CEO's Message
Safety remains our first priority and our efforts are to create a zero
harm work place. Our focus on operational efficiencies and newly commissioned capacities
is expected to contribute towards improved performance as well as delivering safe and
sustainable growth.
Dear Shareholders,
I hope this message finds you and your families well.Thankyou foryour
unwavering trust and support forTata Chemicals.
Looking to the year passed by, Global Soda Ash demand grew by 8.3%
year-on -year (5.3 mn MT), driven by an 18% increase in China and a 4.5% rise in India.
Demand in the rest of the world declined by 2.3%. However, capacity increased by 8.9% (6.5
mn MT), leading to oversupplied markets with an erosion of margins caused by a decline in
prices by over 25% from the previous year, weighing heavily and impacting the results of
the company. Consequently, our performance was substantially lower than FY2024.Tata
Chemicals saw Soda Ash volume growth of 6% (+205 KT). Net sales realisation across regions
declined, impacting contribution at consolidated level (INR 5,969 crore CYVs INR6,867
crore PY). Fixed cost was maintained at the last year's level (INR4,016 crore CYVs
INR4,020 crore PY), resulting in a lower EBITDA (INR 1,953 crore CYVs INR 2,847 crore PY).
Our operations were impacted by fluctuating energy and feedstock costs,
shipping costs and logistical hurdles. We seamlessly met customer needs through teamwork,
efficient operations and a resilient supply chain. Tata Chemicals is focused on driving
operational excellence to improve its resilience aided by synergies from our
multi-geography presence. During the year, UK soda ash Lostock plant ceased operations due
to lower product prices and high gas costs resulting in sustained negative margins. We
will now pivot UKtowards higher value added businesses of food and pharma grade salt and
bicarbonates.
Sustainability is a fundamental driver of industrial transformation and
our vision is aligned to Project Aalingana,Tata Group's flagship endeavour fora greener
sustainable future. Soda ash and bicarbonate are increasingly relevant for sustainable
applications such as solar glass, EV batteries, biodegradable packaging and industrial
flue gas treatment.These materials play a foundational role in enabling low emission
technologies and energy transition.
The integration of artificial intelligence (Al) and machine learning
(ML) technologies is revolutionising the chemical industry, optimising processes, driving
innovation in new product development and enhancing competitiveness in the digital age.
SAP HANA was successfully implemented during the year. We have adopted theTCS Datom Data
Framework and Zero Trust security architecture to protect our digital infrastructure
against cyber security threats.
The outlookforthe company's portfolio is expected to remain stable in
FY 2026. Global demand for soda ash is expected to remain flat with India forecasted to
grow by 5.8%. Bicarb, Salt and specialty portfolio which serve the pharma, food and feed
segments will continue to show healthy growth rates. Safety remains our first priority and
our efforts are to create a zero harm work place. Our focus on operational efficiencies
and newly commissioned capacities is expected to contribute towards improved performance
as well as delivering safe and sustainable growth.
On behalfofTata Chemicals, I thankyou all foryour continued support in
our ongoing journey of transformation to deliver chemistry of sustainable growth.