Tata Chemicals has announced an investment of Rs 515 crore to set up a new greenfield manufacturing facility in Tamil Nadu as part of its capacity expansion and supply chain strengthening strategy. The new facility will be located at Valinokkam in the Ramanathapuram district of Tamil Nadu and will be used for the production of Iodised Vacuum Salt Dried (IVSD). The plant will have an installed capacity of 210 Kilo Tonnes Per Annum (KTPA). Tata Chemicals is expected to complete the project within 36 months and will fund the investment through internal accruals and or external financing.
Currently, Tata Chemicals has an IVSD manufacturing capacity of 1.6 million tonnes per annum at its Mithapur plant in Gujarat. The new greenfield facility in South India is intended to create a second major manufacturing site for IVSD, helping the company diversify its production base and improve regional supply capabilities.
The strategic rationale for the investment includes enhancing supply chain efficiency and optimizing logistics costs by bringing production closer to key southern markets. The new facility is expected to support better distribution, reduce transit time, and improve overall operational efficiency for the company's salt business.