Food focus for Tata Chemicals
Daily News & Analysis — June 16, 2006

To diversify beyond salt and baking soda

New Delhi: Tata Chemicals appears keen to expand its food additives business. Not only is the company open to acquisitions in a bid to increase manufacturing capacity, but it has also recently begun exporting edible salt under brand name 'Tata Topp'. Moreover, it is planning to diversify beyond salt and baking soda in the food additives business.

It has also decided to accelerate marketing activities around its key brand of edible salt —Tata Salt. It will test-market one-rupee sachet packs in select markets. The company's retail network for food additives is being expanded to 18 lakh outlets this year from 13 lakh at present.

"We are looking at acquisitions within the country since we will soon reach peak capacity," Satish Sohoni, COO of the food additives business at Tata Chemicals, said.

Currently, Tata Chemicals produces 2.2 million tonnes of salt (industrial as well as edible) per annum at its plant in Mithapur, in Gujarat's Jamnagar district.

While denying that the company would be interested in acquiring capacities overseas, Sohoni said the recent exports of edible salt have been to Singapore, Yemen and southeast Asian markets.

Sohoni also said that, while the company has already taken a host of marketing initiatives for Tata Salt, it has just begun test-marketing the salt in 100g sachets for one rupee each. This test is being run in select markets such as eastern UP, Bihar and MP.