1-Tata Salt eyes export markets

Fakir Chand in Bangalore

Tata Chemicals Ltd, the leading manufacturer of inorganic chemicals and fertilizers, is eyeing the export markets for promoting its branded salt product Tata Salt in other countries, especially where the Indian Diaspora has a large ethnic presence.

Having established its leadership in the domestic market with around 38 per cent share, the Rs 1,500-crore (Rs 15-billion) Tata Group company is planning to first test the waters in the neighboring countries such as Nepal, Bangladesh, and Sri Lanka, which constitutes the SAARC group.

"As people of the sub-continent consume more salt than others in the world, we are formulating a marketing strategy to export our flagship brand of Tata Salt to these countries, and reach out all NRIs living in other parts of the world, especially in the Gulf and the South East Asia," Tata Chemicals vice-president Kapil Mohan told rediff.com in Bangalore on Monday.

Declining to reveal the export target or quantities being considered for shipping as the plans were still at initial stages, Mohan said Tata Salt was already being exported in small volumes by third parties from India and is available in many Middle Eastern and South Asian countries.

"There is growing awareness for consuming only branded and iodized pure salt by Indians, and the conversion rate from unbranded or loose salt to the branded or packaged one is going up faster with increasing levels of health consciousness," Mohan stated.

Though Tata Salt constitutes only 11 percent of the company's total sales turnover, the company is expanding its production capacity to ramp up its domestic market share up to 40-45 percent by 2004-05.

With the promotion of the essential commodity highly fragmented, packaging, logistics, and other overheads make national marketing of the product cost-prohibitive leading to pressure on margins.

"Competition from national, regional, and local brands of branded and unorganised sector has also put paid to the efforts of the company in penetrating the Indian market deeply," Mohan disclosed.

2------With 2-million tons of solar salt production annually from its salt works at Mithapur in Gujarat, spread over an area of 37,000 acres of arid land, the company contributes about 40 percent of the country's branded iodized salt, which is currently 5.2 million tons in output and valued at Rs 1,100 crore (Rs 11 billion).

Manufactured by using the vacuum evaporation technique, Tata Salt is seen not only as a vital ingredient in food, but also as loaded with emotional significance, transcending its functional properties.

Meanwhile, as part of its ongoing social and community development initiatives, the company has launched the 'Desh Ko Arpan' programme to champion the cause of girl child education of the under-privileged.

With a contribution of 10 paise from every kg sale of Tata Salt sold from August 15, 2002 to September 15th, the company will contribute Rs 3 million to the non-governmental organisation, Child Relief and You, for educating about 12,000 children in 45 slums and 19 villages in six states across the country.

The company expects to sell about 300 million packs of Tata Salt during this one-month period to raise the targeted amount.

4-Tata Chem to export industrial salt, launch new table saltTata Chemicals Limited, which presently holds around 37 per cent market share in the country’s edible

salt market, is planning to manufacture hi-grade specialised industrial salt for the export market. This

grade of salt is used by chemical production and processing units, several of which operate in west Asia.

The company will be targeting this market first.

Only two per cent of Tata Chem’s salt production was sold overseas in the last fiscal. Overseas sales are

expected to rise to at least 5 per cent following the decision to export industrial salt with 99.9 per cent

sodium chloride in west Asia.

Tata Chem has chalked out a plan for the export of hi-grade salts to the Middle-East and also to other

countries, provided a cost- effective transportation method can be found. The hi-grade salts earmarked

for export are expected to be bought by refineries and pharmaceutical companies for certain processes.

“We are hoping to get a good price for export consignments,” the chief operating officer of Tata Chem, R

Mukundan, told Business Standard. He declined to reveal when the first consignment would sail for the

Middle-East.

In the domestic market, Tata Chem is planning to roll out its new brand ‘Samunder’ nationally. It is

presently being experimentally marketed at select towns in Tamil Nadu. The company’s frontline product

continues to be its vacuum-dried edible salt ‘Namak’.

Samunder will be cheaper than Namak by at least Rs 2 a kg. “Samunder would not be vacuum-dried and

was likely to be priced at Rs 5 per kilogram against ‘Tata Namak’ at Rs 7 for the same quantity. Instead,

Samunder will be marketed as a refined salt and will help Tata Chem to expand its market”, said

Mukundan. Instead of a separate plant for ‘Samunder,’ Tata Chem will procure salt from small

manufacturers and resell it after refining and packaging it at its Jamnagar, Gujarat, plant, he added.

