It has set an ambitious target of increasing its sales to Rs 10,000 crore by 2010 from Rs 5,800 crore in 2006-07 through more acquisitions as well as organic growth.
Lines up Rs 1,000 cr capex plan, looks at acquisitions
AHMEDABAD: Tata Chemicals is now moving into the fast lane. It has set an ambitious target of increasing its sales to Rs 10,000 crore by 2010 from Rs 5,800 crore in 2006-07 through more acquisitions as well as organic growth.
The company has lined up a capital expenditure of Rs 1,000 crore for expanding capacities at its facilities in India, Kenya and the UK. Another Rs 500-600 crore is proposed to be invested in a soda ash plant in Tanzania, if it gets a go-ahead from the government there.
According to Homi Khusrokhan, managing director, Tata Chemicals, “The company will look for acquisitions, offering suitable synergies in the domestic as well as international markets.”
With its top-selling Tata Salt brand penetrating 40 million households, the company is now looking at introducing other food additives like masalas.
In 2006-07, it had a 47% market share in the packaged salt category.
Tata Chemicals is planning to double its urea manufacturing capacity at Babrala in UP and this is expected to incur an expenditure of Rs 150 crore.
Another Rs 400-600 crore will be invested in expanding soda ash capacities and some other projects at Mithapur in Gujarat. It will pump in Rs 200-250 crore in its Kenyan firm, Magadi Soda Co, and around Rs 100 crore in its UK company, Brunner Mond.
Through the contract farming route, the company is moving ahead on its two new initiatives - fresh produce and bio-fuels. “We are setting up the entire agri-chain, including cold storage chain, right from providing seeds and fertilisers up to the distribution warehouses,” said Khus rokhan.
The company is planning to set up 30 centres in states where the Agriculture Market Produce Committee (APMC) regulations have been revoked.
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