Tata Chemicals to target FMCG market

Tata Chemicals, the 75-year-old company, is planning to expand its consumer and agro business. In the consumer segment, the company is eyeing a four-fold rise in revenues in the next three to four years. The expansion, however, will be at the cost of its fertiliser and soda ash businesses, the core businesses for the company. TCL is the second largest producer of soda ash with footprint in Europe and Africa.

TCL is going through a restructuring programme to prune its debt. “The petrol-based plants in the UK and Kenya have been closed down and replaced by a steam turbine as part of the restructuring exercise which will help us to pare debts,” said P K Ghose, executive director and CFO, Tata Chemicals Limited.

“We are increasing our consumer products business and aim to increase our turnover to Rs 4,000 crore in next four years,” said Ghose on the sidelines of the launch of “Salt of the Earth: The Story of Tata Chemicals”. The company, at present, earns revenues of Rs 1,000 crore from this segment which comprise of salt and pulses, lentils and spices and the “Swach” brand of water purifiers. Neutraceutical, agri and consumer business which currently comprise of 22 percent of the company’s business will grow to 50 percent in next four years. TCL has recently added new products like chilli, turmeric and coriander in the spices segment to its consumer business portfolio. It plans to add more products and for that the company plans to improve its existing R&D facilities and also will look for possible small acquisition.

“We will enter the spices segment and for that we may acquire if and when the opportunity comes,” said R Mukundan, managing director of the company. The company has R & D facilities in Pune and Hyderabad. It is selling chilli, turmeric and coriander along with other products under the Tata i-Shakti brand.

The business of dal is currently at around Rs 100 crore, which would grow to over Rs 200 crore this year, while the seeds business under its subsidiary Metahelix Lifesciences is growing almost 80 per cent.

He added that the company has entered into an agreement of contract farming with farmers in Punjab. " The spices are being tested in Punjab and will be available nationally in a few months," he said. According to industry estimates, the size of the overall neutraceutical market in India is Rs 3 lakh crore most of which is unorganised.