Business Daily from THE HINDU group of publications
Thursday, May 31, 2007
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Business Daily from THE HINDU group of publications Thursday, May 31, 2007 ePaper |
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Corporate
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Diversification Corporate Results - Chemicals Tata Chem to manufacture bio-fuels Our Bureau
Growth plans The company will invest Rs 40-50 crore in its first plant in Maharashtra Will leverage new technologies developed by its R&D facility in Pune
STRONG GROWTH: Mr Homi Khusrokhan (left), MD, Tata Chemicals, and Mr R. Mukundan, COO, at a press conference in Mumbai on Wednesday. The company posted 47 per cent growth in net profit in the fourth quarter. It is also planning to enter bio-fuel segment and distribution of fruits and vegetables— Paul Noronha
Mumbai May 30 Tata Chemicals Ltd, the country's largest soda ash and edible salt maker, is broadening its business canvas by entering into manufacture of bio-fuels and distribution of fresh fruits and vegetables. The company will be setting up its first bio-ethanol plant in Maharashtra at a cost of Rs 40 crore to Rs 50 crore with a capacity of 30 kilo litres per day. The plant will be bigger than a pilot plant, but smaller than a commercial one. Mr Homi Khusrokhan, Managing Director of the company, told presspersons that Tata Chemicals will initially use conventional technologies for the bio-fuel plant, but would later leverage on the new technologies that come out of its R&D facility at Pune. "The research facility at present has about 20 scientists, which will go up to 150 in two years time and 500 in the long term," he said, adding that the facility would focus on bio-diesel, bio-ethanol and nano-technology.
Farm products venture
Mr Khusrokhan said the company, which entered into a joint venture with Total Produce Plc of Ireland in January this year to create distribution facilities for fresh fruits and vegetables across India, planned to expand its operations in this segment. "This initiative gives us an opportunity to integrate the supply chain from the producer and the end consumers to increase efficiencies, improve shelf life and reduce product loss," he said. TCL's 600-strong network of Tata Kisan Sansars (TKSs) will act as the first level contact point for procurement and primary processing. Over the next 12 months, TCL plans to establish its first two distribution centres in Ludhiana and Kolkata. The company plans to invest Rs 40 crore in this sector in the current fiscal.
Net up by 47 pc
Buoyed by strong sales of all its major products, Tata Chemicals posted a 47 per cent increase in its net profit for the fourth quarter of the last fiscal to touch Rs 94.44 crore, against Rs 64.42 crore in the same quarter of the previous fiscal. During the quarter, the company's net income touched Rs 803.05 crore (Rs 753.98 crore). For fiscal 2006-2007, the company's net profit and sales were Rs 444.21 crore (Rs 353.03 crore) and Rs 3,990.99 crore (Rs 3,518.59 crore), respectively. The company maintained its leadership position in the domestic soda ash market with a market share of 32 per cent during the year. The company expects domestic and international prices of this product to remain firm.
More Stories on : Diversification | Chemicals | Non-conventional Energy | Tata Chemicals Ltd
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