Tata Chemicals has announced its Board of Directors approved an investment of ₹135 crore for the expansion of dense soda ash manufacturing capacity at its Mithapur plant and ₹775 crore for precipitated silica at its Cuddalore plant. The soda ash expansion will add 350 Kilo Tonnes per annum capacity, while the precipitated silica expansion will add 50 Kilo Tonnes per annum. The projects are expected to be completed in 24 and 27 months respectively.
Capacity Expansion Plans
The Board of Directors of Tata Chemicals has greenlit significant expansion plans for its manufacturing facilities. These strategic investments aim to bolster the company’s production capabilities in key product segments.
Soda Ash Expansion at Mithapur
An investment of ₹135 crore has been earmarked for the expansion of dense soda ash manufacturing capacity at the company’s plant located in Mithapur. This expansion is expected to add 350 Kilo Tonnes per annum to the existing capacity. The expansion is projected to be completed within the next 24 months.
Precipitated Silica Expansion at Cuddalore
Furthermore, an investment of ₹775 crore has been approved for the expansion of precipitated silica manufacturing capacity at the plant in Cuddalore, Tamil Nadu. This expansion will add 50 Kilo Tonnes per annum to the plant’s capacity. The project is expected to be completed over the next 27 months.
Rationale and Financing
The expansions are driven by the growing demand for soda ash and specialty silica. The projects will be financed through various options, including internal accruals. The expansion of precipitated silica is geared toward meeting the growing needs of the rubber and automotive tire industry.
Existing Capacity and Utilization
The current capacity for Soda Ash at Mithapur is 1,091 Kilo Tonnes per annum, with a utilization rate of 90%. The existing capacity for Precipitated Silica at Cuddalore is 13.8 Kilo Tonnes per annum, operating at 86% utilization.
Source: BSE