Both brands will be marketed strongly. The company has set for itself the target of increasing its market

share in edible salt from 37 per cent at present to 41 per cent by end of the 2003-05 fiscal. “The new

brand will help Tata Chem to increase market share in the refined salt segment,” said Mukundan.

The launch schedule was yet to be finalised. Mukundan said, “Tata Chem was in the process of analysing

results of test marketing in Tamil Nadu”. Decision on the national roll-out will be taken thereafter.

Apart from the second brand, Tata Chem would market edible salt in more packaging options, sizes and

types. The company is selling Tata Namak only in 1-kg packets now.

“The company was planning to launch more variants of packaging, types and sizes of edible salt,” he

added. It may also launch salts in dispensers for urban markets.

Tata Chem expects sales to touch Rs 1700 crore this fiscal against Rs 1543 crore in the last fiscal. It will

be aiming at a 10 per cent plus growth in the next fiscal.

5-service

EmpowermentThe objective of the Tata Kisan Sansar (TKS) network is to enable and empower the farmer in creating and generating more value for farm produce by providing information on new and improved agronomic practices and by facilitating better and more efficient use of agricultural inputs. The philosophy behind TKS is to become a change agent for the Indian farming community.

StructureTKS functions as a hub and spoke model. Each TKS centre is a franchised retail outlet and solution provider that caters to about 30-40 villages in the surrounding area. The centres are in turn serviced by about 30-odd resource centres (known as Tata Krishi Vikas Kendras or TKVK), with each resource centre looking after 17-18 TKS centres.

BenefitsTKS provides the following Access to expert advice: There are more than 60 agronomists available at the hubs to provide advice on crops and farming issues. There are more than 150 organisers at the TKS level.

Inputs: TKS centres 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 fertilizers

Seeds: Field crops, vegetable crops

Pesticides: Entire range

Cattlefeed  

Farm implements  

Training: In nutrient and pest management

Services

7= Soil and water testing

Contract farming

Seed production

Application services

Advisory services

Relationship building:

Farmer membership (individual & group)

Accident insurance to members

Farmer meets

Crop seminars

Around the world

Tata Chemicals is the world’s second largest producer of soda ash. It has manufacturing facilities in India, UK, the US and Kenya and a supply chain that can service the needs of customers around the globe. The company's global capacity for soda ash is around 5.5 MTPA.

Tata Chemicals is a leading player in the consumer products and crop nutrition and agribusiness segments. And its emphasis in every aspect of its business is to use science to improve the everyday lives of ordinary people.

Our manufacturing facilities:

India

  Mithapur, Gujarat

  Babrala, Uttar Pradesh

  Haldia, West Bengal

USA

UK

  Northwich

  Middlewich

8=Kenya

Serving society through science

Science for sustainability | Community links

Tata Chemicals Limited is a global company with interests in businesses that focus on LIFE: Living, Industry and Farm Essentials. The story of the company is about harnessing the fruits of science for goals that go beyond business.

This story began in Mithapur, Gujarat in western India with the creation of a plant that would raise a wealth of marine chemicals from the ocean, with the potential to touch human lives in many ways. From these humble beginnings a market-leading international business has been created, with operations across four continents.

Through its living essentials portfolio the company has positively impacted the lives of millions of Indians. Tata Chemicals is the pioneer and market leader in India’s branded Iodised salt segment. With the introduction of an innovative, low-cost, nanotechnology-based water purifier, it is providing affordable, safe drinking water to the masses.

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.

With its farm essentials portfolio the company has carved a niche in India as a crop nutrients provider. It is a leading manufacturer of urea and phosphatic fertilisers and, through its subsidiary, Rallis, has a strong position in the crop protection business.

The Tata Chemicals Innovation Centre is home to world-class R&D capabilities in the emerging areas of nanotechnology and biotechnology. The company’s Centre for Agri-Solutions and Technology provides advice on farming solutions and crop nutrition practices.

