Indian chemicals group Tata Chemicals has decided to restructure, exiting non-core businesses like detergents and cement and focusing on its core businesses of soda ash and fertilisers.
Tata Chemical…
Indian chemicals group Tata Chemicals has decided to restructure, exiting non-core businesses like detergents and cement and focusing on its core businesses of soda ash and fertilisers. Tata Chemicals is the largest producer of soda ash in India, with a market share of around 44%. Soda ash sales represent about 33% of Tata Chemicals turnover. However, the profitability of the soda ash division may well come under pressure due to declining international prices and overcapacity in the domestic market. Tata Chemicals has drawn up plans to further improve the efficiency of its plant at Mithapur in Gujarat, having already spent around Rs 250 crore on modernisation there. During the first half of the current fiscal, Tata Chemicals reported sales growth of 12%, though operating margins declined from 32% for the corresponding period a year earlier to 23%, primarily due to increases in raw material costs.