Chemical acquisition

"January 31 is an auspicious day for the Tata Group. One year ago, when Ratan Tata announced the Corus acquisition, I was sitting in the audience and one year hence I am privileged to be sitting on this side of the table, discussing a major acquisition Tata Chemicals is making on this anniversary day,” Homi Khusrokhan, managing director (MD) of Tata Chemicals Limited, told the media on January 31, 2008.

Khusrokhan was announcing the acquisition by Tata Chemicals of 100 percent stake in the soda ash business of General Chemical Industrial Products (GCIP) Inc, USA for over one billion dollars. The acquired company is one of the few manufacturers of natural soda ash (which is a significantly more economical route of producing soda ash than the synthetic route) and has access to large trona ore deposits in Wyoming.

Combined with its current capacity, the deal will make Tata Chemicals one of the largest soda ash producers worldwide. "Acquiring the US-based asset at a time when the rupee has strengthened against the dollar is a strategic business move for Tata Chemicals,” added Khusrokhan who was earlier the company’s executive director and was appointed MD in October 2006. Chairman of the board is Ratan Tata. Nusli Wadia is one of the directors.

Tata Chemicals plant at Mithapur; managing director Homi Khusrokhan

With a turnover of close to Rs 6,000 crore for the year ended March 31, ’07, Tata Chemicals is one of the largest producers of synthetic soda ash in the world, state company sources. With a significant presence in fertilizers, the company was presented on February 1, 2008 the Dun and Bradstreet — American Express Corporate Award 2007 as the top Indian company in the fertilizers sector. It is also a pioneer in branded salt. The company’s products are used in pharmaceuticals, soaps and detergents, glass, metals, textile and leather, agriculture, construction and safety and environment.

"Tata Chemicals has performed steadily…During the quarter we have also prepaid our high cost debt and borrowed at much lower levels… (this) will result in significant savings going forward,” stated Khusrokhan, commenting on the performance for the nine months ended December 31, ’07, as per the company’s website.

This is the second global acquisition for Tata Chemicals. In December 2005, the company took over Brunner Mond, UK which has soda ash facilities in Europe and Kenya.