MIRA
INFORM REPORT
|
Report Date : |
23.02.2012 |
IDENTIFICATION DETAILS
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Name : |
TATA CHEMICALS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
23.01.1939 |
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Com. Reg. No.: |
11-2893 |
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Capital Investment
/ Paid-up Capital : |
Rs.2433.200
Millions |
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CIN No.: [Company Identification
No.] |
L24239MH1939PLC002893 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMT00053E MRTT00425F |
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Legal Form : |
Public Limited Liability
Company. The Company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Inorganic
Chemicals and Fertilizers. |
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No. of Employees
: |
Approximately 4645 (3166 in |
RATING & COMMENTS
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MIRA’s Rating : |
A (67) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 189627000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a Tata Group
company. It is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be
considered normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered/ Corporate
Office : |
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Tel. No.: |
91-22-22049131/ 1529 / 4359/ 22867407/ 66658282 |
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Fax No.: |
91-22-22042947/ 5359 / 66658143 / 44 |
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E-Mail : |
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Website : |
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Mumbai Marketing Office : |
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Tel. No.: |
91-22-66437400 |
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Fax No.: |
91-22-66437598 / 99 |
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Factory 1 : |
Mithapur Plant Mithapur - 361 345, Okhamandal, |
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Tel. No.: |
91-2892-665 991 / 665 992 |
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Fax No.: |
91-2892-223 471 |
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Factory 2 : |
Haldia Plant P.O. Durgachak, Haldia, District Purba, East Midnapore - 721 602, West
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Tel. No.: |
91-3224-251 001 |
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Fax No.: |
91-3224-252 220 / 252 223 |
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Factory 3 : |
Babrala Plant Indira Dham, P.O. Box No.1, Babrala - 202 521, District Budaun, |
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Tel. No.: |
91-5836-664 990 / 664 777/ 664 888 / 664 999 |
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Fax No.: |
91-5836-664 218 |
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Factory 4 : |
Nanded Plant Bio-fuel Works, Plot No.D-1, Krushnoor MIDC, Near Ghungrala Village,
Naigaon, Nanded - 431 709, |
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Factory 5 : |
Brunner Mond |
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Tel. No.: |
+44 (0) 1606 724000 |
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Fax No.: |
Fax: +44 (0) 1606 781353 Sales: +44 (0) 1606 724175 |
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Factory 6 : |
General Chemical Industrial Products Inc. |
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Tel. No.: |
(973) 599-5500 (800) 819-8568 |
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Fax No.: |
(973) 599-550 |
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Factory 7 : |
Magadi Soda Company |
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Tel. No.: |
254-20-6999000 |
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Fax No.: |
254-20-6999358 |
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Overseas Location : |
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Overseas Factory 1 : |
Tata Chemicals North America Inc. |
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Overseas Factory 2 : |
Tata Chemicals Europe Limited Northwich West (Winnington) and Northwich East (Lostock) |
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Overseas Factory 3 : |
Tata Chemicals Magadi Limited |
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Regional and Satellite
Office : |
Located at: v Ahmedabad v Noida v Chennai v Kolkata v v v |
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Research and
development office : |
S No. 1139/1, Ghotavde Phata, Urawde Road, Pirangut Industrial Area, Mulshi, Pune - 412 108, Maharashtra, India |
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Tel. No.: |
91-20-66549700 |
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Centre for
agri-solutions and technology : |
Tata Krishi Vikas Kendra Campus, 10th |
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Crop nutrition and
agri-business marketing office : |
C-43 , Sector 62, Noida – 201 309, |
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Tel. No.: |
91-120-6663430 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Ratan N. Tata |
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Designation : |
Chairman |
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Date of Birth/Age : |
28.12.1937 |
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Qualification : |
B.Sc.,
(Architecture) from |
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Expertise in specific functional areas : |
Eminent industrialist with wide business
experience across variety of industries. |
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Date of Appointment : |
11.04.1983 |
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Name : |
Mr. R. Gopalakrishnan |
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Designation : |
Vice-Chairman |
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Date of Birth/Age : |
25.12.1945 |
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Qualification : |
B.Sc., (Hons), B.Tech (Hons) in Electronic from IIT Khargpur |
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Date of Appointment : |
30.10.1998 |
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Name : |
Mr. Nusil N. Wadia |
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Designation : |
Director |
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Date of Birth/Age : |
15.02.1944 |
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Qualification : |
Educated in |
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Expertise in specific functional areas : |
Eminent industrialist with rich business
experience |
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Date of Appointment : |
26.06.1981 |
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Name : |
Mr. Prasad R. Menon |
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Designation : |
Managing Director |
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Qualification : |
B.E. (Chem) IIT Kharagpur |
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Date of Birth/Age : |
23.01.1946 |
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Experience : |
In Chemicals, Agro-Chemicals, Paints and
Fertilizer Industry |
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Date of Appointment : |
30.10.2006 |
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Name : |
Mr. Nasser Munjee |
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Designation : |
Director |
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Date of Birth/ Age : |
18.11.1952 |
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Qualification : |
BSc (Hons.) and MSc (Economics)- |
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Expertise in specific functional areas : |
Eminent Economist, Banker and Consultant on infrastructure |
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Date of Appointment : |
25.09.2006 |
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Directorships in other Public Limited Companies* : |
v
ABB Limited v
Ambuja Cements Limited v
Bharti AXA Life Insurance Company Limited v
Bharti AXA General Insurance Company Limited v
Britannia Industries Limited v
Cummins India Limited v
Development Credit Bank Limited v
HDFC Limited v
HUDCO Limited v
Neptune Developers Limited v
Shipping Corporation of India Limited v
Tata Motors Limited v
Unichem Laboratories Limited v
Voltas Limited |
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|
|
|
Name : |
Dr. Yoginder K. Alagh |
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Designation : |
Director |
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Date of Birth/ Age : |
14.02.1939 |
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Qualification : |
Ph.D in Economics |
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Expertise in specific functional areas : |
Eminent Economist with wide experience in policy making and planning |
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Date of Appointment : |
25.09.2006 |
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Directorships in other Public Limited Companies* : |
v
Rallis India Limited v
Shree Cements Limited v
Somany Ceramics Limited |
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Name : |
Dr. M.S. Ananth |
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Designation : |
Director |
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Date of Birth/Age : |
15.11.1945 |
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Qualification : |
Ph.D in Chemical Engineering from the |
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Expertise in specific functional areas : |
Chemical
Engineer with expertise in Molecular Thermodynamics and Mathematical
Modelling. He is the Director of Indian Institute of Technology (IIT) |
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Date of Appointment : |
03.04.2008 |
