Insides of TATA CHEMICALS

Insides of Tata Chemicals

Insides of Tata Chemicals

> Insides of Tata Chemicals

👌🏻 There’s an interesting development at Tata Chemicals.

 ✍🏻Tata Sons, the holding company of all Tata companies, is required by the RBI to list by September 2025.

> The total market value of Tata Sons’ investments is 16 lakh crore, but due to a holding discount of 50%, it will list at 8 lakh crore.

> What makes this compelling is that Tata Chemicals holds a 3% stake in Tata Sons. After listing, this stake will be worth 24,000 crore.

> Currently, Tata Chemicals has a market cap of 29,000 crore. This presents an interesting opportunity with potentially no downside if the Tata Sons listing proceeds as planned.

✍🏻 In, Tata Chemicals you’re getting an business which having

> Manufacturing Capacity:

a) India:

Company has production units in Gujarat, Andhra Pradesh, Tamil Nadu, and Maharashtra, with an installed capacity of Soda Ash ~1,091,000 MTPA, Bicarb ~150,000 MTPA,

Salt ~1,600,000 MTPA, Prebiotic ~5,000 MTPA, Speciality Silica ~10,000 MTPA

> b) International:

USA unit has an installed capacity of Soda Ash ~2,540,000 MTPA, UK unit: Soda Ash ~400,000 MTPA, Bicarb ~130,000 MTPA, Salt ~430,000 MTPA, and Kenya Unit: Soda Ash ~350,000 MTPA

> Expansion – 

The company is expanding its capacity of soda ash in Inner Mongolia. As of H1FY24, soda ash capacity stands at 4.3 million tonnes, with plans to expand to 5.3 million tonnes.

> The expansion will increase the capacity of Soda Ash to 1.85 lacs MT by H2FY24. ~2300 crs is already spent on expansion as planned. It will spend further ~600 crs by March,24.

> The company is further planning to expand capacity of soda ash by ~30%, bicarb ~40% and Silica by 5x. This is planned for ~2000 crs. between FY24-27.

> Tata chemicals Financials

> FY 23-24

Sales – 16,789 Crore

PBT – 2,740 Crore

Net Profits – 2,434 Crore

Book Value – ₹840

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