Tata Chemicals embarks on Rs 400 cr. expansion plan
The Hindu — May 31, 2006

Mumbai, May 30 (PTI): Tata Chemicals Ltd has embarked on a Rs 400 crore capacity expansion programme over the next two to three years to increase its soda ash, cement, salt and fertiliser production capacity in its Mithapur and Babrala facilities.

The company intends to spend Rs 200 to Rs 250 crore in its Mithapur facility for the capacity expansion programme, company's Chief Financial Officer P K Ghose told reporters while announcing the financial results of the company.

"We have already started the capacity expansion project in Mithapur. However, the Rs 150 crore Babrala expansion project will kick off as soon as we receive the clearance from the Union Government," he said.

The company would use internal accruals for funding the capacity expansion programme.

Tata Chemicals aims to jack up its soda ash production capacity from 875,000 tonnes to close to one million tonne, cement from 0.5 million tonnes to 0.7 million tonnes, salt from 475,000 tonnes to 700,000 tonnes and fertiliser production capacity to 1.12 million tonnes from the current level of 865,000 tonnes.

Meanwhile, Ghose said the company was exepecting to bag the approval from the Bangladesh Government for its one million tonne fertiliser plant in the next two weeks.

"We will invest around USD 650 million for the project, provided we receive the approval. It will take three to four years to start production," Ghose said, adding the company was yet to take a decision on the funding pattern. "It may be a mix of equity and debt," he said.