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Directorships in other Public Limited Companies* : |
v
Chennai Petroleum Corporation Limited v
UCAL Fuel System Limited |
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Name : |
Mr. Eknath A. Kshirsagar |
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Designation : |
Director |
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Name : |
Dr. Y.S.P. Thorat |
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Designation : |
Director |
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Date of Birth/Age : |
11.11.1947 |
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Qualification : |
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Expertise in specific functional areas : |
In banking, rural credit
cooperatives, micro finance. |
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Date of Appointment : |
08.01.2010 |
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Name : |
Mr. R. Mukundan |
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Designation : |
Managing Director |
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Name : |
Mr. P.K. Ghose |
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Designation : |
Executive Director and Chief Finance Officer |
* Note: Excludes Directorships in Private Limited Companies, Foreign
Companies and Government Bodies
KEY EXECUTIVES
|
Name : |
Mr. Rajiv Chandan |
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Designation : |
Company Secretary |
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MEMBERS OF THE
EXECUTIVE COMMITTEE : |
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Name : |
Mr. R. Mukundan |
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Designation : |
Managing Director |
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Name : |
Mr. P.K. Ghose |
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Designation : |
Executive Director and Chief Finance Officer |
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Name : |
Mr. De Lyle Bloomquist |
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Designation : |
President (Global Chemicals) |
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Name : |
Mr. B. Sudhakar |
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Designation : |
Chief Human Resources Officer |
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Name : |
Dr. Murali Sastry |
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Designation : |
Chief Scientific Officer |
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Name : |
Dr. Arup Basu |
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Designation : |
Chief Operating Officer (Chemicals - |
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Name : |
Mr. Ashvini Hiran |
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Designation : |
Chief Operating Officer (Consumer Products) |
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Name : |
V.K. Bhatia |
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Designation : |
Senior VP (Manufacturing - Fertilisers) |
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Name : |
D.K. Sundar |
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Designation : |
Senior VP (Marketing - Fertilisers) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
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|
78,789,241 |
30.93 |
|
|
374,165 |
0.15 |
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|
374,165 |
0.15 |
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|
79,163,406 |
31.07 |
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Total shareholding of Promoter and Promoter Group (A) |
79,163,406 |
31.07 |
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(B) Public Shareholding |
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|
21,871,188 |
8.59 |
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|
643,163 |
0.25 |
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|
76,048 |
0.03 |
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|
56,717,970 |
22.26 |
|
|
34,080,490 |
13.38 |
|
|
113,388,859 |
44.51 |
|
|
|
|
|
|
7,516,480 |
2.95 |
|
|
|
|
|
|
49,313,163 |
19.36 |
|
|
4,833,256 |
1.90 |
|
|
541,114 |
0.21 |
|
|
384,572 |
0.15 |
|
|
156,542 |
0.06 |
|
|
62,204,013 |
24.42 |
|
Total Public shareholding (B) |
175,592,872 |
68.93 |
|
Total (A)+(B) |
254,756,278 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
254,756,278 |
- |
(1) Indian
Bodies Corporate
TrustsBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Inorganic
Chemicals and Fertilizers. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Licensed
Capacity (Tonnes
) |
Installed
Capacity (Tonnes
$) |
|
Soda Ash |
1000000 |
917700 |
|
Sodium Bicarbonate |
75600 |
100000 |
|
Caustic Soda |
36000 |
36000 |
|
Liquid Chlorine |
31950 |
31950 |
|
Hydrochloric Acid |
N.A. |
64800 |
|
Bromine |
2520 |
2400 |
|
Hydrobomic Acid |
50 |
50 |
|
Vacuum Salt |
N.A. |
647500 |
|
Chemicals and other Industrial
Machinery |
5000 |
5000 |
|
Clinker |
N.R. |
825000 |
|
Cement |
440000 |
440000 |
|
Ammonia |
N.R. |
445500 |
|
Urea @@ |
N.R. |
742500 |
|
Sulphuric
acid # |
221500 |
221500 |
|
Phosphoric
acid # |
52700 |
52700 |
|
Sulphonic
Acid # |
N.A. |
12000 |
|
Sodium
Tripolyphosphate (STPP) # |
40000 |
50000 |
|
Diammonium
Phosphate (DAP) # |
670000 |
670000 |
|
Single
Super Phosphate (SSP) # |
165000 |
165000 |
$ As certified by
the Management and accepted by the Auditors.
# Licensed capacity
includes capacity under the Industrial Entrepreneurs Memorandum filed with the
Government and duly acknowledged by them under the scheme of delicensing
notified by the Government.
@@ After
debottlenecking expected per day production is likely to be around 3500 mtpd
N.A. Not
Applicable
N.R. Not Required
|
Particulars |
Production/
Purchase (Tonnes)
|
|
Soda Ash |
696746 |
|
Sodium Bicarbonate |
78278 |
|
Caustic Soda |
10979 |
|
Liquid Chlorine |
2068 |
|
Hydrochloric Acid |
18188 |
|
Bromine |
1177 |
|
Vacuum Salt # |
597077 |
|
Pure Salt |
2886 |
|
Solar Salt |
-- |
|
Gypsum |
143819 |
|
Cement |
418866 |
|
Clinker |
385178 |
|
Ammonia |
636305 |
|
Urea ** |
1117153 |
|
Sodium Tripoly phosphate (STPP) |
10575 |
|
Diammonium Phosphate (DAP) |
208464 |
|
NPK ** |
361419 |
|
Single Super Phosphate ** |
140496 |
|
Sulphuric Acid |
176423 |
|
Phosphoric Acid |
11388 |
|
Others |
-- |
# Sales of Vacuum
Salt includes free issues under sales promotion schemes.
** Production figures include Bulk Production
GENERAL INFORMATION
|
No. of Employees : |
Approximately 4645 (3166 in |
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Bankers : |
v
Bank of v
State Bank of v
State Bank of v
Citibank N.A. v
Bank of v
HDFC Bank Limited v
Deutsche Bank v
Punjab National Bank v
Standard Chartered Bank v
The Hongkong and Shanghai Banking Corporation Limited v
ICICI Bank Limited v
Bank of v
Axis Bank Limited v
Kotak Mahindra
Bank Limited v
DBS Bank v
Bank of |
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Facilities : |
Notes : (a) Loans from
Banks on Cash Credit Accounts under item 1 are secured by hypothecation of
stocks of raw materials, finished products, stores and work-in-process as
well as book debts. (b) 11.80% Secured
Redeemable Non-Convertible Debentures face value Rs.1.000 million each
redeemable at par on 18 December, 2013, secured by pari passu charge on the
Company’s properties at Babrala.
Notes : (a) 7.40%
Unsecured Redeemable Non-Convertible Debentures face value Rs.1.000 million each
redeemable at par on 23 November, 2011 of Rs.15000.000 millions. (b) 10%
Unsecured Redeemable Non-Convertible Debentures face value Rs.1.000 million
each redeemable at par on 2 July, 2019 of Rs.2500.000 millions. |
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Banking Relations : |
-- |
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Auditors : |
Deloitte Haskins and Sells Chartered Accountants |
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Solicitors : |
v
AZB and Partners, Mumbai v
Mulla and Mulla and Craigie v
Blunt and Caroe, Mumbai |
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Subsidiaries : |
Direct v Homefield
International Private Limited, v v Bio Energy
Venture - 1 ( v Rallis India
Limited, Indirect v Tata Chemicals v Homefield
Private UK Limited, v Homefield 2 UK
Limited, v Tata Chemicals
(Europe) Holding Limited*, v Brunner Mond
Group Limited v Brunner Mond ( v Brunner Mond
Limited, v
The Magadi Soda Company Limited, v
Brunner Mond ( v
Northwich Resource Management Limited, v
Brunner Mond Generation Company Limited, v
Tata Chemicals Africa Holdings Limited**, v
Magadi Railway Company Limited, v
Brunner Mond B.V., v
v
Gusiute Holdings ( v
Valley Holdings Inc., v
General Chemical Industrial Products Inc., v
General Chemical International Inc., v
NHO Canada Holdings Inc., v
General Chemical (Soda Ash) Inc., v
Bayberry Management Corporation, v
General Chemicals (Soda Ash) Partners, v
General Chemical ( v
General Chemical Canada Holding Inc., v
GCSAP Canada Inc, v
GCSAP Holdings, v
GCSAP LLC, v
Bio Energy Venture - 2 ( v
Grown Energy Zambeze Holdings Private Limited, v
Grown Energy (Proprietary) Limited*, v
Grown Energy Zambeze Limitada*, v
Rallis Australasia Pty Limited***, v
Rallis Chemistry Exports Limited, v
Metahelix Life Sciences Limited*, v
Dhaanya Seeds Limited*, v
British Salt Limited*, v
Cheshire Salt Holdings Limited*, v
Cheshire Salt Limited*, v
Brinefield Storage Limited*, v
Broomco (4118) Limited*, v
Broomco (4119) Limited*, v
Broomco (4120) Limited*, v
v
Cheshire Compressor Limited*, v
Irish Feeds Limited*, v
New Cheshire Salt Works Limited*, |
|
|
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|
Joint Ventures : |
Direct v
Indo Maroc Phosphore S. A., v
Khet-Se Agri Produce India Private Limited, Indirect v
Alcad, United State of v
Kemex B.V., v
JOil (S) Pte. Limited, v
The Block Salt Company Limited #, v
Lake Natron Resources Limited, |
*Companies which
became subsidiaries / incorporated during the year.
