— PHOTO: PAUL NORONHA

ATTAINING LEADERSHIP POSITION: Homi Khusrokhan (left), Managing Director, Tata Chemicals, with R. Mukundan, COO, at a press conference in Mumbai on Wednesday.

MUMBAI: Tata Chemicals Ltd. (TCL) has announced a record performance for 2006-07. The company reported the highest ever net profit of Rs. 444.21 crore, a 26 per cent rise over Rs. 353 crore reported in the previous year. Net sales were at a record Rs. 3,991 crore (Rs. 3,518.60 crore), a jump of 13 per cent.

The board of directors has recommended a dividend of Rs. 8 per share (Rs. 7 per share).

During the year, TCL maintained its leadership position in the domestic soda ash and edible salt markets with an overall market share of 32 per cent and 47 per cent, respectively. The company has commenced debottlenecking at its Babrala urea manufacturing facility to increase the capacity by 40 per cent. The project involves an investment of Rs. 150 crore and will be completed in 18-24 months.

The expansion of the Brunner Mond facility at Magadi, Kenya, was delayed and the fully doubled capacity is expected to come on stream in the second quarter of the current year.

In January, TCL entered into a 50:50 joint venture agreement with Total Produce plc, Ireland, for its entry into the fresh produce business and since then, the joint venture has been named Khet-Se Agri Produce India Pvt. Ltd. The company proposes to venture into manufacture of bio-diesel and bio-ethanol.

Addressing the media here on Wednesday, Homi Khusrokhan, Managing Director, TCL, said, "we have entered new spaces like fresh produce and alternative fuels, wherein I believe Tata Chemicals is capable of delivering significant value.''

For the fresh produce venture, TCL already has a Tata Kisan Sansar (TKS) network of 590 centres in the North and the East. Mr. Khusrokhan said there would be a sequential rollout in the current year with distribution centres in Ludhiana and Kolkata.

"Initially, it will focus on areas where we have the TKS clusters in the Indo Gangetic plain area. We will invest around Rs. 40 crore in the first year, with investment increasing exponentially as we go forward,'' Mr. Khusrokhan said.

For the bio-fuel venture, the company proposes to enter into bio-diesel and bio-ethanol production and trial cultivation of non-food agri feedstock has commenced in both cases. TCL has opted for a dual and concurrent approach for technology — conventional and advanced new technology. "We are setting up a pilot plant at Parbhani district of Maharashtra with a capacity of 30,000 litres a day for which we have committed Rs. 40-50 crore. Each subsequent plant will entail an investment of Rs. 30-40 crore.''

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