Tata Chemicals is planning to focus on producing those fertilisers which are totally decontrolled and do not involve any subsidy element as it leads to increase in finance cost.
At present, the company has no plans at all for any expansion or any new capacity in fertilizer segment where subsidy is involved, as it leads to increase in finance costs. For future plans, the company is looking at the specialty fertilisers.
Specialty fertilisers like calcium nitrate are not controlled by the government, whereas urea is controlled and its price is fixed by the government at Rs 5,360 per tonne and the difference between cost of production and selling price is paid as subsidy.
Tata Chemicals is engaged in various business including salt, pulses, water purifiers, soda cash, fertilisers and various other chemicals. In fertilisers, Tata Chemicals produces urea in Babrala in Uttar Pradesh with total annual capacity of about one million tonnes and P&K fertilisers in Halidia in West Bengal with capacity of about 1.25 million tonnes per annum.
Tata Chemicals is the world’s second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa and North America. The company’s industry essentials product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents and other industrial products.