**Name of Transcontinental
Holdings Limited changed to this name w.e.f. December 12, 2010.
*** Has applied
for voluntary liquidation as on 31st March, 2011. The Company
expects to recover amount higher than the carrying value of the investment.
# Joint Venture arising out of acquitions during the year.
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
270000000 |
Ordinary Shares |
Rs.10/- each |
Rs.2700.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
254842598 |
Ordinary Shares |
Rs.10/- each |
Rs.2433.400 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
254756278 |
Ordinary Shares Of the above
Shares : (i) 37,000
Ordinary Shares of Rs.10 each were allotted as fully paid-up pursuant to a
contract without payment being received in cash. (ii)
10,54,02,144 Ordinary Shares of Rs.10 each were issued as fully paid-up Bonus
Shares by capitalisation of Rs.929.700 millions from Securities Premium
Account and Rs.124.300 millions from General Reserve. (iii) 42,49,864
Ordinary Shares of Rs.10 each allotted as fully paid-up to the Shareholders
of Tata Fertilisers Limited, pursuant to the Scheme of Amalgamation. (iv) 3,44,64,000
Ordinary Shares of Rs.10 each issued as fully paid-up to the Shareholders of
Hind Lever Chemicals Limited as per the Scheme of Amalgamation. |
Rs.10/- each |
Rs.2547.600 Millions |
|
|
Forfeited Shares |
|
Rs.0.600 Million |
|
|
Total |
|
Rs.2548.200 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2548.200 |
2433.200 |
2352.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
44858.600 |
40396.400 |
36240.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
47406.800 |
42829.600 |
38593.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2527.300 |
2492.400 |
2494.800 |
|
|
2] Unsecured Loans |
27232.100 |
26972.700 |
34266.200 |
|
|
TOTAL BORROWING |
29759.400 |
29465.100 |
36761.000 |
|
|
DEFERRED TAX LIABILITIES |
1597.100 |
1902.200 |
1030.200 |
|
|
|
|
|
|
|
|
TOTAL |
78763.300 |
74196.900 |
76384.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
15875.800 |
15924.400 |
15449.800 |
|
|
Capital work-in-progress |
3400.500 |
2376.500 |
3072.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
49016.900 |
49055.900 |
44737.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
Foreign Currency Monetary Item Translation Difference |
0.000 |
78.900 |
2373.900 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6963.000
|
6111.900
|
9613.500
|
|
|
Sundry Debtors |
7317.200
|
5816.000
|
10017.300
|
|
|
Cash & Bank Balances |
7987.600
|
7126.500
|
6387.500
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
4391.000
|
2825.000
|
6169.700
|
|
Total
Current Assets |
26658.800
|
21879.400
|
32188.000
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5809.900 |
5649.100 |
14333.700 |
|
|
Other Current Liabilities |
6367.200
|
5937.200
|
3376.200 |
|
|
Provisions |
4011.600
|
3531.900
|
3727.100
|
|
Total
Current Liabilities |
16188.700
|
15118.200
|
21437.000
|
|
|
Net Current Assets |
10470.100
|
6761.200
|
10751.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
78763.300 |
74196.900 |
76384.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales |
62252.700 |
54124.500 |
83620.900 |
|
|
|
Operating Income |
1071.600 |
639.500 |
369.400 |
|
|
|
Other Income |
1084.600 |
1928.300 |
946.800 |
|
|
|
Reversal of Impairment |
0.000 |
0.000 |
318.400 |
|
|
|
TOTAL |
64408.900 |
56692.300 |
85255.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
54393.800 |
45775.300 |
74187.000 |
|
|
|
Voluntary Retirement Scheme cost |
267.500 |
0.000 |
0.000 |
|
|
|
Borrowing Costs |
2014.900 |
2057.300 |
1912.300 |
|
|
|
Foreign exchange gain on borrowings (net) |
0.300 |
1082.800 |
923.200 |
|
|
|
Impairment of assets |
100.800 |
23.700 |
0.000 |
|
|
|
TOTAL |
56777.300 |
48939.100 |
77022.500 |
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX, DEPRECIATION AND AMORTISATION |
7631.600 |
7753.200 |
8233.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
2044.600 |
1871.900 |
1630.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
5587.000 |
5881.300 |
6602.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
1502.100 |
1533.500 |
2082.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
4084.900 |
4347.800 |
4520.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
18693.300 |
17333.200 |
15741.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
2547.600 |
2189.300 |
2116.500 |
|
|
|
Tax on Dividend |
387.900 |
363.600 |
359.700 |
|
|
|
General Reserve |
408.500 |
434.800 |
452.100 |
|
|
BALANCE CARRIED
TO THE B/S |
19434.200 |
18693.300 |
17333.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on F.O.B. basis |
417.300 |
896.300 |
927.500 |
|
|
|
Interest |
4.700 |
11.400 |
166.600 |
|
|
|
Dividend |
109.800 |
240.400 |
237.100 |
|
|
TOTAL EARNINGS |
531.800 |
1148.100 |
1331.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, fuel
and traded products |
25296.100 |
17121.700 |
47414.300 |
|
|
|
Stores, components and spare parts |
93.100 |
91.100 |
197.800 |
|
|
|
Capital Goods |
401.100 |
355.800 |
790.400 |
|
|
TOTAL IMPORTS |
25790.300 |
17568.600 |
48402.500 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
|
|
|
|
|
- Basis |
16.32 |
18.38 |
19.25 |
|
|
|
- Diluted |
16.32 |
18.38 |
18.13 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
15853.300 |
19746.000 |
23397.700 |
|
Total Expenditure |
13639.700 |
17138.000 |
20565.900 |
|
PBIDT (Excl OI) |
2213.600 |
2608.000 |
2831.800 |
|
Other Income |
381.300 |
792.400 |
524.900 |
|
Operating Profit |
2594.900 |
3400.400 |
3356.700 |
|
Interest |
471.900 |
506.900 |
570.500 |
|
Exceptional Items |
(66.600) |
(482.600) |
(221.100) |
|
PBDT |
2056.400 |
2410.900 |
2565.100 |
|
Depreciation |
553.300 |
558.000 |
560.900 |
|
Profit Before Tax |
1503.100 |
1852.900 |
2004.200 |
|
Tax |
394.800 |
476.700 |
473.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1108.300 |
1376.200 |
1530.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1108.300 |
1376.200 |
1530.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.34
|
7.67
|
5.30
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.97
|
10.87
|
7.89
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.14
|
15.56
|
13.86
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12
|
0.14
|
0.17
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.97
|
1.04
|
1.51
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.65
|
1.45
|
1.50
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject, an arm of Tata group. Incorporated in January 1939
in the course of take over of Okhamandal Salt Works. Subject is
PERFORMANCE REVIEW
The turnover of
the Company increased from Rs.54120.000 millions to Rs.62250.000 millions
registering a growth of 15% over previous year. Profit Before Tax was
Rs.5590.000 millions whereas Profit After Tax was at Rs.4080.000 millions, a
decrease of 5% and 6% respectively over previous year.
Consolidated
turnover increased from Rs.94490.000 millions to Rs.108950.000 millions, an
increase of 15% over previous year. On consolidated basis Profit Before Tax was
Rs.11210.000 millions whereas Profit After Tax was at Rs.8460.000 millions, an
increase of 20% and 17% respectively over previous year. Profit attributable to
the Group after deducting the minority interest was at Rs.6530.000 millions, an
increase of 8% over previous year.
