
Market
The coming years are expected to witness untrammelled growth for the chemical industry. 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.com). This Rs. 160,000 crore (US$ 40 billion) activity comprises a wide swathe of businesses that encompass basic chemicals, petrochemicals, fertilisers, paints, gases and pharmaceuticals. As India’s consuming middle class, comprising about a third of the total population climb the socio-economic ladder, disposable incomes will continue to rise. Since raw material from this industry is the active ingredient in several consumer products, this upward mobility is expected to impact chemicals consumption exponentially. Recognising this coming boom, a number of government-sanctioned special economic zones (SEZs) to promote investments in the sector have been launched. Several key domestic companies have already unveiled ambitious expansion plans. Within this market scenario, Tata Chemicals plays a crucial and commanding role, catering to categories as diverse as detergents, glass, textiles and dye chemicals, paper and newsprint, petroleum refineries and construction. Its branded products reach out to the farming community as also to domestic consumers. The company takes pride in the fact that it is a Tata company with the largest number of customer
touch-points. Soda ash, sodium bicarbonate and sodium tripoly phosphate (STPP) account for about 48% of the company’s total consolidated global revenues. Of this, soda ash is its biggest component meeting 55% of India’s chlor-alkali needs. This versatile chemical is used in the production of detergents, glass, chemicals, sodium silicate, pulp and paper and finds extensive use in water treatment. India accounts for about 6% of global soda ash capacity. Despite this, per capita consumption of soda ash in India is just 2.7 kilograms and compares poorly with countries like China at 9.8 kilos and the US with 22. There obviously is considerable scope for consumption-driven growth. Tata Chemicals is a market leader in phosphatic fertilisers in West Bengal, Bihar and Jharkhand. The product is marketed mostly in the fertile plains of the north and northwestern states. Tata Salt is the company’s most recognised product. 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. Tata Samunder, its cooking soda, is the other significant brand in the company’s stables. It finds extensive use in western India. The acquisition of US-based General Chemical Industries Products (GCIP) for US$ 1.05 billion (Rs. 4200 crore) has now given Tata Chemicals access to markets in North America, Latin America and the Far East. These will help increase Tata Chemicals’ global footprint and complement the company’s existing Asian, European, Middle Eastern and African markets.
Virtuosity and versatility are two descriptives 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. Converting the by-products of soda ash into a viable cement business, setting up one of the world’s most energy-efficient and environmentfriendly fertiliser plants, using significant indigenous technology, are some of the enduring achievements of this remarkable, iconic company. The Babrala fertiliser plant in Uttar Pradesh has won the Sword of Honour Award of the British Safety Council four times in a row, as also the International Award instituted by it for Business Sustainability. These accolades are recognised the world over as the pinnacle of achievement in safety management systems and awarded to businesses that demonstrate sustainable performance through a clear and measurable commitment to environmental management. True to its solid reputation for innovation, 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.
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, Sayaji Rao Gaekwad. 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, once again, 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
Achievements
With national and international recognition in all spheres of its business, Tata Chemicals has set benchmarks for the industry.
Samunder is the company’s cooking soda. In agro-nutrients, Tata Chemicals has a presence in all the three key segments: Nitrogen, Phosphorus and Potassium. The portfolio comprises of nitrogenous fertilisers, Urea (34.7%) manufactured at Babrala, Phosphatic fertilisers DAP and complexes (58.5%) manufactured at Haldia and MOP (4.2%) which the company imports. Bulk chemicals like Sulphuric acid, Phosphoric acid are manufactured in Haldia. This plant also produces about 60,000 tonnes of STPP annually, comprising almost 65% of India’s total capacity.
improve its quality. This explains why the company fosters the concept of human touch in everything it does. 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. Through this unique initiative, the company directly reaches and interacts with more than five million farmers in about 20,000 villages. In order to establish the Tata Chemicals corporate brand connect across target groups, a campaign based on the credo – The Human Touch of Chemistry – has been recently launched.
Brand Values
In public perception, Chemistry and Care do not always go hand in hand. The chemicals business, it is widely believed, is a predatory one, taking without giving back. The generalisation has never applied to Tata Chemicals. Rather, to give, to receive and to give back many times over, has been its corporate leitmotif. From its inception, the story of the company has been about chemistry with a conscience; of harnessing the fruits of science for goals that go beyond business; of care and commitment. Tata Chemicals is committed to meeting the highest standards of corporate governance and disclosures. Being part of the Tata Group with its blazing reputation for integrity, fair play and sound business practices, the company believes that corporate governance is not only about complying with a set of norms and regulations, but is also an article of faith. The principles of corporate sustainability are integrated in all its activities.
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 Mitha Mahal, the company guest house at Mithapur, where it still proudly stands.
Product
Apart from being the world’s second largest producer of soda ash, Tata Chemicals also manufactures sodium bicarbonate and STPP. Its salt works, spread across 60 square kilometres, generate the basic raw material for most of the chemicals the company manufactures. Soda ash is produced synthetically at three locations; Mithapur in Gujarat, Cheshire in the UK and Delfzijl in the Netherlands. Natural soda ash comes from Wyoming in the US and is dredged from Lake Magadi in Kenya. Tata Chemicals’ consumer products business (CPB) comprises predominantly of salt and its variants. Tata Salt is its flagship, branded iodised edible salt; I-Shakti is the recently-launched refined salt; Tata Salt Lite, with 15% lower sodium content, is its new offering for low sodium salt users; Topp Salt has been developed especially for the export market; while Tata
Recent Developments
The growth story of Tata Chemicals is a saga of strategic global acquisitions. The acquisition of GCIP in 2008 takes Tata Chemicals’ global soda ash capacity to around 5.5 million tonnes per annum. Tata Chemicals took its first step towards internationalisation in 2005 with the formation of an equal partnership in Indo Maroc Phosphore S.A. along with Chambal Fertilisers and global phosphate major, OCP of Morocco. In early 2006, Tata Chemicals completed the acquisition of the UK-based Brunner Mond Group which also owned Magadi Soda Company in Kenya. The following year, Tata Chemicals entered into a 50/50 joint venture with Total Produce of Ireland, the third largest fruits and vegetable distribution company in the world and Europe's largest and most accomplished fresh produce provider, to set up a fruits and vegetables distribution business in India. The company now plans to develop a significant presence in the bio-fuels space. Its first green-field bio-fuels plant is being established in Maharashtra. 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.
www.tatachemicals.com
THINGS YOU DIDN’T KNOW ABOUT
Tata Chemicals
Tata Chemicals introduced India to iodised salts Its 5.5 million tonnes per annum capacity makes Tata Chemicals the world’s second largest manufacturer of soda ash The Babrala facility was commissioned in 36 months – a world record for a fertiliser plant. Its township is ISO 14001 and OHSAS 18001 certified Mithapur is the first industrial township to be awarded the ISO 14001 certificate Lake Magadi in Kenya is a self-replenishing proven trona reserve with a projected life of 100 years With a 60 square kilometre area, Mithapur is one of the largest integrated salt works and chemical complexes in the world Tata Salt has been ranked the Number One food brand in India by Economic Times for three years in a row Babrala is the most energy efficient plant in India and amongst the best globally Tata Chemicals accounts for 34% of the country’s soda ash production
Promotion
Tata Chemicals has three core lines of business: chemicals, which are industry-centric; crop nutrition, which is farm-centric; and consumer products, which are its interface with domestic India. The company believes that in all three spheres its products impact human life and
doc_474676105.pdf