Tata Chem profit doubles to Rs 221 crores

Tata Chemicals, on Friday, saw its net profit for the December quarter more than double on the back of higher volumes and a stable price environment. The Tata Group company, which has been leading the conglomerate’s efforts to bring out innovative products for the mass market, said its net profit in the quarter totalled Rs 221 crore, compared with Rs 91 crore last year. However, the company’s sales fell 28% to Rs 2,622 crore during the period. Tata Chemicals said its net profit for the quarter includes about Rs 12 crore from crop protection firm Rallis India, which became a subsidiary of the company in November. “During the period, the company witnessed demand growth in domestic as well as in international markets. However, there is a marginal pressure on the margins of some products, such as phosphatic fertilisers, due to a fall in global prices,” managing director RK Mukundan said in a statement. Tata Chemicals’ research and development division played a major role in the group’s December launch of ‘Tata Swach’, a low-cost water purifier, that could likely initiate a price war in the drinking water segment, currently dominated by consumer goods giants such as Hindustan Unilever and Eureka Forbes. Tata Chemicals owns 50.06% equity in Rallis. The Mumbai-based company was cautious last year with its expansion plan due to global demand slump. Mr Mukandan said since things have started improving, the company could revive its expansion programme. Tata Chemicals, on Friday, said it will increase manufacturing capacity for the branded salt facility by 50% and also double the capacity at its urea facility, over the next two years.

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