Subject’s
operation is organized under four segments i.e. (1) Inorganic Chemicals
comprising of Soda Ash, Salt, Marine Chemicals, Caustic Soda, Cement and Bulk
Chemicals, (2) Fertilisers segment comprising of Fertilisers and other traded
products (3) Other Agri-inputs including Rallis operations and (4) Others -
comprising of Water Purifier, Bio-fuels and Pulses. Performance review of these
businesses is as under:
INORGANIC CHEMICALS SEGMENT
During the year,
Industrial Chemicals in
Soda Ash
Demand growth in
FY 2010-11 was driven by growth of all key soda ash consuming segments. The
Company further strengthened its relationship with its customers and focused on
improving service levels to consolidate its position in the marketplace.
Despite pressure on prices, the higher volume off take helped to achieve a
superior performance. Key debottlenecking projects were completed in the plant
at Mithapur. The announcement of new float glass and container glass projects
by glass companies in the near future provide an indication that demand for
soda ash will continue to remain robust in the foreseeable future. The other
key consuming sectors such as detergents and chemicals are also expected to
grow on the back of growing national economy.
The Company’s
production of soda ash at Mithapur in FY 2010-11 was 696,746 MT as against
previous year’s figure of 695,721 MT. This was despite the severe monsoon
(~60" of rainfall) in 2010 which disrupted plant operations. The Company
achieved sales of 668,774 MT of soda ash during the year as against the sales
of 675,481 during the previous year. Of this, 93% was sold in the domestic
market compared to 87% in FY 2009-10.
Sodium Bicarbonate
During the year,
the Company achieved the highest ever Sodium Bicarbonate production of 78,278
MT which was 9% higher than in the previous year. Sales at 76,289 MT were 7%
higher than the previous year for a product which till now has been relatively
insulated from economic cyles. In FY 2011-12, the Company launched its
Sodakarb®, branded bicarbonate in the Indian market, aimed at food
applications. This is in line with their stated plans as the domestic market
matures and grows over a period of time to introduce other brands in their
global portfolio.
Cement
The Company’s
cement plant was set up in 1993 to handle solid wastes generated as by-products
of soda ash manufacture. The Company uses technology to separate solid
effluents and process them into Ordinary Portland Cement (OPC) and Masonry
Cement. During the year, the production of OPC cement and masonry cement were
at 341,693 MT and 77,053 MT respectively whereas the sale of OPC cement and
masonry cement were 332,491 MT and 76,903 MT respectively.
Consumer Products
- Salt and Related Products
Consumer Products
demonstrated robust performance during the FY 2010-11 by leveraging its distribution
system and strong brand equity.
Iodized Salt
production in Mithapur was 553,386 MT in FY 2010-11, up by 3% from 537,033 MT
in FY 2009-10. Overall salt sales grew by 9% from 744,598 MT in FY 2009-10 to
808,165 MT in FY 2010-11. Tata Salt grew by 9% in volumes from 543,441 MT in FY
2009-10 to 591,334 MT in FY 2010-11. I-Shakti registered a volume growth of 7%
from 187,949 MT in FY 2009-10 to 201,888 MT in FY 2010-11. Amongst the major
brands, I-Shakti continues to maintain the most distributed brand after Tata
Salt with a reach of 6.06 lacs retail outlets. The Company’s market share of
its salt portfolio has increased to 62% in the National Branded Salt segment,
up from 59% in FY 2009-10.
I-Shakti cooking
soda sales showed an encouraging growth of 61% with sales of 1,003 MT in FY
2010-11 as compared to 623 MT in FY 2009-10.
Sales turnover of
the consumer business grew by 18% from Rs.6520.000 millions in FY 2009-10 to
Rs.7720.000 millions in FY 2010-11.
Consumer Products
continues its journey of innovation by new product development through salt
variants, bi-carbonate based products and in other categories which are in
various stages of development.
OVERSEAS OPERATIONS
TATA CHEMICALS
NORTH AMERICA INC.
During the year,
Tata Chemicals North America Inc. (TCNA) achieved gross sales of USD 399
million (Rs.18180.000 millions) and EBITDA of USD 118 million (Rs.5380.000
millions). These were higher by 3% and 5% respectively over previous year
figures. During the year, the company’s
TCNA volumes
during the year totaled 2,383,568 MT, 10% higher than the previous year total
of 2,182,000
TATA CHEMICALS
EUROPE LIMITED (FORMERLY KNOWN AS BRUNNER MOND
Tata Chemicals
Europe Limited (TCEL), which includes 3 months of sales from its recently
acquired salt operation of British Salt Limited achieved sales turnover of GBP
167 million (Rs.11850.000 millions) registering a decline of 12% over the
previous year. EBITDA was down to GBP 21 million (Rs.1480.000 millions). Soda
ash production volumes and increased carbon prices were the two main causes of
the fall in EBITDA compared to previous year of GBP 33 million (Rs.2510.000
millions).
Soda Ash
Soda Ash
production was 783,671 MT down by 5% compared to previous year. The two main
issues were carbon supply problems for the kiln operations and much more
importantly, the result of extreme winter weather suffered in December/January
which resulted in soda ash production volumes being severely impacted in 3rd
and 4th quarters of the year while major repairs were completed. Production
levels are now returning to normal levels.
Sodium Bicarbonate
Sodium bicarbonate
production and sales were 99,447 MT and 99,741 MT respectively, a 11% increase
over previous year as the new production facility grew its output in line with
the growth plan.
Salt
The 3 months of
British Salt Limited’s operation generated Sales of GBP 11 million (Rs.780.000
millions) and EBITDA of GBP 4 million (Rs.300.000 millions) ahead of forecasts
made at the time of acquisition.
TATA CHEMICALS MAGADI
LIMITED,
Turnover during
the year was at USD 97 million (Rs.4420.000 millions) as against USD 91.08
million (Rs.4320.000 millions) of previous year, registering an increase of 7%.
Sales of Standard Ash (SAM) declined during the year mainly due to increased
competition in the South African Market from American soda ash producers and
loss of a major customer in the last quarter of the year. The markets showed a
strong recovery in the second half of the period and the company renegotiated
new prices with the customers in the fourth quarter of the year. Premium Ash
(PAM) sales increased in both quantities and prices. This was due to improved
production from the PAM plant in the period as well as a growing demand in the
Asian market particularly
Combined sales
volumes for both PAM and SAM were 482,731 tonnes compared to 455,928 tonnes for
the previous year, an increase of 6%. The EBITDA was decreased by 28% to USD 9
million (Rs.410.000 millions) from USD 12 million (Rs.570.000 millions) for the
previous year. This is attributable to higher production costs arising from
higher HFO prices and adverse PAM plant fuel efficiencies.
Going forward, the
company is focused on plant optimization through initiatives such as Lean Six
Sigma, Magadi Return To Excellence (MRTE) and stringent cost control measures
as well as cash conservation.
FERTILISER SEGMENT
Subject has
significantly grown in Agri space over the past few years. With its farm essentials
portfolio, the Company has carved a niche in
CROP NUTRITION
BUSINESS
Crop Nutrition
business comprises of Nitrogenous Fertilisers i.e. Urea manufactured at Babrala
Plant and Phosphatic Fertilisers like DAP, NPK, SSP manufactured at the Haldia
plant. In addition to these, the Company imports and sells MOP and DAP and
supply other crop nutrition products like Specialty Fertilisers and organic
materials. The Crop Nutrition and Agribusiness operations of the Company
achieved a turnover of Rs.34910.000 millions during FY 2010-11.
During the year,
Subject continued its efforts of establishing itself in the deregulated crop
nutrients market while continuing to maintain its position in the core
fertiliser business. The Nutrient based subsidy introduced from April, 2010 is
aimed at improving agricultural productivity, encouraging balanced use of
fertilisers and enhancing customization to suit crop and soil requirements.
Urea
At Babrala, the
Plant achieved an annual Urea production of 1,117,153 MT, lower by 114,058 MT
compared to previous year. Urea sales quantity declined by 7% in FY 2010-11 due
to damage of R-502 convertor and a plant shut down due to floods. Market share
of Urea in the FY 2010-11 was 4% as against the previous year’s figure of 5%.