The company has also entered into a JV with Singapore’s Temasek Life Sciences Laboratory (Joil) to develop jatropha seedlings to enable bio fuels capability. In line with its mission, ‘serving society through science’, the company is applying its expertise in sciences, to develop high-tech and sustainable products.

Science for sustainabilityTata Chemicals’ Mission, Vision and Values are deeply rooted in the principles of sustainability.

For the company, sustainability encompasses stakeholder engagement, environmental stewardship, creating economic value, promoting human rights and building social

capital. Tata Chemicals supports the UN Global Compact and is committed to reporting its sustainability performance in accordance with GRI guidelines. The company actively works towards improving its eco-footprint with a policy of ‘avoid, reduce and reuse’. Resource optimisation, alternative sources of fuel and raw materials, and maximising reuse and recycling are key drivers in operations.

The company has been recognised for its clear commitments to sustainability and its good environmental management practices.

Community linksIn 1980, Tata Chemicals set up a non-governmental organisation – Tata Chemicals Society for Rural Development (TCSRD) – that works towards holistic community development, including managing water, land and other natural resources, encouraging enterprise development, and promoting health and education. TCSRD's activities have been recognised at a national level. Tata Chemicals Europe (formerly Brunner Mond) is a major sponsor of the Lion Salt Works Trust, a local heritage project in Cheshire, UK and of the Weaver Valley Initiative, part of the path-breaking Mersey River clean up campaign. In Kenya, Tata Chemicals Magadi supports local health care facilities and works to provide education, water and employment opportunities.

Tata Chemicals is also involved in efforts to preserve the biodiversity of land along the Gujarat coastline and the nesting sites of migratory birds. TCL and Wildlife Trust of India (WTI) have signed an MoU for a conservation project that will create awareness and undertake research to save the endangered species of whale shark that visits the coastal shores of Gujarat.

Overview

Care for the community | Inclusion | Clean climate| Environment and ecology | CSR policy

The Tata Chemicals mission is serving society through science.The company's corporate philosophy is deeply rooted in the principles of sustainability which implies a commitment to environmental stewardship while adding economic value, promoting human rights and building social capital.

Care for the communityFor several decades now, the company has consistently demonstrated its concern for the community (both internal and external) and a respect for its environment and the local ecology. In India, the townships of Mithapur, Babrala and Haldia are unique examples of corporate-community bonding where community initiatives go hand in hand with local infrastructural development schemes such as watershed management and rural health and education. The Tata Chemicals Society for Rural Development (TCSRD) does stellar work in furthering community development along several vectors.

10-In UK, Tata Chemicals Europe has set up the Brunner Mond Employees Charitable Trust to support deserving causes in the mid-Cheshire area. In Kenya, Tata Chemicals Magadi provides much-needed medical facilities and support to the local Maasai community.In many cases, Tata Chemicals is focusing on building sustainable business operations through partnering with dedicated not-for-profit organisations, government bodies and local authorities.

InclusionTata Chemicals' approach has always been inclusive and is based on participatory development principles. The company has taken technology to rural India by setting up rural BPO centres that provide new age employment opportunities to the non-urban population. Another inclusive growth model is the Tata Kisan Sansar network in India that encourages rural entrepreneurship, capability building and co-creating value with farmers. In Kenya, Tata Chemicals Magadi follows a policy of buildinglivelihood opportunities for the local communities.

Clean climateIn recent times, Tata Chemicals' sustainable enterprise strategy has focused on ensuring that a greater proportion of its product portfolio is produced with green technologies and uses clean development mechanisms. Tata Chemicals along with other Tata companies has embarked upon a climate change policy that includes mapping carbon footprint and creating an abatement strategy for sustainable manufacturing. The company is using its innovation and technological expertise to create new green products that address the planet's most pressing issues, such as the need for developing viable biofuels, industrial flue gas treatment, affordable water treatment systems, etc.The company is a signatory with several leading bodies such as the Global Round Table on Climate Change and the CII Mission for Sustainable Growth.

Environment and ecologyTata Chemicals has a robust policy for safety health and environment which it practices with equal diligence in all its facilities all over the world. Several of its plants have consistently won leading safety awards. Respect for the local environment and ecology has led the company to invest considerable resources in conserving local habitats, preserving ground water sources, developing useful by-products out of waste, etc.For more information, see case studies.