Tata Chemicals Ltd (TCL) is planning to invest Rs 110 crores in setting up a customised basal fertiliser manufacturing unit.
The world’s second largest producer of soda ash and third largest manufacturer of sodium bicarbonate, has a total capex plan of Rs 400-500 crores in 2010-11. It is planning to set up two more plants to manufacture customised fertilisers by investing Rs 55 crore each, having a production capacity of 150,000 tonnes per annum.
“Next year we are going to come out with two more units. It takes about 18 months to execute, the response in the market has been good. So we would be going ahead taking the necessary approvals,” R Mukundan, managing director, Tata Chemicals told reporters, here, while launching the customised fertiliser — ‘Paras Farmoola.’ The plant site is yet to be finalised.
Mukundan said the company might not go ahead with its Rs 3,800 crore expansion plan for manufacturing urea at Babrala in UP following a delay in the allocation of gas.
“We have been eagerly awaiting gas allocation. It is inordinately delayed and we would want the allocation to be made as soon as possible because we are reaching the end of our phase I work. The design work for phase I should be over very shortly after that we cannot go further till gas is allocated … We hope the government takes a decision soon,” he added.
“Input costs are rising significantly, putting pressure on our margins. Additionally, some unanticipated plant shutdowns primarily due to natural causes resulted in muted production volumes during the quarter. We are optimistic of improved production and sales and subsequently a stronger financial and operating performance, going forward,” he said.