The plant also achieved highest ever accident free Million Man hours of 13.01.
The Energy consumption level of plant during the year was 5.26 GCal/MT as
against 5.17 GCal/MT of the previous year due to the disruptions mentioned
earlier.
DAP / NPK / SSP
The Haldia plant
achieved a combined production of 710,379 MT of DAP, NPKs and SSP during the FY
2010-11 against last year’s production of 675,996 MT. The sales of DAP, NPKs
and SSP were 705,384 MT against 704,036 MT last year. Market share of DAP, NPK
and SSP were 4.4%, 8.8% and 11% respectively during the year. Haldia site was
awarded 5 Star rating (Score of 97%) by British Safety Council. During the
year, the Unit signed the Contract Labor Settlement as well as the Long Term
Settlement with the unionized staff of the Unit. Government has recently
allowed charging market based price for Boronated SSP in line with basic spirit
of Nutrient Based Subsidy (NBS).
Imported Products
(DAP / MOP)
With the
implementation of NBS for NPK/DAP/MOP products, importers/manufacturers have
been given free hand to plan their production and imports as per need of the
market. This will help in leveraging the best price from international
suppliers as well as easy availability of fertilisers in every corner of the
country at market price.
Subsequent to the
announcement of NBS in the union budget for FY 2010-11, whereby the Company is
allowed to fix the MRP for all the Phosphates’ and Potassic fertiliser, the
import in the country has sharply increased. The Company also imported Di –ammonium
phosphate and Potassic fertiliser (for direct application) of 278,492 MT and
211,735 MT as against the previous volume of 66,650 MT and 182,072 MT
respectively.
Specialty Crop
Nutrients and Micro-Nutrients
Keeping customer centricity
at the core, the engagement of the Company with the farmers further got
strengthened with the introduction of two new products – Seaweed extract and
MAP in addition to the existing range of Specialty Fertilisers products like
Calcium Nitrate, Zinc Sulphate, Bentonite Sulphur, etc. The Company continued
to grow in the specialty fertilisers category with a healthy growth rate. The
Company’s extensive network of dealers and retailers helped to achieve record
sales primarily in north
Customised
Fertilisers – A new line of business
Subject entered
into a new field of crop and region specific Customised Fertilisers that
provides balanced crop nutrition to the soil, boosts the productivity of crops
and improves the overall soil health. Branded as “Paras Farmoola”, these
fertilisers contain macro and micro nutrients required by selected crops in
specific regions. They have been designed and developed on the basis of
geo-referenced soil, crop and water samples for the Western UP region in
TATA KISAN SANSAR
Subject operates
retail outlets under the brand of Tata Kisan Sansar (TKS). It acts as one stop
shop where it offers quality agricultural inputs and Agri Solutions such as
advice on crops, application services and farming practices etc. TKS centers
provide generic as well as store brands of Fertilisers (Urea, DAP, MOP, NPK,
etc), Specialty Fertilisers (Zinc sulphate, boron, micronutrients, calcium
nitrate, organics, water soluble fertilisers) Seeds (Field crops, vegetable
crops), entire range of Pesticides, Cattle feed and Farm implements. Along with
the above mentioned inputs, Subject is providing products of other reputed
companies through this retail network which helps farmer to get all nutrients
and input under one roof. In addition to above inputs, training is also
provided to farmers in context to nutrient and pest management.
TKS also provides
services such as soil and water testing, contract farming, seed production,
application services and advisory services. On relationship building front,
Subject provides Farmer membership (individual and group), Accident insurance
to members, Farmer meets and Crop seminars.
During the year,
continuous impetus has been laid upon stabilizing Supply Chain and improving
the look of the Branded TKS Outlets.
OTHER AGRI INPUTS
Rallis India
Limited (Rallis)
Rallis’ Crop
Protection Chemicals business performed well overall. Rallis posted a sales
turnover of Rs.10470.000 millions during the year registering a growth of 20%
over the previous year figure of Rs.8750.000 millions. Profit Before Tax was
higher by 21% at Rs.1840.000 millions with the highest ever net profit of
Rs.1260.000 millions which is 25% growth over last year.
The Domestic
Formulation business registered a growth of 20% over the previous year, driven
by an excellent performance of the key brands. The International Business
Division registered an increase of 34% in sales as compared to the sales during
FY 2009-10 and it comprised 23% of the total revenues of the company during the
year.
During the year,
Rallis has acquired a 60.21% stake in Metahelix Life Sciences, a research led
seeds company. This acquisition will firm up the Company’s presence in the
entire Seeds Value Chain that comprises breeding, production and marketing of
seeds.
OTHERS
Water Purifier
Business
TATA SWACH water
purifier which was launched in 2009 has been accepted very well in the market
place. Tata Swach is currently available for sale in more than 12 states
including Maharashtra, Karnataka, Andhra Pradesh, West Bengal,
The sale of the
product as well as those of replacement bulbs have been in line with expectations.
In view of the increasing demand of bulbs, a second plant is being commissioned
in Nanded,
Pulses
During the year,
pilot launch of I- Shakti pulses was done in the states of Tamil Nadu and
Biofuels
As a part of its
Biofuels Research and Development Programme using non conventional raw
materials, the Company has set-up a bio-ethanol test plant of 30 KLPD at
Nanded,
JOINT VENTURES
Indo Maroc
Phosphore S.A. (IMACID)
IMACID is a
joint-venture company established in Morocco for the purpose of securing
supplies of Phosphoric Acid, in which the Company has a 33.33% shareholding,
together with two other equal partners, Chambal Fertilizer Company Limited and
OCP, Morocco, who are the world’s largest producers of Phosphoric rock and
other phosphatic products. IMACID is engaged in the manufacture of phosphoric
acid. The Company secures phosphoric acid through supply from IMACID for
manufacture of fertilizers.
The cumulative
production of Phosphoric acid in this period was 362,842 MT against 416,947 MT
of the previous year. The lower production was in line with planning since a
major shutdown of the plant had been taken during December Quarter to replace a
Boiled and a Super-heater in the Sulphuric Acid plant which had come to the end
of their useful life. Major overhauling of other plant and machinery was also
undertaken to remove other weaknesses in the plant arising out of continuous
operation of the plant.
Khet-Se
Agriproduce India Private Limited
Khet-Se
Agriproduce India Private Limited (Khet-Se) is a joint venture (JV) between
Subject and Total Produce,
During the year,
2010-11, Khet-se achieved a total distribution of 5660 MT against 4077 MT of
fresh produce valued at Rs.94.600 millions against Rs.71.700 millions in the
previous year. Khet-Se brand of Banana is now available with all the major
retail chains like Wal- Mart, Spencers, and Reliance as a premium brand. Volume
of business for Khet-Se Greens (Vegetables) has doubled during the current
year. Key customers for greens are organised retails in Punjab and
JOil (
JOil, a Jatropha
seedling company, is based in
FINANCE
During the year,
the Company issued 1,15,00,000 equity shares of Rs.10/- each to Tata Sons
Limited on a preferential basis, at a price of Rs.316/- per equity share
resulting in an infusion of Rs.3634.000 millions to fund the Company’s growth
plans.
Despite the
increase in the level of working capital and increase in interest rates the
Company was able to contain the borrowings at almost the same levels of the
previous year and as a result of which net borrowing cost for the year was
lower than previous year.
During the year, an
amount of GBP 150 million (Rs.10770.000 millions) has been raised by the
Company’s subsidiary, Tata Chemicals Europe Holdings Limited, without recourse
to the Company, to finance the acquisition of British Salt and to part
refinance the existing loans of Tata Chemicals Europe Limited (formerly known
as Brunner Mond).
During the year,
the Company and its step-down subsidiary, Homefield Private UK Limited have
bought back a part of the USPP notes of USD 50 million (Rs.2230.000 millions).
