The Hindu Business Line : Brunner Mond seeks Tatas’ help to identify new business

Here is where the Europe’s largest soda ash manufacturer Brunner Mond – the company Tata Chemicals took over in early 2006 – is located. The company has several hectares of unutilised land in and around the 100 years of the plant, which produces 1.3 million tonnes (mt) of soda ash annually.

“We have several hectares of land which can be utilised for starting new businesses,” said Mr John J. Kerrigan, Managing Director, Brunner Mond.

Brunner Mond (BM), which contributes nearly 30 per cent of the consolidated revenue of Tata Chemicals, has sought the help of the Tata’s Innovation Centre in Pune for identifying new areas of business that can be started at the unutilised land.

“We have low cost energy and well established infrastructure, which are key to any business, besides the land. We can either start chemicals related or any other business.” Mr Kerrigan said a Group has been set up with representatives from Tatas and BM to identify new business. The company has already developed 140 acres of a former industrial site in its vicinity, which is called urban village.

Brunner Mond has plants in Europe and Kenya. By acquiring BM, Tata Chemicals has manufacturing facilities in three continents – Europe, Africa and Asia.

Since soda ash is a low-margin product, the company is now focusing on sodium bicarbonate, which has several applications, in food, medicine and several other vitals sectors. Currently, bi-carbonate contributes only 15 per cent of the company’s revenues and 85 per cent come from soda ash. The ratio may change to 35:65 in the next two to three years.

A major advantage for Tata Chemicals is that the Magadi plant of Bruner Mond in Kenya has natural source of soda ash, which the company has a long-term lease up to 2050. Tata Chemicals can bring soda ash from Kenya to India by sea.

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