This is in addition to the USD 50 million (Rs.2250.000 millions) bought back
during F.Y. 2009-10.
During the year,
the Company’s step-down subsidiary, Tata Chemicals Magadi Limited (formerly
known as The Magadi Soda Company Limited) has repaid Shareholders’ loan to the
extent of USD 40 million (Rs.1780.000 millions).
AWARDS AND
RECOGNITIONS
The Company during
the year has won many awards some of which are listed below:
Quality
• Sustained
Excellence Award at JRDQV 2010
Corporate
Sustainability and SHE
• “ICC” award for Excellence
in Management of Safety, Health and Environment
• 4th in top ten
Carbon Disclosure Leadership Index in CDP2010 -
• CII ITC
Sustainability Awards for Subject Babrala and Mithapur
• Serious
Adopters’ of Affirmative Action by Tata Group
•
Communications
• Gold Quill
Awards for Excellence in Communications
• 11 ABCI National
Awards and Star Communicator Company of the year for Corporate Communications
• 5 PRCI awards
for communication excellence
Finance
• Silver ICAI
Award for Excellence in Financial Reporting
Product
• Tata Salt Hall
of Fame award at the Economic Times Brand Equity Survey 2010
• Pitch Marketing
Award for Tata Swach in the ‘Bottom of the Pyramid’ category
• Gold at IDSA
Design Awards for Tata Swach Design
• Sniff Award for Tata swach for New Product Innovation in Leapvault
Change leadership Awards 2010
Innovation
• Global ICIS
award for Best Product Innovation – Tata Swach
• Gold at the Asian Innovation Awards 2010 for Tata Swach
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL BUSINESS
ENVIRONMENT
In the Financial
Year (FY) 2010-11, the global economy continued on its path of recovery from
the recession of 2008. However, this recovery has taken a two track approach
with developed economies grappling longer with the wounds of the financial
crisis while developing countries have recovered much faster. During the year,
commodity prices have spiraled upwards to pre crises levels reflecting a
combination of strong demand growth, supply shocks and excess liquidity being
pumped by developed economies like US. Oil prices have also risen considerably.
Metal and food prices are also following a similar trend.
After a sharp
decline in 2009, the
Developing
economies, particularly
Outlook for the
Global Economy in FY 2011-12
The IMF believes
that the world economy will grow by 4.5% during the year 2011. This would be
largely on account of the growth of the developing economies which are expected
to grow by 6.5% while the developed world will grow 2.5%. Earlier fears of a
double-dip recession have not materialized. The worry that an initial recovery
driven by the fiscal stimulus would eventually fizzle, has not occurred. The
fiscal stimulus has turned to fiscal consolidation, but private demand has, for
the most part, taken the baton.
By contrast the
crisis left no lasting wounds in emerging market economies. Their initial
fiscal and financial positions were typically stronger and the adverse effects
of the crisis were more muted. High underlying growth and low interest rates
are making fiscal adjustment much easier. Exports have largely recovered, and
whatever shortfall in external demand they experienced has typically been made
up through increases in domestic demand.
The outlook for
economic growth in
TATA CHEMICALS’
BUSINESS UNITS AND GROWTH STRATEGY
Subject is a
global company with interests in chemicals, crop nutrition and consumer
products and serves a diverse set of customers across five continents.
Established in 1939 at Mithapur, the Company today has the world’s second
largest capacity in soda ash and is a pioneer and market leader in the Indian
branded iodized salt segment. Subject is one of
Subject has its
manufacturing facilities across four continents. With manufacturing facilities
in
The industrial
chemicals business continued to focus on building its global market share.
Demand and prices have shown an upward trend in FY 2010-11 and the overall
sentiment remains positive. Focus continues to remain on improving the
efficiency of the global operations. Tata Chemicals Europe Limited (TCEL)
(formerly known as Brunner Mond) completed the acquisition of British Salt for
GBP 93 million (Rs.6500.000 millions) to secure brine resources. In view of the
tepid long term potential, the decision was taken to mothball the STPP facility
at Haldia.
Within the crop
nutrition and agri-business, Babrala continues to hold the position of the most
energy efficient Urea plant in the country. Subject has announced an investment
of USD 290 Million (Rs.12930.000 millions) to acquire a 25.1% stake as a
strategic investor in the 1.3 MTPA stream 1 of a Greenfield port-based
ammonia-urea fertiliser manufacturing complex in the Republic of Gabon. This
plant is envisaged to be one of the lowest cost urea manufacturing facilities
globally. Strategically located near
This year also
witnessed the implementation of Nutrient Based Subsidy (NBS) on fertilisers
(except Urea). The Company ran trials of the
On the consumer
products front, their branded salt portfolio continues to dominate the market
share. Tata Salt and IShakti achieved a market share of 62%. The I-Shakti brand
packaged salt which was launched in 2007-08 is now the second largest national
packaged salt brand in the country.
‘I-Shakti’ brand
was extended to branded pulses which were launched in Maharashtra, Tamil Nadu
and
The Tata Swach
water purifier has been received exceptionally well by the market and sales of
the variants and bulbs have been extremely encouraging. The business is
focusing on increasing capacity to meet growing demand.
INORGANIC
CHEMICALS SEGMENT
Subject’s
Chemicals Business consists of both the Industrial Chemicals and Consumer Products
businesses.
Industrial
Chemicals
The Industrial
Chemicals business manufactures and sells soda ash (Na2CO3), sodium bicarbonate
(NaHCO3), salt (NaCl) and other industrial chemicals such as cement, calcium
chloride and Bromine. Of these, soda ash and sodium bicarbonate are products in
which the Company is a global player. Additionally, operations in
Soda Ash
Subject, with a
capacity of over 5 million MT, is the second largest soda ash manufacturer in
the world. About two-thirds of this capacity is based on natural soda ash. This
unique feature helps Subject to have a low energy intensity and low
environmental footprint. Subject’s natural soda ash (derived from trona)
operations are located at
With manufacturing
located on the four continents of North America, Europe, Africa and
In 2010, global
soda ash demand grew back to near pre-crisis levels due to strong growth in the
developing economies.
The emerging
economies, in particular those economies with large population such as Brazil,
Russia, India and China, have been the primary growth driver for soda ash over the
past decade. With rapidly increasing GDP and urbanization, these economies have
experienced an increased per capita consumption of products using soda ash
including flat glass (automobiles, housing), container glass (beverages),
detergents, baked goods, clean water, and sodium based chemicals. Conversely,
the demand will take longer to recover in the large developed economies, such
as the EU and the
Global soda ash
production capacity increased approximately 3% to 63 million MT with the growth
almost entirely occurring in
Global soda ash
prices began to increase in 2010, and continued into 2011 reflecting both
increased input costs across the world as well as tight soda ash supply in some
regions. Energy prices in particular have dramatically increased from the low’s
of 2009, raising the costs of both natural and synthetic soda ash producers,
and they expect that energy and other input costs are likely to continue
increasing, more so for the synthetic producers due to their higher energy
intensity relative to the natural soda ash producers. Consequently, soda ash
prices will likely to increase in the short term in line with energy and other
input costs even in the face of excess capacity as the marginal cost producers
in
With the Indian
economy continuing to remain buoyant, Indian soda ash demand grew approximately
5% due to increased consumption of flat glass, container glass and detergents.
their domestic soda ash sales volumes increased by 6%, leading to an increase
in market share. Increase in volumes helped them to partially mitigate the
impact of the increase in input costs. Subject’s strong relationship with
customers and its relentless focus on increasing its already high service
levels has provided Subject the opportunity to consolidate its market position
in 2010. Additionally, the safeguard duties on Chinese imports were effective
in reducing dumping activities. While prices remained under pressure, higher
domestic sales volumes helped maintain profit levels. With the completion of
the debottlenecking of the Mithapur plant, Subject is positioned to enjoy
further demand growth.
New flat and
container glass plants are expected to come on-line in
Sodium Bicarbonate
Sodium bicarbonate
is commonly used as a pharmaceutical ingredient, food additive, animal feed and
in air pollution control. Subject is the world’s fourth largest producer of
sodium bicarbonate and the market leader in
Sodium
Tripolyphosphate (STPP)
STPP continued to
be under severe cost pressure despite the provisional Anti Dumping Duty being
levied on Chinese STPP imports. Considering the overall business dynamics, they
have decided to mothball STPP plant at Haldia.
Cement
Subject’s cement
plant was setup in 1993 to handle solid wastes generated as by-products of soda
ash manufacture. The Company uses technology to separate solid effluents and
process them into Ordinary Portland Cement (OPC) and Masonry cement. Masonry
cement will enable Subject to convert its fly ash (generated in the power
plant) into useful binding material. While the upward trend in raw material and
energy prices is likely to impact margins, the business will continue to focus
on catering to nearby markets for maximizing realisation.
Salt
The average annual
requirement of salt (Human consumption, Industrial use and Exports) in last
five years was 167 LT and it is expected to grow by nearly 7% in FY 2011-12.
The salt supplies are projected to meet the demand in next five years with
adequate pipeline stocks. However, the industry is vulnerable to weather
disruptions. The private sector plays a dominant role contributing over 88% of
the salt production, while the public sector contributes about 2%, the
cooperative sector contributes about 10%. Indian Domestic demand of Edible Salt
is forecasted to grow by 1.34%. With mechanization and yield improvement
measures in place, increase in yield (more than 50%) is expected in coming
years. Consumer products continued to grow in FY 2010-11 leveraging the brand
equity and a strong distribution network. While continuing its leadership
position in packaged salt market, Tata Salt has been awarded ‘Hall of Fame’
award by Economic Times Brand Equity, being amongst the most trusted brands for
last 10 years. I-Shakti, which was rolled out nationally in 2007-08 has now become
the second largest packaged salt brand after Tata Salt. Tata Salt Lite, which
was introduced in December 2007, was rolled out on a pan
FERTILISER AND
OTHER AGRI INPUTS
Subject is a
prominent player in the domestic Agri inputs segment. The Company manufactures
Urea (at Babrala) and Phosphatic Fertilisers (at Haldia) in
The global demand
for food continues to rise on the back of increasing population and disposable
incomes in developing economies. However, unfavorable weather conditions in
certain parts of the world negatively impacted agricultural production in
FY10-11. Not surprisingly, the 2010 harvest is forecast to contract, by 2 to
2.5%. These macro conditions coupled with liquidity pumped in by developed
economies is leading to a price increase in food grains and other agri
commodities. This in turn causes an increase in fertiliser demand and prices
across the board. These conditions are expected to continue over the coming few
years.
In
Subject along with
its subsidiary Rallis have in due course of time transformed into an integrated
agri input player in the domestic market with a unique and diverse product
portfolio ranging from basic and specialty nutrients, pesticides, seeds and
farm services which are offered by a strong and experienced sales and
distribution channel. Subject remains focused on providing quality agri inputs
and solutions to farmers that result in increase of productivity. Subject also
plans to build on this relationship with the farmer by sourcing of specific
crops for distribution to households through its consumer products distribution
network.
Urea
With the likely
inclusion of Urea into the NBS and decanalisation of imports for the same which
the Industry has been strongly advocating, the opportunity to import and
distribute Urea may present itself. Subject also expects that the government
will allow fortification of urea with micro nutrients along with increasing the
limit on selling neem coated urea from the present 35%. Subject is well poised
to introduce fortified Urea as well as supply higher level of neem coated urea.
With uncertainty
over the supply of gas for setting up additional urea capacity within the
country, Subject is exploring such opportunities overseas. Subject has already
acquired a 25.1% stake in a JV which will set up a 1.3 Mn TPA Urea plant in
DAP, NPK, SSP
The Department of
Agriculture has cleared the policy for double fortification of complex
fertilisers. Subject would be well placed to take advantage of such
opportunities, backed by the unique R and D facility at
Rallis
Rallis has a
significant presence in the crop protection segment with a wide portfolio of
offerings such as pesticides, herbicides and fungicides amongst others. With
the acquisition of Metahelix, a research based seeds company with a strong
pipeline of products, Rallis has expanded its basket of offerings to the
farmer.
Globally the crop
protection industry reported a steady growth of 1.1%, reaching market size of
USD 44 billion. NAFTA, Middle East, Asia and Latin America region has shown
growth, while the market dropped in
Rallis will
continue to strengthen its market position in
Specialty Nutrients
Depletion of
micronutrients in the soil is leading to increased consumption of specialty
fertilisers. Subject is well poised to exploit this opportunity and will
continue to focus on growing markets for such fertilisers simultaneously
building relationship for creating low cost supply chain for the same.
Customised
Fertilisers
Customized
fertilisers are soil, crop and geography specific formulations that allow most
effective use of nutrients. Subject is the pioneer in introducing customized
fertiliser in the country.
Subject has so far
got 4 grades registered/approved for specific applications. The same will be
introduced in the market in due course of time post commissioning of its
customised fertiliser plant at Babrala.
Trading
With the increase
in domestic fertiliser demand and limited factors of production in
Tata Kisan Sansar
and Rallis Kisan Kutumb
Both Tata Kisan
Sansar and Rallis Kisan Kutumb will continue to focus on relationship building with
farmers where in quality agri inputs and services will be offered to the
farmers and select output will be sourced from them for distributing through
their consumer distribution network.
OTHERS:
Biofuels
With the crude oil
prices ruling ~ US$ 120 per barrel, Biofuels are expected to be cost effective
and growing by 18-20% during 2011. Subject, through its subsidiary is investing
in setting up a trial bio ethanol plant in
Water Purifier
The Indian
household water purifier market has three product segments – Non electric
Storage water purifier, Ultra violet (UV) and Reverse osmosis (RO). The market
has witnessed tremendous growth over the last few years, especially among the
non-electric storage water purifier segment. The last year has seen the entry
of a large number of industry players into the storage water purifier category
with a flurry of new launches.
Water purifier is
an under-penetrated category in
Tata Swach water
purifier, which was unveiled in December 2009 is now available in 12 states
across the country. The product has been well received and attained leadership
position in most of the markets where it is present. The business is increasing
production capacity to meet growing demand in existing and new markets.
Pulses
I-Shakti brand was
extended to pulses sourced through network built by utilizing competencies of
Subject’s fertiliser and agri inputs business. As of now I-Shakti brand of
pulses are available in Maharashtra, Tamil Nadu and
CONTINGENT LIABILITIES: (As on 31.03.2011)
(a) Guarantees:
(i) Bank Guarantees
issued by Banks on behalf of the Company Rs.1939.600 millions. These are covered by the charge created in
favour of the Company’s bankers by way of hypothecation of stocks and debtors.
(ii) Guarantees
provided to third parties on behalf of subsidiaries USD 138.30 million (Rs.6167.500
millions)
(b) Claims
not acknowledged by the Company relating to cases contested by the Company and
which, in the opinion of the Management, are not likely to be devolved on the
Company relating to the following areas:
|
|
31.03.2011 (Rs.
in millions) |
|
(i) Excise and Customs |
739.200 |
|
(ii) Sales Tax |
810.600 |
|
(iii) Demand for utility charges |
568.300 |
|
(iv) Labour and other claims against the Company not acknowledged as
debt |
19.400 |
|
(v) Income Tax (Pending
before Appellate authorities in respect of which the Company is in appeal) |
2392.300 |
|
(vi) Income Tax
(Decided in Company’s favour by Appellate authorities and Department is in
further appeal) |
373.300 |
(c) Various claims pending before Industrial Tribunals and Labour Courts
of which amounts are indeterminate.
FIXED ASSETS:
v
v
v
Saltworks, Reservoirs and Pans
v
Plant and Machinery
v
Traction Lines, Railway Sidings and Wagons
v
Buildings
v
Other Buildings
v
Water Works
v
Furniture, Fittings and Office Equipment
v
Vehicles
WEBSITE DETAILS:
BUSINESS
DESCRIPTION
Subject is a global company with interests in chemicals, crop nutrition and
consumer products. Subject is a producer of nitrogenous and phosphatic
fertilizers in the private sector and markets a range of crop nutrition
offerings under Tata Paras brand. Subject has its manufacturing facilities
across four continents:
Subject is engaged in the manufacture and sale of inorganic chemicals
and fertilizers. The company offers chemicals, crop nutrition, consumer
products, bio fuels, fresh fruit products and fresh vegetable products. The
company conducts its business operations through four segments, namely,
Inorganic Chemicals, Fertilisers, other Agri inputs and others. The Inorganic
Chemicals segment of the company operates through two sub-segments, namely,
Industrial Chemicals and Consumer Products. The products offered by the
Industrial Chemical sub segment include soda ash; sodium bicarbonate; alkakarb;
caustic soda; chlorine based products; bromine based products; gypsum;
phosphoric and sulphuric acids; sodium tripolyphosphate; and cement named Tata
Shudh. The products offered by the Consumer Products sub segment are salt under
the names Tata Salt, I-Shakti and Tata Salt Lite; and cooking soda under the
name Tata Samunder. For the fiscal year ended 2011, the segment generated
INR53,778.4m of revenue, indicating 49.36% of the company's total revenue.The
Fertilisers segment of the company operates through three business units
namely, the Crop Nutrition, which is a manufacturer and marketer of crop
nutrients; Agri-business through the Tata Kisan Sansar retail network; and the
joint venture in Morocco for the manufacture of Phosphoric Acid. The products
offered by this segment are Urea; DAP / NPK / SSP; specialty fertilizers like
Calcium Nitrate, Zinc Sulphate and Bentonite Sulphur; and Phosphoric acid. For
the fiscal year ended 2011, the segment generated INR 42,955 millions of
revenue, indicating 39.43% of the company's total revenue. The other Agri
business segment comprises of agricultural inputs. For the fiscal year ended
2011, the segment generated INR11701m of revenue, indicating 10.74% of the
company's total revenue. For the fiscal year ended 2011, the Others business
segment generated INR511.4m of revenue, indicating 0.47% of the company's total
revenue. The company operates manufacturing facilities at Mithapur, Gujarat;
Babrala, Uttar Pradesh; Haldia, West Bengal; Green River Basin, Wyoming, the
US; Northwich West (Winnington) and Northwich East (Lostock) sites, the UK;
Delfzijl, The Netherlands; and Lake Magadi, Kenya. The Mithapur plant is
located in
Subject manufactures chemicals, crop nutrition and consumer products.
Subject is a part of Tata Group. The company also offers bio fuels, fresh fruit
products, and fresh vegetable products. Subject manufacturing facilitities are
located at Mithapur, Gujarat; Babrala, Uttar Pradesh; Haldia, West Bengal;
Wyoming, the US; Northwich West (Winnington) and Northwich East (Lostock)
sites, the UK; Delfzijl, The Netherlands; and Lake Magadi, Kenya. The company
conducts its business operations through four reportable segments, namely,
Inorganic Chemicals, Fertilisers, other Agri inputs and others. The company is
headquartered in
This major group includes establishments producing basic chemicals, and
establishments manufacturing products by predominantly chemical processes.
Establishments classified in this major group manufacture three general classes
of products: (1) basic chemicals, such as acids, alkalies, salts, and organic
chemicals; (2) chemical products to be used in further manufacture, such as
synthetic fibers, plastics materials, dry colors, and pigments; and (3)
finished chemical products to be used for ultimate consumption, such as drugs,
cosmetics, and soaps; or to be used as materials or supplies in other
industries, such as paints, fertilizers, and explosives.
BOARD OF DIRECTORS
Ratan Naval Tata
Non-Executive
Chairman of the Board
Mr. Ratan Naval Tata is Non-Executive Chairman of the Board of Subject.
Mr. Tata received a degree in architecture from
Ramabadran
Gopalakrishnan
Non-Executive Vice
Chairman of the Board
Mr. Ramabadran Gopalakrishnan is Non-Executive Vice Chairman of the
Board of Subject. He is also the Executive Director of Tata Sons, Chairman of
Tata Honeywell and Rallis
Yoginder K. Alagh
Independent
Non-Executive Director
Dr. Yoginder K. Alagh, Ph.D., is Independent Non-Executive Director of
Subject. He has Doctorate in Philosophy in Economics. He has Eminent Economist
with wide experience in policy making and planning. He is also a Director of
Shree Cement Limited.
Prashant K. Ghose
Chief Financial
Officer, Executive Director
Mr. Prashant K. Ghose is Chief Financial Officer, Executive Director of
Subject. Mr. Ghose has been Chief Financial Officer (CFO) of Tata Chemicals
since November 2002, responsible for treasury, accounting taxation, strategic
finance, secretarial and IT matters. An honours graduate in commerce, Mr. Ghose
is a member of the
R. Mukundan
Managing Director,
Executive Director
Mr. R. Mukundan is Managing Director, Executive Director of Subject. Mr.
Mukundan joined Tata Administrative Service in 1990, after completion of
Masters of Business Administration from FMS, Delhi University and Bachelor of
Engineering - Electrical Engineering from IIT, Roorkee. Also attended the
Advanced Management Programme at Harvard Business Schoolin 2008. Prior to
joining Tata Chemicals, as Chief Operating Officer, he served as Head of
Mithapur Chemical Complex. He has held various responsibilities including
Strategy and Business Development, Corporate Quality, Corporate Planning,
Projects etc across the Chemical, Automotive and Hospitality sectors of the
Tata Group. He has been on the Executive Committees of various industry forums
including Indian Chemical Council, Automotive Component Manufacturers
Association, Alkali Manufacturers Association of India etc.
Nasser M. Munjee
Independent
Non-Executive Director
Shri. Nasser M. Munjee is Independent Non-Executive Director of Subject.
He has Bachelor of Science (Honors) and Master of Science (Economics) from
London School of Economics. He has Eminent Economist, Banker and Consultant on
Infrastructure. His Directorships include Development Credit Bank Limited, ABB
Limited, Ambuja Cements Limited, Apollo Health Street Limited, Bharti AXA Life
Insurance Company Limited, Ciba India Limited, Cummins India Limited, HDFC
Limited, Indian Railway Finance Corporation Limited, Shipping Corporation of
India Limited, Tata Motors Limited, Unichem Labs. Limited and Voltas Limited.
PRESS RELEASES:
MARKETS LIKELY TO
START ON A CAUTIOUS NOTE ON SUBDUED GLOBAL CUES
10 February 2012
ANNOUNCES Q3
RESULTS AND LIMITED REVIEW REPORT FOR THE QUARTER ENDED ON DEC 31, 2011
10 February 2012
POST SESSION -
QUICK REVIEW
10 February 2012
India, February 10 -- Domestic benchmarks have snapped the day's trade
in the negative terrain on Friday after lower-than-expected industrial
production for December 2011 with index heavyweights Reliance Industries,
Infosys and banks leading the decline. Moreover, weak European cues too
dampened the sentiments. On the sectoral front bank stocks edged lower on
profit taking after recent strong gains. IT stocks also fell as the main
industry body -- the National Association of Software and Services Companies
(NASSCOM) on February 8, 2012, said that the pace of revenue growth of the
sector will likely moderate next fiscal year amid continued global economic
uncertainty. On the global front, all the Asian equity indices barring Shanghai
Composite snapped the day's trade in the negative terrain on last trading day
of the week. Moreover, data showing a sharp drop in Chinese imports added
another layer of caution to markets already confronting a dour earnings season.
Imports plunged 15.3 percent, leaving
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.25 |
|
|
1 |
Rs.76.75 |
|
Euro |
1 |
Rs.65.16 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.